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<SEC-DOCUMENT>0000930413-08-004814.txt : 20080812
<SEC-HEADER>0000930413-08-004814.hdr.sgml : 20080812
<ACCEPTANCE-DATETIME>20080812115532
ACCESSION NUMBER:		0000930413-08-004814
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20080628
FILED AS OF DATE:		20080812
DATE AS OF CHANGE:		20080812

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ARK RESTAURANTS CORP
		CENTRAL INDEX KEY:			0000779544
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING PLACES [5812]
		IRS NUMBER:				133156768
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09453
		FILM NUMBER:		081008737

	BUSINESS ADDRESS:	
		STREET 1:		85 FIFTH AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10003-3019
		BUSINESS PHONE:		2122068800

	MAIL ADDRESS:	
		STREET 1:		85 FIFTH AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10003-3019
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>c54549_10q.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE>c54549_10q.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">




<P align="center">
<FONT size=2 face="serif">SECURITIES AND EXCHANGE COMMISSION </FONT><BR>
<FONT size=2 face="serif">Washington, D.C. 20549 </FONT></P>
<hr align="center" width="20%" size="1" noshade>
<P align="center">
<FONT size=2 face="serif">FORM 10-Q </FONT></P>
<P align="center">
<FONT size=2 face="serif">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) </FONT><BR>
<FONT size=2 face="serif">OF THE SECURITIES EXCHANGE ACT OF 1934 </FONT></P>
<P align="center">
<FONT size=2 face="serif">For the quarterly period ended June 28, 2008 </FONT></P>
<P align="center">
<FONT size=2 face="serif">Commission file number 0-14030 </FONT></P>
<P align="center">
<B><U><FONT size=2 face="serif">ARK RESTAURANTS CORP.</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B><BR>
<FONT size=2 face="serif">(Exact name of registrant as specified in its charter)</FONT><FONT size=2 face="serif"> </FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width="25%" align=left style="border-bottom:1px solid #000000;"><div style="margin-left:50px"><FONT size=2 face="serif">New York</FONT></div>  </TD>
  <TD width=30%>&nbsp;  </TD>
  <TD width=25% align=center style="border-bottom:1px solid #000000;">
 <FONT size=2 face="serif">13-3156768</FONT>  </TD>
  </TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=2 face="serif">(State or other jurisdiction of</FONT>  </TD>
  <TD width=30%>&nbsp;  </TD>
  <TD align=center>
<FONT size=2 face="serif">(I.R.S. Employer</FONT>  </TD>
  </TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=2 face="serif">incorporation or organization)</FONT>  </TD>
  <TD width=30%>&nbsp;  </TD>
  <TD align=center>
<FONT size=2 face="serif">Identification No.)</FONT>  </TD>
  </TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width="25%" align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">85 Fifth Avenue, New York, New York</FONT>  </TD>
  <TD width=30%>&nbsp;  </TD>
  <TD width=25% align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10003</FONT>  </TD>
  </TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=2 face="serif">(Address of principal executive offices)</FONT>  </TD>
  <TD width=30%>&nbsp;  </TD>
  <TD align=center>
 &nbsp; &nbsp;<FONT size=2 face="serif">(Zip Code)</FONT>  </TD>
  </TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">Registrant&#146;s telephone number, including area code: <u>&nbsp;&nbsp;(212) 206-8800 &nbsp;&nbsp;</u></FONT></P>
<P align="left">
<FONT size=2 face="serif">Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for shorter period that the
registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.<br>
</FONT><FONT size=2 face="serif">Yes <u>&nbsp;&nbsp;X&nbsp;&nbsp;</u> No <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></P>
<P align="left">
<FONT size=2 face="serif">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of &#147;large accelerated filer,&#148;
&#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act. </FONT><FONT face="serif"> </FONT></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left width=43%>
<FONT size=2 face="serif">Large accelerated filer <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT>
  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD align=left width=54%>
<FONT size=2 face="serif">Accelerated filer <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT>
  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=43%>
<FONT size=2 face="serif">Non-accelerated filer <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT>
  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD align=left width=54%>
<FONT size=2 face="serif">Smaller Reporting Company <U>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</U></FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=43%>
<FONT size=2 face="serif">(Do not check if a smaller</FONT>
  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD align=left width=54%>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=43%>
<FONT size=2 face="serif">reporting company)</FONT>  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD align=left width=54%>&nbsp;

  </TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="serif">Indicate by check mark whether the Registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> &nbsp;&nbsp;No <U>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</U></FONT></P>
<P align="left">
<FONT size=2 face="serif">Indicate the number of shares outstanding of each of the issuer&#146;s classes of common stock, as of the latest practicable date: </FONT></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left width=47% style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Class</FONT>
  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD align=center width=50% style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Outstanding shares at August 11, 2008</FONT>
  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=47%>
<FONT size=2 face="serif">(Common stock, &#36;.01 par value)</FONT>
  </TD>
  <TD width=2%>&nbsp;
  </TD>
  <TD align=center width=50%>
<FONT size=2 face="serif">3,596,799</FONT>
  </TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=4>



<p style="page-break-before:always"></p><PAGE>


<P align="center">
<U><FONT size=2 face="serif">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</FONT></U><FONT size=2 face="serif"> </FONT></P>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We may make statements in this Quarterly Report on Form 10-Q</FONT><FONT size=2 face="serif"> </FONT><FONT size=2 face="serif">regarding our assumptions, projections, expectations, targets,
intentions or beliefs about future events. All statements, other than statements of historical facts, included or incorporated by reference herein relating to management&#146;s current expectations of future financial performance, continued growth
and changes in economic conditions or capital markets are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Words or phrases such as &#147;anticipates,&#148; &#147;believes,&#148; &#147;estimates,&#148; &#147;expects,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;predicts,&#148;
&#147;projects,&#148; &#147;targets,&#148; &#147;will likely result,&#148; &#147;hopes,&#148; &#147;will continue&#148; or similar expressions identify forward looking statements. Forward-looking statements involve risks and uncertainties which
could cause actual results or outcomes to differ materially from those expressed. We caution that while we make such statements in good faith and we believe such statements are based on reasonable assumptions, including without limitation,
management&#146;s examination of historical operating trends, data contained in records and other data available from third parties, we cannot assure you that our projections will be achieved. Factors that may cause such differences include:
economic conditions generally and in each of the markets in which we are located, the amount of sales contributed by new and existing restaurants, labor costs for our personnel, fluctuations in the cost of food products, adverse weather conditions,
changes in consumer preferences and the level of competition from existing or new competitors. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We have attempted to identify, in context, certain of the factors that we believe may cause actual future experience and results to differ materially from our current expectation regarding the
relevant matter of subject area. In addition to the items specifically discussed above, our business, results of operations and financial position and your investment in our common stock are subject to the risks and uncertainties described in
&#147;Item 1A Risk Factors&#148; in Part I of our Annual Report on Form 10-K for the fiscal year ended September 29, 2007 as updated by the information contained under the caption &#147;Item 1A. Risk Factors&#148; in Part II of this Quarterly Report
on Form 10-Q. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">From time to time, oral or written forward-looking statements are also included in our reports on Forms 10-K, 10-Q and 8-K, our Schedule 14A, our press releases and other materials released to
the public. Although we believe that at the time made, the expectations reflected in all of these forward-looking statements are and will be reasonable, any or all of the forward-looking statements in this Quarterly Report on Form 10-Q, our reports
on Forms 10-K and 8-K, our Schedule 14A and any other public statements that are made by us may prove to be incorrect. This may occur as a result of inaccurate assumptions or as a consequence of known or unknown risks and uncertainties. Many factors
discussed in this Quarterly Report on Form 10-Q, certain of which are beyond our control, will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from
forward-looking statements. In light of these and other uncertainties, you should not regard the inclusion of a forward-looking statement in this Quarterly Report on Form 10-Q or other public communications that we might make as a representation by
us that our plans and objectives will be achieved, and you should not place undue reliance on such forward-looking statements. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed
to any further disclosures made on related subjects in our subsequent periodic reports filed with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K and Schedule 14A. </FONT></P>
<P align="left">
<FONT size=2 face="serif"> Unless the context requires otherwise, references to &#147;we,&#148; &#147;us,&#148; &#147;our,&#148; &#147;ARKR&#148; and the &#147;Company&#148; refer specifically to Ark Restaurants Corp. and its subsidiaries and
predecessor entities. </FONT></P>
<P align="center"> <FONT size=2 face="serif">- 2 - </FONT></P>

