Cheesecake Factory (CAKE)

Effective immediately, David Gordon, a 15-year veteran of The Cheesecake Factory, has been named to the role of Senior Vice President, Operations, and will lead the day-to-day operations for The Cheesecake Factory restaurants.  Gordon was most recently Regional Vice President, West Coast Operations, having previously served as an Area Director of Operations, as well as General Manager in two of The Cheesecake Factory’s restaurants.  He will report directly to David Overton, Chairman and CEO.

In addition, the Company announced that Russell Greene has been named to the role of Senior Vice President, Operations Services, from his current role of Senior Vice President, Beverage and Bakery; Jack Belk has been named to the role of Senior Regional Vice President from his current role of Regional Vice President; and Donald Moore has been named to the role of Senior Vice President, Kitchen Operations from his current role of Vice President, Kitchen Operations.

“The Cheesecake Factory has a long-standing track record of exceptional restaurant operations and execution, which is due to the strength and tenure of leaders such as David, Russell, Jack and Donald.  These individuals are focused on quality and results, and drive our standards of operational excellence,” commented David Overton, Chairman and CEO.  “We are proud to recognize their achievements.”

“We are very excited to launch RockSugar Pan Asian Kitchen,” said David Overton, Chairman and CEO of The Cheesecake Factory Incorporated.  “It is a unique concept, as there is no other restaurant in upscale casual dining that brings the flavors of Thailand, Vietnam, Malaysia, Singapore, Indonesia and East India to a broad audience.”

To listen to the conference call, please go to the Company’s website at thecheesecakefactory.com at least 15 minutes prior to the call to register and download any necessary audio software.  Click on the “Investors” link on the home page, and select the link for the “Q1 2008 The Cheesecake Factory Earnings Conference Call” at the top of the page.  An archive of the webcast will be available shortly after the call and continue through May 23, 2008.

To listen to the conference call, please go to the Company’s website at thecheesecakefactory.com at least 15 minutes prior to the call to register and download any necessary audio software.  Click on the “Investors” link on the home page, and select the link for the “Q4 2007 The Cheesecake Factory Earnings Conference Call” at the top of the page.  An archive of the webcast will be available shortly after the call and continue through March 6, 2008.

“We are proud that the proceeds from this year’s golf tournament fulfilled the $1 million commitment we pledged to City of Hope in 2003. In appreciation of this contribution, City of Hope named “The Bistro” at its Helford Clinical Research Hospital in honor of The Cheesecake Factory Oscar & Evelyn Overton Charitable Foundation. We appreciate the efforts of our generous vendors, participants and volunteers for contributing to another successful event,” said David Overton, Chairman and CEO of The Cheesecake Factory Incorporated.

To listen to the conference call, please go to the Company’s website at thecheesecakefactory.com at least 15 minutes prior to the call to register and download any necessary audio software.  Click on the “Investors” link on the home page, and select the link for the “Q3 2007 The Cheesecake Factory Earnings Conference Call” at the top of the page.  An archive of the webcast will be available shortly after the call and continue through November 22, 2007.

To listen to the conference call, please go to the Company’s website at thecheesecakefactory.com at least 15 minutes prior to the call to register and download any necessary audio software.  Click on the “Investors” link on the home page, and select the link for the “Q2 2007 The Cheesecake Factory Earnings Conference Call” at the top of the page.  An archive of the webcast will be available shortly after the call and continue through August 23, 2007.

The presentation will be webcast on the Company’s website at thecheesecakefactory.com and can be accessed by clicking on the “Investors” link from the home page, followed by the “Financial Information” and “Webcasts” links.  An archive of the webcast will be available following the live presentation through July 19, 2007.

To listen to the conference call, please go to the Company’s website at thecheesecakefactory.com at least 15 minutes prior to the call to register and download any necessary audio software.  Click on the “Investors” link on the home page, and select the links for “Financial Information” and “Webcasts.”  An archive of the webcast will be available shortly after the call and continue through May 23, 2007.

