Richtree Inc. has yesterday released its Third Quarter operating results for the thirteen week period ended April 29, 2001 and the year to date results for the thirty-nine week period ended on the same date. The results show a solid recovery in sales performance and continued improvement in operating, cash flow and net results.

Sales in the quarter slightly exceeded last year’s level on a same store basis at $20.3 million, which reverses the trend of lower than last year sales through the second quarter. Earnings before interest, taxes, and depreciation (EBITDA) in the Third Quarter was $0.9 million (last year $0.1 million). Income from restaurant operations was $1.4 million in the Third Quarter versus $0.8 million a year earlier, and corporate overhead amounted to $0.5 million compared to $0.9 million last year. After recording amortization of $1.5 million and interest of $0.4 million, the net loss was $1 million, or 8.3 cents per share compared to $10.7 million or 88.7 cents per share last year, after a charge of $9.1 million (75 cents per share) related to the discontinuation of the Company’s projects in the U.S.

On a year to date basis, EBITDA was $3.6 million, an increase of $2.1 million over last year on total revenue of $61.7 million. Restaurant operations provided income of $5.0 million compared to $4.3 million last year. Corporate overhead was $1.4 million, a reduction of $1.5 million from the prior year. After amortization of $4.5 million and interest of $1.1 million, the net loss to the end of the Third Quarter was $2 million, or 16.3 cents per share, compared to $12.7 million (after the special charge of $9.1 million, or 75 cents per share) or $1.052 per share recorded to the end of the Third Quarter last year.

Colin West, Vice President and Secretary Treasurer said that, “although the Third Quarter is traditionally the slowest, we are encouraged that the improvement in our operating and overall results has continued unabated.” West added, “we are particularly pleased that our sales have returned to last year’s levels despite a softness in retail sales being felt generally.” Company President & CEO, Jorg Reichert commented that, “our market concept restaurants and particularly our smaller format Marchelino group continue to produce industry class results”. According to Reichert the Company is continuing in the development of its franchise organization, with focus on the Marchelino restaurants, and expects that future growth will come from this direction.

Richtree operates its Marches in Toronto, Montreal and Boston and its Marchelino restaurants in Toronto, Ottawa, Montreal and Boston. The Company has three full-service restaurants operated under the Movenpick name. Richtree is listed on The Toronto Stock Exchange under the symbol MOO.b.

For further information, contact: Colin West, Vice President Secretary Treasurer, Richtree Inc., (416) 366-8122 E-mail: cwest@movenpickcanada.com