PHOENIX RESTAURANT GROUP, INC. ANNOUNCES SALE OF 23 DENNY'S RESTAURANTS

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Feb. 9, 2001--Phoenix Restaurant Group,
Inc. (AMEX: PRG), owner and operator of the Black-eyed Pea restaurant chain
and one of the largest franchisees of Denny's, announced today that the
company has sold 23 of its Denny's restaurants located in Arizona, Idaho,
Utah and Oregon to Mountain Range Restaurants. Financial details of the sale
were not disclosed.

"We are very pleased to announce the completion of this transaction," said
Robert M. Langford, Chairman and CEO of PRG.  "We indicated our intent to
move forward with the previously announced strategy to sell our Denny's
restaurants when we joined the Company in October, 2000. This is the first in
a series of sales of our Denny's restaurants, all of which we expect to
conclude by March 31st."

W. Craig Barber, PRG's President, noted, "We are also pleased that, in
conjunction with the sale, the Company's senior lender agreed to waive
existing defaults under the senior credit agreement and extended the maturity
of the senior debt to coincide with the expected completion of the asset
sales on March 31st."

Phoenix Restaurant Group, Inc. (formerly DenAmerica Corp.) currently operates
166 full-service, family oriented and casual dining restaurants in 20 states.
The Company operates 92 Black-eyed Pea restaurants with a concentration of 81
in Texas, Oklahoma, and Arizona. The Company also operates the remaining 74
Denny's restaurants with a concentration of 30 in Texas, Florida and Arizona.
The Company owns the Black-eyed Pea brand and operates the Denny's
restaurants under the terms of franchise agreements.

Robert Gentz and William Cox, former senior management of Phoenix Restaurant
Group, are the principals of Mountain Range Restaurants.

The forward-looking statements included in this press release relating to
certain matters involve risks and uncertainties, including the ability of
management to successfully implement its strategy for improving the
performance of the Black-eyed Pea restaurants, the ability of management to
effect asset sales consistent with projected proceeds and timing
expectations, the results of pending and threatened litigation, adequacy of
management personnel resources, shortages of restaurant labor, commodity
price increases, product shortages, adverse weather conditions that may
affect the Company's markets, turnover and a variety of other similar
matters. Forward-looking statements generally can be identified by the use of
forward looking terminology such as "may", "will", "expect", "intend",
"estimate", "anticipate", "believe", or "continue" (or the negative thereof)
or similar terminology. Actual results and experience could differ materially
from the anticipated results or other expectations expressed in the Company's
forward-looking statements as a result of a number of factors, including but
not limited to those discussed in Management's Discussion and safe harbor
Analysis of Financial Condition and Results of Operations and under the
caption "Special Considerations" included in Part 1. Item 1. of the company's
Annual Report on Form 10-K (and in subsequent quarterly reports on Form 10-
K.) Forward-looking information provided by the Company pursuant to the safe
harbor established under the Private Securities Litigation Reform Act 1995
should be evaluated in the context of these factors. In addition, the Company
disclaims any intent or obligation to update these forward-looking
statements.