Eateries, Inc. Receives $9,101,495 Award and Fees From J.R. Simplot Company

Eateries, Inc. Receives $9,101,495 Award and Fees From J.R. Simplot Company 


EDMOND, Okla., Oct. 28  /PRNewswire-FirstCall/ -- Vincent F. Orza, Jr., Chairman
and Chief Executive Officer of Eateries Inc.,  (BULLETIN BOARD: EATS)  today
announced the receipt of its $8,584,932 judgment from the J.R. Simplot Co.  The
payment was in addition to the previous payment of $516,563 for legal fees and
costs bringing the total judgment and fees paid to Eateries at $9,101,405.  The
payments finalize Eateries' more than five year battle with Simplot.

The suit stemmed from Simplot's July 1998 shipment of contaminated chili
rellenos to four of Eateries Phoenix restaurants that caused customers to become
ill.  With the assistance of the Maricopa County Health Department, Eateries,
Inc. was able to determine the cause of the food poisoning was the J.R. Simplot
product.  Eateries' restaurants were the focus of a barrage of negative
newspaper and television news coverage as a result of the Simplot
contamination.

Eateries, Inc. sued Simplot in Oklahoma state court to recover damages incurred.
 Simplot had the case removed to United States District Court for the Western
District of Oklahoma.  Simplot then admitted liability and after a bench trial
on damages, the district court awarded Eateries $6.5 million, plus attorney's
fees and costs.  Both sides filed motions to amend the award and after
considering those motions, the district court entered an amended judgment
increasing Eateries' award to $8.4 million plus attorney's fees and costs.

Simplot appealed that judgment to the Tenth Circuit Court of Appeals and
Eateries cross appealed.  The Tenth Circuit Court of Appeals affirmed $8.2
million of the judgment along with $355,644 in interest, the previously paid
$516,563 in legal fees and an additional $25,000 in legal fees bringing the
total judgment to more than $9.1 million.

"The last five years have been devastating for Eateries, Inc.  We have spent
millions of dollars rebuilding the reputation of the restaurants affected by
Simplot's actions.  Recovering some of that money is gratifying but repairing
the damage done to the reputation of the restaurants and our shareholder value
will take much longer.  The lesson other restaurants should learn from our
experience is simple.  Vendor relations are unpredictable when things go wrong,"
said Eateries Chairman & CEO, Vincent Orza.

Eateries, Inc., is headquartered in Edmond, Oklahoma, and owns, operates,
franchises, and licenses 61 restaurants in 20 states under the names Garfield's
Restaurant and Pub, Garcia's Mexican Restaurants and Pepperoni Grill.  For
additional information, contact Vincent F. Orza, Jr. at 405-705-5000.

From time to time, the Company may publish forward-looking statements relating
to certain matters including anticipated financial performance, business
prospects, the future opening of Company-owned and franchised restaurants,
anticipated capital expenditures, and other matters.  All statements other than
statements of historical fact contained in this press release or in any other
report of the Company are forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides a safe harbor for forward-looking
statements.  In order to comply with the terms of that safe harbor, the Company
notes that a variety of factors, individually or in the aggregate, could cause
the Company's actual results and experience to differ materially from the
anticipated results or other expectations expressed in the Company's
forward-looking statements including, without limitation, consumer spending
trends and habits; competition in the casual dining restaurant segment; weather
conditions in the Company's operating regions; laws and government regulations;
general business and economic conditions; availability of capital; success of
operating initiatives and marketing and promotional efforts; and changes in
accounting policies.  In addition, the Company disclaims any intent or
obligation to update those forward-looking statements. 

DATASOURCE: Eateries, Inc.



CONTACT:  Vincent F. Orza, Jr. of Eateries, Inc., [phone]



Web site:  http://www.eats-inc.com/ 

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