CKE Restaurants, Inc. (NYSE: CKR), owner, operator and franchisor of the Carl’s Jr.(R), Hardee’s(R), and La Salsa Fresh Mexican Grill(R) restaurant brands, announced today that it has entered into an agreement for the sale of its La Salsa Fresh Mexican Grill restaurants. La Salsa is being acquired by Thousand Oaks, Calif.-based Baja Fresh Mexican Grill(R), led by David Kim and M Plus Capital, which is based in Santa Monica, Calif. Under the agreement, Santa Barbara Restaurant Group, Inc., a wholly-owned subsidiary of CKE, is expected to sell its 100 percent equity interest in La Salsa, Inc. and La Salsa of Nevada, Inc. The transaction is subject to customary closing conditions and is expected to close by the end of June 2007. The transaction is not expected to have a material impact on the future earnings of CKE on a consolidated basis.

Andrew F. Puzder, CKE president and chief executive officer said, “Our focus is on growing Carl’s Jr. and Hardee’s, including dual branding them with our Mexican brands, Green Burrito(R) and Red Burrito(TM). While we believe in La Salsa’s potential, we also believe our best opportunity for improving earnings and cash flow is to devote our resources to the future of Carl’s Jr. and Hardee’s. As such, selling La Salsa to David Kim is in the mutual best interests of both CKE and the La Salsa brand. David Kim is a former Carl’s Jr. franchisee whom we know well and we wish him the best with his investment in La Salsa.”

Investor David Kim said, “I am pleased that we will have two great Mexican concept brands in La Salsa and Baja Fresh. We welcome La Salsa’s employees and franchisees to our family. The combined efficiencies and resources of these two national brands create a dynamic growth company to compete in the Mexican food restaurant market.”

As of the end of its fiscal fourth quarter on Jan. 29, 2007, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,105 franchised or company-owned restaurants in 43 states and in 13 countries, including 1,087 Carl’s Jr. restaurants, 1,906 Hardee’s restaurants and 96 La Salsa Fresh Mexican Grill restaurants.

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