Hard Rock International Releases 2004 Year-End Earnings Report

Hard Rock International Releases 2004 Year-End Earnings Report



ORLANDO, Fla., Feb. 25  /PRNewswire-FirstCall/ -- Hard Rock International today
announced its earnings for 2004 as part of a report issued by its parent
company, The Rank Group Plc (NASDAQ:RANKY).

Hard Rock's total revenues for the year were $426 million versus $382 million
for 2003 -- a growth of 11.5%. Operating profit showed a 35.3% increase with
$51.0 million for 2004 versus $37.7 million for the same period in 2003, prior
to exceptional items.

"Hard Rock Cafe's like-for-like sales returned to positive territory in 2004,
and investments made in extending the brand into hotels and casinos are now
starting to deliver real returns to Hard Rock," said Hamish Dodds, president
and CEO of Hard Rock International. "Against a background of improving
performance in the cafes, at the conclusion of 2004 there was more than $1
billion of third party investment in Hard Rock branded casino and hotel
developments which delivered solid contributions to our 2004 results. As we
look forward to 2005, we are already engaged in a number of exciting new
projects which we are confident will continue to enhance the value of our brand
throughout the world."

Restaurant Performance

Overall cafe sales were up by 9.0% versus the same period last year. In the
company-owned cafes, like-for-like sales for the year were up 0.4% driven by a
recovery in Europe +4.9%, while North America was slightly below last year
(-1.0%).  Overall food and beverage sales were up 3.4% and merchandise sales
were down 5.0%.

Profits from company-owned cafes increased 18.7% contributing $47.2 million for
2004 versus $39.8 million for 2003, prior to exceptional items. The improvement
in profitability was particularly notable in the second half of the year and
reflects the results of a detailed review and reassessment of cafe performance
with an improved focus on margin management.  Additionally, profits from
franchised cafes and other income increased 4.1% with $9.9 million for 2004
versus $9.5 million for 2003.

Within Hard Rock Cafe, four new company-owned locations opened this year - in
Bristol, United Kingdom in April, Louisville, Kentucky in May, Destin, Florida
in July, and at the Foxwoods Resort Casino in Connecticut in August. The Fort
Lauderdale cafe was relocated to within the larger of the two Seminole Hard
Rock Hotel and Casinos, in Hollywood, Florida and opened in May 2004.  Also in
November, after 20 years on its 57th Street site, Hard Rock International
announced its New York cafe is relocating to Times Square during the third
quarter of 2005. In its new location, the cafe is set to become a New York
landmark featuring a 700-seat restaurant, a 1,500 square-foot retail shop and a
live music area for concerts and special events.

Eight new franchised cafes opened in 2004.  In Europe, new cafes opened in
Catania, Italy, in February, Dublin, Ireland in June, Athens, Greece in
September and Gothenburg, Sweden in December. South/Central America also had
franchise growth with the openings of Buenos Aires, Argentina in May and Panama
in September.  The Middle East also had two franchised openings including
Hurghada, Egypt and Kuwait City, Kuwait, in November.  In 2005, new franchised
cafes are scheduled to open in Belo Horizonte (Brazil), Canary Islands, Caracas
(Venezuela) and Santo Domingo (Dominican Republic), with additional franchise
deals in various stages of development.

Hotel and Casino Performance

Hotel and casino franchise income contributed profits of $18.1 million in 2004,
reflecting another good performance by the Orlando hotel, dividends from the
Group's interest in the Universal Rank Hotel partnership in Orlando, fees
relating to the hotel joint venture with Sol Melia and the first time
contribution of fees from the two Seminole hotel and casinos that opened in
Tampa and Hollywood, Florida. Continued record occupancy and room rate at the
Orlando hotel coupled with solid performances at the two major hotel and casino
developments on the Seminole Tribe of Florida's properties are indications of
Hard Rock's true potential as a hotel and casino brand.  The Seminole Hard Rock
Hotel and Casinos were only open for a partial year, and a full year's
contribution will be a further boost to performance in 2005.

The hotel joint venture with Sol Melia announced in July its plan to open a
Hard Rock Hotel in New York City in 2006.  The Paramount Hotel will, after
undergoing a major refurbishment, operate under the Hard Rock Hotel brand and
become the third hotel within the joint venture -- Chicago opened in January
2004 and San Diego, a franchised hotel, is expected to open in 2006.  In
November, the joint venture announced Europe's first Hard Rock Hotel in Madrid.
 Scheduled to open in late 2005, the Tryp Reina Victoria Hotel, in the heart of
Madrid's old city, will be refurbished and re-branded Hard Rock Hotel Madrid,
offering the finest services and facilities for both business and leisure
travelers.

The $235 million development of the new Hard Rock Hotel and Casino in Biloxi,
Mississippi, is well underway and on track to open in the third quarter of
2005.  The company continues to explore other opportunities to license the Hard
Rock brand for gaming projects both in the United States and internationally,
and recently hired a seasoned gaming executive Michael Soll as Vice President
of Casinos to further this strategy.

Exceptional items

Hard Rock, following a detailed review of asset portfolio and in furtherance of
its focus on its core businesses, decided to relocate a number of key cafes,
starting with New York, to close The Vault, a rock and roll museum in Orlando,
and to write down a number of underperforming cafe units. The effect of these
actions has meant that an exceptional charge of $57.0 million has been included
in the 2004 results.

Hard Rock International, one of the most globally-recognized music,
entertainment and dining brands, has 122 signature Hard Rock Cafes in 41
countries and owns the world's greatest collection of music memorabilia. Known
for its collectible and fashion merchandise, live concerts, Hard Rock Live
performance venues, hardrock.com and Hard Rock Hotels and Casinos, Hard Rock
International, Inc. is a wholly-owned subsidiary of London-based The Rank Group
Plc (NASDAQ:RANKY).  For more information on Hard Rock, visit
http://www.hardrock.com/. 

DATASOURCE: Hard Rock International



CONTACT:  John Gogarty or Deborah Sierchio, both of Coyne PR,

[phone], for Hard Rock International



Web site:  http://www.hardrock.com/ 

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