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Famous Dave's Announces Record Year and Continued Growth

February 13, 2002 at 4:24 PM EST

MINNEAPOLIS--(BUSINESS WIRE)--Feb. 13, 2002--Famous Dave's of America, Inc. (Nasdaq:DAVE) Famous Dave's of America reported record sales and earnings for its fiscal year ended December 30, 2001. Net income was $8.1 million, or $0.75 per share. In 2000, the Company reported net income of $2.1 million or $0.22 per share. Total revenues were $87.7 million in 2001 versus $70.2 million in 2000, representing a 25% increase. The Company also reported its 11th consecutive quarter of increases in comparable sales and achieved 2.9% comparable sales growth for the year.

Fiscal 2001 earnings include adjustments to the Company's deferred tax asset. The result is that the Company is now reporting earnings on a fully taxed basis, even though its loss carry-forward offsets taxable income. Excluding these adjustments, and treating the current and prior year as if they had both been fully taxed, the Company would have reported earnings per share equivalent to $0.23 in 2001versus $0.13 in the prior year.

Six new company operated restaurants were opened during the year along with nine new franchise restaurants. As was previously announced, the Company entered into agreements to sell four company restaurants to franchisees. The Rochester, Minnesota restaurant was sold in December and the three Wisconsin restaurants in January, 2002. Year end restaurant count was 37 company restaurants and 19 franchise restaurants. Additional commitments for 61 franchise restaurants are in place through signed area development agreements.

Also included in the Company's results is a loss of ($1,029,000) from its investment in an unconsolidated subsidiary. The subsidiary owns and operates two entertainment clubs, one each in Chicago and Memphis, under the brand "Isaac Hayes Food Music Passion." Famous Dave's had converted its blues club in Chicago into the venture, which subsequently opened the new club in Memphis.

The loss represents the Company's proportionate share, or 40% of the entity's losses, plus funding to cover cash operating losses. According to agreements previously disclosed, Famous Dave's of America is obligated to fund, with certain limitations, cash operating losses for this subsidiary.

For the fourth quarter of 2001, the Company reported revenues of $21.2 million, an increase of 20% over the fourth quarter of 2000. Net income, excluding adjustments to the deferred tax asset, totaled $603,000, or $.05 per share. Adjusting last year's reported earnings for taxes, this would have represented a 300% increase in net income for the quarter.

"Famous Dave's continued to experience profitable growth in our core business," stated Martin O'Dowd, President and CEO. "In addition to another year of solid gains in same store sales growth, we also achieved a 200 basis point improvement in restaurant-level profitability. Revenues from the franchise side of the business increased over 200% as our franchisees experienced great success in several new markets around the country."

Looking forward, the Company anticipates that it will open eight to ten new company operated restaurants during 2002. The first two will open during the 2nd quarter, one in Gaithersburg, Maryland and the second in Richmond, Virginia. In addition, 12-15 new franchise restaurants are expected to open before the end of the year. The first, in Omaha, Nebraska, opened on February 11.

The Company expects to achieve revenues between $97 million and $102 million for fiscal 2002 with earnings per share from $0.27 to $0.30 per share. For the first quarter, the Company expects revenues of $21 million to $22 million and earnings per share of $0.02 to $0.03.

Famous Dave's of America, Inc. (Nasdaq:DAVE) owns, operates and franchises barbeque restaurants. The company currently owns 34 locations and franchises an additional 23 units in Alabama, Georgia, Illinois, Indiana, Iowa, Maryland, Minnesota, Nebraska, Ohio, South Dakota, Tennessee, Utah, Virginia and Wisconsin and has signed development agreements for an additional 61franchised locations. Its menu features award-winning barbecued and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts.

Certain matters discussed within this press release, including statements regarding revenue and profit forecasts, new restaurant sites, restaurant openings and expansion plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Famous Dave's of America, Inc. believes the expectation reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to defer materially from Famous Dave's expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction programs, changes in local or national economic conditions, availability of financing and other risks detailed from time to time in the company's SEC reports.

FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS
For the Quarters Ended 12/30/01 and 12/31/00
 (in thousands, except per share data)

Quarter Ended                                      12/30/01   12/31/00
                                                   --------   --------
Revenues, net                                       $21,252    $17,721
Costs and expenses:
     Food and beverage costs                          6,432      5,479
     Labor and benefits                               5,928      5,255
     Operating expenses                               4,420      3,972
     Depreciation and amortization                    1,169        994
     Pre-opening expenses                               112        170
     General and administrative                       1,610      1,224
                                                    -------     ------
Total costs and expenses                             19,670     17,094
                                                    -------     ------
Income from operations                                1,582        642
Other income (expense):
     Interest income                                     64         25
     Interest expense                                 (429)      (402)
     Gain on Sale of Property                            87          7
     Other income (expense)                             117         61
     Equity in loss from unconsolidated affiliate     (433)          0
                                                    -------     ------
Total other income (expense)                          (594)      (309)
                                                    -------     ------
Income before taxes                                 $   988     $  333
Taxes
   Income tax (expense)                               (311)          0
   Income tax benefit                                 1,130          0
                                                    -------     ------
Net income                                          $ 1,807     $  333
                                                    =======     ======

Basic net income per common share                     $0.17      $0.04
Diluted net income per common share                   $0.16      $0.03

Weighted average common shares outstanding -
 basic                                           10,719,444  9,304,738
Weighted average common shares outstanding -
 diluted                                         11,427,267  9,965,748


Unit-Level Costs And Expenses as % Sales:
 Quarter Ended                                     12/30/01   12/31/00
                                                   --------   --------
Food and beverage costs                               31.4%      31.8%
Labor and benefits                                    29.0%      30.5%
Operating expenses                                    21.6%      23.1%
Depreciation and amortization                          5.4%       5.8%
                                                       ----       ----
Total costs and expenses                              87.4%      91.2%
Income from unit-level operations                     12.6%       8.8%
                                                      =====       ====


FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS
For the Year  Ended 12/30/01 and 12/31/00
 (in thousands, except per share data)

For the Year Ended:                                12/30/01   12/31/00
                                                   --------   --------
Revenues, net                                       $87,673    $70,160
Costs and expenses:
     Food and beverage costs                         26,980     22,611
     Labor and benefits                              23,834     19,686
     Operating expenses                              19,158     15,573
     Depreciation and amortization                    4,463      3,694
     Pre-opening expenses                               629        850
    General and administrative                        6,401      5,165
                                                    -------    -------
Total costs and expenses                             81,465     67,579
                                                    -------    -------
Income from operations                                6,209      2,581
Other income (expense):
     Interest income                                    158         58
     Interest expense                               (1,579)    (1,305)
     Gain on Sale of Property                           155        658
     Other income (expense)                             212        120
     Equity in loss from unconsolidated affiliate   (1,029)          0
                                                    -------    -------
Total other income (expense)                        (2,101)      (469)
                                                    -------    -------
Income before taxes                                 $ 4,108    $ 2,112
Taxes
Income tax (expense)                                  (820)          0
Income tax benefit                                    4,830          0
                                                    -------    -------
Net income                                          $ 8,118    $ 2,112
                                                    =======    =======

Basic net income per common share                     $0.81      $0.23
     Diluted net income per common share              $0.75      $0.22

Weighted average common shares outstanding -
 basic                                            9,973,227  9,148,896
Weighted average common shares outstanding -
 diluted                                         10,879,233  9,744,645


Unit-Level Costs And Expenses as % Sales:
 Year Ended                                        12/30/01   12/31/00
                                                   --------   --------
   Food and beverage costs                            31.6%      32.7%
   Labor and benefits                                 27.9%      28.5%
   Operating expenses                                 22.4%      22.5%
   Depreciation and amortization                       5.2%       5.3%
                                                       ----       ----
   Total costs and expenses                           87.0%      89.0%
   Income from unit-level operations                  13.0%      11.0%
                                                      =====      =====



FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES CONSOLIDATED
BALANCE SHEETS
As December 30, 2001 and December 31, 2000
 (in thousands, except per share data)

ASSETS                                             12/30/01   12/31/00
                                                   --------   --------

Current assets                                      $11,525     $4,946
Property, equipment and leasehold improvements,
 net                                                 46,940     46,052
Other assets                                         11,975      1,965
                                                    -------    -------
Total Assets                                        $70,440    $52,963
                                                    =======    =======

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities                                  $7,310     $9,409
Long-term obligations                                16,442     13,493
Shareholders' equity                                 46,688     30,061
                                                    ------     -------
Total Liabilities and Shareholders' Equity          $70,440    $52,963
                                                    =======    =======

--30--cr/ms*

CONTACT: Famous Dave's of America, Inc., Minneapolis
Ken Stanecki, 952/294-1330