000725 Checkers Announces Sale of 51 Restaurants

Clearwater, FL - Checkers Drive-In Restaurants, Inc. announced that it has sold 51 Rally's restaurants in St. Louis, Missouri, Little Rock, Arkansas, and Virginia Beach, Virginia to Altes, LLC of Boca Raton, Florida, for $16.4 million. Altes, LLC will operate the newly acquired Rally's restaurants as a franchisee and will pay ongoing royalties based on sales at the restaurants. Checkers Drive-In Restaurants will use the net proceeds from this transaction to further reduce existing debt.

Altes, LLC has entered into a development agreement in conjunction with their purchase where they have committed to adding twenty-four new Rally's locations over the next five years.

Daniel J. Dorsch, president and chief executive officer of Checkers stated, “This transaction has allowed us to substantially reduce our borrowings under our recently completed credit facility and we are continuing to work on the few remaining market sales which, when completed, will further reduce our debt. Our team continues to focus on improving restaurant operations and strengthening our franchise system.” Dorsch continued, “We have now sold a total of 202 restaurants to franchisees and entered into new development agreements for 109 additional stores over the next five years.”

Checkers Drive-In Restaurants is moving from a 50% corporate/ 50% franchise store mix to a 25% corporate and 75% franchise store mix. Checkers Drive-In Restaurants merged with Rally's Hamburgers in 1999 to create the largest double drive-thru system in the United States.

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