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990830 Chi-Chi's Targets Home Meal Replacement

August 13, 1999

Louisville, KY - Chi-Chi's, Inc. a subsidiary of Prandium, Inc., announced that it is introducing a new take-out program and menu targeted at the growing home meal replacement market segment. The new line of take-out products called “Fiesta For Four” are now available at all Chi-Chi's locations. Chi-Chi's new platters deliver a convenient meal for groups of 4 or more. Featuring generous, well-portioned servings, consumers can choose from the five offerings which feature great tasting food at an excellent value. Partnering with Food.com, the new Chi-Chi's menu can also be ordered via the internet on both the Chi-Chi's web site at chi-chis.com, or through Food.com at chichis.food.com.

“As the nation's leader in full service, casual dining Mexican restaurants, we are famous for great-tasting, traditional Mexican cuisine combined with a fun, festive dining experience. Now you can take this experience home with you. Our guests appreciate our freshly prepared, fun food presentations,” commented Laurie A. Katapski, Chi-Chi's, Inc., senior vice president of marketing. “Our solid 22 year reputation is allowing us to make a strong move into the growing home meal replacement segment. The goal is to continue building our loyal guest base by improving brand awareness through our Web site, supermarket retail sales of our popular salsa, chips, and beverage products, our newly remodeled restaurants, and this new entry.”

According to industry estimates, the home meal replacement market will continue to grow beyond the $62 billion estimated in 1997 with annual growth of 12 to 13% between now and 2005 to total $150 to $170 billion. Food Marketing Institute recently cited that one in five consumers use restaurants as the primary source for meals that are eaten at home but prepared elsewhere.

Fresh Trends 1999, a recent nationwide consumer market study conducted by The Packer, indicated that 29% of consumers are very likely to buy home-meal replacements over the next six months with the primary purchasers of prepared food being consumers aged 30 to 49. According to Emily Redmond, editor of the Fresh Trends study, “A family of four can now find prepared alternatives for the same cost or less than that of a meal prepared from scratch. Chi-Chi's is right on in its targeting. They are not only delivering quality food at a reasonable price, but giving moms and dads more time to enjoy their families and forgo the typical cooking and clean up duties.”

Fiesta for Four menu offerings -- The new "Buffalo Chicken Platter" features 20 tender white meat chicken strips basted in Chi-Chi's proprietary zesty buffalo hot sauce. Packaged with a side of cool ranch dressing, the platter is fit to feed a family for only $14.99.

-- "Table Full of Tacos" gives consumers a choice of crispy corn tortillas or soft flour tortillas and features seasoned beef, crisp lettuce and juicy tomatoes, shredded cheddar and monterey jack cheeses in a combination to make 8 tacos. Including a side of Spanish rice, refried beans, sour cream, and Chi- Chi's fresh chips and salsa, this take home fiesta is bagged ready to go for $19.99.

-- For years guests have made Chi-Chi's enchiladas a favorite menu item. Now available as the "Lotta Enchiladas," consumers can choose eight seriously stuffed chicken or beef enchiladas. The complete meal deal serves the family with side dishes of Spanish rice, refried beans, and sweet corn cake and Chi- Chi's fresh salsa all for only $24.99.

-- Families through-out the mid-west are bound to stand up and cheer for Chi-Chi's new "Bravo Burritos." A choice of six chicken or beef burritos are topped with Chi-Chi's own spicy Mexi-Sauce and melted cheeses. This complete meal deal includes side dishes of Spanish rice, refried beans, and sweet corn cakes and Chi-Chi's fresh salsa and is also offered for only $24.99.

-- The party hearty family can start their fiesta at home with Chi-Chi's "Fajita Fiesta." Both grilled steak and chicken are accompanied by sauteed peppers and onions and much more. The marinated grilled steak and chicken breast are accented with both jalapeno cheddar and soft flour tortillas. Juicy tomatoes and crisp lettuce are prepared to round out the sour cream, guacamole and Spanish rice sides. The "Fajita Fiesta" is available for a mouthwatering price of $39.99 and easily feeds a family of 4 to 6.

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