Landry's Restaurants, Inc. Announces Acquisition of Saltgrass Steak House Restaurants From MetroNational

Company Acquires Popular Casual Texas Steakhouse Chain

Sep 11, 2002, 01:00 ET from Landry's Restaurants, Inc.

    HOUSTON, Sept. 11 /PRNewswire-FirstCall/ -- Landry's Restaurants, Inc.
 (NYSE:   LNY) announced today that it has entered into a definitive agreement to
 acquire the 27 unit Texas-based Saltgrass Steak House and Seafood restaurants
 from MetroNational Corporation for $75 million.  The acquisition is expected
 to close within 30 days.
      MetroNational, a privately held real estate investment, development and
 management company headquartered in Houston, Texas, is active in commercial,
 healthcare, land development, retail, hospitality and residential projects,
 and is the owner/developer of such premier projects as Memorial City and
 Memorial City Mall, Memorial-Hermann-Memorial City Hospital, Spring Showdows,
 Stablegate, Centerfield, Pine Crest Golf and Baseball USA.  In 1995,
 MetroNational became the financial partner of Saltgrass which allowed for its
 accelerated growth.
     According to Tilman J. Fertitta, Landry's Restaurants, Inc. Chairman,
 President and CEO, "We believe that the Saltgrass Steak House concept has the
 potential to perhaps be the best strategic acquisition since we purchased the
 original Joe's Crab Shack restaurant in 1994.  That is how confident and
 excited we are with this transaction.  The Saltgrass Steak House restaurants
 are well known for their fun atmosphere and quality steaks.  Since they are
 based in our home market, we have closely watched their successful expansion
 in the key Texas markets.  The high unit volumes and casual energetic concept
 works well in proximity to our Joe's Crab Shack restaurants.  In fact, four of
 the Saltgrass locations are closely situated to our Joe's Crab Shacks.  The
 steak concept complements Landry's existing portfolio and offers potential
 future development of Joe's Crab Shacks and Saltgrass Steak Houses at mutual
     Mr. Fertitta further noted that the popularity of steakhouses remains
 strong.  Of the 50 top growth chains, 13 of them, including Saltgrass Steak
 House, specialize in beef, with check averages ranging from $8.99 to over $70.
 Saltgrass restaurants' check average is approximately $19.
     The Saltgrass Steak House restaurant chain has become well known in Texas
 for its fun, casual decor, excellent steaks and seafood, and it's friendly,
 attentive service.  Saltgrass Steak House has also garnered the attention of
 the restaurant industry, rising to inclusion among Restaurant Hospitality's
 50 fastest growing full service restaurant chains in America, and inclusion in
 the top 10 highest average unit sales volumes.
     "The quality of the Saltgrass Steak House operations exceeds in every
 measurable category," said Richard Ervin, Executive Vice President of
 Operations.  "Those managing the Saltgrass business have truly excelled and
 developed an outstanding reputation for quality and consistency.  We look
 forward to participating in their ongoing success, and together growing and
 expanding the concept."
     Mr. Wayne Hays, Chief Operating Officer for MetroNational expressed his
 support of the transaction as well.  "Saltgrass Steak House is one of the best
 performing steakhouse concepts in the country," he said.  "Under
 MetroNational's ownership, we have grown the Company to 27 successful high
 volume restaurants throughout Texas.  Now it is time to transition ownership
 from a financial to a strategic owner.  Landry's, under the leadership of
 Tilman Fertitta, is the right company to take the Saltgrass concept forward to
 become a national chain."
     In the purchase, Landry's will acquire all of the outstanding common stock
 of Saltgrass and certain real estate.  Landry's expects the Saltgrass
 restaurants to add approximately $100 million of annual sales and $13 million
 in annual cash flow, after corporate general and administrative overhead, but
 before financing costs and taxes.  In addition, Landry's expects the
 acquisition to be accretive to the Company's 2003 earnings by up to $.08 per
     The acquisition of Saltgrass Steak House restaurants is Landry 's third
 acquisition this year.  In February, Landry's bought the Detroit based 16-unit
 Charley's Crab seafood chain, and in July, Landry's purchased the 35-unit
 Chart House seafood chain with their spectacular waterfront locations on the
 east and west coasts.  With the closing of these acquisitions, the Company's
 revenues for 2003 are expected to be approximately $1.1 billion.
     Landry's Restaurants, Inc., is the nation's second largest casual dining,
 full-service seafood restaurant chain.  With the addition of Saltgrass, the
 Company will own and operate approximately 275 restaurants, including Landry's
 Seafood House, Joe's Crab Shack, The Crab House, Rainforest Cafe, Charley's
 Crab, and The Chart House, as well as the Kemah Boardwalk, a magnificent
 30-acre, family-oriented themed entertainment dining destination.  The Company
 employs 27,000 workers in 34 states.
     This news release may contain forward-looking statements.  Actual events
 or Landry's results may differ materially from their results discussed in the
 forward-looking statements.  Landry's does not expect to update forward-
 looking statements continually as conditions change.

SOURCE Landry's Restaurants, Inc.