<HR noshade align="center" width="100%" size=4>



<p style="page-break-before:always"></p><PAGE>


<P align="center">
<B><FONT size=2 face="serif">PART I</FONT></B><font size="2"><BR>
<B><FONT face="serif">FINANCIAL INFORMATION</FONT></B></font></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><B><U><FONT size=1 face="serif">Item 1. Financial Information</FONT></U></B></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom:1px solid #000000;"><B><FONT size=1 face="serif">ARK RESTAURANTS CORP. AND SUBSIDIARIES</FONT></B><font size="1"><BR>
        <B><FONT face="serif">CONSOLIDATED CONDENSED BALANCE SHEETS</FONT></B></font><BR>
        <FONT size=1 face="serif">(In Thousands)</FONT></td>
  </tr>
</table>
<br>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=center>
<FONT size=1 face="serif">June 28,</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=center>
<FONT size=1 face="serif">September 29,</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2008</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2007</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=center>
<FONT size=1 face="serif">(unaudited)</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=center>
<FONT size=1 face="serif">(see Note 1)</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<U><FONT size=1 face="serif">ASSETS</FONT></U>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">CURRENT ASSETS:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Cash and cash equivalents</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">4,714</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">4,009</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Short-term investments in available-for-sale securities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">5,875</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">9,201</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Accounts receivable</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">3,742</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">2,657</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Related party receivables, net</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">904</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1,318</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Employee receivables</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">256</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">316</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Current portion of long-term receivables</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">120</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">114</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Inventories</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1,646</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1,410</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Prepaid expenses and other current assets</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">697</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">649</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Assets held-for-sale</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,120</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Total current assets</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">17,954</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">20,794</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">LONG-TERM RECEIVABLES</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">262</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">352</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">FIXED ASSETS - At cost:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Leasehold improvements</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">31,274</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">27,094</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Furniture, fixtures and equipment</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">27,981</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">25,692</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Construction in progress</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">32</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,142</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">59,287</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">53,928</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Less accumulated depreciation and amortization</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">34,142</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">33,880</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">FIXED ASSETS - Net</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">25,145</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">20,048</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">INTANGIBLE ASSETS - Net</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">67</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">80</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">GOODWILL</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">4,813</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">5,107</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">TRADEMARKS</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">721</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">721</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">DEFERRED INCOME TAXES</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">4,790</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">4,763</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">OTHER ASSETS</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,221</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">316</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">TOTAL</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">54,973</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">52,181</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=9>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<U><FONT size=1 face="serif">LIABILITIES AND SHAREHOLDERS' EQUITY</FONT></U>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">CURRENT LIABILITIES:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Accounts payable - trade</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">2,783</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">2,404</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Accrued expenses and other current liabilities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">5,858</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">5,503</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Accrued income taxes</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1,628</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1,135</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Current portion of note payable</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">191</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">181</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Total current liabilities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">10,460</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">9,223</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">OPERATING LEASE DEFERRED CREDIT</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">3,719</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">3,771</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">NOTE PAYABLE</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">560</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">704</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">OTHER LIABILITIES</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">175</FONT></TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">229</FONT></TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">TOTAL LIABILITIES</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">14,914</FONT> </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">13,927</FONT></TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">NON-CONTROLLING INTERESTS</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,537</FONT></TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">164</FONT></TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">COMMITMENTS AND CONTINGENCIES</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">SHAREHOLDERS' EQUITY:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Common stock, par value &#36;.01 per share - authorized, 10,000 shares; issued, 5,667</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">shares at June 28, 2008 and September 29, 2007, respectively</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">57</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">57</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Additional paid-in capital</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">21,990</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">21,756</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Accumulated other comprehensive income (loss)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(13</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">49</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Retained earnings</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">24,998</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">24,780</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">47,032</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">46,642</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Less stock option receivable</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(124</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(166</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Less treasury stock of 2,070 shares at June 28, 2008 and September 29, 2007</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(8,386</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(8,386</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Total shareholders' equity</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">38,522</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">38,090</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">TOTAL</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">54,973</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">52,181</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=1 face="serif">See notes to consolidated condensed financial statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">- 3 - </FONT></P>

<HR noshade align="center" width="100%" size=4>



<p style="page-break-before:always"></p><PAGE>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><FONT size=1 face="serif">&nbsp;</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom:1px solid #000000;"><B><FONT size=1 face="serif">ARK
          RESTAURANTS CORP. AND SUBSIDIARIES</FONT></B><BR>
      <B><FONT size=1 face="serif">CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
      (Unaudited)</FONT></B><BR>
      <FONT size=1 face="serif">(In Thousands, Except Per Share Amounts)</FONT></td>
  </tr>
</table>
<br>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD colspan=5 align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">13 Weeks Ended</FONT>    </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD colspan=5 align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">39 Weeks Ended</FONT>    </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=center>
<FONT size=1 face="serif">June 28,</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center colspan=2>
<FONT size=1 face="serif">June 30,</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=center>
<FONT size=1 face="serif">June 28,</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center colspan=2>
<FONT size=1 face="serif">June 30,</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2008</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2007</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2008</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2007</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=center><FONT size=1 face="serif">(see Note 1)</FONT> </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center colspan=2>
<FONT size=1 face="serif">(see Note 1)</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">REVENUES</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left><div style="margin-left:20px"><FONT size=1 face="serif">Food and beverage sales</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">35,406</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">33,892</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">88,823</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">83,638</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 <div style="margin-left:20px"><FONT size=1 face="serif">Other income</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">671</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">519</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,941</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,800</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<div style="margin-left:40px"><FONT size=1 face="serif">Total revenues</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">36,077</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">34,411</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">90,764</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">85,438</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">COST AND EXPENSES:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 <div style="margin-left:20px"><FONT size=1 face="serif">Food and beverage cost of sales</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">9,224</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">8,625</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">23,384</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">21,618</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 <div style="margin-left:20px"><FONT size=1 face="serif">Payroll expenses</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">10,125</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">9,694</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">28,023</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">26,482</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 <div style="margin-left:20px"><FONT size=1 face="serif">Occupancy expenses</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">4,696</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">4,210</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">12,259</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">11,340</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 <div style="margin-left:20px"><FONT size=1 face="serif">Other operating costs and expenses</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">4,063</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">4,297</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">11,209</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">10,396</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 <div style="margin-left:20px"><FONT size=1 face="serif">General and administrative expenses</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">2,260</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">2,270</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">6,594</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">6,325</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 <div style="margin-left:20px"><FONT size=1 face="serif">Depreciation and amortization</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">771</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">687</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,153</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,967</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<div style="margin-left:40px"><FONT size=1 face="serif">Total cost and expenses</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">31,139</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">29,783</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">83,622</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">78,128</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">OPERATING INCOME</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,938</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,628</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,142</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,310</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">OTHER (INCOME) EXPENSE:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 <div style="margin-left:20px"><FONT size=1 face="serif">Interest expense</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">14</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">48</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">44</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">48</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 <div style="margin-left:20px"><FONT size=1 face="serif">Interest income</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(105</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(114</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(397</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(262</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 <div style="margin-left:20px"><FONT size=1 face="serif">Other income</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(158</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(184</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(322</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(657</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<div style="margin-left:40px"><FONT size=1 face="serif">Total other income</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(249</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(250</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(675</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(871</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<div style="margin-left:8.65pt; text-indent:-8.65pt;"><FONT size=1 face="serif">Income
from continuing operations before provision for income taxes and non-controlling
interests</FONT></div></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">5,187</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">4,878</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">7,817</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">8,181</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">Provision for income taxes</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1,762</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1,430</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">2,698</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">2,569</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">Income attributable to non-controlling interests</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(175</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(102</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(174</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(136</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">INCOME FROM CONTINUING OPERATIONS</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,250</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">3,346</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,945</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">5,476</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">DISCONTINUED OPERATIONS:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left><div style="margin-left:41px;text-indent:-21px"><FONT size=1 face="serif">Income (loss) from operations of discontinued restaurants (includes net loss on disposal
of &#36;19 and net gain on disposal of &#36;7,814 for the 39 weeks ended June 28, 2008 and
June 30, 2007, respectively)</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(178</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">155</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">33</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">7,542</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 <div style="margin-left:20px"><FONT size=1 face="serif">Provision (benefit) for income taxes</FONT></div>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(64</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">30</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">12</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2,579</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">INCOME (LOSS) FROM DISCONTINUED OPERATIONS</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(114</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">125</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">21</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,963</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">NET INCOME</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,136</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,471</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">4,966</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">10,439</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">PER SHARE INFORMATION - BASIC AND DILUTED:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">Income from continuing operations</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">0.90</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">0.93</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1.37</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1.53</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">Discontinued operations</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(0.03</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">0.04</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">0.01</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1.39</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">BASIC</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">0.87</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">0.97</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">1.38</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">2.92</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">Income from continuing operations</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">0.90</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">0.92</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1.37</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1.52</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">Discontinued operations</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(0.03</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">0.04</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">0.01</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1.38</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">DILUTED</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">0.87</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">0.96</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">1.38</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">2.90</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">WEIGHTED AVERAGE NUMBER OF SHARES - BASIC</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,597</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,590</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,597</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,578</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">WEIGHTED AVERAGE NUMBER OF SHARES - DILUTED</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,597</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,624</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,612</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,596</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=1 face="serif">See notes to consolidated condensed financial statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">- 4 - </FONT></P>

