Checkers/Rally's responds to disaster

Double drive-thru chain creates two-pronged campaign to provide relief

TAMPA, FL -- Checkers Drive-In Restaurants, Inc., the nation's largest chain of double drive-thru restaurants (NASDAQ: CHKR), announced a two-pronged campaign responding to those needing aid in the wake of Hurricane Katrina. The campaign is to raise money for the American Red Cross Hurricane Katrina response and for the relief of more than 500 Checkers®/Rally's® Company and franchised employees.

"With the number of Checkers/Rally's locations in the impacted areas in and around New Orleans, Mobile, and Biloxi, many of our crew members, managers and franchisees continue to experience the fury of Katrina first hand," said Keith E. Sirois, President and CEO of Checkers Drive-In Restaurants, Inc.

"Our franchisees, employees, vendors and customers who were not impacted directly by the storm have expressed an overwhelming desire to help all those in need, and I am pleased to announce the two ways in which we are all working together to make a difference."

Beginning on Wednesday, September 14, 2005, and running through October 16, 2005, all Company-owned restaurants and select participating franchised locations will donate $1 from every purchased NASCAR® Combo meal to support the American Red Cross Katrina relief efforts.

For the second prong of the campaign, the Company has established the Checkers/Rally's Employee Relief Fund, Inc. to aid both Company and franchised-restaurant employees who were impacted by Hurricane Katrina.

Checkers Drive-In Restaurants, Inc. made an initial donation of $25,000 to commence the fund, and is currently accepting voluntary donations from vendor partners, franchisees, employees and the public. Distributions from the fund are already underway to those employees most in need.

"Our employees are returning to work despite, in some cases, having lost everything. Our immediate efforts are focused on providing additional resources for these employees as they recover from Katrina," said Sirois. "Given the nature of this disaster, our first priority is our employees. For recovery of our restaurant operations, we have the necessary contingency planning and insurance in place with the right team members on the ground."

Last week within 24 hours of the storm passing, the Company set up an employee emergency hotline. The 800 number has provided information regarding payroll and other benefits to more than 200 Company and franchised-restaurant employees who have called, and has enabled the Company to create a database of relocated crew members.

For information about how to donate to Checkers/Rally's Employee Relief Fund please visit www.checkers.com.

"On behalf of everyone at Checkers/Rally's, I'd like to express my sincere appreciation for the generosity expressed toward our employees and customers most affected by Katrina, and I'd like to thank the American Red Cross and their volunteers for their tireless response to the disaster," said Sirois.