O'Charley's Issues 2002 Estimate

O'Charley's Inc. issued its revenue and earnings estimate and store development plans for 2002. The Company also affirmed its previously issued guidance for the fourth quarter of fiscal 2001.

The Company stated that it expects to report net earnings per share of $1.25 to $1.30 for 2002 on estimated revenues of $500 to $510 million. These projected results are based upon an anticipated comparable store sales increase of approximately 0% t 2% ad the opening of 18 to 22 new O'Charley's restaurants and two new Stoney River restaurants. These projected results exclude any possible impact to earnings related to transitional impairment charges associated with the adoption of SFAS No. 142, Goodwill and Other Intangible Assets. The Company is currently evaluating the impact of the adoption of this standard and has not yet determined the effect of adoption on its results of operations.

O'Charley's affirmed its guidance of net earnings of $0.23 to $0.25 per diluted share on estimated revenues of $102 to $105 million for the fourth quarter ending December 30, 2001. The fourth quarter of fiscal 2001 consists of 12 weeks compared with 13 weeks in the fourth quarter of fiscal 2000. These projected results for the fourth quarter are based upon an anticipated same store sales increase of approximately 1% t 2%, hree new O'Charley's restaurants that have already opened during the fourth quarter, which brought the total for 2001 to 24 new O'Charley's restaurants, and the effect of the 2.3 million additional outstanding shares resulting from the public offering in April 2001.

The Company also announced that it has completed the feasibility study on Franchising its O'Charley's Restaurant concept.

O'Charley's Inc. operates 161 casual-dining, full-service O'Charley's restaurants in 14 states in the Southeast and Midwest. The menu, with an emphasis on fresh preparation, features several specialty items such as hand-cut and aged steaks, fresh seafood, chicken that is always fresh and never frozen, popular homemade yeast rolls, a variety of fresh-cut salads with special-recipe salad dressings and their signature caramel pie. In addition, the Company currently operates three Stoney River Legendary Steaks restaurants with two locations in Atlanta, Georgia, and one location in Chicago, Illinois.