LUBE HOLDINGS, INC ACQUIRES VALLEY VIEW RESTAURANT TO FUEL EXPANSION

Sharon, PA - LUBE Holdings, Inc. acquired the Valley View, OH Quaker Steak & Lube restaurant from Joll Enterprises, Inc. on June 14, 2004 in an effort to fuel further franchise growth and to use the location as a hands-on corporate training center.

Joll Enterprises, Inc., Quaker Steak & Lube’s first franchisee, has signed agreements with the company to develop two more restaurants in the Pittsburgh area over the next two years, and three restaurants in Southeast Florida over the next three and a half years. Joll currently owns the Cranberry Township, Pittsburgh (Robinson), Heinz Field and PNC Park locations. Joll has also made a substantial financial investment in the franchisor.

“Joll Enterprises willingness to invest in and expand the Quaker Steak & Lube brand is a good measure of the success of this franchise opportunity now and in its future growth,” notes Andy Gunkler, Vice President of Development.

Quaker Steak & Lube, the award-winning automotive-themed restaurant chain, currently has twelve operating restaurants in five states (PA, OH, FL, TN, NC), with construction beginning in Madison, Wisconsin this month. Quaker Steak & Lube is distinguished by its high per-unit sales volume, over-the-top auto-themed décor and the cult-like following inspired by its award-winning chicken wings.

The Valley View location, which is now operating through Quaker Steak & Lube of Independence, OH, is a popular destination having set the record last summer for the highest attendance (7,500) at one of their Bike Nite events.

“Valley View is one of our most successful, high-volume restaurants,” states George Warren, CEO and Co-Founder of Quaker Steak & Lube. “We feel it is a great opportunity to be able to have this location, which is close to the home office, as a fully functioning training center for all areas of operation.”

Quaker Steak & Lube operates two sizes of casual dining facilities: a 10,400 square foot unit with 350 seats plus a large patio on three acres, and an 8,200 square foot unit with 260 seats and a large patio on two acres. Each restaurant has customized interiors developed by the local franchise owners, with support from a professional team of outside design experts. Most locations have at least three distinctive bars with their own unique décor.

With systemwide sales in 2004 to exceed $50 million, and a $5 million private placement near completion, Quaker Steak & Lube is primed to develop over sixty franchised and company owned locations and create a restaurant system with annual sales exceeding $260 million by the end of 2008.

The Quaker Steak & Lube Story

In 1974, the original Quaker Steak & Lube opened in a converted gas station in Sharon, PA. Originally founded as an innovative cook-your-own-steak restaurant, the popularity of the Quaker Steak & Lube buffalo-style chicken wings soon took center stage, and by the early 1980’s Quaker Steak & Lube was known as the place for award-winning wings and beer in a fun and outrageous automobile and motorcycle-themed atmosphere.

Today, "The Lube" serves over 30 million wings annually, has 16 bottled sauces for retail sale, has won the title of "Best Wings USA," and has over 100 local, national, and international awards for their sauce recipes. Most recently, Quaker Steak & Lube was named the Official Chicken Wing of Lowe’s Motorspeedway in Charlotte, NC.

In the past few months, Quaker Steak & Lube has successfully rolled-out a new tastes menu featuring great steaks, burgers, ribs, salads and appetizers. Combined with their on-going, weeknight events such as Bike Nite, Family Night, All-You-Can-Eat Wing Night and Cruise-ins, as well as their weekday lunch buffets, Quaker Steak & Lube is a great place to refuel and recharge.

Quaker Steak & Lube shares in co-promotional sponsorship programs with Lowe’s Motorspeedway, the American Motorcyclist Association, MAC Tools, and Corsa Performance. It is also heavily involved in racing with sponsorships of both ARCA and IHRL cars.

Visitors to Quaker Steak & Lube restaurants are amazed by the auto and racing memorabilia on display, including full-size race cars and vintage motorcycles attached to the walls and ceilings. The loyal customer following of the Quaker Steak & Lube concept led the company to franchise in 1997.