LRG Restaurant Group to Acquire Havana Cigar Co. and Cigarz

Business Wire, Feb 17, 1998

ALTAMONTE SPRINGS, Fla.--(BUSINESS WIRE)--Feb. 17, 1998--Gerald C. Parker, CEO of LRG Restaurant Group Inc. (OTC BB:LRGI) announced that a binding Letter of Intent has been signed between LRGI and Havana Cigar Co., Cigarz On The Avenue and Cigarz On Church Street, and their subsidiaries, detailing the acquisition on a stock for stock basis.

These transactions are subject to a standard due diligence and approval by the shareholders of the companies.

Under the terms of the Letter of Intent, LRGI will exchange an undisclosed amount of its common shares for all of the outstanding stock of Havana Cigar Co., Cigarz On The Avenue, and Cigarz On Church Street and the shares exchanged will be restricted under Rule 144 under the Securities Act of 1933.

Parker stated, "These acquisitions fit into LRG's plan to diversify into those businesses which offer above average opportunity for long-term growth and profitability."

Havana Cigar Co. established in 1995 operated a cigar of the month club and acquired Premier Cigar Co. in March of 1996. In June of 1997 they opened the Blue Smoke Cigar retail cigar store in Clearwater, Fla., which was its first retail location. The other two locations, Cigarz On The Avenue is located in Winter Park, Fla., and Cigarz On Church Street is located in downtown Orlando, Fla.

"Cigarz" trade name, will be used to establish the company as a premier retailer, wholesaler and mail order supplier of premium cigars. The retail shops encompass a retail showroom, large walk-in humidor, storage and shipping area. The three retail outlets are located in retail and entertainment districts and the combined revenues are expected to be in the two plus million-dollar range with excellent profit margins.

Bryan Cook, president of Havana Cigar Co. and Mark Angelo, president of Cigarz will remain with the company (the two operations will be combined) and will be responsible for the management and direction of its future growth.

Bryan Cook and Mark Angelo stated jointly that: "We look forward to a very beneficial and long-term relationship with LRG and its management team. By joining forces with LRG we will have access to the required working capital which will allow us to acquire existing locations and/or build new locations in major cities throughout the US."

Also, LRG recently announced its intended acquisition of Satellite International Telecom, LC, an international telecommunication service company. LRG also holds a major position in Crabby Bill's Restaurants Inc.

LRG Restaurant Group Inc. Gerald C. Parker CEO

CONTACT: LRG Restaurant Group Inc.

Patricia M. LoDolce, 407/860-4883