Back Yard Burgers Acknowledges Receipt of Letter from Cherokee Advisors, LLC

Back Yard Burgers, Inc. (NASDAQ: BYBI) today confirmed
that the Board of Directors of Back Yard Burgers received a letter
from Cherokee Advisors, LLC dated April 28, 2006, expressing an
interest in acquiring Back Yard Burgers. Based on the Board's
evaluation of the proposal, on May 18, 2006, the Board determined that
pursuing the proposal was not in the best interests of Back Yard
Burgers or its stockholders. The Board's determination was based, in
part, on Cherokee Advisors' failure to substantiate in a form
acceptable to the Board that Cherokee Advisors had sufficient capital
and funding necessary to perform its obligations under a merger
agreement and fund the proposed transaction. The Board also based its
decision on Cherokee Advisors' failure over a period of many weeks to
execute a customary confidentiality agreement, which the Board
required as a condition to the negotiation of a merger agreement.
   "In reviewing Cherokee's letter of April 28, 2006, the Board was
concerned that the timing of Cherokee's proposal could disrupt the
Board's plans to retain a new CEO," said Back Yard Burgers Chairman
Lattimore M. Michael. "Our initial concerns about the timing of
Cherokee's proposal are heightened by the proximity of Cherokee's SEC
filing on June 5, 2006, to our annual franchisee meeting next week,"
Mr. Michael continued.
   The Board of Directors will continue to review any proposals from
Cherokee Advisors in accordance with its fiduciary duties.

   Back Yard Burgers operates and franchises quick-service
restaurants in 20 states, primarily in markets throughout the
Southeast region of the United States. The restaurants specialize in
charbroiled, freshly prepared, great-tasting food. As its name
implies, Back Yard Burgers strives to offer the same high-quality
ingredients and special care typified by outdoor grilling in the
backyard. Its menu features made-to-order gourmet Black Angus
hamburgers and chicken sandwiches - charbroiled over an open flame,
fresh salads, chili and other specialty items, including hand-dipped
milkshakes, fresh-made lemonade and fresh-baked cobblers.