BRAND EVOLUTION FUELS GROWTH SPURT FOR HOULIHAN'S

Legendary Restaurant Chain to Open 25 New Locations in 2005 Alone

Feeding the changing tastes of consumers, Houlihan's Restaurants, Inc. revealed today the rollout of a contemporary new décor, stylish uniforms, indie music mix and unique menu format for current and future restaurants. Houlihan's also announced it has inked nearly 60 new Franchise deals in the past 12 months and will open 20-25 new restaurants before 2005 comes to a close.

Houlihan's will introduce a new prototype design for all future locations, drawing from current dining and entertainment trends. In June 2005, a Pittsburgh location will be the first to open with a design inspired by the new prototype's direction, while a Chicago-area location opening later this fall will feature the new design from the ground up.

Houlihan's also recently introduced more than 20 new menu items, including an eclectic selection of classic dishes infused with bold and interesting flavors, such as white fish tacos, Thai chile Buffalo wings, a calamari salad tossed with Napa cabbage, cashews and a house banana-ginger vinaigrette. Houlihan's also added a series of mini desserts priced at $1.99. In the bar, the "mini" theme continues with items such as mini martinis served in flights of three and "Mini Guinnies" consisting of small-sized drinks made with Guinness Stout. A new wine list seeks to "entertain rather than intimidate," and Luxe edition cocktails made with premium spirits are also offered.

Executives for Houlihan's, one of America's most popular classic eateries for more than 30 years, say the record number of signed deals for new restaurants includes both existing franchisees who are upping for more territories, as well as new prospects wanting to align themselves with the Houlihan's brand.

"Many of our longtime franchise owners see their bottom lines improving, and they see great things for the Houlihan's brand of the future. They want to purchase more locations and territories now while they can," said Bob Hartnett, President and CEO of Houlihan's Restaurants, Inc.

Established in 1972, Houlihan's today operates 77 restaurants throughout the country, including 26 corporate and 51 franchised locations. Of the 25 new locations Houlihan's plans to open in 2005, 18 would be Franchises and seven would be corporate-owned.

"This is an exciting time for Houlihan's," said Hartnett, noting that Houlihan's plans to have a total of 300-400 restaurants operating within the next 10 years. "Houlihan's has always set the pace for casual dining concepts by being ahead of its time with a socially-charged atmosphere and innovative menu. The Houlihan's advantage is staying abreast of consumer trends and continually evolving to remain relevant and street smart, from our food to our barware to promotions and all we do."

Houlihan's restaurants have a loyal following coast-to-coast, from Massachusetts to California . New locations are set to open soon in Philadelphia , Pittsburg , Long Island, Orlando , Chicago and Kansas City .

Hear the Difference

A series of new branding elements giving Houlihan's an updated feel has contributed to renewed franchise growth, said Jen Gulvik, Creative Director for Houlihan's Restaurants, Inc. "Our positive sales growth and renewed focus on brand building has created a buzz and excitement about the company both internally and externally," Gulvik said. For example, Houlihan's now sports a sleek, stylish menu format with metal covers manufactured by Zahner Architectural Metals, the company that produces metal panels used by internationally noted architect Frank Gehry. In addition, to encourage individual expression and style, Houlihan's has introduced new uniforms for servers and bartenders - dark denim jeans and a variety of smart, casual long and short-sleeved message t-shirts, allowing staff to accessorize as desired with belts, brooches, scarves, jewelry, etc. "We want employees to feel great in their own skin and confident in front of our guests," she said.

In addition to visual changes, guests will also "hear" a difference at Houlihan's. Leveraging music to help further define the Houlihan's brand with a contemporary sound experience, featured music consists of carefully chosen playlists including indie pop, modern soul, adult alternative, light electronica and underground hip hop genres typically overlooked by mainstream radio.

"Houlihan's playlist (the `H list) will expose patrons to music that they normally wouldn't hear while listening to the radio," Gulvik said. "We've designed an eclectic mix that offers a little familiarity but a little adventure as well, consistent with our overall dining experience." Energy level varies by daypart and gradually increases as the restaurant moves from lunch to late night, according to Gulvik, noting that Houlihan's playlists change monthly and are made available to download as an iMix on Apple's iTunes website, in addition to being featured in the menu. Gulvik emphasized that Houlihan's will continue to offer customers its classic menu, punched up with bold and ethnic flavor profiles, as well as its new quick-lunch campaign called "The Nooner." Encapsulating the entire enhanced Houlihan's experience, she pointed to a slogan printed at the opening of the menu: "A meal is a whole lot more than food on a fork."

"A meal at Houlihan's extends beyond great food at the table - it's an experience designed to satisfy mind, body and spirit, be it grooving to tunes, tasting something new or even sharing a few laughs with the bartender and savoring the moment."

About Houlihan's

A pioneer in the full-service casual dining industry since 1972, Houlihan's menu features a stylish mix of contemporary pop American cooking classic dishes reinvented in a fresh, modern way. Signature indulgences include mini desserts, fresh-baked breads and cocktails such as martini flights which encourage trial as well as fun. With 77 Houlihan's-branded restaurants operating nationwide, Houlihan's is owned by Houlihan's Restaurants, Inc. of Leawood , Kansas , which owns several restaurant concepts including Bristol Seafood Grill and Bar/ J. Gilbert's Wood-Fired Steaks and Darryl's Restaurant & Bar that comprise nearly 100 locations coast to coast.