Elephant & Castle Group Inc. Reports Strong Sales At the First Canadian Rainforest Cafe

Business Wire, June 26, 1998

BURNABY, British Columbia, Canada--(BUSINESS WIRE)--June 26, 1998-- In what is believed to be a record for any restaurant in British Columbia, Canada's first Rainforest Cafe finished its first ten days of operation generating sales of $303,000.00. "The opening of this restaurant has been spectacular and has met or exceeded all of our objectives," said Martin O'Dowd, President of Elephant & Castle Group Inc., (NASDAQ:PUBSF, PACIFIC:PUB) operator of the new unit.

During the first week of operation, the 300-seat restaurant served nearly 14,000 guests or about 2,000 people per day with its signature blend of food, animatronic wildlife and entertaining special effects. "It has been a spectacular opening," said Jeffrey Barnett, President of Canadian Rainforest Restaurants Inc. "We are perhaps most excited that 97 percent of our guests said they will return. We think that speaks highly about the universal consumer acceptance of the Rainforest Cafe concept in Canada and is an encouraging sign as we continue the development of Rainforest across the Country." Through a joint venture between Elephant & Castle Group Inc. and Rainforest Cafe, Inc. of the United States, an additional four units are to be developed in Canada with the second unit opening in the Fourth Quarter 1998 in Toronto. These openings mark the beginning of an accelerated development schedule for the Elephant & Castle Group Inc.

The opening of the Rainforest Cafe by Elephant & Castle Group Inc. continues the company's program of development and diversification into lead-edge food service opportunities. In addition to the Rainforest Cafe, the company owns and operates 18 authentic British restaurant-pubs in Canada and the Unites States. The two newest Elephant & Castle restaurants opened recently in Seattle and Boston. "Adding Rainforest Cafe to our exceptional line up of restaurants allows us to offer our guests two very distinctive dining experiences," commented Mr. O'Dowd.

The $7 million, 18,000 square foot restaurant is the 19th in the Rainforest Cafe family of "eatertainment" restaurants. The award winning restaurants located in Mexico, England and the United States have set a new standard in restaurant dining. Each location recreates a Tropical rain forest complete with lush vegetation, majestic rock formations, animatronic animals and even simulated thunder and lightning.

The menu features an assortment of casual dining menu items that include pastas, salads, signature sandwiches and delectable desserts. Guests can also order freshly squeezed fruit and vegetables juices, smoothies and other refreshing drinks under the canopy of a 42-foot Mushroom.

Some of the information contained in this news release is forward looking and is subject to certain risks as described in the company's filings with the Security and Exchange Commission.

    CONTACT: Jeffrey Barnett, President,
              Canadian Rainforest Restaurants Inc.
              (604) 684-6451
              Martin O'Dowd,
              President, Elephant & Castle Group Inc.
              (612) 841-6545
              Rick Bryant,
              Chief Financial Officer, Elephant & Castle Group Inc.
              (604) 684-6451
              Wendy Lowrie,
              Investor Relations, Elephant & Castle Group Inc.
              (604) 684-6451