Bass Hotels and Resorts have agreed to promote the development of Alamo Grill within the Holiday Inn Hotel System as the exclusively endorsed steakhouse restaurant. The Alamo Grill is themed as a Southwestern steakhouse which Elephant Castle Group Inc. owns, operates and franchises throughout the United States. The Company is an experienced operator of restaurants within hotel properties, as it has five successful units operating within three different hotel brands. Alamo Grill will provide complete food and beverage solution for the
Holiday Inns, serving three dayparts, room service and banquet service. The well received Best-4-Breakfast(R) program has been designed into the Alamo Grill system.

Martin O'Dowd, President and Chief Executive Officer commented: "Our experience operating within Holiday Inn hotels over the years and the recent Atlanta agreement brought us to this new exclusive agreement. The Alamo Grill concept reaches a broad audience and will work well within the hotel industry at Bass Hotels and Resorts newest prototype."

Ned Barker, Vice President of Food and Beverage Services for Holiday Inn Hotels and Resorts stated: "We are very excited to offer the Alamo Grill brand to our franchisees as an endorsed steakhouse. Martin O'Dowd has unparalleled hotel food and beverage experience, serving as Director of Food and Beverage for Holiday Inn for many years. Elephant Castle understand the relationship between hotel operations and the food and beverage segment and have created a positive and workable sales solution for us as we enter the new millennium."

The Alamo Grill brand features the favorite foods of America's Old Southwest. The signature "Texas-sized" charbroiled, sizzling steaks, smoked meats and ribs as well as other traditional Southwestern specialties are featured. The cantina serves appetizers such as the Nachos Rio Grande and the Alamo's Famous 20 oz. Margarita with its full bar service. The Southwestern decor is inspired by the Spanish mission style of historic San Antonio, Texas and truly conveys the spirit of the Old Southwest.
 
 

The Alamo Grill is the casual, themed Southwestern-style steakhouse featuring the favorite foods of America's Old Southwest. Just inside the cantina, you slip into genuine rawhide chairs and journey back to the Old Southwest. Hearty food and giant drinks such as the Alamo's Famous 20 oz. Margarita awaits you in the casual fun-filled family environment. The menu features signature "Texas-sized," charbroiled, sizzling steaks, smoked meats and other traditional Southwestern specialties such as Sizzlin' Fajitas. Whether you start with the Nachos Grande or move right into the Showdown Steak or Smokehouse Ribs, be sure to save room for the Bread Puddin' with Bourbon Sauce.  Guests will feel as though they have been transported to a comfortable adobe hacienda. The Southwestern decor is inspired by the Spanish mission style of historic San Antonio, Texas and truly conveys the spirit of the Old Southwest.

Alamo Grill welcomes our guests through a large adobe tower with a magnificent river rock fireplace that radiates warmth and a comfortable "at home" feeling. Inside the courtyard, the flowing, brightly colored Southwestern tiled fountain is the vibrant, memorable focal point of the restaurant. The brilliant copper bar is highlighted by a 25-foot mural, and accents of Southwestern pottery and cacti appear throughout.

Elephant Castle(R) Group Inc. is the largest operator of authentic British-style pubs in North America under the name Elephant Castle. In addition the company owns and operates the Southwestern-theme restaurant concept called Alamo Grill(tm). These two concepts are also franchised throughout the United States and Canada. Elephant Castle also has a joint venture agreement with Rainforest Cafe Inc. to develop, own and operate the Rainforest Café restaurant and retail facilities in Canada.

This news release (as well as information included in oral statements or other written statements made or to be made by the Company) may contain forward-looking statements, such as statements relating to future expansion, that involve risks and uncertainties relating to future events. Actual events or the Company's results may differ materially from the results discussed in the forward-looking statement. The Company does not expect to update forward-looking statements continually as conditions change. These risks and uncertainties include, but are not limited to, those relating to competition, fluctuations and changes in consumer preferences and attitudes, intellectual property protection, development and construction activities. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the company's Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended Dec. 28, 1998.