KAHL Kahala Corporation (GM)

Kahala Corp (Pink Sheets: KAHL), a Scottsdale, Ariz.-based franchisor of 10 quick-service restaurant concepts totaling more than 2,500 locations and just over $600 million in system-wide sales, announced today that it has entered into a new Area Representative Agreement with Gerald and Donna Ezell of Ezell Investments, LLC to open 10 Frullati Cafe & Bakery restaurants throughout the state of Mississippi over the next five years. Founded in 1985, Frullati Cafe & Bakery is an Italian-style bakery concept that is currently operating in 93 malls, medical centers, health clubs and airports across the nation. Offering breakfast, lunch and dinner options, the menu items include: grilled panini sandwiches on seasoned focaccia bread, fresh, hand-tossed salads, hearty soups, deli-style sandwiches, fresh fruit smoothies, bakery-style muffins, cookies, brownies and croissants and specialty coffees. The name "frullati" is Italian for fruit drink. The Ezells are both new to the world of restaurant franchising and spent many months researching various quick-service franchisors on the Internet. "We were intrigued by Kahala Corp because of the variety of concepts offered and hope to one day co- or tri-brand these concepts," said the Ezells. "What attracted us most to the Frullati concept was the fact that it can draw business throughout the day and it is a concept which offered a change to the typical sub-shops in our area. With its broad menu of sandwiches, salads, coffees, smoothies and pastries offered in a warm and comforting environment, we recognized in Frullati something that we, as consumers, would truly appreciate in our area." "After Hurricane Katrina, Mississippi is in a fast-paced rebuilding mode, and we think that we have something fresh and new 'after the storm' that will really appeal to those of us ready to begin anew," added the couple. "We are currently developing establishments from the central part of the state to the northern border with Tennessee and plan to expand to the full state in the near future... We're very excited about introducing Frullati to our fellow Mississippians!" The Ezells plan to open the state's first Frullati Cafe & Bakery in Lakeland Commons in Flowood, Miss., in an in-line center. This location is in a multi-million dollar shopping hub only developed within the last two to three years, with future plans for a $325 million dollar adjacent development. The announcement was made by Kevin Blackwell, chairman and chief executive officer of Kahala Corp, which owns and operates: The Great Steak & Potato Co., TacoTime, Samurai Sam's Teriyaki Grills, RANCH ONE, Rollerz, Wafflo, Johnnie's Pizzeria, Surf City Squeeze, Frullati Cafe & Bakery, and the newly acquired Blimpie chain formerly owned by Blimpie International Inc. To learn more about Kahala Corp and its 10 restaurant concepts, please visit the company Web site at www.kahalacorp.com.