Carrols Restaurant Group, Inc. Board Gives Final Approval To Spin-Off Of Fiesta Restaurant Group, Inc.

Carrols Restaurant Group, Inc. announced that its Board of Directors has given final approval to the spin-off of Fiesta Restaurant Group, Inc. ("Fiesta"), an indirect wholly-owned subsidiary that operates the Pollo Tropical and Taco Cabana restaurant businesses. The spin-off will be completed through a tax-free dividend of the common stock of Fiesta to Carrols' stockholders. The distribution of the Fiesta common stock is expected to occur on May 7, 2012, with each Carrols' stockholder receiving one share of Fiesta common stock for every share of Carrols common stock held of record at the close of business on April 26, 2012, the record date of the distribution. The spin-off is subject to satisfaction or waiver of customary conditions set forth in a separation and distribution agreement as filed with the Securities and Exchange Commission by Fiesta and Carrols. Immediately following the distribution, Carrols Restaurant Group's stockholders will own 100% of the outstanding common stock of Fiesta Restaurant Group. Carrols Restaurant Group has received a private letter ruling from the Internal Revenue Service with respect to the tax-free status of the distribution Fiesta Restaurant Group's registration statement on Form 10 was declared effective by the Securities and Exchange Commission on April 25, 2012.