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08/27/2007

TSG Announces Investment in Yard House USA

SAN FRANCISCO, CA

TSG Consumer Partners LLC announced today its investment in Yard House USA, Inc., a fast-growing, 16-unit premium casual restaurant chain

SAN FRANCISCO, CA, August 23, 2007 – TSG Consumer Partners LLC ("TSG"), a leading private equity investor in the branded consumer sector, announced today its investment in Yard House USA, Inc., a high-growth premium casual dining concept headquartered in Irvine, California. With 16 units in operation and another three units scheduled to open over the next six months (including an 8,000 square-foot Yard House opening September 9 at Fashion Island in Newport Beach, CA), Yard House enjoys industry-leading operating metrics and is poised for significant growth in the years ahead.

TSG, which pioneered the use of private equity in high-growth, middle market branded consumer companies will leverage its brand-building experience with Yard House, a restaurant chain known for its extensive menu, classic rock music, and the world’s largest selection of draft beer. TSG looks forward to partnering with the Yard House management team and to building upon the strong foundation they have established since founding the first Yard House in 1996, said Hadley Mullin, a Managing Director with TSG. "Founder and CEO Steele Platt and his team have developed a successful and exciting concept in the restaurant field. They have grown Yard House at a compounded rate of over 30% per year over the past five years, and we are highly enthusiastic about the Company’s future growth prospects."

"I believe that TSG will be an ideal strategic partner for Yard House. TSG will assist us in growing and building the brand as we continue to move forward," said Mr. Platt, who in 2003 was named Regional (Orange County, CA.) Entrepreneur of the Year by Ernst & Young. "We value the partnership-based approach that TSG employs. We are very excited about beginning this next chapter in Yard House’s evolution and making it a national brand. My executive management team and I continue to own a meaningful portion of the company, and we will remain actively involved in the growth of the business for many years to come."

Terms of the transaction were not disclosed. Yard House was advised by Piper Jaffray & Co. and B Riley. Eureka Capital, LLC played a buyside advisory role in the transaction. Financing was provided by Wells Fargo and Emporia Capital, with transactional advice by the law firms of both Jones Day and Stradling Yocca Carlson & Rauth.

About Yard House USA, Inc.

Yard House USA Inc. launched its first Yard House restaurant in 1996 along the Long Beach waterfront just south of Los Angeles. Created by restaurant veteran Steele Platt, along with partners Harald Herrmann and Carlito Jocson, today there are 16 locations throughout Southern California and Greater Phoenix, along with single units in Palm Beach Gardens, Florida; Waikiki, Hawaii; Kansas City, Kansas; and suburban Denver and Chicago. Average unit volume is $8.5 million per store. Yard House is the recipient of many accolades and awards, including the Hot Concept Award by Nation’s Restaurant News and recipient of the Best Chain Overall Beverage Program as voted by Cheers Magazine. The company was also ranked among the Top 50 Fastest Growing Full Service Chains by Restaurant Hospitality, which also featured the Yard House as a Concept of Tomorrow, and it was ranked among the Top 100 Independent Grossing Restaurant in the United States according to Restaurants & Institutions Magazine.

ABOUT TSG CONSUMER PARTNERS LLC

TSG Consumer Partners, LLC is a leading investment firm with
approximately $5 billion of assets under management, focused
exclusively on the branded consumer sector. Since its founding
in 1987, TSG has been an active investor in the food, beverage,
restaurant, beauty, personal care, household and apparel & accessories,
and e-commerce sectors. Representative past and present partner
companies include Duckhorn Wine Company, vitaminwater, thinkThin,
popchips, Muscle Milk, Yard House, Stumptown, Pabst, Planet Fitness,
REVOLVE, PAIGE, Smashbox Cosmetics, Pureology, Sexy Hair, e.l.f. Cosmetics
and IT Cosmetics.

CONTACT

Meghan Gavigan / Dan Goldstein
Sard Verbinnen & Co

Meghan Gavigan - 212.687.8080

Dan Goldstein - 310.201.2040

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