8/10/2004: CIA Commercial Investment Advisors

(Reports fiscal 2004 fourth quarter and full year results of operations)
POMPANO BEACH, Fla., August 10, 2004 – Roadhouse Grill, Inc. (GRLL.PK) today announced that on August 6, 2004, it closed a sale-leaseback transaction with a subsidiary of Sovereign Investment Company. The transaction involved the sale and leaseback of 11 restaurant properties previously owned by the Company. The sale price for the 11 properties was $21.8 million. The Company used approximately $18.1 million of the net proceeds from the sale to pay expenses related to the transaction and to repay approximately $24.6 million of secured debt, which was repaid at a discount (resulting in a gain on extinguishment of debt of approximately $7.1 million). The remaining net proceeds from the sale of approximately $3.7 million will be used for working capital, including new marketing initiatives to promote the Company's restaurants.

The Company also announced its results of operations for the 13 and 52 weeks ended April 25, 2004 ("Fiscal 2004 Fourth Quarter" and "Fiscal 2004", respectively). Revenues for the Fiscal 2004 Fourth Quarter were $36.8 million, compared to revenues of $37.8 million for the Fiscal 2003 Fourth Quarter. The net loss for the Fiscal 2004 Fourth Quarter was $1.4 million, or $0.05 per common share, compared to a net loss of $2.8 million, or $0.10 per common share, for the Fiscal 2003 Fourth Quarter. Revenues for Fiscal 2004 were $139.4 million, compared to revenues of $140.9 million for Fiscal 2003. The net loss for Fiscal 2004 was $6.0 million, or $0.20 per common share, compared to a net loss of $11.2 million, or $0.56 per common share, for Fiscal 2003.

Ayman A. Sabi, Roadhouse Grill’s president and chief executive officer, stated: "While our operating results are not yet at the level that we would like, we are pleased with the progress that we have made in certain areas of our operations, most specifically the improvements that have been made in the attention we have given to the customer’s experience and the actions we have taken to control costs. We are committed to continuing our efforts to return our company to profitability."
Michael C. Brant, the Company's executive vice president and chief financial officer, commented: "We are excited about the opportunity that the recently completed sale/leaseback transaction provides us. This transaction allowed us to repay almost $25 million in debt at a substantial discount, which significantly changes our financial condition in a positive manner. It also reduces the amount we will be obligated to pay in future periods for our combined debt and leasehold obligations, and provides us with significant incremental working capital that we will use, in part, to market our restaurants."
The Company also announced that it has filed its Annual Report on Form 10-K for the 52 weeks ended April 25, 2004 with the Securities and Exchange Commission.
About Roadhouse Grill
Roadhouse Grill, Inc., based in Pompano Beach, Fla., owns and operates 69 full-service, casual-dining restaurants and 11 franchised or licensed restaurants. The Company’s restaurants, which offer a "rambunctious" style consistent with Roadhouse Grill’s motto: "Eat, drink and be yourself," are located in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, New York, North Carolina, Ohio and South Carolina. For more information or to locate a Roadhouse Grill near you, call (954) 957-2600 or visit www.roadhousegrill.com.