<HR noshade align="center" width="100%" size=4>



<p style="page-break-before:always"></p><PAGE>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><FONT size=1 face="serif">&nbsp;</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td style="border-bottom:1px solid #000000;"><B><FONT size=1 face="serif">ARK
          RESTAURANTS CORP. AND SUBSIDIARIES</FONT></B><BR>
      <B><FONT size=1 face="serif">CONSOLIDATED CONDENSED STATEMENTS OF CASH
      FLOWS (Unaudited)</FONT></B><BR>
      <FONT size=1 face="serif">(In Thousands)</FONT></td>
  </tr>
</table>
<br>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD colspan=5 align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">39 Weeks Ended</FONT>    </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=center>
<FONT size=1 face="serif">June 28,</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right>&nbsp;</TD>
  <TD align=center><FONT size=1 face="serif">June 30,</FONT> </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">2008</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right style="border-bottom:1px solid #000000;">&nbsp;</TD>
  <TD align=center style="border-bottom:1px solid #000000;"><FONT size=1 face="serif">2007</FONT> </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center colspan=2>
<FONT size=1 face="serif">(see Note 1)</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=9>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">CASH FLOWS FROM OPERATING ACTIVITIES:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Net income</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">4,966</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">10,439</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Adjustments to reconcile net income to net cash</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">provided by operating activities:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Deferred income taxes</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(27</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(223</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Tax benefit on exercise of stock options</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(89</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Stock-based compensation</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">234</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">330</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Depreciation and amortization</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">2,208</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">3,052</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Gain (loss) on disposal of discontinued operation</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">19</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(7,814</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Impairment loss on goodwill related to discontinued operations</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">294</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">537</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Income attributable to non-controlling interests</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">174</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">136</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Operating lease deferred credit</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(52</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(239</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Changes in operating assets and liabilities:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Accounts receivable</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(1,085</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(628</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Related party receivables</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(86</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(107</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Employee receivables</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">60</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">79</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Inventories</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(236</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(119</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Prepaid expenses and other current assets</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(65</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(139</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Other assets</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(405</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">144</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Accounts payable - trade</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">379</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">317</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Accrued income taxes</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">493</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1,502</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Accrued expenses and other current liabilities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">356</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">1,487</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash provided by continuing operating activities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">7,227</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">8,665</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash provided by discontinued operating activities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">36</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">86</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash provided by operating activities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,263</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">8,751</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">CASH FLOWS FROM INVESTING ACTIVITIES:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Purchases of fixed assets</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(7,429</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(4,090</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Proceeds from sale of discontinued operation</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1,030</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">14,000</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Purchases of investment securities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(9,413</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(23,797</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Proceeds from sales of investment securities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">12,677</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">15,203</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Payment for purchase of Durgin Park</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(2,000</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Payments received on long-term receivables</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">84</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">662</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash used in continuing investing activities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(3,051</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(22</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash provided by discontinued investing activities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">134</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash used in investing activities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(2,917</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(22</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">CASH FLOWS FROM FINANCING ACTIVITIES:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Tax benefit on exercise of stock options</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">89</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Principal payments on note payable</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(134</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(71</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Dividends paid</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(4,748</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(14,500</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Exercise of stock options</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">568</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Payments received on stock option receivable</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">42</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Capital contrinbutions from limited partners of non-controlling interest</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">1,400</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Distributions to limited partners of non-controlling interest</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(201</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(61</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="serif">Net cash used in financing activities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(3,641</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">(13,975</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">705</FONT>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(5,246</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">CASH AND CASH EQUIVALENTS, Beginning of period</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">4,009</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7,671</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=1 face="serif">CASH AND CASH EQUIVALENTS, End of period</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">4,714</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">2,425</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=9>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp;<FONT size=1 face="serif">Cash paid during the period for:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Interest</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">44</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">48</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Income taxes</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">2,256</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">3,240</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=1 face="serif">See notes to consolidated condensed financial statements. </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 5 - </FONT></P>

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<p style="page-break-before:always"></p><PAGE>


<P align="left">
<B><U><FONT size=2 face="serif">ARK RESTAURANTS CORP. AND SUBSIDIARIES</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td style="border-bottom:1px solid #000000;"><B><FONT size=2 face="serif">NOTES
          TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS </FONT></B><BR>
      <FONT size=2 face="serif">June 28, 2008</FONT><B><FONT size=2 face="serif"> </FONT></B><BR>
      <FONT size=2 face="serif">(Unaudited)</FONT></td>
  </tr>
</table>
<P align="left">
<B><FONT size=2 face="serif">1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The condensed balance sheet as of September 29, 2007, which has been derived from audited financial statements included in the Form 10-K, and the unaudited interim condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures
normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with
the consolidated financial statements and notes thereto included in the Company&#146;s annual report on Form 10-K for the year ended September 29, 2007. The results of operations for interim periods are not necessarily indicative of the operating
results to be expected for the full year. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRINCIPLES OF CONSOLIDATION &#150; The consolidated interim financial statements included the accounts of the Company and all of its partnerships and other entities in which it has a controlling interest. Also included in
the consolidated financial statements are certain variable interest entities, as discussed below. All significant intercompany balances and transactions have been eliminated in consolidation. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RECLASSIFICATIONS &#150; In connection with the closure of two facilities, the operations of these restaurants have been presented as discontinued operations for the for the 13-week and 39-week
periods ended June 28, 2008 and the Company has reclassified its statements of operations and cash flows data for the prior periods presented, in accordance with Statement of Financial Accounting Standards (&#147;SFAS&#148;) No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets" ("FAS 144"). This disposition is discussed below in &#147;Recent Restaurant Dispositions.&#148;</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CONSOLIDATION OF VARIABLE INTEREST ENTITIES &#151; Effective October 1, 2006, the Company determined that one of its managed restaurants, El Rio Grande (&#147;Rio&#148;), should be presented on
a consolidated basis in accordance with the Emerging Issues Task Force No. 04-5, &#147;Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain
Rights&#148; (&#147;EITF 04-5&#148;), and as a result included Rio in its consolidated financial statements. The impact of such consolidation was not material to the Company&#146;s condensed consolidated financial position or results of operations
for any period presented. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CASH AND CASH EQUIVALENTS &#151; Cash and cash equivalents, which primarily consist of money market funds, are stated at cost, which approximates fair value. For financial statement
presentation purposes, the Company considers all highly liquid investments having original maturities of three months or less to be cash equivalents. Outstanding checks in excess of account balances, typically vendor payments, payroll and other
contractual obligations disbursed on or near the last day of a reporting period are reported as a current liability in the accompanying consolidated balance sheets.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AVAILABLE-FOR-SALE SECURITIES</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">&#151; Available-for-sale securities consist of US Treasury Bills, government bonds,
corporate bonds and other fixed income securities, all of which have a high degree of liquidity and are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. The cost of investments in
available-for-sale securities is determined on a specific identification basis. Realized gains or losses and declines in value judged to be other than temporary, if any, are reported in other income, net. The Company evaluates its investments
periodically for possible impairment and reviews factors such as the length of time and extent to which fair value has been below cost basis and the Company's ability and intent to hold the investment for a period of time which may be sufficient for
anticipated recovery in market value. </FONT></P>
<P align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RECENT ACCOUNTING DEVELOPMENTS &#151; In June 2006, the FASB issued FASB Interpretation No. 48, &#147;Accounting for Uncertainty in Income Taxes &#150; an interpretation of FASB Statement No.
109&#148; (&#147;FIN 48&#148;). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in financial statements in accordance with FASB Statement No. 109, &#147;Accounting for Income Taxes.&#148; FIN 48 prescribes a recognition
threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on derecognition, classification, interest and penalties,
accounting in interim periods, disclosure, and transition. The Company adopted the provisions of FIN 48 during the first fiscal quarter of 2008. The adoption of FIN 48 had no impact on our consolidated financial position, results of operation, cash
flows or financial statement disclosures, nor did the Company have any related interest or penalties. </FONT></P>
<P align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In May 2008, the FASB issued SFAS No. 162, &#147;The Hierarchy of Generally Accepted Accounting Principles.&#148; SFAS No. 162 identifies the sources of accounting principles and provides
entities with a framework for selecting the principles used in preparation of financial statements that are presented in conformity with GAAP. The current GAAP hierarchy has been criticized because it is directed to the auditor rather than the
entity, it is complex, and it ranks FASB Statements of Financial Accounting Concepts, which are subject to the same level of due process as FASB Statements of Financial Accounting Standards, below </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 6 - </FONT></P>

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<p style="page-break-before:always"></p><PAGE>


