QDIN Quality Dining - Common Stock (MM)

Quality Dining Announces Intent To Defend Lawsuit MISHAWAKA, Ind., July 9 /PRNewswire-FirstCall/ -- A purported stockholder class action lawsuit was recently filed in the St. Joseph County Superior Court against Quality Dining, Inc. (NASDAQ:QDIN), its directors and two of its officers entitled Bruce Alan Crown Grantors Trust vs. Quality Dining, Inc., et al, Cause No. 71 D04 0406 PL 299. The suit alleges that the individual defendants breached their fiduciary duty by advancing their individual interests at the expense of the public stockholders in connection with the proposal recently made by a shareholder group consisting of the Company's CEO and four other officers and directors to purchase all outstanding shares of the Company's stock owned by the public shareholders. The action seeks to enjoin the transaction proposed by the shareholder group, to rescind the transaction, if consummated, and unspecified damages. The defendants believe that this lawsuit is without merit and intend to defend against it vigorously. The special committee of independent directors established by the Board of Directors is continuing to evaluate the proposal. Quality Dining owns the Grady's American Grill(R), Papa Vino's Italian Kitchen(TM) and Spageddies Italian Kitchen(TM) concepts and operates Burger King(R) restaurants and Chili's Grill & Bar(R) restaurants as a franchisee. As of July 9, 2004, the Company operates 123 Burger King restaurants, 39 Chili's Grill & Bar restaurants, 7 Grady's American Grill restaurants, 6 Papa Vino's Italian Kitchen(TM) restaurants, 3 Spageddies Italian Kitchen restaurants and one Porterhouse Steaks and Seafood(TM) restaurant. This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are made based upon management's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that the Company will actually achieve the plans, intentions and expectations discussed in these forward-looking statements. Actual results may differ materially. Among the risks and uncertainties that could cause actual results to differ materially are the following: the availability and cost of capital to the Company; the ability of the Company to develop and operate its restaurants; the ability of the Company to sustain sales and margins in the increasingly competitive environment; the hiring, training and retention of skilled corporate and restaurant management and other restaurant personnel; the integration and assimilation of acquired concepts; the overall success of the Company's franchisors; the ability to obtain the necessary government approvals and third-party consents; changes in governmental regulations, including increases in the minimum wage; the results of pending litigation; and weather and other acts of God. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future developments or otherwise. Quality Dining is not responsible for changes made to this document by wire services or Internet services. DATASOURCE: Quality Dining, Inc. CONTACT: John C. Firth, Executive Vice President and General Counsel of Quality Dining, Inc., +1-574-243-6616

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