Burger King Corporation Cancels Rights to West Bank

Food Court Miami (PROTEXT) - Burger King Corporation announced today that it has canceled the right of Rikamor, Ltd., its independent franchisee in Israel, to operate a Burger King food court counter in Ma'ale Adumim in the West Bank. Burger King has asked its franchisee to remove the Burger King brand from the site immediately. Burger King Corporation said the reasons for this action are a breach of its franchise contract and misrepresentation. Specifically, Rikamor falsely informed Burger King that the food court would be located in Israel. It had been clearly understood between the two companies that Burger King would not approve Rikamor opening restaurants in the West Bank at this sensitive time in the peace process. Burger King has had extensive discussions and consultations over the last several weeks with Rikamor. Rikamor's major shareholder has twice assured Burger King that he had undertaken to close the food counter; but the food counter remains open. The cancellation of Rikamor's right to operate the site as a Burger King franchise will not force the closure of the food counter. But, it will end any involvement of the Burger King brand in its operation at this time. Burger King has made this decision purely on a commercial basis and in the best interests of the hundreds of thousands of people who depend on the Burger King reputation for their livelihood. Burger King has no interest in taking sides in the Arab-Israeli peace process, except to welcome its early and mutually acceptable outcome. "Burger King regrets that its name and reputation have become entangled in matters that have nothing to do with providing quality food and service to its customers," said David Williams, president of Burger King in Europe, the Middle East and Africa. Since 1993, Burger King has encouraged the expansion of its outlets in Israel -- 46 to date -- along with an important Israeli-based supply network. Williams added, "We are fully committed to expanding the Burger King business in Israel and throughout the Middle East. We have many outstanding franchisees in the region who are well-resourced and who are dedicated to selling our flame-broiled products to our customers. "We currently have 130 restaurants in the region and firm plans to develop in existing markets, as well as opening new countries, such as Lebanon and Jordan," Mr. Williams said. Burger King Corporation and its franchisees operate more than 10,500 restaurants in all 50 states and 54 countries and international territories around the world. Since the company's founding in Miami in 1954, the BURGER KING(R) brand has become recognized for great flame-broiling taste and HAVE IT YOUR WAY(R) food customization. In fiscal year 1998, the BURGER KING(R) system has system-wide sales of $10.3 billion. Burger King Corporation is a part of Diageo (NYSE: DEO), the international food and drinks company. In addition to Burger King, other brands include Pillsbury, Haagen Dazs, Johnnie Walker and J&B Scotch whiskies, Smirnoff vodka, Gordon's gin, Baileys cream liqueur, and Guinness stout. The group operates in over 200 markets worldwide, and employs around 77,000 people. System-wide, Burger King restaurants employ more than 300,000 people. To learn more about the BURGER KING system, please visit the company's website at WWW.BURGERKING.COM. Burger King restaurants open in the Middle East at August 24, 1999 Country Number of Outlets First opening Israel 46 August 1994 Kuwait 31 February 1997 Oman 4 March 1993 Qatar 3 October 1996 Saudi Arabia 40 December 1992 United Arab Emirates 6 February 1994 ots Original Text Service: Burger King Corporation Internet: http://www.newsaktuell.de Contact: Burger King Corporation (USA) 305-378-7277 Web site: http://www.burgerking.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT

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