<P align="left">
<FONT size=2 face="serif">industry practices that are widely recognized as generally accepted but that are not subject to due process. The Board believes the GAAP hierarchy should be directed to entities because it is the entity (not its auditors)
that is responsible for selecting accounting principles for financial statements that are presented in conformity with GAAP. The adoption of SFAS No. 162 is not expected to have a material impact on our consolidated financial statements. </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">2. RECENT RESTAURANT EXPANSION </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 2006 the Company entered into an agreement to lease space for a Mexican restaurant, </FONT><I><FONT size=2 face="serif">Yolos,</FONT></I><FONT size=2 face="serif"> at the Planet Hollywood
Resort and Casino (formerly known as the Aladdin Resort and Casino) in Las Vegas, Nevada. The obligation to pay rent for </FONT><I><FONT size=2 face="serif">Yolos</FONT></I><FONT size=2 face="serif"> commenced when the restaurant opened for business
in January 2008. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In June 2007, the Company entered into an agreement to design and lease a food court at the to be constructed MGM Grand Casino at the Foxwoods Resort Casino. A limited liability company has
been established to develop, construct, operate and manage the food court. The Company, through a wholly-owned subsidiary, is the managing member of this limited liability company and has an aggregate ownership interest in the food court operations
of 67%. Such operations have been consolidated as of and for the 13-week and 39-week periods ended June 28, 2008. </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">3. RECENT RESTAURANT DISPOSITIONS </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the first fiscal quarter of 2008, we discontinued the operation of our Columbus Bakery retail and wholesale bakery located in New York City. Columbus Bakery was originally intended to
serve as the bakery that would provide all of our New York restaurants with baked goods as well as being a retail bakery operation. As a result of the sale and closure of several of our restaurants in New York City during the last several years,
this bakery operation was no longer profitable. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the second fiscal quarter of 2008 we opened, along with certain third party investors, a new concept at this location called &#147;Pinch &amp; S&#146;Mac&#148; which features pizza and
macaroni and cheese. We contributed Columbus Bakery&#146;s net fixed assets and cash into this venture and received an ownership interest of 37.5% .  These operations are not consolidated in the Company&#146;s financial statements. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effective June 30, 2008, the lease for our </FONT><I><FONT size=2 face="serif">Stage Deli</FONT></I><FONT size=2 face="serif"> facility at the Forum Shops in Las Vegas, Nevada expired. The landlord for this facility
offered to renew the lease at this location prior to its expiration at a significantly increased rent. The Company determined that it would not be able to operate this facility profitably at this location at the rent offered in the landlord&#146;s
renewal proposal. As a result, the Company discontinued these operations during the third fiscal quarter of 2008 and took a charge for the impairment of goodwill of &#36;294,000 and a loss on disposal of &#36;19,000.  The impairment charge and
disposal loss are included in discontinued operations. Operations for the 13 weeks and 39 weeks ended June 28, 2008 and June 30, 2007 have been reclassified as discontinued operations.</FONT></P>
<P align="left">
<B><FONT size=2 face="serif">4. RECEIVABLES FROM EMPLOYEES IN RESPECT OF STOCK OPTION EXERCISES </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables from employees in respect of stock option exercises includes amounts due from officers and directors totaling &#36;124,000 and &#36;166,000 at June 28, 2008 and September 29, 2007,
respectively. Such amounts, which are due from the exercise of stock options in accordance with the Company&#146;s Stock Option Plan, are payable on demand with interest at &frac12;% above prime (5.0% at June 28, 2008). </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">5. INCOME (LOSS) PER SHARE OF COMMON STOCK </FONT></B></P>
<P align="left">
<FONT size=2 face="serif"> </FONT><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income per share is computed in accordance with Statement of Financial Accounting Standards No. 128, </FONT><I><FONT size=2 face="serif">Earnings Per
Share</FONT></I><FONT size=2 face="serif">, and is calculated on the basis of the weighted average number of common shares outstanding during each period plus, for diluted earnings per share, the additional dilutive effect of potential common stock.
Potential common stock using the treasury stock method consists of dilutive stock options and warrants.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For the 13-week period ended June 28, 2008, options to purchase 166,500 shares of common stock at a price of &#36;29.60 and options to purchase 105,000 shares of common stock at a price of
&#36;32.15 were not included in diluted earnings per share as their impact was antidilutive. For the 39-week period ended June 28, 2008, options to purchase 271,500 shares of common stock at a price range of &#36;29.60 - &#36;32.15 were included in
earning per share.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options to purchase 282,000 shares of common stock at a price range of &#36;29.60 - &#36;32.15 were included in diluted earnings per share for the 13-week and 39-week periods ended June 30,
2007. </FONT><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the 39-week period ended June 28, 2008, no options were exercised. </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 7 - </FONT></P>

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<p style="page-break-before:always"></p><PAGE>


<P align="left">
<B><FONT size=2 face="serif">6. SHARE-BASED COMPENSATION </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has options outstanding under its 2004 Stock Option Plan (the &#147;2004 Plan&#148;). Options granted under the 2004 Plan are exercisable at prices at least equal to the fair market
value of such stock on the dates the options were granted. The options expire ten years after the date of grant. During fiscal 2005, options to purchase 194,000 shares of common stock were granted and are exercisable as to 50% of the shares
commencing on the first anniversary of the date of grant and as to an additional 50% commencing on the second anniversary of the date of grant. During fiscal 2007, options to purchase 105,000 shares of common stock were granted and are exercisable
as to 25% of the shares commencing on the first anniversary of the date of grant and as to an additional 25% commencing on each of the second, third and fourth anniversaries of the grant date. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A summary of stock option activity is presented below: </FONT></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left width=28%>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=12%>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=10%>
<B><FONT size=1 face="serif">Weighted</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=8%>
<B><FONT size=1 face="serif">Weighted</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=11%>
<B><FONT size=1 face="serif">Weighted</FONT></B>  </TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=9%>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=28%>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=12%>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=10%>
<B><FONT size=1 face="serif">Average</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=8%>
<B><FONT size=1 face="serif">Average</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=11%>
<B><FONT size=1 face="serif">Average</FONT></B>  </TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=9%>
<B><FONT size=1 face="serif">Aggregate</FONT></B>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=28%>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=12%>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=10%>
<B><FONT size=1 face="serif">Excersie</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=8%>
<B><FONT size=1 face="serif">Fair</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=11%>
<B><FONT size=1 face="serif">Contractual</FONT></B>  </TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=9%>
<B><FONT size=1 face="serif">Intrinsic</FONT></B>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=28%>
<B><U><FONT size=1 face="serif">Options</FONT></U></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=12% style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Shares</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2% style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=center width=10% style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Price</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2% style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=center width=8% style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Value</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=11% style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Term (Yrs.)</FONT></B>  </TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=9% style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="serif">Value</FONT></B>  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left width=28%>
<FONT size=1 face="serif">Outstanding as September 29, 2007:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=12%><FONT size=1 face="serif">271,500</FONT> </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD align=center width=10%>
<FONT size=1 face="serif">30.59</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD align=center width=8%>
<FONT size=1 face="serif">9.22</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=11%>
<FONT size=1 face="serif">7.76</FONT>  </TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=9%>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=28%>
<FONT size=1 face="serif">Granted</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=12%>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=10%>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=8%>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=11%>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=9%>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left width=28%>
<FONT size=1 face="serif">Exercised</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=12%>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=10%>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=8%>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=11%>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=9%>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=28%>
<FONT size=1 face="serif">Forfeited/Cancelled</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=12% style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=10%>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2%>&nbsp;  </TD>
  <TD align=center width=8%>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=11%>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=9% style="border-bottom:1px solid #000000;">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=28%>
<FONT size=1 face="serif">Outstanding at June 28, 2008</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=12% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">271,500</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD align=center width=10% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">30.59</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD align=center width=8% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">9.22</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=11% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">7.26</FONT>  </TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=2% style="border-bottom:3px double #000000;"><FONT size=1 face="serif">&#36; </font></TD>
  <TD align=center width=9% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">-</FONT>  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left width=28%>
<FONT size=1 face="serif">Exercisable at June 28, 2008</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=12% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">219,000</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD align=center width=10% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">30.21</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=2% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD align=center width=8% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">8.80</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=11% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">6.96</FONT>  </TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=2% style="border-bottom:3px double #000000;"><FONT size=1 face="serif">&#36; </font></TD>
  <TD align=center width=9% style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">-</FONT>  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation cost is recognized on a straight-line basis over the vesting period during which employees perform related services. The Company has applied a forfeitures assumption of 5%
per year in the calculation of such expense. As of June 28, 2008, there was approximately &#36;613,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of approximately 2 years.
</FONT></P>
<P align="left">
<B><FONT size=2 face="serif">7. INVESTMENT SECURITIES </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value of available for sale debt and fixed income securities by major type and class at June 28, 2008 are as follows (Dollar
amounts in thousands): </FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center>
    <B><FONT size=1 face="serif">Amortized</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center>
    <B><FONT size=1 face="serif">Gross Unrealized</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center>
    <B><FONT size=1 face="serif">Gross Unrealized</FONT></B>  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center style="border-bottom:1px solid #000000;">
    <B><FONT size=1 face="serif">Cost</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center style="border-bottom:1px solid #000000;">
    <B><FONT size=1 face="serif">Holding Gains</FONT></B>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center style="border-bottom:1px solid #000000;">
    <B><FONT size=1 face="serif">Holding Losses</FONT></B>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center style="border-bottom:1px solid #000000;">
    <B><FONT size=1 face="serif">Fair Value</FONT></B>  </TD>
  </TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=1 face="serif">At June 28, 2008</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=10% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Available for sale short-term:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">5,496</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">(21</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left>
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right>
<FONT size=1 face="serif">5,475</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Government debt securities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">393</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">7</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">-</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="serif">400</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Corporate debt securities</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">5,889</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">7</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">(21</FONT>  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">&#36;</FONT>  </TD>
  <TD width=10% align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="serif">5,875</FONT>  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<B><FONT size=2 face="serif">8. DIVIDENDS </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A quarterly cash dividend in the amount of &#36;0.35 per share was declared on October 12, 2004. Subsequent to October 12, 2004, quarterly cash dividends in the amount of &#36;0.35 per share
were declared on January 12, April 12, July 12, October 10 and December 20, 2006 and on April 12, 2007. We declared an increase in our quarterly cash dividend to &#36;0.44 per share on May 23, 2007 and subsequent quarterly cash dividends reflecting
this increased amount were declared on October 12, 2007 and January 11, April 11, and July 11, 2008. In addition, we declared a special cash dividend in the amount of &#36;3.00 per share on December 20, 2006. The Company intends to continue to pay
quarterly cash dividends for the foreseeable future; however, the payment of future dividends is at the discretion of the Company&#146;s Board of Directors and is based on future earnings, cash flows, financial condition, capital requirements,
changes in U.S. taxation and other relevant factors. </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">9. RELATED PARTY TRANSACTIONS </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables due from officers and employees, excluding stock option receivables, totaled &#36;256,000</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">at June 28, 2008
and &#36;316,000</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">at September 29, 2007. Such loans bear interest at the minimum statutory rate (1.63% at June 28, 2008). </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 8 - </FONT></P>

