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September 15, 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 an agreement to settle a case filed by two former
employees who had alleged wrongful termination, libel and
sexual harassment by several of Hudson's employees of its
Whittier, Califronia Hudson's Grill.  Hudson's insurance
carrier will pay for the settlement of "Torres v. Hudson's
Grill of America, Inc."  No party admitted any liability, and
the terms of the settlement are to be kept confidential by all
of the parties.  Hudson's had vigorously denied all of the
allegations.

      David Osborn, President of Hudson's, stated, "We are
happy to get this case settled and behind us.  This will allow
us to focus on getting new franchisees and on selling our
remaining restaurants to current managers and franchisees."


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