The Company initially intends to fund the share repurchase with cash on hand and a temporary credit facility in the amount of $150 million.  The Company plans to secure a revolving credit facility in the amount of $200 million to replace this temporary credit facility, its current $35 million credit facility and to be available to the Company for other purposes.  As of January 2, 2007, the Company had cash and marketable securities of approximately $134 million and no funded debt on its balance sheet.

“Management and our Board are confident about the strength of The Cheesecake Factory and Grand Lux Cafe concepts, and the long-term growth prospects of our Company. The ASR and associated credit facility is an effective method for us to return capital to our shareholders, leverage our balance sheet and reduce our overall cost of capital,” said David Overton, Chairman and CEO.

The presentation will be webcast on the Company’s website at thecheesecakefactory.com and can be accessed by clicking on the “Investors” link from the home page, followed by the “Financial Information” and “Webcasts” links.  An archive of the webcast will be available following the live presentation through March 26, 2007.

In finalizing its restated financial statements for the prior fiscal year, which ended on January 3, 2006, the Company made certain adjustments to the second and third quarter fiscal 2005 financial statements that were provided for comparative purposes in the Company’s press release of November 30, 2006.  These adjustments relate solely to the Company’s accounting treatment of gift cards.  A reconciliation of the adjustments made to the prior year financial statements is attached to this press release and a comprehensive analysis is provided in the Company’s Annual Report on Form 10-K/A, which was filed today.  The Company is also providing consolidated statements of operations for each quarter of fiscal 2005 as an attachment to this press release, for ease of reference.

To listen to the conference call, please go to the Company’s website at thecheesecakefactory.com at least 15 minutes prior to the call to register and download any necessary audio software.  Click on the “Investors” link on the home page, and select the links for “Financial Information” and “Webcasts.”  An archive of the webcast will be available shortly after the call and continue through December 29, 2006.

The Audit Committee’s review covered the period beginning with the Company’s initial public offering registration in 1992 to the present.  The Audit Committee reported that its special counsel received full cooperation from Company management, was given complete access to all necessary and relevant electronic and other documents, and interviewed all persons involved in the stock option granting process at the Company, as well as the Company’s advisors.

Based upon the Audit Committee’s findings, the Company has concluded that it incorrectly applied the measurement date, as defined in Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees,” with respect to certain stock option grants made to executive officers in fiscal years 1997 through 2001; to non-executive officers and other employees in fiscal years 1997 through 2004; and to outside directors in fiscal years 2000 and 2001. With respect to the misdated options, the Audit Committee found that the Company used date selection methodologies that were generally, but not always, limited to 30-day time windows.

 In order to correct the accounting errors that resulted from the misapplication of the measurement date, the Company expects to restate its previously issued consolidated financial statements to record non-cash, after-tax compensation expense totaling approximately $5.5 million.  The adjustment will have no impact on previously reported revenues or net cash flows.

“The Milwaukee opening represents our fourth opening in a six-day period,” commented David Overton, Chairman and CEO.  “Despite the work involved in opening 13 restaurants this quarter of the size and highly customized design that make The Cheesecake Factory restaurants unique, our team is executing extremely well and we continue to be on track with the remaining nine restaurants that are scheduled to open during the fourth quarter of fiscal 2006.”

To celebrate the opening, The Cheesecake Factory hosted a benefit on October 28, 2006 for The Omaha Community Playhouse, the largest community theatre in the United States.  The ticket price for the event included cocktails, appetizers, a sampling of several entrees, live music and the Company’s signature cheesecakes.  The Cheesecake Factory, along with its vendors, underwrote the event in order to donate 100% of the proceeds from ticket sales, approximately $30,000, to The Omaha Community Playhouse.

To celebrate the opening, The Cheesecake Factory hosted a benefit on September 16, 2006 for Safe Kids Oklahoma, a non-profit organization based in Oklahoma City that is dedicated to public education and awareness of preventable childhood injuries.  The ticket price for the event included cocktails, appetizers, a sampling of several entrees, live music and the Company’s signature cheesecakes.  The Cheesecake Factory, along with its vendors, underwrote the event in order to donate 100% of the proceeds from ticket sales, approximately $25,000, to Safe Kids Oklahoma.