EXHIBIT 99.1

FOR IMMEDIATE RELEASE                                CONTACT: R. GREGORY LEWIS
                                                             615-269-1900

                  J. ALEXANDER'S CORPORATION EXTENDS AGREEMENT
                              WITH SOLIDUS COMPANY

              COMPANY SEES DIVIDEND PAYMENT BEGINNING IN EARLY 2006

      NASHVILLE, TN., August 1, 2005 - J. Alexander's Corporation (AMEX: JAX)
today announced that it has reached an agreement with Solidus Company, its
largest shareholder, to extend, subject to certain conditions, the existing
contractual restrictions on Solidus's investment in the Company until December
1, 2009.

      Lonnie J. Stout II, chairman, president and chief executive officer, said
that Solidus has agreed that it will not seek to increase its ownership of J.
Alexander's Common Stock above 33% of the Common Stock outstanding and that it
will not sell or otherwise transfer its Common Stock without the consent of the
Company's Board of Directors. Stout said that the agreement will continue after
January 15, 2006, provided that the Company pays a cash dividend to shareholders
of either $0.025 per share, each quarter, or $0.10 per share, annually.

      According to Stout, the Company currently intends to pay a dividend in
early 2006, which would meet the initial requirements to extend the standstill
restrictions. Its intention is based on the Company's current results of
operations and financial condition, and will be subject to review by the
Company's Board of Directors at the time it considers declaring a dividend.

      "We are pleased with the commitment demonstrated by Solidus in agreeing to
maintain its position for a significant period of time and its commitment to the
Company's execution of its long-term business plan for the benefit of all our
shareholders," Stout said. "We believe that the Amended and Restated Standstill
Agreement, under which the Company can elect to pay a



J. Alexander's Extends Agreement
Page 2

dividend to all shareholders in order to extend the agreement, provides the
Company with the opportunity to continue to execute its long-term business plan
and provides a cash benefit to all shareholders if a dividend is paid."

      The agreement was negotiated and approved on behalf of the Company by the
Audit Committee of the Board of Directors, which is comprised solely of
independent directors, who were advised by independent counsel. A copy of the
Amended and Restated Standstill Agreement will be filed with a Current Report on
Form 8-K with the SEC.

      J. Alexander's Corporation presently owns 27 J. Alexander's contemporary,
upscale, American casual dining restaurants which place a special emphasis on
food quality and professional service. The Company's restaurants are located in
Alabama, Colorado, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana,
Michigan, Ohio, Tennessee and Texas. The Company is based in Nashville,
Tennessee.

      This press release contains forward-looking statements that involve risks
and uncertainties. Actual results, performance or developments could differ
materially from those expressed or implied by those forward-looking statements
as a result of known or unknown risks, uncertainties and other factors. The
Company's ability to pay a dividend will depend on its financial condition and
results of operations at any time a dividend is considered or paid. Other risks,
uncertainties and factors include the Company's ability to increase sales in
certain of its restaurants, especially two of the newer restaurants that are not
performing at satisfactory levels; changes in business or economic conditions,
including rising food costs and product shortages; the number and timing of new
restaurant openings and its ability to operate them profitably; competition
within the casual dining industry, which is very intense; competition by the
Company's new restaurants with its existing restaurants in the same vicinity;
changes in consumer spending, consumer tastes, and consumer attitudes toward
nutrition and health; expenses incurred if the Company is the subject of claims
or litigation or increased governmental regulation; changes in accounting
standards, which may affect the Company's reported results of operations; and
expenses the Company may incur in order to comply with changing corporate
governance and public disclosure requirements of the Securities and Exchange
Commission and the American Stock Exchange. These as well as other factors are
discussed in detail in the Company's filings made with the Securities and
Exchange Commission and other communications.

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