Enters Into Services Agreement With Instill Corporation and Makes Equity Investment

Lloyd L. Hill, chairman and chief executive officer of Applebee's International, Inc. (Nasdaq:APPB), announced today the company's new e-business strategy to leverage opportunities in the emerging Internet and e-business arenas. Applebee's, the largest casual dining concept in the world, believes that the use of technology to improve efficiency and effectiveness in business applications is critical to maintaining its leadership position in the industry. The first step in implementing this strategy is an agreement with Instill Corporation, a leading provider of e-business purchasing services to the restaurant industry.

"As a result of the rapidly developing Internet and e-business environment, we have spent a significant amount of time identifying how we and our franchisees can take advantage of the growing momentum for e-business services," said Hill. "Our agreement with Instill is an important e-business relationship, and we are excited about the prospects for improvements in the procurement side of our business."

Instill provides a suite of e-business solutions for foodservice operators, distributors and manufacturers that help them lower costs and grow their businesses. Applebee's two-pronged agreement includes the use of Instill's Purchase Insight product, a consolidated purchasing information service. In support of the role Instill will provide to the industry, Applebee's is making an equity investment of $2 million in the company.

"We are impressed with Instill's management team, partners, industry focus and customer solutions," said Steve Lumpkin, executive vice president of strategic development and leader of Applebee's e-business strategy. "This agreement and investment combination represents the implementation of one of several initiatives we are currently evaluating to operate more effectively. We will continue to seek opportunities that utilize leading edge technology."

Applebee's International, Inc., headquartered in Overland Park, Kan., currently develops, franchises and operates restaurants under the Applebee's Neighborhood Grill and Bar brand, the largest casual dining concept in the world. There are currently 1,198 Applebee's restaurants operating system-wide in 49 states and seven international countries. Additional information on Applebee's International can be found at the company's website (www.applebees.com).