DAB Dave & Busters

Jillian's Auction to Be Held September 21, Bids for Assets Due September 14 LOUISVILLE, Ky., Aug. 9 /PRNewswire/ -- An auction for the sale of the assets of Jillian's Entertainment Holdings Inc. and its affiliates has been set for Tuesday, September 21, 2004, at 10 a.m. Bids are due a week earlier, on September 14, 2004, prior to 5 p.m. All times are Louisville (Eastern Daylight) time. Jillian's is a privately held company that operates 35 multi-venue entertainment complexes, or clubs, under the Jillian's brand name in 20 states. The company generated revenues of $160 million and earnings of $18.7 million before interest, taxes, depreciation and amortization for the fiscal year ended March 28. As announced earlier, Jillian's has received "stalking horse" bids from two parties, Dave & Buster's Inc. (NYSE:DAB) and Gemini Investors III, L.P. of $27.6 million and $11.2 million respectively for certain of its assets. Under bid procedures approved July 13 by the U.S. Bankruptcy Court for the Western District of Kentucky in Louisville, other qualified parties may submit higher and better offers for some or all of Jillian's assets, including clubs or other assets covered by the stalking horse bids. Bids can be proffered for some or all of the 11 mall-based clubs or other assets in the Dave & Buster's bid; some or all of the 19 urban and upscale clubs or other assets in the Gemini bid; and/or any or all of the clubs and other assets not covered by the two stalking horse bids, including clubs in Memphis, Tenn.; Rochester, N.Y.; and Tacoma, Wash. The sale so far has generated a number of inquiries. The auction is being conducted under Section 363 of the U. S. Bankruptcy Code, under which Jillian's filed for Chapter 11 voluntary reorganization May 23. Except for certain administrative and procedural requirements under Chapter 11, Jillian's has been operating in the ordinary course of business since the filing. Jillian's, like the rest of the "eat-drink-play" industry, was affected by economic conditions beginning in 1999 and then fallout from the events of 9/11. It has stabilized operations in the last two years and has experienced improved sales since last September. It has also improved financial performance since January 1. Bidders must follow procedures set up by the Bankruptcy Court, including submission of financial qualifications. Also, competing bids for the assets comprising the Dave & Buster's bid must exceed $28,657,400, and for the assets included in the Gemini bid, $11,729,957. Qualifying bidders, including the stalking horse bidders, may increase their bids at the auction. The Bankruptcy Court has scheduled a hearing for Thursday, September 23 at 10:30 a.m. (Louisville time) on a motion to approve the sale or sales to bidders with the highest and best bids. Potential bidders may obtain more information regarding the company's bankruptcy filing, including bid procedures, by visiting http://www.kccllc.net/jillians . Bid procedures and other court documents may also be found at http://www.kywb.uscourts.gov/ . Potential bidders may also obtain more information regarding the sale by contacting Charlie Reardon of Houlihan Lokey Howard & Zukin Capital, Investment Bankers, at (703) 714-1728. About Jillian's Jillian's is a leading operator of upscale entertainment complexes featuring interactive entertainment and dining. The 35 Jillian's clubs, located in 20 states, offer dining, beverages, billiards and videogames and other interactive entertainment. Many also offer live music, dancing and bowling, among other entertainment. Each location features a restaurant, bar, billiard hall and game room with a variety of team and individual electronic games. A number of the larger new units also include Hi-Life Lanes, high- energy bowling alleys with bars and lounge areas. Jillian's units range in size from 7,000 to 70,000 square feet. Jillian's, founded in 1988, is based in Louisville, Ky. More information about Jillian's can be found at http://www.jillians.com/ . About statements in this release Except for historical information contained in this release, statements herein may constitute forward-looking statements as per the Private Securities Litigation Reform Act of 1995. These statements may involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from what is set forth in this release, including any results from future performance and proposed transactions. The company does not intend to update any such statements. DATASOURCE: Jillian's Entertainment Holdings Inc. CONTACT: Tom Andrzejewski or Rob Falls of Robert Falls & Co. Public Relations, +1-216-696-0229 Web site: http://www.jillians.com/ http://www.kccllc.net/jillians http://www.kywb.uscourts.gov/

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