Advantica to Focus Exclusively on Denny's Brand

Advantica Restaurant Group, Inc. announced that the future direction of the Company will focus exclusively on its Denny's brand, historically the cornerstone of the Company and America's largest full service restaurant chain. The Denny's-brand-only strategy will include efforts to increase significantly the number of Denny's restaurants owned and operated by franchisees.

The Company has retained the firm of Donaldson, Lufkin & Jenrette Securities Corporation to commence immediately exploring strategic alternatives, including a possible sale or recapitalization, for its FRD subsidiary which houses its Coco's and Carrows brands.

As part of the "One Company, One Brand" strategy, the Company has also taken initial actions to merge and streamline its corporate overhead structure with the Denny's organization. Accordingly, James B. Adamson will serve as chairman and chief executive officer of the Company, and John Romandetti has resigned as chief executive officer of Denny's. Staff reductions and a new information systems outsourcing agreement are expected to reduce general and administration costs by approximately $15 million on an annualized basis.