For the third quarter ended March 31, 1999, the company reported revenues of $4,512,000 compared with revenues of $4,217,000 for the same quarter a year ago, reflecting an increase of 7.0 percent. Net income for the quarter was $203,000 or 4 cents per diluted share, compared with a net loss of $118,000 or 3 cents per diluted share for the same quarter a year ago.

For the nine months ended March 31, 1999, the company reported revenues of $13,717,000 as compared with revenues of $12,335,000 for the same period of the prior year, reflecting an increase of 11.1 percent. The net income for the first nine months was $741,000 or 17 cents per diluted share compared with a net loss of $413,000 or 11 cents per basic and diluted share for the same period of the prior year.

Revenue from culinary arts education increased 5.4 percent and restaurant, catering and student housing and other revenues increased 15.1 percent for the third quarter compared to the same period last year. For the nine months, culinary arts education revenue increased 12.3% while restaurant, catering, student housing and other revenues decreased by 6.7%. The increase in culinary arts revenue for the three-month and nine-month periods are due to tuition increases implemented during the past 15 months and increased enrollment in the College of Food division. The increases were partially offset by a temporary decrease in enrollment levels at the San Francisco core campus due to a restructuring of the AOS degree program that temporarily increased the number of graduating students. The decrease in restaurant, catering and other revenue for the nine-month period resulted from a reduction in catering sales during the December holiday season.

Net income for the three and nine-month periods were consistent with management's expectations. The improvement in the operating results in comparison to last year, resulted from the increase in revenues and decreases in outside services, advertising and promotion, legal and other expenses. The improvements in operating results were after increases in occupancy and compensation and benefits expenses due to the opening of a second residential facility and a new, expanded campus in San Diego and the reorganization of the executive management team in May 1998.

Keith Keogh, President and CEO of the Company, stated "The growth in revenues and net income is the direct result of investments made in new products such as the College of Food division and student housing in fiscal years 1997 and 1998 and the restructuring of the management team in May of 1998." Keogh further indicated that management feels that revenues will continue to increase with the planned new Colleges of Food campuses to open in San Francisco in June 1999 and Orange County, California in first quarter of fiscal year 2000 and the opening of the second regional campus in New Orleans in the third quarter of fiscal year 2000.

Currently operating out of its core campus in San Francisco and two College of Food campuses in Salinas and San Diego, California, the California Culinary Academy, Inc. is one of the largest culinary schools in the United States and an internationally known leader and innovator in culinary arts education. The Company offers two fully accredited professional programs as well as programs in continuing education and vocational and consumer training. The Company also provides contract training and consulting services for product development and operations in the public and private sectors. Information on the company can be found on the Internet at http://www.baychef.com.

This press release contains certain forward-looking statements, including statements concerning the Company's expected operating results for the remainder of fiscal 1999 and the opening of new campuses in Orange County and San Francisco, California and New Orleans, Louisiana. Such statements are subject to risks and uncertainties that could cause the Company's ability to maintain and increase its student enrollment, its ability to continue to meet the requirements for participation in Title IV financial aid programs administered by the U.S. Department of Education, competitive conditions and other factors described in the Company's annual report on Form 10-KSB, and other reports filed by the company with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these statements.