CapGrow Announces New $250 Million Financing Program For Applebee’s Franchisees

MINNEAPOLIS, MIN., October 14, 2004 – Capital Growth Advisors, LLC (”CapGrow”) has announced a new program that will allow franchisees of Applebee’s International, Inc. (”Applebee’s”) to access a $250 million line of funding for their new store growth. CapGrow, Applebee’s and CitiCapital partnered together to design this exciting new lending program for Applebee’s franchisees.

CitiCapital Franchise Finance, a subsidiary of CitiGroup, will provide Applebee’s domestic franchisees with the $250 million line of funding for new store development over the next three years.

Steve Lumpkin, Executive Vice President of Applebee’s, said, “The CitiCapital Program gives our franchisees ready access to a sizeable, fresh source of new capital to meet our Systemwide goals for new store development. Continued expansion of the Applebee’s brand is a critically important strategic objective for us and we are delighted to have CitiCapital as our financing partner.”

“Once again, we were delighted to be able to work with Applebee’s to source an industry leading financing program for their franchisees,” said Reid Sherard, President of CapGrow. “This state of the art program will enable Applebee’s franchisees to continue to develop and will help maintain their position as the largest and most successful casual dining chain in America.”

Steve Vergamini, Managing Director of CapGrow, said, “The entry of CitiCapital into the Applebee’s system brings a powerful new strategic partner to assist in the continuing expansion of the Applebee’s brand.”

Rick Thompson, Vice President of CitiCapital, said, “We are excited about our new partnership with Applebee’s and the opportunity to provide this innovative program oriented approach to assist Applebee’s franchisees with their growth initiatives.”

Applebee’s International, Inc., headquartered in Overland Park, Kan., develops, franchises and operates restaurants under the Applebee’s Neighborhood Grill & Bar brand, the largest casual dining concept in the world. There are currently more than 1,500 Applebee’s restaurants operating system-wide in 49 states and nine international countries. Additional information on Applebee’s International can be found at www.applebees.com.

CitiCapital Franchise Finance, headquartered in Irvine, CA, is one of the oldest franchise lenders in the country that specializes in providing custom tailored funding programs to meet franchisor strategic needs. Additional information on CitiCapital Franchise Finance can be found at www.CitiCapital.com.

Capital Growth Advisors, LLC, headquartered in Ann Arbor, Michigan, is a leading provider of fee based financial consulting services to the multi-unit restaurant industry. Additional information on CapGrow may be found at www.capgrow.net.