<HR noshade align="center" width="100%" size=4>



<p style="page-break-before:always"></p><PAGE>


<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The current portion of related party receivables due from unconsolidated restaurants, totaled &#36;904,000 at June 28, 2008 and &#36;1,318,000, net of an allowance of &#36;174,000, at September
29, 2007. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The long-term portion of related party receivables from unconsolidated restaurants totaled approximately &#36;924,000 at June 28, 2008, which is included in other assets. </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">10. LEASE ACCOUNTING </FONT></B></P>
<P align="left">
<B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold improvements funded by landlord incentives are recorded as deferred rent and amortized as reductions to lease expense of the lease term in accordance with Statement of
Financial Accounting Standards No. 13, </FONT><I><FONT size=2 face="serif">&#147;Accounting for Leases&#148;</FONT></I><FONT size=2 face="serif">. The Company received &#36;3,000,000 during fiscal 2006 in connection with the construction of its two
facilities in Atlantic City, New Jersey.</FONT></P>
<P align="left">
<B><FONT size=2 face="serif">11. SUBSEQUENT EVENT </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On March 25, 2008, the Board of Directors authorized a stock repurchase program under which up to 500,000 shares of the Company&#146;s common stock may be acquired in the open market over the
two years following such authorization at the Company's discretion. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of August 5, 2008, the Company has purchased an aggregate of 4,954 shares at an average purchase price of &#36;18.74 in the open market pursuant to our stock repurchase program. </FONT></P>
<div style="margin-left:41px;text-indent:-41px"><P align="left">
<B><U><FONT size=2 face="serif">Item 2. Management&#146;s Discussion and Analysis of Financial Condition and</FONT></U></B><BR>
<B><FONT size=2 face="serif"> </FONT></B><B><U><FONT size=2 face="serif">Results of Operations</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
</div>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In connection with the closure of two facilities, the operations of these restaurants have been presented as discontinued operations for the 13-week and 39-week periods ended June 28, 2008 and
the Company has reclassified its statements of operations and cash flows data for the prior periods presented below, in accordance with Statement of Financial Accounting Standards (&#147;SFAS&#148;) No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets" ("SFAS 144") based on the fact that the Company has met the criteria under SFAS 144. These dispositions are discussed below in &#147;Recent Restaurant Dispositions.&#148; </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">Revenues </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the Company&#146;s third fiscal quarter of 2008, total revenues of &#36;36,077,000 increased 4.8% compared to total revenues of &#36;34,411,000 in the third fiscal quarter of
2007. The Company had net income of &#36; 3,136,000 in the third fiscal quarter of 2008 compared to net income of &#36;3,471,000 in the third fiscal quarter of 2007. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Same store sales in Las Vegas increased by &#36;120,000 or 0.9% in the third fiscal quarter of 2008 compared to the third fiscal quarter of 2007. Same store sales in New York decreased
&#36;16,000 or 0.2% during the third quarter. Same store sales in Washington D.C. decreased by &#36;66,000 or 1.1% during the third quarter. Same store sales in Atlantic City decreased by &#36;127,000 or 13.5% in the third quarter.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the Company&#146;s 39-week period ended June 28, 2008, total revenues of &#36;90,764,000 increased 6.2% compared to total revenues of &#36;85,438,000 in the 39-week period ended June 30,
2007. The Company had net income of &#36;4,966,000 in the 39-week period ended June 28, 2008 compared to net income of &#36;10,439,000 for the 39-week period ended June 30, 2007. Net income was positively affected during the 39-week period ended
June 30, 2007 as a result of the sale during the quarter of the Company&#146;s Lutece and Tsunami locations and a portion of the Vivid location used by Lutece as a prep kitchen to Venetian Casino Resort, LLC. Net income was negatively affected
during the 39-week period ended June 28, 2008 as a result of &#36;210,000 pre-opening and early operating losses experienced at the Company&#146;s Mexican Restaurant, </FONT><I><FONT size=2 face="serif">Yolos</FONT></I><FONT size=2 face="serif">, at
the Planet Hollywood Resort and Casino in Las Vegas, Nevada.</FONT></P>
<P align="left">
<B><FONT size=2 face="serif">Costs and Expenses</FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food and beverage costs for the third quarter of 2008 as a percentage of total revenues were 25.6% compared to 25.1% in the third quarter of 2007. These costs for the 39-weeks ended June 28,
2008 as a percentage of total revenues were 25.8% compared to 25.3% in the 39-week period ended June 30, 2007. Increased food costs during these periods have had a negative effect on this category of expenses. Although the Company had not raised the
price of menu items offered to its customers for several years due to business conditions, the impact of the increase in food costs has caused the Company to review the price of menu items offered to its customers. The Company had determined to
increase the price of menu items offered to its customers in specific locations where the Company believes consumer demand has created some elasticity. </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 9 - </FONT></P>

<HR noshade align="center" width="100%" size=4>



<p style="page-break-before:always"></p><PAGE>


<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payroll expenses as a percentage of total revenues were 28.1% for the third quarter of 2008 as compared to 28.2% in the third quarter of 2007. Payroll expenses as a percentage of total revenues
were 30.9% for the 39-week period ended June 28, 2008 as compared to 31.0% for the 39-week period ended June 30, 2007. Occupancy expenses as a percentage of total revenues were 13.0% during the third fiscal quarter of 2008 compared to 12.2% in the third quarter of 2007.
Occupancy expenses as a percentage of total revenues were 13.5% during the 39-week period ended June 28, 2008 compared to 13.3% for the 39-week period ended June 30, 2007. Other operating costs and expenses as a percentage of total revenues were
11.3% during the third fiscal quarter of 2008 compared to 12.5% in the third quarter of 2007. Other operating costs and expenses as a percentage of total revenues were 12.3% for the 39-week period ended June 28, 2008 compared to 12.2% for the
39-week period ended June 30, 2007. General and administrative expenses as a percentage of total revenues were 6.3% during the third fiscal quarter of 2008 compared to 6.6% in the third quarter of 2007. General and administrative expenses as a
percentage of total revenue were 7.3% for the 39-week period ended June 28, 2008 compared to 7.4% for the 39-week period ended June 30, 2007. </FONT>
</P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses for the third quarter and 39-week period ended June 28, 2008 were negatively impacted by an accrual recorded by the Company in response to certain
information received by the Company during the quarter as the result of an ongoing abandoned property audit by the New York State Office of the State Comptroller. The Company is currently in the process of obtaining and reviewing documentation
requested by New York State and believes the current accrual to be reasonable at this time. </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">Income Taxes</FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The provision for income taxes reflects Federal income taxes calculated on a consolidated basis and state and local income taxes calculated by each New York subsidiary on a non-consolidated
basis. Most of the restaurants owned or managed by the Company are owned or managed by separate subsidiaries. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For state and local income tax purposes, the losses incurred by a subsidiary may only be used to offset that subsidiary&#146;s income, with the exception of the restaurants operating in the
District of Columbia. Accordingly, the Company&#146;s overall effective tax rate has varied depending on the level of losses incurred at individual subsidiaries.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company&#146;s overall effective tax rate in the future will be affected by factors such as the level of losses incurred at the Company&#146;s New York facilities, which cannot be
consolidated for state and local tax purposes, pre-tax income earned outside of New York City, the utilization of state and local net operating loss carryforwards and the utilization of FICA tax credits. Nevada has no state income tax and other
states in which the Company operates have income tax rates substantially lower in comparison to New York. In order to utilize more effectively tax loss carryforwards at restaurants that were unprofitable, the Company has merged certain profitable
subsidiaries with certain loss subsidiaries. </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">Liquidity and Capital Resources</FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company's primary source of capital has been cash provided by operations. The Company from time to time also utilizes equipment financing in connection with the construction of a restaurant
and seller financing in connection with the acquisition of a restaurant. The Company utilizes capital primarily to fund the cost of developing and opening new restaurants, acquiring existing restaurants owned by others and remodeling existing
restaurants owned by the Company. </FONT><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company had a working capital surplus of &#36;7,494,000</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">at June 28, 2008 as compared to a working capital surplus of
&#36;11,571,000</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">at September 29, 2007.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company&#146;s Revolving Credit and Term Loan Facility matured on March 12, 2005.  The Company does not currently plan to enter into another credit facility and expects required cash to be
provided by operations. </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">Restaurant Expansion </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 2006, we entered into an agreement to lease space for a Mexican restaurant, </FONT><I><FONT size=2 face="serif">Yolos,</FONT></I><FONT size=2 face="serif"> at the Planet Hollywood Resort and
Casino (formerly known as the Aladdin Resort and Casino) in Las Vegas, Nevada. The obligation to pay rent for </FONT><I><FONT size=2 face="serif">Yolos</FONT></I><FONT size=2 face="serif"> was not effective until the restaurant opens for business.
This restaurant opened during the second quarter of the 2008 fiscal year. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On January 8, 2007, the Company began operating the </FONT><I><FONT size=2 face="serif">Durgin Park Restaurant and the Black Horse Tavern </FONT></I><FONT size=2 face="serif">in Boston,
Massachusetts. The Company purchased this facility from the previous owner for &#36;2,000,000 in cash and a &#36;1,000,000 five year promissory note bearing interest at a rate of 7% per year. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In June 2007, we entered into an agreement to design and lease a food court at the to be constructed MGM Grand Casino at the Foxwoods Resort Casino. The obligation to pay rent for this facility
was not effective until the food court opened for business during our third quarter of the 2008 fiscal year. A portion of pre-opening expenses were borne by outside investors who have invested in a limited liability company established to develop,
construct, operate and manage the food court. We are the managing member of this limited liability company and, through this limited liability company, we lease and manage the operations of the food court in exchange for a monthly management fee
equal to five-percent of the gross receipts of the food </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 10 - </FONT></P>

