Kinderhook and Soros Acquire Majority Stake in Mastro's Restaurants
May 16, 2007

Scottsdale, AZ- Mastro’s Restaurants (“Mastro’s”), which owns and operates five Mastro’s Steakhouses and two Mastro’s Ocean Clubs, is pleased to announce that Kinderhook Industries, LLC and Soros Strategic Partners LP, two New York-based private equity firms, have become its new majority shareholders. Following years of strong expansion under the ownership of the Mastro family, Mastro’s is partnering with Kinderhook and Soros to recapitalize the business for future growth.

As part of this transaction, a new executive management team with significant experience operating large restaurant companies has been put in place in order to professionalize the business. Thomas Heymann, former President of Levy Restaurant Group and former President of The Disney Store, Inc., has been appointed Chief Executive Officer. Mark Levy, co-founder of Levy Restaurant Group, Inc., will serve as Chairman of the Board and Lee Cohn, former director of Morton’s, will also serve as a board member. The Mastro family will remain shareholders of Mastro’s Restaurants, LLC, and provide ongoing direction.

“Tom Heymann has the experience and expertise to take our premium brand to the next level. He shares in our commitment to extraordinary performance in all aspects of what we do and our belief that we must demonstrate excellence, creativity and consistency in the product and service that we provide,” said Dennis Mastro, founder of The Mastro Group.

“Dennis and his sons have successfully established Mastro’s as a premium luxury restaurant brand and a cosmopolitan entertainment destination. It’s all about creating the finest guest dining experience possible. We need to keep this cornerstone concept current, innovative and fun. With the new infrastructure, operational expertise and necessary capital, we look forward to opening two to three new restaurants a year,” said Tom Heymann, CEO of Mastro’s Restaurants.

Mastro’s Restaurants is currently comprised of five high-end steakhouse restaurants (branded Mastro’s Steakhouse) and two high-end fish house concepts (branded “Mastro’s Ocean Club”) with a dinner only format. Three restaurants are located in Scottsdale and four restaurants are located in the greater Los Angeles area.

About Kinderhook Industries
Kinderhook Industries, LLC is a manager of private equity funds with $470.0 million of committed capital. Kinderhook Industries partners with highly talented management teams to pursue private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses and troubled situations and existing small capitalization companies lacking institutional support. Kinderhook Industries’ principals have completed in excess of fifty transactions, investing over $1.0 billion throughout their investment careers. Representative investments include companies in the health care services, basic manufacturing and business services industries.

About Soros Strategic Partners
Soros Strategic Partners LP is a private investment vehicle intended for long term duration investments primarily for the benefit of famed investor George Soros and members of the Soros family. SSP seeks to acquire world class assets that can sustain strong and growing cash flows. The investment advisor to SSP is Soros Fund Management LLC (“SFM”), a private investment management firm that serves as principal investment advisor to a number of investment funds which have a multi-billion dollar aggregate asset value.