IHOP Corp. Successfully Completes the Acquisition of Applebee's International, Inc.

GLENDALE, CA, Nov 29 (MARKET WIRE) -- IHOP Corp. (NYSE: IHP) today announced that it successfully completed the acquisition of Applebee's International, Inc. for $25.50 per share in cash, representing a total transaction value of approximately $2.1 billion. With more than 3,250 restaurants, the combination brings together two leading restaurant brands and creates the largest full service restaurant company in the world.

Julia A. Stewart, IHOP Corp. Chairman and Chief Executive Officer, said, "We are delighted to complete the acquisition of Applebee's as it represents an opportunity to create significant long-term value for IHOP shareholders over and above what we could have achieved on a standalone basis. Additionally, we believe that our core competencies of re-energizing restaurant brands, franchising and expense management are ideally suited to improve Applebee's overall brand and financial health. We look forward to applying the same focus and discipline that we have employed successfully at IHOP over the last several years to generate meaningful and sustainable improvements within the Applebee's business."

Business Model Transformation

As previously announced, IHOP Corp. intends to franchise the majority of Applebee's 510 company-owned restaurants as it transitions the business to a highly franchised system. This fundamental business transformation is expected to significantly enhance IHOP Corp.'s cash generating profile resulting from:

-- Franchising approximately 475 Applebee's company-owned and operated -- Franchising approximately 475 Applebee's company-owned and operated

restaurants by the end of 2010. The Company has begun to cultivate a

pipeline of new and existing franchisees who have expressed interest in

buying company-operated Applebee's restaurants. Efforts are already

underway to sell specific company markets with the expectation of

completing the sale of select markets in early 2008.

-- Selling Applebee's-owned real estate and executing related leasebacks. -- Selling Applebee's-owned real estate and executing related leasebacks.

The Company has selected an advisor and begun the marketing of this real

estate to likely buyers. The sales are expected to be completed sometime

in early 2008.

-- Significantly reducing General & Administrative expenses at Applebee's -- Significantly reducing General & Administrative expenses at Applebee's

over the next three years in line with franchising Applebee's operated