Famous Dave’s Named Winning Bidder for Seven Franchise Restaurants

Famous Dave's of America, Inc. (NASDAQ: DAVE) today announced that it was named the winning bidder for seven of the nine restaurants of North Country BBQ Ventures, LLC for cash consideration of approximately $6.8 million, after taking into account an adjustment for amounts owed to the Company. Based in New Providence, New Jersey, North Country was one of the Company’s largest franchisees with restaurants located in New Jersey, New Hampshire and New York. “As we stated when we agreed to be the ‘stalking horse’, the purchase of these assets, at an appropriate price represents a terrific opportunity to perpetuate our brand and deliver shareholder value” The transaction was the culmination of a “stalking horse” asset purchase bid submitted last December under Section 363 of Chapter 11 of the U.S. Bankruptcy Code. At an auction that took place this past Wednesday, Famous Dave’s of America, Inc. was declared the winner with the highest and best bid subject to bankruptcy court approval. A sale hearing took place yesterday before the United States Bankruptcy Court for the District of New Jersey, and approval was granted. The closing is expected to take place today. The restaurants, which remained open throughout the process, will now become company-owned locations.

The seven restaurants are located in New York (Smithtown and Westbury), and New Jersey (Mountainside, Brick Township, Hamilton, New Brunswick and Metuchen, NJ). North Country’s remaining two locations, located in Hillsborough, NJ, and Manchester, NH, are expected to be closed. With the exception of certain lease obligations related to the acquired restaurants, the agreement does not require the Company to assume any of North Country’s liabilities.

“As we stated when we agreed to be the ‘stalking horse’, the purchase of these assets, at an appropriate price represents a terrific opportunity to perpetuate our brand and deliver shareholder value,” said Christopher O’Donnell, chief executive officer of Famous Dave’s. “These restaurants are in good locations, in an important geographic region for Famous Dave’s. We thank the ownership and management team of North Country BBQ for being a strong brand ambassador as well as for their partnership these past several years."