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Exhibit 99.2
GROUND ROUND
RESTAURANTS, INC.
- --------------------------------------------------------------------------------
35 Braintree Hill Office Park TEL (617) 380-3100
P.O. Box 9078 - Braintree, MA 02184-9078 FAX (617) 380-3207
FOR IMMEDIATE RELEASE
Contacts: Stephen Kiel Peter Dobrow
- -------- Ground Round -or- Creamer Dickson Basford
(617) 380-3115 (212) 887-8145
SALE OF NINE GROUND ROUND SITES
TO LONE STAR COMPLETED
BRAINTREE, Mass., Oct. 15, 1996 - Ground Round Restaurants, Inc.
(Nasdaq:GRXR) announced that the company has completed the sale of nine units to
Lone Star Steakhouse and Saloon, Inc. (Nasdaq: STAR). The sale is part of an
agreement initially announced on July 1 to sell up to 16 Ground Round sites for
up to $16 million, and was based upon satisfaction of certain conditions to be
met.
The nine units are located in the Northeast and Midwest, and transfer of
ownership is effective immediately. The sale of additional restaurants, as
agreed, is expected to be fully completed by the end of November.
"The sale of these stores will give us the funds to reduce debt by
approximately eight million dollars, and provide resources for additional
investment and future growth," said Daniel R. Scoggin, Chairman of the Board,
Chief Executive Officer and President of The Ground Round. "The transaction is a
component of our turnaround process to return The Ground Round to a
casual-dining industry leader."
The company also announced that a subsidiary of U.S. Industries, Inc.
exercised its right to have the company register 3,632,100 shares of the
company's common stock (approximately 25 percent of the shares outstanding) for
sale.
Ground Round Restaurants, Inc. operates 133 company and franchise 46
family-oriented, full-service, casual dining restaurants in the Northeast,
Mid-Atlantic and Midwest regions of the United States.
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October 15, 1996