Bahama Breeze is effectively building a unique position in the upper-end of the casual dining market. The popularity of the concept – Caribbean-inspired cuisine and beverages, prepared from scratch, in a fun and entertaining atmosphere – is unquestionable. Our guest reviews averaged more than 95% excellent in fiscal 2002. At this point, marketing is primarily “word-of-mouth.” And nightly crowds regularly enjoy filling their wait time by listening to live music on the deck, ordering an array of tropical drinks and anticipating a meal that is truly worth the wait. This meal is unmatched in the casual dining segment thanks to Darden’s ability to obtain the choicest ingredients and Bahama Breeze’s exceptional team of chefs. This level of culinary excellence requires strong vendor partnerships and intensive training. Every manager, for instance, spends 12 weeks in culinary training alone – two at the training kitchen in Orlando, Florida, and 10 in the restaurant. By the time this process is complete, a manager is completely familiar with every recipe on the menu. Training even extends to vendors. Every produce vendor working with Bahama Breeze must spend three days in Orlando training with the restaurant’s original produce partner, Red’s Market. This detailed attention to fresh ingredients and culinary techniques is part of the reason Bahama Breeze consistently garners high praise for its cuisine. Reviews and industry rankings are far above those usually found in casual dining. Some examples include: Zagat – Excellent Rating American Culinary Federation National Soup & Sauce Competition – 1st Place Gold Medal NAFEM Invitational Culinary Contest – 2001 1st Place Gold Medal Orlando Foodie Awards including Best Chain, Best Theme, Worth a Wait, Best Outdoor Dining and Best Overall Restaurant The Las Vegas Review Journal – Best New Restaurant and Best Tropical Drink by the Reader’s Poll. This culinary success is enhanced by Bahama Breeze‘s dinner-only business approach (we open early for dinner on Sundays and, in some markets, on Saturdays). High-margin beverages comprise a higher percentage of sales during the dinner meal period, and limited hours of service, combined with a higher per person check average, lower the cost of sales. It also allows us to focus more intensely on our scratch preparation of delicious, artfully presented Island-inspired food and beverages, and positions us to achieve our goal of being the leader in the upper-end of casual dining. During fiscal 2002, sales surpassed $125 million and eight new restaurants opened, to bring the company‘s total to 29 locations. The Bahama Breeze management team also spent much of the year refining site strategy, adjusting our real estate pipeline and streamlining the development process for future sites. With our culinary success firmly established and a business model designed to generate high profitability, Bahama Breeze is well on the way to realizing its considerable potential. continued>