Morton's Restaurant Group (MRT)

Italian Restaurants

As of January 4, 2009, the Company owned and operated three Italian restaurants, located in two cities. During January 2006, the Company signed a new long-term lease with respect to its then-existing Bertolini’s restaurant located at the Fountain of Gods at the Forum Shops at Caesars Palace in Las Vegas, Nevada. In conjunction with the new lease, the then-existing Bertolini’s restaurant at this location was closed on September 15, 2006, and was then renovated and replaced by Trevi, a new Italian restaurant that opened at this location on February 2, 2007. Trevi features classic Italian favorites served in a café dining environment. The Company’s other two Italian restaurants, which operate under the name Bertolini’s, are designed as white tablecloth, authentic Italian trattorias, which provide table service in a casual dining atmosphere. For the fiscal year ended January 4, 2009, the average per-person check for the Company’s Italian restaurants, including lunch and dinner, was approximately $29.45. The Company’s Italian restaurants are open seven days a week, for lunch and dinner, with typical hours of 11:00 a.m. to 12:00 midnight. During fiscal 2008, dinner service accounted for approximately 69% of revenues and lunch service accounted for approximately 31% of revenues of total Italian revenues. Sales of alcoholic beverages accounted for approximately 23%, 22% and 22% of the Italian restaurant revenues during fiscal 2008, fiscal 2007 and fiscal 2006, respectively. During fiscal 2008, no new Italian restaurants were opened. Based on a strategic assessment of trends, during March 2008 the Company closed its Bertolini’s restaurant in Indianapolis, Indiana. See “Item 1A. Risk Factors- Our Restaurants may not be able to compete successfully with other restaurants and, as a result, we may not achieve our projected revenue and profitability targets.” The Company has not signed any leases for new Italian restaurants.

Italian Restaurants

As of December 30, 2007, the Company owned and operated four Italian restaurants, located in three cities. During January 2006, the Company signed a new long-term lease with respect to its then-existing Bertolini’s restaurant located at the Fountain of Gods at the Forum Shops at Caesars Palace in Las Vegas, Nevada. In conjunction with the new lease, the then-existing Bertolini’s restaurant at this location was closed on September 15, 2006, and was then renovated and replaced by Trevi, a new Italian restaurant that opened at this location on February 2, 2007. Trevi features café dining with elaborate street lamps surrounding a fountain and a walk-up gelato/espresso bar. The menu features classic Italian favorites and a selection of new dishes. The Company’s other three Italian restaurants, which operate under the name Bertolini’s, are designed as white tablecloth, authentic Italian trattorias, which provide table service in a casual dining atmosphere. For the fiscal year ended December 30, 2007, the average per-person check for the Company’s Italian restaurants, including lunch and dinner, was approximately $27.40. The Company’s Italian restaurants are open seven days a week, for lunch and dinner, with typical hours of 11:00 a.m. to 12:00 midnight. During fiscal 2007, dinner service accounted for approximately 68% of revenues and lunch service accounted for approximately 32%. Sales of alcoholic beverages accounted for approximately 22%, 22% and 23% of the Italian restaurant revenues during fiscal 2007, fiscal 2006 and fiscal 2005, respectively. During fiscal 2007, no new Bertolini’s restaurants were opened and no existing Bertolini’s restaurants were closed, with the exception of the Italian restaurant at the Fountain of the Gods, at the Forum Shops at Caesars Palace in Las Vegas which was temporarily closed for renovation on September 15, 2006 and re-opened as Trevi on February 2, 2007. See “Item 1A. Risk Factors.”

Italian Restaurants

FACE="Times New Roman" SIZE="2">As of December 30, 2007, the Company owned and operated four Italian restaurants, located in three cities. During January 2006, the Company signed a new long-term lease with respect to its then-existing
Bertolini’s restaurant located at the Fountain of Gods at the Forum Shops at Caesars Palace in Las Vegas, Nevada. In conjunction with the new lease, the then-existing Bertolini’s restaurant at this location was closed on September 15,
2006, and was then renovated and replaced by Trevi, a new Italian restaurant that opened at this location on February 2, 2007. Trevi features café dining with elaborate street lamps surrounding a fountain and a walk-up gelato/espresso
bar. The menu features classic Italian favorites and a selection of new dishes. The Company’s other three Italian restaurants, which operate under the name Bertolini’s, are designed as white tablecloth, authentic Italian trattorias, which
provide table service in a casual dining atmosphere. For the fiscal year ended December 30, 2007, the average per-person check for the Company’s Italian restaurants, including lunch and dinner, was approximately $27.40. The Company’s
Italian restaurants are open seven days a week, for lunch and dinner, with typical hours of 11:00 a.m. to 12:00 midnight. During fiscal 2007, dinner service accounted for approximately 68% of revenues and lunch service accounted for approximately
32%. Sales of alcoholic beverages accounted for approximately 22%, 22% and 23% of the Italian restaurant revenues during fiscal 2007, fiscal 2006 and fiscal 2005, respectively. During fiscal 2007, no new Bertolini’s restaurants were opened and
no existing Bertolini’s restaurants were closed, with the exception of the Italian restaurant at the Fountain of the Gods, at the Forum Shops at Caesars Palace in Las Vegas which was temporarily closed for renovation on September 15, 2006
and re-opened as Trevi on February 2, 2007. See “Item 1A. Risk Factors.”

Italian Restaurants

At December 31, 2006, the Company owned and operated four Italian restaurants, located in three cities. During January 2006, the Company signed a new long-term lease with respect to its then-existing Bertolini’s restaurant located at the Fountain of Gods at the Forum Shops at Caesars Palace in Las Vegas, Nevada. In conjunction with the new lease, the then-existing Bertolini’s restaurant at this location was closed on September 15, 2006, and was then renovated and replaced by Trevi, a new Italian restaurant that opened at this location on February 2, 2007. Trevi features café dining with elaborate street lamps surrounding a fountain and a walk-up gelato/espresso bar. The menu features classic Italian favorites and a selection of new dishes. The Company’s other three Italian restaurants, which operate under the name Bertolini’s, are designed as white tablecloth, authentic Italian trattorias, which provide table service in a casual dining atmosphere. For the fiscal year ended December 31, 2006, average per-person check for the Company’s Italian restaurants, including lunch and dinner, was approximately $26.50. The Company’s Italian restaurants are open seven days a week, for lunch and dinner, with typical hours of 11:00 a.m. to 12:00 midnight. During fiscal 2006, dinner service accounted for approximately 68% of revenues and lunch service accounted for approximately 32%. Sales of alcoholic beverages accounted for approximately 22% of the Italian restaurant revenues during fiscal 2006. During fiscal 2006, no new Bertolini’s restaurants were opened and no existing Bertolini’s restaurants were closed, with the exception of the Italian restaurant at the Fountain of the Gods, at the Forum Shops at Caesars Palace in Las Vegas which was temporarily closed for renovation beginning September 15, 2006. The Company’s new Italian restaurant, Trevi, opened at that location on February 2, 2007. See “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Recent Events Affecting Our Results of Operations.”