Elephant & Castle Group Inc. Issues Announcement

Business Wire, Feb 28, 2000

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Feb. 28, 2000

Elephant & Castle Group Inc. (Nasdaq:PUBSF)(PCX:PUB) common stock will continue to be listed on The Nasdaq SmallCap Market subject to a cure period to allow it to meet the minimum bid price requirement.

While Elephant & Castle Group Inc. failed to meet the minimum bid requirement as of Sept. 3, 1999, the Company was granted a temporary exception from this standard subject to Elephant & Castle Group Inc. meeting certain conditions. The exception will expire on March 27, 2000. In the event the Company is deemed to have met the terms of the exception, it shall continue to be listed on The Nasdaq SmallCap Market. The Company believes that it can meet these conditions, however, there can be no assurance that it will do so. If at some future date the Company's securities should cease to be listed on The Nasdaq SmallCap Market, they may continue to be listed in the OTC-Bulletin Board. For the duration of the exception, the Company's Nasdaq symbol will be (PUBFC).

An Extraordinary General Meeting of shareholders has been called for March 23, 2000, at which time a proposal for a 1 for 2 share consolidation will be considered. "Additionally, the Company intends to take other business actions intended to enable it to meet the minimum bid price requirement now and in the future," said Rick Bryant, president of the Company.

Elephant & Castle(R) Group Inc. is the largest operator and franchisor of authentic British-style pubs with 23 locations throughout North America. In addition, the Company owns and franchises the Southwestern-theme restaurant concept called Alamo Grill(TM), currently located at the Mall of America in Bloomington, Minn., Franklin Mills Mall in Philadelphia, Pa. and College Park, Atlanta. Elephant & Castle Group Inc. also has a joint venture agreement with Rainforest Cafe Inc. (Nasdaq:RAIN) to develop and operate the Rainforest Cafe restaurant and retail facilities in Canada.

This news release (as well as information included in oral statements or other written statements made or to be made by the Company) may contain forward-looking statements, such as statements relating to future expansion, that involve risks, and uncertainties relating to future events. Actual events or the Company's results may differ materially from the results discussed in the forward-looking statement. The Company does not expect to update forward-looking statements continually as conditions change. These risks and uncertainties include, but are not limited to, those relating to competition, fluctuations and changes in consumer preferences and attitudes, intellectual property protection, development and construction activities. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the company's Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended Dec. 28, 1998.