VILLAGE INN RESTAURANTS LAUNCHES PROGRAM TO ADD MORE THAN 100 NEW UNITS IN NEXT SEVEN YEARS (6/01)

Village Inn, a family-dining Restaurant chain of 220 locations with concentrations in the Rocky Mountain region, Midwest, Southwest and Florida, announced the launch of the first phase of the most aggressive expansion plan in its 43-year history. Experienced operators in the restaurant, hospitality and convenience store sectors are being sought to help introduce the concept to select markets that possess significant unanswered demand for family-dining establishments. These include the District of Columbia and Indiana as well as multiple metropolitan statistical areas in New Jersey, North Carolina, Pennsylvania and Virginia. The chain plans to develop each of these markets fully within the next five to seven years.

"In our expansion strategy, we intend to duplicate the successes we have realized in markets where we dominate our segment," says Frank Scherer, vice president of Village Inn development. "Therefore, we have chosen our new markets very carefully. In all of these markets, consumer propensity to dine out is above the national average and the amount of uncaptured demand for brands such as ours is extremely high."

Interested investors can obtain detailed information on available markets, financial and other qualifications by visiting www.vicorpinc.com or by calling (800) 891-9978.

Building on a Tradition of Great Breakfast

Last year, Village Inn opened six company sites and five Franchise locations. The company expects to open six more of each this year. Currently, Village Inn has development agreements in place with several existing franchisees to build 27 new restaurants in existing markets including Alaska, Colorado, Florida, Kansas and Arkansas.

Village Inn has been known for decades for its delicious menu of home-style fare, including signature breakfast foods - such as mouth-watering three-egg omelets, made-from-scratch buttermilk pancakes and specialty skillets; as well as lunch and dinner selections, unlimited hot coffee refills and a tempting variety of delicious pies; all served throughout the day. Loyal customers frequent Village Inn to enjoy its relaxed atmosphere - full-service dining at affordable prices in a family-friendly environment.

"Village Inn's mid-scale family-dining environment is among the most appealing brands in the family-dining category today," says Scherer. "We treat everyone who dines with us as though they were guests in our home and offer them a broad selection of their favorite foods throughout the day. We live by our slogan, 'Good Food...Good Feelings^®'; and we sincerely believe that consistently delivering on that promise is exactly what keeps our customers coming back again and again."

Now the company is positioning itself to stand apart from others in its segment, among other methods by introducing a new prototype. A departure from the traditional family restaurant appearance, the new Village Inn design features an attractive roofline accented by tiered awnings, a softer color scheme and lighting package, and wood tones in place of brass and glass.

"Especially as we launch this aggressive growth program," Scherer explains, "we have to ensure that our concept remains highly competitive. One way to do that is by maintaining a degree of tradition for our loyal clientele while reaching out to a broader demographic and attracting new customers."

Market leadership and nearly half a century of experience provides Village Inn with the foresight to effect such strategic change - one of the many ways franchisees can benefit from joining the Village Inn system. Franchisees also benefit from the company's proven business model, increasingly familiar brand name and consistently refined operating systems, plus support that includes: real estate and construction professionals who help evaluate available properties and customize plans to fit the demands of each location; training and operations support for both pre- and post-opening assistance; marketing and advertising support to achieve top-of-mind brand awareness among consumers; and purchasing support to help leverage Village Inn's size in negotiating optimal buying and distribution contracts.

To best implement these programs in strategically selected prime markets and help Village Inn achieve its goal of brand dominance in each one, the company is seeking franchise candidates who meet the following qualifications:

• a minimum net worth of $750,000 and $250,000 in liquid capital;
• a proven track record in the restaurant and/or hospitality industries;
• a history of business achievement;
• the drive, passion and determination to succeed in a highly competitive environment;
• an entrepreneurial spirit; and
• an unwavering commitment to follow the systems and uphold the standards that define Village Inn.

About Village Inn

Village Inn first opened in Denver, Colo., in 1958. Today, there are more than 220 Village Inn restaurants nationwide - including 116 franchise locations - serving great-tasting, home- style meals for breakfast, lunch and dinner.

Village Inn is a division of Denver-based VICORP Restaurants, Inc., operator and franchisor of more than 370 mid-scale family- dining restaurants under the Village Inn and Bakers Square names. Village Inn has prime markets available for development and is eager to award Franchises to the right candidates.