Chanticleer Holdings Invests $1.1 Million in Hooters of America

CHARLOTTE, N.C., August 10, 2006 -- Chanticleer Holdings, Inc. (OTC: CEEH), a Business Development Company, today announced that the Company has acted as the lead investor in a $5 million, 6% convertible promissory note to Robert Brooks, Chairman of Hooters of America (HOA). However, due to the recent and unfortunate passing of Mr. Brooks on July 15, repayment of the promissory note has become a responsibility of Hooters of America as stipulated in the terms of the agreement. This note is secured by and contains conversion options into 2% of HOA outstanding stock. 

The $5 million investment was made by Chanticleer Investors, LLC, which was created on May 30, 2006 for the sole purpose of engaging in this investment opportunity. Chanticleer Holdings acted as the lead investor, providing $1,100,000 in funding, with the remainder being provided by a select group of accredited investors. The Company will act as the manager of Chanticleer Investors, LLC and will be paid, on the accredited investors’ portion, 1/3^rd of the quarterly interest payments and 20% of any realized gains.  Realized gains may result from either the sale of the note or the underlying shares of HOA.  

Michael Pruitt, Chief Executive Officer of Chanticleer Holdings, Inc., commented, “All of us at Chanticleer would like to offer our sincerest condolences to the family and friends of Robert Brooks. Hooters of America has experienced a great and unexpected loss, however we have every confidence that the Company will continue the tremendous growth, profitability and tradition of the Hooters brand and restaurant chain established by Mr. Brooks. For this reason, we are pleased to announce our most significant investment to date and look forward to managing Chanticleer Investors, LLC’s investment.”

For more information on Hooters, including a tribute to Mr. Brooks, please visit www.hooters.com.

August 10, 2006 (doc file - 33 KB)

doc file: You need the Microsoft Word program, a free Microsoft Word viewer, or a program that can import Word files in order to view this file. To learn more about the free Microsoft Word Viewer, visit the Microsoft Word website.