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<p style="page-break-before:always"></p><PAGE>


<P align="left">
<FONT size=2 face="serif"> court.  We have also contributed capital to this limited liability company.  None of the obligations of this limited liability company are guaranteed by us and investors in this limited liability company will have no recourse against us or any of our assets. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Since we have an aggregate ownership interest in the food court operations of 67%, such operations have been consolidated as of and for the 13-week and 39-week month periods ended June 28,
2008. The impact of such consolidations were not material to our condensed consolidated financial position or results of operations for any period presented. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In June 2008, we signed two successive one-year agreements to use certain deck space adjacent to our </FONT><I><FONT size=2 face="serif">Sequoia </FONT></I><FONT size=2 face="serif">location in
New York City as a Caf&eacute;. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In June 2008, we entered into an agreement to design and lease a restaurant at The Museum of Arts &amp; Design at Columbus Circle in New York City. The initial term of the lease for this
facility will expire on December 31 sixteen years after the date the Museum first opens for business to the public following its current refurbishment and will have two five-year renewals. We anticipate the food court will open during our second
quarter of the 2009 fiscal year. </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">Recent Restaurant Dispositions </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the first fiscal quarter of 2008, we discontinued the operation of our Columbus Bakery retail and wholesale bakery located in New York City. Columbus Bakery was originally intended to
serve as the bakery that would provide all of our New York restaurants with baked goods as well as being a retail bakery operation. As a result of the sale and closure of several of our restaurants in New York City during the last several years,
this bakery operation was no longer profitable. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the second fiscal quarter of 2008, we opened, along with certain third party investors, a new concept at this location called &#147;Pinch &amp; S&#146;Mac&#148; which features pizza and
macaroni and cheese. We contributed Columbus Bakery&#146;s net fixed assets and cash into this venture and received an ownership interest of 37.5% .  These operations are not consolidated in the Company&#146;s financial statements.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effective June 30, 2008, the lease for our </FONT><I><FONT size=2 face="serif">Stage Deli</FONT></I><FONT size=2 face="serif"> facility at the Forum Shops in Las Vegas, Nevada expired. The
landlord for this facility offered to renew the lease at this location prior to its expiration at a significantly increased rent. The Company determined that it would not be able to operate this facility profitably at this location at the rent
offered in the landlord&#146;s renewal proposal. As a result, the Company let this lease expire. As a result of the discontinuance of this restaurant, the Company took a charge for the impairment of goodwill of &#36;294,000 and a loss on disposal of
&#36;19,000. The impairment charge and disposal loss our included in discontinued operations. </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">Critical Accounting Policies </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The preparation of financial statements requires the application of certain accounting policies, which may require the Company to make estimates and assumptions of future events. In the process
of preparing its consolidated financial statements, the Company estimates the appropriate carrying value of certain assets and liabilities, which are not readily apparent from other sources. The primary estimates underlying the Company&#146;s
financial statements include allowances for potential bad debts on accounts and notes receivable, the useful lives and recoverability of its assets, such as property and intangibles, fair values of financial instruments, the realizable value of its
tax assets and other matters. Management bases its estimates on certain assumptions, which they believe are reasonable in the circumstances, and actual results, could differ from those estimates. Although management does not believe that any change
in those assumptions in the near term would have a material effect on the Company&#146;s consolidated financial position or the results of operation, differences in actual results could be material to the financial statements.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company&#146;s critical accounting policies are described in the Company&#146;s Form 10-K for the year ended September 29, 2007. There have been no significant changes to such policies
during fiscal 2008, other than the implementation of FASB Interpretation No. 48, &#147;Accounting for Uncertainty in Income Taxes &#150; an interpretation of FASB Statement No. 109&#148;, as discussed below.</FONT></P>
<P align="left">
<B><FONT size=2 face="serif">Recent Accounting Developments</FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Financial Accounting Standards Board has recently issued the following accounting pronouncements: </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In September 2006, the FASB issued FASB Statement No. 157 ("SFAS 157"), "Fair Value Measurements." SFAS 157 establishes a framework for measuring fair value in generally accepted accounting
principles and expands disclosures about fair value measurements. SFAS 157 is effective for all financial statements issued for fiscal years beginning after November 15, 2007. The Company is currently assessing the impact of SFAS 157 on its
consolidated financial position and results of operations.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities - including an amendment of FASB Statement No. 115" ("SFAS 159"). SFAS 159
permits entities to elect to measure many financial instruments and certain other items at fair value. Upon adoption of SFAS 159, an entity may elect the fair value option </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 11 - </FONT></P>

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<p style="page-break-before:always"></p><PAGE>


<P align="left">
<FONT size=2 face="serif">for eligible items that exist at the adoption date. Subsequent to the initial adoption, the election of the fair value option should only be made at initial recognition of the asset or liability or upon a remeasurement
event that gives rise to new-basis accounting. SFAS 159 does not affect any existing accounting literature that requires certain assets and liabilities to be carried at fair value nor does it eliminate disclosure requirements included in other
accounting standards. SFAS 159 is effective for fiscal years beginning after November 15, 2007. The Company is currently assessing the impact of SFAS 159 on its consolidated financial position and results of operations.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On December 4, 2007, the FASB issued SFAS No. 141(R), &#147;Business Combinations&#148; (&#147;SFAS 141(R)&#148;), and SFAS No. 160, &#147;Noncontrolling Interests in Consolidated Financial
Statements, an amendment of ARB No. 51&#148; (&#147;SFAS 160&#148;). These new standards will significantly change the accounting for and reporting for business combination transactions and noncontrolling (minority) interests in consolidated
financial statements. SFAS 141(R) and SFAS 160 are required to be adopted simultaneously and are effective for the first annual reporting period beginning on or after December 15, 2008. Earlier adoption is prohibited. We are currently evaluating the
impact of adopting SFAS 141(R) and SFAS 160 on our consolidated financial statements.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In May 2008, the FASB issued SFAS No. 162, &#147;The Hierarchy of Generally Accepted Accounting Principles.&#148; SFAS No. 162 identifies the sources of accounting principles and provides
entities with a framework for selecting the principles used in preparation of financial statements that are presented in conformity with GAAP. The current GAAP hierarchy has been criticized because it is directed to the auditor rather than the
entity, it is complex, and it ranks FASB Statements of Financial Accounting Concepts, which are subject to the same level of due process as FASB Statements of Financial Accounting Standards, below industry practices that are widely recognized as
generally accepted but that are not subject to due process. The Board believes the GAAP hierarchy should be directed to entities because it is the entity (not its auditors) that is responsible for selecting accounting principles for financial
statements that are presented in conformity with GAAP. The adoption of SFAS 162 is not expected to have a material impact on our consolidated financial statements. </FONT></P>
<P align="left">
<B><U><FONT size=2 face="serif">Item 3. Quantitative and Qualitative Disclosures about Market Risk</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company purchases commodities such as chicken, beef, lobster and shrimp for the Company&#146;s restaurants. The prices of these commodities may be volatile depending upon market conditions.
The Company does not purchase forward commodity contracts because the changes in prices for them have historically been short-term in nature and, in the Company&#146;s view, the cost of the contracts is in excess of the benefits.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company&#146;s business is also highly seasonal and dependent on the weather. Outdoor seating capacity, such as terraces and sidewalk cafes, are available for dining only in the warm
seasons and then only in clement weather.</FONT><FONT face="serif"> </FONT></P>
<P align="left">
<B><U><FONT size=2 face="serif">Item 4T. Controls and Procedures</FONT></U></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on their evaluation, the Company&#146;s principal executive officer and principal financial officer have concluded that the Company&#146;s disclosure controls and procedures (as defined
in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)) are effective as of June 28, 2008 to ensure that information required to be disclosed by the Company in reports that the Company
files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There were no changes in the Company&#146;s internal control over financial reporting during the third quarter of fiscal year 2008 that materially affected or are reasonably likely to
materially affect the Company&#146;s internal control over financial reporting. </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 12 - </FONT></P>

