CARA goes private

[Shareholder]

At about 11:30 this morning, CARA shareholders voted to sell their shares of the company to the controlling shareholder Phelan family, off springs of the founder of the original railway station newsstands/coffee-sandwhich shops from which this Canadian food services company grew over the past century.

In his closing remarks, the president Gabe Tsampalieros, thanked shareholders present for sticking with the company and helping it grow into Canada's premier food services company. He also thanked customers at CARA's various brands, but also made a point of having good words for Air Canada -- the company's largest single customer -- which under the circumstances [CARA being a major creditor] was unexpected. But CARA's attitude is certainly better than that of GTAA which has done all it can to make life difficult for its single largest customer, and supplier of those inflated user and landing fees.

As a parting "dividend", we now-former shareholders received a CARA prepaid card for a couple of meals at any of the brands: better return on my modest investment than the last round of dividends.

[tcook052]

TORONTO, Feb. 26 /CNW/ - Cara Operations Limited ("Cara") announced that
the going private transaction (the "Going Private Transaction") approved by
Shareholders at the Special Meeting of Cara's Shareholders held on
February 24, 2004 was completed on February 25, 2004.
Registered holders of Cara's Common Shares and Class A Non-Voting Shares
must send their share certificates and duly completed letter(s) of transmittal
to Computershare Trust Company of Canada in accordance with the instructions
provided in Cara's Management Information Circular dated January 6, 2004 in
order to receive the payment of $8.00 per share to which they are entitled
under the Going Private Transaction. Shareholders who do not hold their shares
in their own name should consult their financial advisor or broker.
"We are delighted with the outcome and to have this process finally
behind us. Our teammates now can focus on collectively writing the next
chapter in Cara's long and successful history. However, there will be no
mystery. Our focus will remain on serving and delivering great food and
products to our guests and customers on every occasion and on the development
of our teammates and businesses." commented Gabe Tsampalieros, Cara's
President and Chief Executive Officer and a member of the Acquiring Group.
In connection with the completion of the Going Private Transaction,
Cara's outstanding Series A Medium Term Notes were redeemed in accordance with
their terms on Wednesday, February 25, 2004.
With annualized system sales of in excess of $1.8 billion, Cara
Operations Limited, is one of Canada's leading integrated restaurant
companies, and the largest operator of full service restaurants in Canada,
providing employment for approximately 39,000 Canadians in its owned and
franchised operations. Cara's wholly owned businesses include Swiss Chalet,
Harvey's, Second Cup, Kelsey's Neighbourhood Bar & Grill, Montana's Cookhouse,
and as a franchisee, Outback Steakhouse Restaurants in eastern Canada; Cara
Air Terminal Restaurant Division; Cara Airport Services Division; and Summit
Food Service Distributors Inc. Cara also owns 74% of Milestones Restaurants
Inc. Cara is a values-based organization and is listed on the Toronto Stock
Exchange under the symbols CAO and CAO.A.
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