May 28, 1996
Dallas, Texas

                          PRESS RELEASE

FOR IMMEDIATE RELEASE


     On January 26, 1996, Hudson's Grill of America, Inc.
("Hudson's"), a publicly held California corporation
headquartered in Dallas, Texas, and engaged in the franchising
of restaurants, announced the completion as of January 17,
1996, of the sale of its interest in the Hudson's Grill
restaurant located in Oxnard, California.  The buyer will also
lease certain equipment from Hudson's.  The sale included the
payment of $5,230 in cash to Hudson's and the delivery of a
note for $282,086.85.

     The sale of this restaurant continues Hudson's plans to
sell all of its restaurants that it directly operates or
jointly operates and in turn to concentrate on franchising its
Hudson's Grill restaurant concept.

     Hudson's also announced that it was reselling Hudson's
Grill restaurants located in Westlake, California, and
Whittier, California, for which Hudson's will receive $320,000
in cash and notes.  Closing on the sale will be completed upon
receipt of permission from regulatory authorities in
California.

     On March 2, 1996, Hudson's first East Coast franchisee
opened a Hudson's Grill in a food court location at the Garden
State Mall in Paramus, New Jersey.  This is the first
restaurant opened under an agreement made with Jotar, Inc., in
1995 to develop parts of New Jersey and New York over the next
fifteen years, and it is Hudson's first food court location.

     Hudson's recently modified its note from Famous Bars,
Grills & Cafes of America, Inc. ("FGA").  FGA will resume
payments on its note to Hudson's in February 1997 and will pay
the note over ten years.  At the same time, FGA assigned to
Hudson's several notes from buyers of FGA's former
restaurants; these notes will collateralize the modified note.

     Additionally, Hudson's announced that its directors had
recommended that its shareholders adopt a resolution to
increase the number of authorized shares that Hudson's can
issue.  The current number of authorized shares is
insufficient to cover the current and future capital needs of
Hudson's; its need to issue shares if and when various stock
options are exercised; and in the future to allow Hudson's the
flexibility to negotiate franchise agreements with larger
restaurant operators.

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