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<p style="page-break-before:always"></p><PAGE>


<P align="center">
<B><FONT size=2 face="serif">PART II </FONT></B><BR>
<B><FONT size=2 face="serif">OTHER INFORMATION </FONT></B></P>
<P align="left">
<B><U><FONT size=2 face="serif">Item 1. Legal Proceedings</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; None.</FONT></P>
<P align="left">
<B><U><FONT size=2 face="serif">Item 1A. Risk Factors</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The most significant risk factors applicable to the Company are described in Part I, Item 1A (Risk Factors) of the Company&#146;s Annual Report on Form 10-K for the fiscal year ended September 29, 2007 (the &#147;2007 Form
10-K&#148;). There have been no material changes to the risk factors previously disclosed in the 2007 Form 10-K. The risks described in the 2007 Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently
known to management may materially adversely affect the Company&#146;s business, financial condition, and/or operating results. </FONT></P>
<P align="left">
<B><U><FONT size=2 face="serif">Item 2. Unregistered Sales of Equity Securities and Use of Proceeds</FONT></U></B><FONT size=2 face="serif"> </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table sets forth information regarding purchases of our common stock by us and any affiliated purchasers during the three months ended June 28, 2008. Stock repurchases may be made
in the open market or in private transactions at times and in amounts that we deem appropriate. However, there is no guarantee as to the exact number of additional shares that may be repurchased, and we may terminate or limit the stock repurchase
program at any time prior to its expiration. We will cancel the repurchased shares. </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">ISSUER PURCHASES OF EQUITY SECURITIES</FONT></B><FONT size=2 face="serif"> </FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">(c) Total Number</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">(d) Maximum Number</FONT></B>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">(a) Total</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">(b)</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">of Shares (or Units)</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">(or Approximate Dollar</FONT></B>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Number of</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Average</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Purchased as Part</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Value) of Shares (or</FONT></B>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Shares (or</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Price Paid</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">of Publicly</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Units) that May Yet Be</FONT></B>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Units)</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">per Share</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Announced Plans</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Purchased Under the</FONT></B>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<B><FONT size=2 face="serif">Period</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Purchased</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">(or Unit)</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">or Programs</FONT></B>  </TD>
  <TD width=20% align=center>
<B><FONT size=2 face="serif">Plans or Programs(1)</FONT></B>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=2 face="serif">Month &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;#1</FONT>  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=2 face="serif">March 30,</FONT>
  <FONT size=2 face="serif">2008</FONT></TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">0</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">Not Applicable</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">0</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">500,000</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=2 face="serif">through</FONT>  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=2 face="serif">April 28, 2008</FONT>  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=2 face="serif">Month &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;#2</FONT></TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=2 face="serif">April 29,</FONT>
  <FONT size=2 face="serif">2008</FONT></TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">0</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">Not Applicable</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">0</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">500,000</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=2 face="serif">through</FONT>  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=2 face="serif">May 29, 2008</FONT>  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=2 face="serif">Month &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;#3</FONT></TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=2 face="serif">May 30,</FONT>
  <FONT size=2 face="serif">2008</FONT></TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">0</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">Not Applicable</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">0</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">500,000</FONT>  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=2 face="serif">through</FONT>  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left>
<FONT size=2 face="serif">June 28, 2008</FONT>  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
  <TD width=20% align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT size=2 face="serif">Total</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">0</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">Not Applicable</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">0</FONT>  </TD>
  <TD width=20% align=center>
<FONT size=2 face="serif">500,000</FONT>  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) On March 25, 2008, our Board of Directors authorized a stock repurchase program under which up to 500,000 shares of our common stock may be acquired in the open market over the two years
following such authorization at our discretion. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of August 5, 2008, we have purchased and an aggregate of 4,954</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">shares at an average purchase price of
&#36;18.74</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">per share in the open market pursuant to our stock repurchase program. </FONT></P>
<P align="left">
<B><U><FONT size=2 face="serif">Item 3. Defaults upon Senior Securities</FONT></U></B><FONT size=2 face="serif"> </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; None. </FONT></P>
<P align="left">
<B><U><FONT size=2 face="serif">Item 4. Submissions of Matters to a Vote of Security Holders</FONT></U></B><FONT size=2 face="serif"> </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; None. </FONT></P>
<P align="left">
<B><U><FONT size=2 face="serif">Item 5. Other Information</FONT></U></B><FONT size=2 face="serif"> </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; None</FONT><FONT face="serif">.</FONT><FONT size=2 face="serif"> </FONT></P>
<P align="center">
<FONT size=2 face="serif">- 13 - </FONT></P>

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<p style="page-break-before:always"></p><PAGE>


<P align="left">
<B><U><FONT size=2 face="serif">Item 6. Exhibits</FONT></U></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Exhibits </FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=4% align=left><FONT size=2 face="serif">31.1</FONT></TD>
  <TD align=left>
<FONT size=2 face="serif">Certification of Principal Executive Officer Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002.</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD width=4% align=left><h5>&nbsp;</h5></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD width=4% align=left><FONT size=2 face="serif">31.2</FONT></TD>
  <TD align=left>
<FONT size=2 face="serif">Certification of Principal Financial Officer Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002.</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD width=4% align=left><h5>&nbsp;</h5></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD width=4% align=left><FONT size=2 face="serif">32</FONT></TD>
  <TD align=left>
<FONT size=2 face="serif">Certificate of Chief Executive and Chief Financial
Officers</FONT>  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">- 14 - </FONT></P>

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<p style="page-break-before:always"></p><PAGE>


<P align="center">
<B><U><FONT size=2 face="serif">SIGNATURES</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=5% align=left>
<FONT size=2 face="serif">Date:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<FONT size=2 face="serif">August 12, 2008</FONT>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD width=5% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<B><FONT size=2 face="serif">ARK RESTAURANTS CORP.</FONT></B>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD width=5% align=left>
<FONT size=2 face="serif">By:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<U><FONT size=2 face="serif">/s/ Michael Weinstein</FONT></U>  </TD>
</TR>
<TR valign="bottom">
  <TD width=5% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<FONT size=2 face="serif">Michael Weinstein</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD width=5% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<FONT size=2 face="serif">Chairman, President &amp; Chief Executive Officer</FONT>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;

  </TD>
</TR>
<TR valign="bottom">
  <TD width=5% align=left>
<FONT size=2 face="serif">By:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<U><FONT size=2 face="serif">/s/ Robert J. Stewart</FONT></U>  </TD>
</TR>
<TR valign="bottom">
  <TD width=5% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<FONT size=2 face="serif">Robert Stewart</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD width=5% align=left>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<FONT size=2 face="serif">Chief Financial Officer</FONT>  </TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="serif">- 15 - </FONT></P>

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<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>c54549_ex31-1.htm
<TEXT>

