Industry News | January 26, 2006

Kahala Corp. Announces Acquisition of BLIMPIE Restaurant Chain

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Kahala Corp. yesterday announced it has closed its acquisition of the BLIMPIE quick-service restaurant chain owned by Blimpie International Inc.

The BLIMPIE concept, which was founded in 1964 and specializes in fresh, contemporary-deli style sandwiches, soups and salads with Real. Fresh. Taste(TM), has grown to nearly 1,600 franchised restaurants across the United States and in select foreign countries. The company's acquisition does not include the Blimpie restaurant chain owned by Metropolitan Blimpie Inc. ("Metro") and operated in the Northeast and Middle Atlantic states by Blimpie Associates, Ltd., Metro's licensee. Metro is a co-owner of the Blimpie Trademarks.

BLIMPIE offers a unique twist on the classic deli menu, appealing to the variety of palates and nutritional preferences of today's consumer. In addition to panini-grilled sandwiches, BLIMPIE restaurants feature vegetarian patties, low-carb bread, fresh-sliced top-quality meats in each restaurant, and artisan breads in seven flavors -- including cheddar jalapeno, hearty wheat, marble rye and zesty parmesan -- baked fresh daily in each restaurant.

As the 10th QSR concept under the Kahala umbrella, the acquisition has boosted the overall number of Kahala franchised outlets to more than 2,500, and has catapulted annual systemwide sales to just over $600 million. Other Kahala concepts include Taco Time, The Great Steak & Potato Co., Johnnie's Pizzeria, Samurai Sam's Teriyaki Grills, RANCH ONE, Surf City Squeeze, Frullati Cafe, Wafflo, and Rollerz. To learn more about Kahala Corp and its ten restaurant concepts, please visit the company Web site at www.kahalacorp.com.