********************************************************
June 30, 1995
Dallas, Texas


                          PRESS RELEASE

FOR IMMEDIATE RELEASE

     Hudson's Grill of America, Inc. ("Hudson's"), a
Dallas. Texas, based publicly traded company, announced
that it had entered into agreements to sell its interest
in the company's Hornblowers restaurant located in
Ventura, California.  The agreement was placed into escrow
on June 8, 1995.  The Hornblowers restaurant uses a theme
that is different from the Hudson's Grills franchised by
the company, but has been owned by the Hudson's or
operated as a joint venture with the company for many
years.

     The sale will be to the current co-joint venturer,
Kiam Farzadam.  The purchase price is $300,000 and will be
paid with $6,000 in cash and a $294,000 note.  Closing on
the transaction has not been set yet.  The note will be
payable over 48 months, and the interest charged will be
prime plus two or nine percent, whichever is greater. 
Payments will be made monthly.  As part of the
transaction, the Buyer will be assuming the liabilities
and taxes owed by the joint venture that has operated
Hornblowers since 1993.  In addition, the Buyer has agreed
to assume the lease for the premises where the Hornblowers
restaurant is located.

     The company also recently learned that its commercial
liability insurance carrier will assume the company's
defense of the "Torres" case filed by two servers formerly
employed by the Hudson's Grill in Whittier, California. 
The insurance company will defend only that part of the
case that alleges libel by Hudson's.  The case, filed in
1994, also involves allegations of sexual harassment and
wrongful termination.  Hudson's has vigorously denied all
of the allegations.

     In defending the libel allegations, the insurance
company effectively will be defending the company against
the other allegations, too, even though the insurance
company's defense is technically limited to the libel
allegations.  The company is hopeful that a settlement can
be obtained for the entire case.  From now on, the legal
expenses for defending the case will be paid by the
insurance company so long as the libel allegations are a
part of the lawsuit.


     The company also announced that it had settled its
lease obligations to the landlord at its former site in
Irvine, California.  The landlord has agreed to accept
$85,000 from the company as a full and final settlement of
its past and future obligations under the lease.  The
company had ceased operations at the Irvine location in
early 1994.

                              # # #
f\sec\950605B.O01