KAHL Kahala Corporation (GM)

Kahala Corp (Pink Sheets: KAHL), a Scottsdale, Ariz.-based franchiser of eight quick service restaurant concepts totaling more than 1,000 locations and $450 million in systemwide sales, announced today that is has entered into a new area representative agreement with Shaun Khan, an entrepreneur from Orlando, Fla., to open 10 Surf City Squeeze smoothie stores on all of the Hawaiian Islands within the next five years. This announcement was made by Kevin Blackwell, chairman and chief executive officer of Kahala Corp, which franchises Great Steak & Potato Co., TacoTime, Samurai Sam's Teriyaki Grill, RANCH ONE Grilled Chicken, Frullati Cafe & Bakery, Rollerz, Wafflo, and Surf City Squeeze. Currently a records manager at a company in Orlando, Khan, 35, has never worked in the restaurant industry, but decided to become a Surf City Squeeze franchisee because he views this opportunity as an "exciting and very wise financial investment." "I was looking for a new challenge in my life and when I read about the whole Surf City Squeeze concept on the Internet, I instantly thought that this smoothie chain would be a perfect match for the tropical, surf and beach environment of the Hawaiian Islands," said Khan. "And since I don't have a background in the food industry, I liked the fact that Surf City Squeeze deals only with fresh fruit, smoothie mix, ice and blenders ... I figured I couldn't go wrong!" And with smoothies being the coolest drinks around, there's nowhere people are flocking to faster to get one than Surf City Squeeze. Surf City's signature low-fat smoothie mix is blended with real fruit to create outrageously creamy blends. Power Smoothies, like Ginseng Fling and Bee Stinger, include added nutrients for today's health-conscious consumer. The menu also includes Functional Smoothie options that burn fat and enhance muscle strength. Plus, Surf offers Sweet Smoothies, like Mocha Java, Cookies & Cream and Mochaccino for customers who wish to indulge their sweet tooth. In early 2006, Khan plans to open his first Surf City Squeeze in a Kiosk location in Waikiki, followed by a second in-line store location. Eventually, he plans to open up a Surf City Squeeze on all eight of the Hawaiian Islands. "For 2006, I have hired a manager who currently lives in Hawaii who will oversee the early, day-to-day operations of our new Surf City Squeeze stores," said Khan. "But in 2007, I am planning to move to Oahu with my wife and two children and personally oversee everything from there." "We are very excited about introducing Surf City Squeeze smoothies to the people of Hawaii and are confident that it will be very well received," said Blackwell. "With its surfing theme, high-quality ingredients, and unique menu offerings, we believe this concept is just a natural fit for the Islands." With nearly 120 locations across the United States, Surf City Squeeze is primarily located in malls, strip malls, health clubs and mobile carts. Surf City Squeeze is also growing rapidly as a co-brand with TacoTime, Samurai Sam's Teriyaki Grill, Rollerz and Great Steak & Potato Co. restaurants. To learn more about Kahala Corp and its restaurant concepts, please visit the company Web site at www.kahalacorp.com.