Church’s is now a billion dollar business
and has committed to double its size within five years.

“This day is the biggest milestone in the history of Church’s Chicken,”
said president and CEO Harsha Agadi. “The billion dollar mark is the most
significant milestone a global restaurant company can achieve. We are on a
strong growth path, and doubling the size of the company will be our next
major goal. It will take us less than five years to hit the 2 billion dollar

The announcement was made yesterday at a company-wide celebration. The $1
billion in global system sales milestone was achieved in the 52-week period
ending Feb. 25, 2006.

With more than 1,500 restaurants worldwide, Church’s Chicken(TM) has grown
exponentially since the 1952 grand opening of its first location across the
street from the Alamo in San Antonio, Texas. Initially intended to be a
privately-owned local business in Texas, Church’s Chicken(TM) moved into the
publicly-traded, national market in 1969.

Financial milestones began at 1974’s year-end when there were 487 Church’s
in 22 states with total revenue of more than $100 million. Five years later
international expansion began, and the company subsequently established
locations in Puerto Rico, Canada, Mexico, Indonesia, and several other
countries. The company was acquired by the Atlanta-based private equity firm
Arcapita Inc. in 2004.

In the year that followed, Church’s introduced two highly
successful new product launches – Spicy bone-in chicken and the $.99 Spicy
Chicken Sandwich – which propelled the company to the billion dollar milestone
almost two months ahead of schedule. A renewed focus on marketing,
solidifying its image as an ‘urban brand,’ and a shift to value-plus
positioning are enabling Church’s to compete more successfully against larger

“This all came together because of improved operations, breakthrough
marketing and flawless execution by every individual in the worldwide family
of Church’s. Church’s is a solid brand that is really poised for growth in the
future,” said Church’s Chicken(TM) president and CEO Harsha Agadi. “Our
private equity shareholders, Arcapita, have been exemplary in their support,
direction and guidance to get us to this milestone.”

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