OTHER NEWS - May 23, 1996

Carl’s Jr. Owner to Take Over 28 Rally’s Sites: CKE Restaurants Inc. has agreed to take over 28 Rally’s Hamburgers Inc. locations in California and Arizona and operate most of them as Carl’s Jr. units, the companies said. The deal would let the 660-unit Carl’s Jr. expand its presence in California by quickly adding new locations and help Louisville, Ky.-based Rally’s eliminate costs associated with the far-flung group of restaurants. The deal calls for Rally’s, which operates 250 company-owned units in Eastern states, to turn over operation of the 28 restaurants to Anaheim-based Carl’s Jr. in return for a percentage of gross revenue. Rally’s will continue to own the restaurants. Rally’s has several company-owned restaurants in Los Angeles and Orange counties.