The following press release was issued Friday evening by Chi-Chi's:

Chi-Chi's, Inc., a Mexican restaurant chain headquartered in Louisville, Kentucky, today commented on the recent developments in the investigation of the Hepatitis A outbreak in Beaver Valley and announced the start of an outreach effort to the Beaver Valley community.

The Company has established a toll free number (1-800-328-7761) to enable all customers or employees affected by the outbreak or having questions or concerns regarding Hepatitis A to contact Chi-Chi's. The Company received approval today from the U.S. Bankruptcy Court to proceed with a plan to begin to respond to the needs of affected customers.

"Chi Chi's is deeply concerned about the effects of this incident on our guests, our employees and the Beaver Valley community," said Bill Zavertnik, COO for Chi-Chi's, Inc. "From the onset, we have been working hand-in-hand with the public health authorities to identify the origin of this outbreak. And we have taken every possible step to ensure the health and safety of our guests and our employees.

"We learned this morning that the public health authorities have made a preliminary determination that a shipment of green onions was the likely origin of this outbreak, which has infected over 500 people in the region, including 13 Chi-Chi's employees. We are gratified by the comments made at today's news conference by the health authorities. They confirmed that Chi-Chi's employees were not the source of this incident, that there was nothing we could have done to prevent the outbreak, and that this is an isolated incident.

"As soon as there was a suspicion of green onions being involved, Chi-Chi's removed them from our entire chain. There is currently no industry- accepted means of testing produce for Hepatitis A virus. And there is no effective way to wash Hepatitis A off of green onions, as the public health authorities have confirmed. We support the efforts of the FDA, CDC and the Health Department to address the underlying causes of this event. And we want the community to know that we have spared no effort to respond to this incident."

Chi Chi's efforts to date include:

Working with the Pennsylvania Department of Health, the Center for Disease Control (CDC), and the FDA to ensure the safety of our guests and employees and providing these authorities with on-going assistance in their investigation of the Hepatitis A incident.

Inoculation, testing, and precautionary measures for all Chi Chi's Beaver Valley employees.

Voluntary closure of the restaurant at the Beaver Valley Mall until at least January 2, 2004. The closure will extend at least ten days beyond the maximum incubation period of Hepatitis A and provide the health authorities with a "controlled environment" in which to conduct their investigations.

Providing financial support to all of the employees who were employed at this restaurant during the period of closure and requesting that they not seek employment elsewhere.

Providing financial assistance, which may include reimbursement of medical expenses and lost wages, to Chi-Chi's guests who dined at the Beaver Valley Mall location and may have been affected by this incident.

"Chi-Chi's has spent thirty years building a reputation as an industry leader in the area of food safety. We sincerely regret that any of our guests or employees became ill after eating at our Beaver Valley restaurant," said Zavertnik. "We are working diligently to respond to all persons that have been affected by this incident.

"The entire Chi-Chi's team is committed to rebuilding the trust of the community. We hope that our guests will take advantage of the outreach effort and use the 1-800 number to address questions and concerns they may have and request our assistance.

"We would like all of our customers to know that we will do everything possible to continue to provide them with great food and a safe and enjoyable dining experience."