Famous Dave’s of America, Inc. (Nasdaq:DAVE) yesterday affirmed its revenue and earnings outlook for the 3rd Quarter and fiscal year 2001. Previous announcements had indicated revenues of $23-24 million for the 3rd Quarter and approaching $90 million for the year. The Company also announced that it will report earnings on a fully-taxed basis beginning in the 3rd Quarter due to continuing favorable business trends and financial performance.

The Company will reflect the full value of its approximately $4 million deferred tax asset, which relates primarily to net operating losses and tax credits incurred prior to 2000. Previously, the deferred tax asset had been fully reserved due to uncertainty of its use it future years. The company now expects to fully utilize the tax-loss carry-forward and will record a tax provision for financial reporting purposes. The change will not impact the company’s current cash flow as no material tax payments are expected until 2003.

This valuation change will result in a one-time gain of $4.0 million for the 3rd quarter of 2001, or approximately $0.36 per share. Previous earnings guidance from the company was for untaxed earnings per share of $0.11-$0.13 per share for the 3rd quarter and $0.35-$0.38 for the full year. Excluding the one-time gain, the Company expects fully taxed earnings per share will be $0.07- $0.08 cents for the 3rd quarter and $0.22-$0.24 cents for the fiscal year.

“This change reflects our confidence in the strength or our business strategy and the progress we have made to date.” said Ken Stanecki, Chief Financial Officer of Famous Dave’s. “Reversing the valuation reserve will allow investors to review our results in a format comparable with others in the industry.”

About Famous Dave’s of America

Famous Dave’s owns, operates and franchises barbeque restaurants and blues clubs. The company currently owns 37 locations and franchises 13 locations in Minnesota, Wisconsin, Illinois, Iowa, Nebraska, Utah, South Dakota, Maryland and Virginia and has signed development agreements for an additional 59 franchised locations. Its menu features award-winning barbecued and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts.

Certain matters discussed within this press release, including statements regarding revenue and profit forecasts, new restaurant sites, restaurant openings and expansion plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Famous Dave’s of America, Inc. believes the expectation reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to defer materially from Famous Dave’s expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction programs, changes in local or national economic conditions, availability of financing and other risks detailed from time to time in the company’s SEC reports.