AFC Enterprises, Inc. Closes Deal To Acquire Cinnabon International, Inc

Atlanta, October 16, 1998 - Atlanta-based AFC Enterprises, Inc., the parent company of Churchs Chicken, Popeyes Chicken & Biscuits, Seattle Coffee Company and Chesapeake Bagel Bakery Cafe, announces today the completion of its acquisition of Seattle-based Cinnabon International, Inc., holding company of the leading cinnamon roll bakery retailer in the world. AFC purchased Cinnabon for approximately $64 million Cinnabon, Inc. operates and franchises 358 retail cinnamon roll bakeries operating in 39 states, Canada and Mexico and had system-wide sales of $140 million in Fiscal Year 1998.

"We believe acquiring Cinnabon, on the heels of our Seattle Coffee Company acquisition, makes great sense by giving AFC prime real estate, great people and tremendous growth potential," said Frank Belatti, Chairman and CEO of AFC Enterprises. "We are giving both our customers and our franchise partners what they want -- one of the most popular, crave products, and another high value brand to develop as part of AFC’s Franchisor of Choice strategy."

According to Gregg Kaplan, president of AFC’s Bakery Cafe Group, Cinnabon’s headquarters will remain in Seattle. "This is AFC’s second acquisition of a Seattle-based company in 1998 and will be a great addition to our Bakery Cafe Group," said Kaplan. "Due to Cinnabon’s high brand recognition, AFC has already received more than 100 inquiries for new franchises worldwide since AFC’s acquisition announcement." Founded in Seattle in 1985, Cinnabon bakeries operate in high traffic malls, transportation centers, airports and supermarkets. The bakeries are located in 300 to 1,500 square foot areas and serve fresh cinnamon rolls made with special imported cinnamon and topped with sweet, rich cream cheese-based icing. 144 of the 358 bakeries are franchised. AFC Enterprises, Inc. is one of the world’s largest operators and franchisors of restaurants, bakeries and cafés now with more than 3,200 locations in 25 countries worldwide. Since being formed in 1992, the company has more than doubled its number of restaurants, bakeries and cafes worldwide. AFC’s chicken brands, Churchs Chicken and Popeyes Chicken & Biscuits, have been in existence for more than 70 years combined and together make AFC the world’s second largest quick service chicken restaurant company. Seattle Coffee Company, with its Seattle’s Best and Torrefazione Italia brands, is currently one of the world’s largest specialty coffee companies with nearly 100 cafes and more than 5,000 wholesale accounts in the United States. AFC was named 1997 Operator of the Year by Nation’s Restaurant News and had system-wide sales in excess of $1.6 billion dollars in 1997. AFC can be found on the World Wide Web at www.afc-online.com.

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