BBQZ Barbeques Galore Limited ADS (MM)

Barbeques Galore Limited (NASDAQ:BBQZ) today reported sales for its fiscal second quarter ended July 31, 2005: -0- *T Three Months Ended July 31, In US$ thousands % ------------------- Increase/ 2005 2004 Decrease --------- --------- --------- Net Sales Australia 18,039 17,218 +4.8 U.S. 43,359 40,157 +8.0 --------- --------- Total net sales 61,398 57,375 +7.0 Comparable Store Sales Australia (in Australian $'s) -5.9 U.S. (in US $'s) +2.7 Six Months Ended July 31, In US$ thousands % ------------------- Increase/ 2005 2004 Decrease --------- --------- --------- Net Sales Australia 37,015 35,564 +4.1 U.S. 70,935 65,401 +8.4 --------- --------- Total net sales 107,950 101,025 +6.9 Comparable Store Sales Australia (in Australian $'s) -5.2 U.S. (in US $'s) +3.5 *T During the quarter, two new stores were opened in the U.S. The Alpharetta opening expands the company's penetration in the Atlanta, Georgia area to three locations, and the new Temecula store places the California network at 31 stores. Barbeques Galore said it closed its company-owned stores in Coral Springs, FL, Cupertino, CA and Stafford (Houston), TX. In Australia, one new store was opened at Capalaba, Queensland. The average exchange rate between the Australian dollar and the U.S. dollar for the quarter ended July 31, 2005 was A$1=US$0.7619 and for the corresponding prior-year quarter, A$1=US$0.7055, representing an increase of 8.0% in the Australian dollar against the U.S. dollar. In a separate news release today, the company announced it has signed an agreement for a proposed transaction with Ironbridge Capital, a leading Australian private equity firm, to acquire all the outstanding stock and options in the company in a cash transaction valued at approximately US$45 million. Ironbridge will offer A$13.00 per share in cash, equal to US$9.91, based on present currency exchange rates. The agreement is subject to the grant of the appropriate approvals and fulfillment of certain financial and other conditions. Barbeques Galore is the leading chain of specialty retail stores devoted to sales of barbecues, backyard accents, fireside products and related accessories. The company now owns and operates 68 stores in the U.S. and 44 stores in Australia. In addition, it has seven franchised stores in the U.S. and 48 licensed stores in Australia. Through its U.S. e-commerce Web site, www.bbqgalore.com, the company sells an extensive line of barbecue and fireside products and related accessories. This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, without limitation, forward looking statements include completion of the proposed transaction under which Barbeques Galore will be acquired and the proposed transaction price. Forward looking statements are based on management's current expectations and beliefs, and are subject to risks and uncertainties. Accordingly, actual results may differ materially from the forward-looking statements contained herein. Risks that relate to these forward looking statements include the risk that the transaction will not receive the required shareholder and government approvals and the risk that the transaction will otherwise not be completed. Further detailed information about risk factors that may impact the company's business is set forth in the company's periodic filings with the U.S. Securities and Exchange Commission. Barbeques Galore expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.