EDEN PRAIRIE, Minn., May 12 /PRNewswire/ -- Buffets, Inc. (Nasdaq: BOCB) announced today that its Board of Directors has authorized the expenditure of up to $40,000,000 for the purchase of outstanding shares of Buffets, Inc. common stock, to be effected from time to time in transactions on the Nasdaq National Market or otherwise. The company has approximately 45,398,981 shares of common stock outstanding. The company also announced that it has reached an agreement in principle to purchase 11 Country Harvest Buffet restaurants from Country Harvest Buffet Restaurants, Inc. of Seattle, Washington. Of the 11, 7 are located in California, 2 in Washington, 1 in Colorado and 1 in Montana. The transaction is expected to close in June, 1998, subject to the satisfaction of certain conditions, including the approval of the Federal Bankruptcy Court overseeing the Chapter 11 bankruptcy proceedings involving Country Harvest. With respect to the acquisition, Buffets, Inc.'s Chairman and Chief Executive Officer Roe Hatlen stated, "We are very pleased that we have reached a tentative agreement regarding the acquisition of these restaurants. The locations fit in nicely with our existing restaurants and represent a strategic addition to our company." Buffets, Inc. is the largest operator of buffet style restaurants, with 364 restaurants (245 Old Country Buffet(R), 113 HomeTown Buffet(R), 4 Original Roadhouse Grill(SM), 1 PIZZAPLAY(SM), and 1 Country Roadhouse Buffet & Grill(SM)) in 34 states and franchises 24 restaurants (5 Old Country Buffet and 19 HomeTown Buffet) in ten states. This press release contains forward-looking statements, including statements regarding potential purchases by the Company of Buffets, Inc. common stock, and a possible transaction involving the purchase of Country Harvest Buffet restaurants. Although the Board of Directors has authorized the purchase of Company common stock, there is no certainty that such purchases will occur, or at what level. Furthermore, with respect to the prospective Country Harvest Buffet restaurant purchase, it is possible that the approvals necessary to close the transaction may not transpire, or that the ultimate transaction with the seller may differ materially from the disclosures in this press release. To receive a copy of this release via fax, please call "Company News On-Call" 1-800-758-5804 extension 122825, or on the Internet at: http://www.buffet.com
SOURCE Buffets, Inc.