CMPP Champs Entertainment (MM)

Champps Entertainment, Inc. (NASDAQ:CMPP), owner and operator of 50 company-operated and 13 franchised/licensed Champps restaurants nationwide, announces that the company has entered into Managing Partner Bonus Agreements with nine of its General Managers and into Market Partner Bonus Agreements with two of its Directors of Operations. The General Managers selected for partnership have been among the top performers for the sports bar restaurant chain. Each has purchased a portion of the cash flow of the restaurant they currently operate and will subsequently earn 5% of the incremental cash flow for the next seven years, and the opportunity to earn a large lump sum payout at the end of the term of their agreement based on performance. The new Managing Partners include Amy Adams in Addison, TX; Brian James in Las Colinas, TX; Tim Klunk in Lennox, OH; Kevin O'Hare in Indianapolis; Tom McCabe in Westlake, OH; Donny Feinberg in King of Prussia, PA; and James Rennie in Lansing, MI. Market Partner Agreements provide similar opportunities for financial gain for the two Directors of Operations, Stan Ryback in the Northeast and Joe Gainor in the Midwest. Each Director has purchased a portion of the cash flow in the restaurants in their regions and will subsequently receive 3% of cash flow for the next seven years and the opportunity for significant financial gain at the end of the term of their agreements based on the performance of the restaurants. CEI believes the partnership program will increase profitability for the company and has identified several additional candidates to whom it plans to offer partnership agreements. Safe Harbor Statement Certain statements made in this press release are forward-looking statements based on management's current experience and expectations. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such forward-looking statements include statements regarding our strategic initiatives; new management team members; improved profitability and cash flow; revenues; stock compensation expenses; and restaurant openings, among others. Among the factors that could cause future results to differ materially from those provided in this press release are: the ability of the Company to open and operate additional restaurants profitably, the ability of the Company to successfully implement our strategic initiatives to improve revenues and profitability, the ability of the company's new management team to implement new strategic initiatives successfully; the impact of intense competition in the casual dining restaurant industry, the Company's ability to control restaurant operating costs, which are impacted by commodity prices, minimum wage and other employment laws, fuel and energy costs, consumer perceptions of food safety, changes in consumer tastes and trends, and general business and economic conditions. Information on significant potential risks and uncertainties that may also cause such differences include, but are not limited to, those mentioned by the Company from time to time in its filings with the SEC. The words "may," "believe," "estimate," "expect," "plan," "intend," "project," "anticipate," "should" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and, therefore, readers should not place undue reliance on these forward-looking statements.