According to the Company’s FORM 10-K for the fiscal year ended October 31, 1999, the Company filed a motion to dismiss the complaint which was granted by the Court on September 28, 1999. The plaintiffs have not filed an appeal and the period for filing an appeal has expired.

The original complaint charges Q Dining and certain officers and directors of the company during the Class Period with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint alleges that defendants issued a series of materially false and misleading statements concerning Bruegger's, its operations and value of its prospects for future growth and expansion. Because of the issuance of the series of false and misleading statements, the price of Q Dining's common stock was artificially inflated during the Class Period.