Back Yard Burgers Reviewing Historical Stock Option Practices

  
    
  
  
    
      Back Yard Burgers, Inc. (NASDAQ:BYBI) announced today that it has 
      recently begun reviewing the company’s 
      historical stock option practices over the past several years. 
      Management initiated the review, which is now being overseen by the 
      audit committee of the board of directors with the assistance of outside 
      legal counsel. Although the exact impact to the company’s 
      historical financial statements is not yet known, the review could 
      result in non-cash adjustments to certain prior-period financial 
      statements. The company also stated that it may not complete its review 
      prior to November 14, 2006, the due date for its Form 10-Q for the third 
      quarter of 2006, and in such event, the company will file a report with 
      the SEC on Form 12b-25 indicating a delay in filing its quarterly report.
    
    
      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.
    
    
      Forward-Looking Statements
    
    
      This press release contains forward-looking statements concerning Back 
      Yard Burgers’ review of its historical stock 
      option practices. There can be no assurance concerning the outcome of 
      this review. Forward-looking statements are made as of the date of this 
      release, and, except as required by law, the company does not undertake 
      an obligation to update its forward-looking statements to reflect future 
      events or circumstances.
    
  
Back Yard Burgers, Inc. (NASDAQ:BYBI) announced today that it has
recently begun reviewing the company's historical stock option
practices over the past several years. Management initiated the
review, which is now being overseen by the audit committee of the
board of directors with the assistance of outside legal counsel.
Although the exact impact to the company's historical financial
statements is not yet known, the review could result in non-cash
adjustments to certain prior-period financial statements. The company
also stated that it may not complete its review prior to November 14,
2006, the due date for its Form 10-Q for the third quarter of 2006,
and in such event, the company will file a report with the SEC on Form
12b-25 indicating a delay in filing its quarterly report.

   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.

   Forward-Looking Statements

   This press release contains forward-looking statements concerning
Back Yard Burgers' review of its historical stock option practices.
There can be no assurance concerning the outcome of this review.
Forward-looking statements are made as of the date of this release,
and, except as required by law, the company does not undertake an
obligation to update its forward-looking statements to reflect future
events or circumstances.