Kahala Corp. Announces Large Scale Growth Initiative As Development Agreements For North America Are Signed

SCOTTSDALE, ARIZ | Tuesday, May 10, 2005

Franchising Plans Call for Massive U.S. Growth in 2005

Kahala Corp., a Scottsdale, Ariz. based operator and franchiser of nine quick service restaurant concepts totaling more than 1,000 locations, announced today it has plans to develop multiple regions of the United States with Kahala franchises to maximize growth.

The announcement was made by Kevin Blackwell, Chairman and Chief Executive Officer of Kahala Corp., which operates and franchises Surf City Squeeze, Samurai Sam’s Teriyaki Grill, Ranch *1 Grilled Chicken, Frullati Caf� & Bakery, TacoTime, Rollerz, Wafflo, and The Great Steak & Potato Company restaurants throughout North America and Puerto Rico, Australia, Japan, Egypt, Kuwait, Saudi Arabia, Qatar, United Arab Emirates, Oman Greece, Thailand and Taiwan. Kahala Corp. has entered into agreements with developers nationwide to begin concentrated store franchising in various markets. First up for Kahala is a massive growth strategy initiative in New York with a concentration on the five boroughs of Brooklyn, The Bronx, Queens, Manhattan and Staten Island, along with Nassau and Suffolk counties. This area will have TacoTime, Surf City Squeeze and Samurai Sam’s restaurants as the main focus, with other chains likely. On the West Coast, California markets will be heavily developed along with development agreements also signed in Texas, Idaho, Oregon, Washington and New Jersey. “ This is a very exciting time of growth for all of us at Kahala,” said Blackwell. “We are looking forward to expanding and bringing our wonderful food concepts to millions of new people across the United States.” As one of the fastest growing franchising and marketing companies in North America, Kahala Corp. is a privately held corporation dedicated to the design, development and marketing of quick service restaurants. The company’s expansive portfolio includes a variety of good-for-you branded concepts that are in step with today’s growing trend towards low-fat, nutritious eating.

With more than $450 million in system wide sales and more than 1,000 locations, Kahala Corp. currently owns and franchises nine quick service restaurant concepts. TacoTime, Great Steak & Potato, Ranch *1, Surf City Squeeze, Wafflo, Frullati Caf� & Bakery, and Samurai Sam’s are registered trademarks of Kahala Corp. or one of its wholly-owned subsidiaries. Rollerz and Kahala Corp. are trademarks of Kahala Corp. or one of its wholly owned subsidiaries.

To learn more about Kahala Corp. and its nine restaurant concepts, please visit the company website at www.kahalacorp.com.

For More Infromation Please contact:
Michael Reagan
Investor Relations
Phone: (480) 443-0200

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Samurai Sam's Teriyaki Grill
9311 E. Via De Ventura
Scottsdale, AZ

Phone: (480) 362-4800
Fax: (480)443-1972

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