Star Buffet, Inc.

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International Guild of Hospitality & Restaurant Managers

420 Lawndale Drive
Salt Lake City , UT 84115

Phone: (801) 463-5500
Fax: (801) 463-5595

Star Buffet, Inc., incorporated in July 1997, is engaged in the restaurant industry. As of January 28, 2002 , the Company owned and operated 16 franchised HomeTown Buffet restaurants, 13 BuddyFreddys restaurants, 10 JB's Restaurants, seven JJ North's Country Buffet restaurants, one North's Star Buffet restaurant, two Holiday House restaurants and two Mexican-themed restaurants operated under the Casa Bonita name. Star Buffet's restaurants are located in nine western states, Oklahoma and Florida , and are focused upon providing customers with a wide variety of fresh food at moderate prices. On February 28, 2002 , the Company's main food supplier, Alliant Foodservice, Inc. (Alliant), terminated its agreement with the Company. Alliant Foodservice, Inc. provided over 80% of Star Buffet's food purchases. The Company has replaced Alliant with several food suppliers, and, concurrently, is less dependent on any one supplier.

The Company, through its subsidiary, HTB Restaurants, Inc. (HTB), has a franchise agreement with HomeTown Buffet, Inc., a wholly owned subsidiary of Buffets, Inc., under which HTB operates 16 HomeTown Buffet restaurants in Arizona, Colorado, New Mexico, Utah and Wyoming. Each of the franchise agreements has a 20-year term (with two five-year renewal options). HomeTown Buffet restaurants are located both in shopping strip centers and as freestanding restaurants. HTB's typical restaurant format is approximately 10,200 square feet, with seating for approximately 375 customers. The restaurants offer fixed-price lunch, dinner and breakfast menus that entitle each customer to unlimited servings of all menu items and beverages.

Star Buffet's two Casa Bonita restaurants are located in Denver , Colorado , and Tulsa , Oklahoma , and contain 52,000 and 26,000 square feet, respectively. The restaurants are designed to recreate the atmosphere of a Mexican village at night. The restaurants also feature entertainment daily, including strolling mariachis, authentic Mexican dancers, magicians, games and cliff divers. The restaurants' entertainment, combined with authentic Mexican food, is designed to attract a diverse customer base, including tourists and local customers. In addition to typical Mexican menu offerings, these restaurants feature all-you-can-eat dinners that offer customers unlimited servings of selected menu items.

The North's Star Division consists of seven JJ North's Country Buffet restaurants and one North's Star Buffet restaurant. The Company's seven JJ North's Country Buffet Restaurants are located in Idaho (three), Washington (two), Oregon (one) and Utah (one). The restaurants are approximately 6,500 to 9,000 square feet and seat approximately 210 to 320 customers. Star Buffet's North's Star Buffet restaurant is located in Arizona . The restaurant is approximately 9,000 square feet and seats approximately 320 customers. Both JJ North's Country Buffet and North's Star Buffet restaurants offer fixed-price lunch, dinner and weekend breakfast menus that entitle each customer to unlimited servings of all menu items and beverages. Menus emphasize traditional American home cooking, and include soups, salads, entrees, vegetables, non-alcoholic beverages and desserts. Customers can choose from multiple entree choices, including fried and baked chicken and fish, roast beef, turkey and ham. Additional entrees, such as lasagna, barbecued ribs and other regional or seasonal dishes, are featured on particular days of the week. In addition to entrees, each meal period includes freshly prepared soups, assorted vegetable and potato dishes, hot bread and an extensive salad bar. Dessert selections include pudding, assorted cobblers, cakes, cookies and soft-serve frozen dairy desserts and various sundae toppings.

The Company, through several transactions, has acquired 15 properties in Florida that operate under the brand names BuddyFreddys Country Buffet (11), BuddyFreddys (two) and Holiday House (two). Four of the 11 BuddyFreddys Country Buffet restaurants were closed for remodeling and repositioning as of January 28, 2002. BuddyFreddys restaurants average approximately 10,000 square feet, with seating for approximately 350 guests. Holiday House restaurants average approximately 5,500 square feet, with seating for approximately 170 guests. The BuddyFreddys Country Buffet restaurants offer a buffet menu specializing in local dishes and southern-style cooking. Each location also offers a small gift shop selling a variety of BuddyFreddys apparel, snacks and specialty merchandise. The two BuddyFreddys differ from BuddyFreddys Country Buffets in that they offer a full a-la-carte menu, in addition to the all-you-can-eat buffet. The two Holiday House restaurants also operate in a buffet format, and specialize in offering the customer a wide variety of meat entrees, including ham, roast beef, turkey and its signature leg of lamb.

Star Buffet, through its subsidiary, Summit Family Restaurants, Inc. ( Summit ), operates ten JB's Restaurants in Arizona , Montana , New Mexico , Utah and Wyoming . In connection with the acquisition of certain JB's Restaurants in 1998 from CKE Restaurants, Inc., the Company entered into a one-year franchise agreement for each location. The restaurants are approximately 4,300 to 5,600 square feet and seat approximately 110 to 180 customers. Subsequent to the acquisition of certain JB's Restaurants, Star Buffet negotiated a 10-year option for annual renewable franchise agreements for each of the JB's Restaurants it operates. In February 2000, the annual renewable franchise agreement expired, and the Company has elected not to renew these franchise agreements, but instead has entered into negotiations to acquire a long-term license agreement to utilize the JB's Restaurant name. The negotiations have not been finalized with respect to a license agreement. JB's Restaurants offer a variety of breakfast, lunch and dinner selections at moderate prices. The breakfast menu features an all-you-can-eat breakfast buffet along with other traditional breakfast fare. The lunch and dinner menu has a variety of sandwiches, as well as steak, chicken, pasta and seafood entrees. All JB's Restaurants offer an all-you-can-eat soup and salad bar during the lunch and dinner. With the exception of the breakfast buffet and the all-you-can-eat soup and salad bar, all entrees are cooked to order and served by a wait staff.

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The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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