Chester's International Franchise Breaks into the Central American Market with First Franchise Agreement in Honduras

Chester's International, LLC, an emerging leader of quick service Restaurant (QSR) concepts internationally, has signed its first Franchise in Central America with a multi-unit development agreement in Honduras. The agreement with one of the region's strongest retail groups signals a strong start in the company's franchise expansion into Latin America. Chester's will team with The Mendez Group's MCC Restaurantes, S.A. to develop five Chester's franchised locations in Honduras. The stores will open in conjunction with existing and future Mendel's department stores throughout the country. Mendel's is the cornerstone brand of The Mendez Group's retail holdings. The first Chester's franchised restaurant in Honduras is scheduled to open in July 2006 in the food court of a Mendel's anchored shopping center located at the Centro Comercial El Dorado in Tegucigalpa, Honduras.

"The Mendez Group and their Mendel's department store chain is a great fit for our Chester's brand," said Chester's President Russ Cooper. "Our great tasting chicken should find a loyal following among patrons of Mendel's. We intend for this first group of five stores to be a launching point for our successful relationship with The Mendez Group."

The Mendes Group originally planned to open five locations over the next five years. However, the company recently announced plans for accelerating the Chester's restaurant development timeline, now aiming to open all five stores in the next two years.

"We are eager to open our first Chester's and begin development of future locations immediately," said Orlando Mendez, vice president of The Mendez Group. "We are confident in the success these locations will see and excited for the quality foodservice we're able to offer our retail customers."

Chester's International, previously a licensed QSR concept operating under the Chester Fried brand name, changed its name to Chester's International when it shifted its business model to a franchise program in June 2004. Chester's currently operates a total of 1,785 locations. Under the new business model, Chester's seeks to add a total of 500 Franchises within five years. This expansion includes a concerted business development campaign to recruit qualified franchisees in Latin America and the Caribbean basin.

"The opening of our first franchised restaurant in Honduras is a great opportunity for our expansion in the region, and we are in discussions with more quality franchise partners to continue our growth throughout Latin America," said Mr. Cooper.

About Chester's International, LLC.
Chester's International, LLC is an emerging leader of quick serve restaurant (QSR) concepts with more than 1,700 Chester Fried licensed and Chester's franchised locations. Chester's offers high quality, great tasting products, flexible size and store layout options, training and support. Chester's uses only fresh chicken that is specially marinated and double-breaded using a proprietary family recipe and offers bone-in, tenders and potato wedges as well as sandwiches, wraps, salads, breakfast and sides.