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<P align="right">
<B><FONT size=2 face="serif">EXHIBIT 31.1 </FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO </FONT></B><FONT size=2 face="serif"> </FONT><BR>
<B><FONT size=2 face="serif">SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 </FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="left">
<FONT size=2 face="serif">I, Michael Weinstein, President and Chief Executive Officer of Ark Restaurants Corp., certify that:</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%"><FONT size=2 face="serif">1. </FONT></td>
    <td width="2%">&nbsp;</td>
    <td colspan="3"><FONT size=2 face="serif">I have reviewed this quarterly report on
    Form 10-Q of Ark Restaurants Corp. </FONT></td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%" valign="top"><FONT size=2 face="serif">2.</FONT></td>
    <td width="2%">&nbsp;</td>
    <td colspan="3"><FONT size=2 face="serif"> Based on my knowledge, this report does
        not contain any untrue statement of a material fact or omit to state
        a material fact necessary to make the statements made, in light of the
        circumstances under which such statements were made, not misleading with
    respect to the period covered by this report;</FONT></td>
  </tr>
  <tr>
    <td width="3%" valign="top">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%" valign="top"><FONT size=2 face="serif">3. </FONT></td>
    <td width="2%">&nbsp;</td>
    <td colspan="3"><FONT size=2 face="serif">Based on my knowledge, the financial statements,
        and other financial information included in this report, fairly present
        in all material respects the financial condition, results of operations
        and cash flows of the registrant as of, and for, the periods presented
    in this report;</FONT></td>
  </tr>
  <tr>
    <td width="3%" valign="top">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%" valign="top"><FONT size=2 face="serif">4. </FONT></td>
    <td width="2%">&nbsp;</td>
    <td colspan="3"><FONT size=2 face="serif">The registrant&#146;s other certifying officer(s)
        and I are responsible for establishing and maintaining disclosure controls
        and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))
    for the registrant and have: </FONT></td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%" valign="top"><FONT size=2 face="serif">a) </FONT></td>
    <td width="2%">&nbsp;</td>
    <td><FONT size=2 face="serif">Designed such disclosure controls and procedures,
        or caused such disclosure controls and procedures to be designed under
        our supervision, to ensure that material information relating to the
        registrant, including its consolidated subsidiaries, is made known to
        us by others within those entities, particularly during the period in
    which this report is being prepared;</FONT></td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%" valign="top">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%" valign="top"><FONT size=2 face="serif">b) </FONT></td>
    <td width="2%">&nbsp;</td>
    <td><FONT size=2 face="serif">Evaluated the effectiveness of the registrant&#146;s
        disclosure controls and procedures and presented in this report our conclusions
        about the effectiveness of the disclosure controls and procedures, as
        of the end of the period covered by this report based on such evaluation;
    and</FONT></td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%" valign="top">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%" valign="top"><FONT size=2 face="serif">c) </FONT></td>
    <td width="2%">&nbsp;</td>
    <td><FONT size=2 face="serif">Disclosed in this report any change in the
        registrant&#146;s internal control over financial reporting that occurred
        during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s
        fourth fiscal quarter in the case of an annual report) that has materially
        affected, or is reasonably likely to materially affect, the registrant&#146;s
    internal control over financial reporting; and</FONT></td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%" valign="top"><FONT size=2 face="serif">5. </FONT></td>
    <td width="2%">&nbsp;</td>
    <td colspan="3"><FONT size=2 face="serif">The registrant&#146;s other certifying officer(s)
        and I have disclosed, based on our most recent evaluation of internal
        control over financial reporting, to the registrant&#146;s accountants
        and the audit committee of the registrant&#146;s board of directors (or
    persons performing the equivalent functions):</FONT></td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%" valign="top"><FONT size=2 face="serif">a) </FONT></td>
    <td width="2%">&nbsp;</td>
    <td><FONT size=2 face="serif">All significant deficiencies and material
        weaknesses in the design or operation of internal control over financial
        reporting which are reasonably likely to adversely affect the registrant&#146;s
        ability to record, process, summarize and report financial information;
    and</FONT></td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%" valign="top">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="3%">&nbsp;</td>
    <td width="2%">&nbsp;</td>
    <td width="3%" valign="top"><FONT size=2 face="serif">b) </FONT></td>
    <td width="2%">&nbsp;</td>
    <td><FONT size=2 face="serif">Any fraud, whether or not material, that
        involves management or other employees who have a significant role in
    the registrant&#146;s internal control over financial reporting. </FONT></td>
  </tr>
</table>
<P align="left">
<FONT size=2 face="serif">Dated: August 12, 2008 </FONT></P>
<TABLE width=35% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">/s/ MICHAEL WEINSTEIN</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<B><FONT size=2 face="serif">Michael Weinstein</FONT></B>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<I><FONT size=2 face="serif">Chairman, President and Chief Executive Officer</FONT></I>  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif"></FONT></P>

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<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>c54549_ex31-2.htm
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<P align="right">
<B><FONT size=2 face="serif">EXHIBIT 31.2 </FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO </FONT></B><FONT size=2 face="serif"> </FONT><BR>
<B><FONT size=2 face="serif">SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 </FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="left">
<FONT size=2 face="serif">I, Robert Stewart, Chief Financial Officer of Ark Restaurants Corp., certify that:</FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=3% align=left>
<FONT size=2 face="serif">1.</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=2 face="serif"></FONT>  </TD>
  <TD align=left colspan=3>
<FONT size=2 face="serif">I have reviewed this quarterly report on Form 10-Q of Ark Restaurants Corp.</FONT>  </TD>
</TR>
<TR align="left">
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=3% align=left valign="top">
<FONT size=2 face="serif">2.</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=2 face="serif"></FONT>  </TD>
  <TD align=left colspan=3>
<FONT size=2 face="serif">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with
respect to the period covered by this report;</FONT>  </TD>
</TR>
<TR align="left">
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=3% align=left valign="top">
<FONT size=2 face="serif">3.</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=2 face="serif"></FONT>  </TD>
  <TD align=left colspan=3>
<FONT size=2 face="serif">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
this report;</FONT>  </TD>
</TR>
<TR align="left">
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=3% align=left valign="top">
<FONT size=2 face="serif">4.</FONT>  </TD>
  <TD width=2% align=left>
<FONT size=2 face="serif"></FONT>  </TD>
  <TD align=left colspan=3>
<FONT size=2 face="serif">The registrant&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:</FONT>  </TD>
</TR>
<TR align="left">
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=3% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=3% align=left valign="top">
<FONT size=2 face="serif">a)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<FONT size=2 face="serif">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in which this report is being prepared;</FONT>  </TD>
</TR>
<TR align="left">
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR align="left">
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=3% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=3% align=left valign="top">
<FONT size=2 face="serif">b)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<FONT size=2 face="serif">Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on
such evaluation; and</FONT>  </TD>
</TR>
<TR align="left">
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=3% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=3% align=left valign="top">
<FONT size=2 face="serif">c)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<FONT size=2 face="serif">Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the
registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</FONT>  </TD>
</TR>
<TR align="left">
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left valign="top"><FONT size=2 face="serif">5. </FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD colspan="3" align=left><FONT size=2 face="serif">The registrant&#146;s other certifying
      officer(s) and I have disclosed, based on our most recent evaluation of
    internal control over financial
reporting, to the registrant&#146;s
      accountants and the audit committee of the registrant&#146;s board of directors
    (or persons performing the
equivalent functions):</FONT> </TD>
  </TR>
<TR align="left">
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=3% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=3% align=left valign="top">
<FONT size=2 face="serif">a)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<FONT size=2 face="serif">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial
information; and</FONT>  </TD>
</TR>
<TR align="left">
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=3% align=left>&nbsp;  </TD>
  <TD width=2% align=left>&nbsp;  </TD>
  <TD width=3% align=left valign="top">
<FONT size=2 face="serif">b)</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left>
<FONT size=2 face="serif">Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant&#146;s internal control over financial reporting.</FONT>  </TD>
</TR>
</TABLE>
<BR>
<TABLE width=35% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>
<FONT size=2 face="serif">Dated: August 12, 2008</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">/s/ Robert J. Stewart</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<B><FONT size=2 face="serif">Robert J. Stewart</FONT></B>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<I><FONT size=2 face="serif">Chief Financial Officer</FONT></I>  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif"></FONT></P>

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<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>c54549_ex32.htm
<TEXT>

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<P align="right">
<B><FONT size=2 face="serif">Exhibit 32</FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Certificate of Chief Executive and Chief Financial Officers</FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="left">
<B><FONT size=2 face="serif">The following statement is being made to the Securities and Exchange Commission solely for purposes of Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), which carries with it certain criminal penalties in
the event of a knowing or willful misrepresentation.</FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="left">
<FONT size=2 face="serif">Securities and Exchange Commission </FONT><BR>
<FONT size=2 face="serif">450 Fifth Street, NW </FONT><BR>
<FONT size=2 face="serif">Washington, DC 20549 </FONT></P>
<P align="left">
<FONT size=2 face="serif">Re: Ark Restaurants Corp. </FONT></P>
<P align="left">
<FONT size=2 face="serif">Ladies and Gentlemen: </FONT></P>
<P align="left">
<FONT size=2 face="serif">In accordance with the requirements of Section 906 of the Sarbanes-Oxley Act of 2002 (18 USC 1350), each of the undersigned hereby certifies that: </FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="3%" valign="top"><font size=2 face="serif">(i)</font></td>
    <td width="1%" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="95%" valign="top"><font size=2 face="serif">this
          report on Form 10-Q fully complies with the requirements of section
          13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U. S. C.
    78m or 78o(d)); and </font></td>
  </tr>
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign="top"><font size=2 face="serif">(ii)</font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign="top"><font size=2 face="serif"> the information
          contained in this report fairly presents, in all material respects,
          the financial condition and results of operations of Ark Restaurants
    Corp.</font></td>
  </tr>
</table>

<P align="left">
<FONT size=2 face="serif">Dated as of this 12th day of August 2008. </FONT></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">/s/ Michael Weinstein</FONT>  </TD>
  <TD align=left width=28%>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=34% style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">/s/ Robert J. Stewart</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left>
<FONT size=2 face="serif">Michael Weinstein</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=34%>
<FONT size=2 face="serif">Robert J. Stewart</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left>
<FONT size=2 face="serif">Chairman, President and Chief Executive Officer</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=34%>
<FONT size=2 face="serif">Chief Financial Officer</FONT>  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif"></FONT></P>

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