The Lion Fund, L.P. and Western Sizzlin Corp. Oppose Buyout of Applebee's International, Inc.

    ROANOKE, Va., July 25 /PRNewswire-FirstCall/ -- Sardar Biglari,
 Chairman and CEO of The Lion Fund, L.P. and Western Sizzlin Corp. (OTC
 Bulletin Board: WSZL), announced today that he intends to vote against
 Applebee's International, Inc. ( APPB) proposed transaction with
 IHOP Corp. ( IHP).
     Mr. Biglari Issued the Following Statement Explaining Why He Intends to
 Vote Against the Transaction:
     I want to express to you my concerns about the possible sale of
 Applebee's ("Applebee's" or the "Company") to IHOP Corp. ("IHOP") for
 $25.50 per share in cash, a price which I believe is below the fair value
 of the Company. I believe Applebee's board has made a grave mistake in
 agreeing to an undervalued bid for the entire company. This arrangement is
 most alarming because new board members promised to protect shareholders'
 interests, yet they have not verbalized any opposition to this ill-advised
 transaction.
     My assertions appear supported by the market's response to the
 announcement of the proposed transaction. On July 13, 2007, the business
 day prior to the announcement of the transaction, IHOP's and Applebee's
 stocks closed at $56.25 and $24.38, respectively. Since that announcement,
 IHOP's market value has jumped by approximately 16%, or $153 million, to
 $65.02 per share as of yesterday's close of business. However, the stock
 price of Applebee's, the acquiree, enjoyed virtually no premium, nay less
 than 1%, as of yesterday's close of business. Usually, it's the selling
 company, not the buying one, whose stock price appreciates substantially.
 Clearly, the proposed acquisition price does not reflect the fair value of
 Applebee's stock, and the substantial inherent value of Applebee's is being
 transferred to IHOP shareholders, as evidenced by the sizable increase in
 IHOP's market capitalization. In other words, we believe that if Applebee's
 undertook the same initiatives as IHOP has in mind, the appreciation IHOP
 recently gained would, at the very minimum, shift to Applebee's.
     Incidentally, we like IHOP's plan to convert Applebee's to a nearly
 pure franchising model. The future of Applebee's resides in its
 franchisees. The decision to refranchise would yield several long-term
 strategic advantages. Applebee's should be in the franchising business for
 the cogent reason that it would achieve higher profit margins, assume less
 risk, and require very little in capital expenditures -- all strategic
 moves leading to healthy cash flows and high returns on capital.
 Unfortunately, if the transaction is approved, IHOP's, not Applebee's,
 shareholders are going to realize the benefits of transforming the Company
 into an asset-light firm.
     We believe the proposed transaction represents a losing exercise for
 the shareholders of Applebee's. As shareholders, we are obliged to ask how
 Applebee's can be sold at a mere 5.2% premium over the share price as of
 the trading day (February 12, 2007) before the Company announced that it
 was exploring strategic alternatives.
     We think Applebee's shareholders would realize considerably more money
 if the Company carries out the refranchising strategy as outlined by IHOP
 rather than permitting the sale to go through at the currently agreed
 price.
     As Chairman and CEO of The Lion Fund, L.P. and Western Sizzlin Corp., I
 represent 1,019,000 shares of the outstanding common stock of Applebee's
 (including shares of common stock underlying over-the-counter
 American-style call options). Because of our discontent with the proposed
 transaction, we are currently exploring all of our options.
     -----------------------------------------------
     This Press Release is not a proxy solicitation.
 
 

SOURCE Western Sizzlin Corp.