Sentinel divests holdings in Border Foods in a transaction

Premier Taco Bell Franchisee in Minnesota

NEW YORK, January 3, 2000 - Sentinel Capital Partners, a leading private equity firm that invests in promising smaller middle market companies, today announced the sale of Border Foods, Inc., a premier franchisee in the Taco Bell system, in a recapitalization transaction valued at $58 million. The change positions Border Foods' management as the new majority owner. Sentinel sold its holdings after three years because virtually all of the investment's original objectives, which were expected to be met in five years, had been achieved. Since Sentinel's original investment, Border Foods has increased sales and profitability by more than 40% and 75%, respectively. According to executives involved with the transaction, Border Foods is now well positioned to grow its existing core Taco Bell business and its newly acquired KFC franchise.

"This marks the culmination of a terrific relationship with Sentinel," said Lee Engler, President of Border Foods. "Both parties did what they said they were going to do at the outset and are more than satisfied with the outcome."

"Lee and his team did an outstanding job. They are superb restaurant executives," observed David Lobel, Founder and Managing Partner of Sentinel. "They told us that their goal was to own the entire company," added John McCormack, Co-Founder and Senior Partner of Sentinel. "We are delighted to enable them to fulfill their dreams and are confident that they will continue to be highly successful."

Border Foods, located in Minneapolis, Minnesota, is one of the largest franchisees in the worldwide Taco Bell system. With approximately $5 billion in systemwide revenues and 6,800 restaurants, Taco Bell is the largest U.S. quick service restaurant chain specializing in Mexican food.

Taco Bell, a wholly-owned subsidiary of Tricon Global Restaurant, Inc., is the franchisor of the Taco Bell concept. Tricon is one of the world's largest operators and franchisors of QSR restaurants with more than 29,000 restaurants in 102 countries. Tricon is also the parent company of KFC and Pizza Hut. Tricon's restaurant brands generate annual system-wide sales of approximately $20 billion.