Main Street and Main Incorporated completes equity offering; Offering Proceeds To Reduce Long-Term Debt and Interest Expense; Proceeds to Also Be Used for New Store Openings

Business Wire, Oct 10, 1995

PHOENIX, AZ--(BUSINESS WIRE)--OCTOBER 10, 1995--MAIN STREET AND MAIN INCORPORATED (Nasdaq NM Symbol: MAIN), the nation's largest franchisee of T.G.I. Friday's restaurants, today announced that it has completed its previously announced 3,750,000 common share offering. Main Street will use proceeds of the offering to retire and restructure debt and to develop new stores.

Joe Panter, President of Main Street, stated, "We are very pleased to have completed the offering which has enhanced our balance sheet and capital structure. As a result of the repayment of debt to TGI Friday's Inc. and other debt restructurings, we will reduce our interest expense by approximately $350,000 on a quarterly basis, which will improve pre-tax earnings. While we still foresee reporting a loss for the third and fourth quarters, we believe that new restaurant openings, combined with anticipated improved operating results at existing restaurants and the reduced interest expense, will improve profitability in the coming year."

The Company noted it intends to open seven stores by the end of 1996.

MAIN STREET AND MAIN INCORPORATED is the world's largest T.G.I. Friday's franchisee, operating 40 T.G.I. Friday's restaurants throughout the western United States.

CONTACT: Robert McGeorge

VP, Corporate Development

(602) 852-9000

or

Lippert/Heilshorn & Assoc.

Richard Foote/Jeffrey Volk

(212) 838-3777