IHOP Corp. Provides Update on Franchise Development Progress

February 4, 2004 at 7:01 AM EST

GLENDALE, Calif.--(BUSINESS WIRE)--Feb. 4, 2004-- Pipeline Includes Signed and Pending Franchisee Commitments to Develop As Many As 228 New IHOP Restaurants Over the Next 12 Years

IHOP Corp. (NYSE:IHP) today provided an update on the progress it has made in securing franchisee commitments to finance and develop new IHOP restaurants. Since the Company's decision in 2003 to rely exclusively on franchisee-financed development, IHOP has signed 23 Multi-Unit Development Agreements (MSDAs) to develop a total of 137 new restaurants. The MSDAs reflect commitments to build and operate from as few as two to as many as 31 restaurants over periods ranging from two to 12 years. Additionally, the Company has signed Single-Store Development Agreements (SSDAs) to develop 12 new restaurants over the next two years.

"While we anticipate that in the long term the majority of our growth will come from Multi-Store developers, Single-store development is an important aspect of our strategy, as it offers an expansion opportunity to our existing franchisees who want to grow and gain experience in the development process," said Julia A. Stewart, IHOP's President and Chief Executive Officer. "Importantly, Single-Store Development Agreements allow for additional growth in mature markets where larger multi-restaurant development territories may not be available. We believe that successful single-unit development should lead to additional franchisee interest in development opportunities with IHOP."

IHOP has also obtained commitments from prospective franchise developers to build and operate as many as 79 additional new IHOP restaurants, including 67 additional restaurants developed pursuant to MSDAs and 12 restaurants under SSDAs. The Company is in the process of finalizing the documentation relating to these agreements and intends to provide information about the status of these commitments in the coming weeks and months.

About IHOP Corp.

The IHOP family restaurant chain has been serving a wide variety of breakfast, lunch and dinner selections for 45 years. Offering more than 16 types of pancakes, as well as omelettes, breakfast specialties, burgers, sandwiches, chicken and steaks, IHOP's diverse menu appeals to people of all ages. IHOP restaurants are operated and franchised by Glendale-based IHOP Corp. As of December 31, 2003, the end of IHOP's 2003 fiscal year, there were 1,165 IHOP restaurants in 48 states and Canada. IHOP is publicly traded on the NYSE under the symbol "IHP." For more information, call the Company's headquarters at 818-240-6055 or visit the Company's Website, located at www.ihop.com.

Forward-Looking Statements

There are forward-looking statements contained in this news release. They use such words as "may," "will," "expect," "believe," "plan," or other similar terminology. These statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed or implied in such statements. These factors include, but are not limited to: risks associated with the implementation of the Company's new strategic growth plan; the availability of suitable locations and terms of the sites designated for development; legislation and government regulation, including the ability to obtain satisfactory regulatory approvals; conditions beyond IHOP's control such as weather, natural disasters or acts of war or terrorism; availability and cost of materials and labor; cost and availability of capital; competition; continuing acceptance of the International House of Pancakes brand and concepts by guests and franchisees; IHOP's overall marketing, operational and financial performance; economic and political conditions; adoption of new, or changes in, accounting policies and practices; and other factors discussed from time to time in IHOP's filings with the Securities and Exchange Commission. Forward-looking information is provided by IHOP pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. In addition, IHOP disclaims any intent or obligation to update these forward-looking statements.

IHOP Corp.
Stacy Roughan, 818-543-4138