Brazil Fast Food Corp. (NASDAQ SmallCap: BOBS), the second largest fast food chain operator in Brazil, with 245 points of sale, yesterday reported operating results for its second quarter ended June 30, 2001.

Total net operating revenues for the six months ended June 30, 2001, increased 20.4 percent to R$40.1 million, from R$33.3 million for the same period of the prior year. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first half of 2001 rose 33.3 percent to R$2.0 million from R$1.5 million for the first six months of 2000. Same store sales for the first six months of 2001 increased 3.6 percent from the prior year's first two quarters. The Company reported a net operating profit of R$89,000 for the first half of 2001 - an improvement of R$299,000 from the R$210,000 net operating loss of the first six months of 2000. System-wide gross sales for the chain, which are comprised of sales by the company and its franchisees, increased 21.2 percent to R$87.9 million for the first half of 2001, from R$72.5 million for the comparable period of the previous year.

The net loss for the six months ended June 30, 2001, was R$3.6 million, or R$1.29 per basic and diluted share, compared to R$1.4 million, or R$0.44 per basic and diluted share for the first half of 2000. The increase in net loss is primarily attributable to the effects of the economic crisis in Argentina, which resulted in higher Brazilian interest rates, and a significant increase in the exchange rate between the Real (Brazil's currency) and the U.S. Dollar, which directly affects our U.S. Dollar-denominated debt. Without giving effect to the fluctuation in the exchange rate, the Company's net loss for the six months ended June 30, 2001, was R$(2.4) million or R$(0.89) per basic and diluted share, compared to R$(1.4) million, or R$(0.44) per basic and diluted share, for the same period of 2000.

Total net operating revenues for the second quarter of 2001 rose 17.7 percent to R$18.6 million, from R$15.8 million for the same period of the prior year. Same store sales for the second quarter of 2001 increased one percent from the previous year's second quarter. The net increases in same store sales and total operating revenues resulted from a six percent increase in sales prices of all of our products and a decrease in the number of transactions in our retail outlets. EBITDA for the three months ended June 30, 2001, increased 109 percent to R$412,000 from R$197,000 for the second quarter of the prior year. System-wide gross sales for the chain increased 20.0 percent to R$41.9 million for the second quarter of 2001, from R$34.9 million for the same period of the prior year.

The Company's net loss was R$5.0 million, or R$1.33 per basic and diluted share, for the second quarter of 2001, compared with a net loss of R$1.6 million, or R$0.49 per basic and diluted share, for the second quarter of 2000. The breakdown of the net loss for the second quarter of 2001 and 2000, respectively, is as follows: the Company reported a loss from operations of R$564,000 versus R$697,000, interest expense of R$1,446,000 versus R$650,000, and a foreign exchange loss of R$578,000 versus R$253,000.

In order to comply with Brazilian financial regulations, the Company reversed about R$2.4 million of interest income in the second quarter of 2001, which had been accounted for in the previous quarter. As a result, the interest expense of R$1.4 million for the second quarter of 2001 was increased to $3.8 million. Without giving effect to the fluctuation in the exchange rate and the accounting adjustment to reverse the R$2.4 million of interest income, the net loss for the quarter ended June 30, 2001, was R$2.0 million or R$0.75 per basic and diluted share, compared to R$1.3 million, or R$0.40 per basic and diluted share for the same period of 2000.

Peter van Voorst Vader, president and CEO of the Brazil Fast Food, commented, "We managed to continue much of our financial progress during the second quarter, despite significant macroeconomic challenges - the impact of Argentina on Brazil, and energy rationing. We continued to improve EBITDA, building on the progress we made in 2000, we opened 14 new stores during the second quarter, and we ramped up our franchise business, signing 38 new franchise agreements during the first half of 2001, compared with 14 agreements during the first six months of 2000."

Mr. Vader continued, "In addition, during the first half of 2001, Brazil Fast Food began to reap the first tangible benefits of its agreement with leading international oil company Petrobras to open a store at 30 Petrobras Distribuidora (BR) gas stations. BR is a subsidiary of Petrobras with more than 7,200 gas stations throughout Brazil. The first BR "Bob's" store opened in February, near the Maracana Stadium, the world's largest soccer stadium, the second opened in July, and three more are currently under construction."

Mr. Vader also commented on the effects of Brazil's energy crisis. "Our Company has successfully met the government-imposed electricity reduction target since the rationing went into effect. Although it is difficult to assess the full impact at this time, we believe that we will continue to improve our operating results for the duration of the energy rationing, albeit at a somewhat slower pace. With continued strong demand for Bobs' franchises, proactive and effective marketing campaigns and strict control of our expenses, we believe that our future remains quite bright," Mr. Vader concluded.

About Brazil Fast Food

Brazil Fast Food Corp. currently has 245 outlets in its "Bob's" chain. Brazil Fast Food Corp., through its wholly owned subsidiary, Venbo Comercio de Alimentos Ltda., a limited liability company, owns and operates (both directly and through franchisees) the second largest chain of hamburger fast food restaurants in Brazil.

This press release may contain certain forward-looking statements, which are subject to change. Actual results may differ from those described in any forward-looking statements. Additional information concerning potential factors that could affect the Company's financial results are included in the Company's Form 10-K for the year ended December 31, 2000, which has been filed with the Securities and Exchange Commission.

BRAZIL FAST FOOD CORP.
Financial Highlights (Unaudited)(1)
(In thousands, except shares and earnings per share)

                                 For the               For the
                            Three Months Ended     Six Months Ended
                           --------------------  --------------------
                           06/30/01   06/30/00   06/30/01   06/30/00
                           ---------  ---------  ---------  ---------
System-Wide Sales             41,940     34,829     87,900     72,467
Net Operating Revenue         18,601     15,777     40,074     33,269
EBITDA(2)                        412        197      2,031      1,549
Income (Loss) From
 Operations                     (564)      (697)        89       (210)
Interest Income (Expense)     (3,846)      (650)    (2,441)    (1,210)
Foreign Exchange Gain
 (Loss)                         (578)      (253)    (1,243)         9
Net Income (Loss)             (4,988)    (1,600)    (3,595)    (1,411)
Net (loss) Per Share,
 Basic and Diluted             (1.33)     (0.49)     (1.29)     (0.44)
Weighted Average
 Shares Outstanding        3,722,790  3,235,290  3,525,082  3,235,290

(1) Expressed in Brazilian Reais.
(2) Earnings before interest, taxes, depreciation and amortization.