HOTEL DISCOVERY

Hotel Discovery, Inc. is a Minnesota corporation which was formed to develop, own and operate upscale casual theme restaurants. The Company was formed in January 1994 as an Ohio corporation, prior to reorganizing as a Minnesota corporation, and operates one Hotel Discovery restaurant in the Kenwood Shopping Center in Cincinnati, Ohio, which opened in December 1996. A second restaurant to be located at the Mall of America in a suburb of Minneapolis, Minnesota, is currently under development. The Company also has a license agreement with Eastgate Restaurants, Inc., a corporation wholly-owned by Stephen D. King, for the operation of a demonstration and test restaurant in Cincinnati which opened in June 1994.