Stacey's Buffet Inc. Announces Sale of Three Restaurants; Repayment of Debt; and Termination of Strategic Alliance

Business Wire, Feb 17, 1998

CLEARWATER, Fla.--(BUSINESS WIRE)--Feb. 17, 1998--Stacey's Buffet Inc. (NASDAQ:SBUF) Tuesday announced the sale to Star Buffet Inc. of Salt Lake City, of three Stacey's Buffet restaurants.

Proceeds from the $1.1 million transaction were used to repay $710,000 of loans that Stacey's had previously received from Star, and $390,000 of fees and expenses charged to Stacey's by Star pursuant to the Stacey's/Star strategic alliance announced in October 1997. In addition, Stacey's announced the termination of that strategic alliance.

Stacey's also announced the resignations of Robert Wheaton and Theodore Abajian from Stacey's board of directors, and Wheaton's resignation as chief executive officer of Stacey's. Messrs. Wheaton and Abajian are the chief executive and chief financial officers, respectively, of Star, and their nominations to the board of directors of Stacey's had been part of the Stacey's/Star strategic alliance.

Peter J. Hurley, a member of Stacey's board of directors, has been elected the interim chief executive officer of Stacey's while Stacey's undertakes a search for a permanent successor. Hurley stated that, "Stacey's Buffet is also undertaking steps to develop one or more relationships with other companies to reposition Stacey's to maximize shareholder value."

Stacey's Buffet currently operates 16 family style buffet restaurants in Florida, New Jersey and Pennsylvania and licenses one additional store in the State of Florida.

CONTACT: Stacey's Buffet Inc., Clearwater

Maureen Jack, 813/507-0335, ext. 12