SCHEDULE 14A INFORMATION

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AUSTINS STEAKS & SALOON, INC.

(Name of Registrant as Specified In Its Charter)

 

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AUSTINS STATIONERY

August 14, 2002

Dear Fellow Shareholder:

        I write to you about a matter of great importance to our Company and all of its shareholders.

        On July 24, 2002, Titus Greene, Tommy Cliett, Charles Mantooth and Tommy Hontzas filed a Schedule 13D with the Securities and Exchange Commission stating that they had formed a group to replace six of the current directors of your Company and replace them with their own slate of directors. One of this group, Titus Greene, was a member of the current Board until July 18, 2002 when he resigned to become a member of this dissident group. Mr. Greene was on the Board Nominating Committee this year. He neither proposed any new or different director nominees nor objected to the eight other nominees who were elected by you and the other shareholders in June. None of the other three members of the dissident group proposed any nominees for director this year.

        On August 6, 2002, this dissident group filed preliminary material with the Securities and Exchange Commission which they will use soon to try to get your consent to replace six members of the current Board including myself. Titus Greene, Charles Mantooth and Tommy Hontzas are three of the six new persons proposed to be elected by the dissident group.

        We are currently preparing an appropriate filing with the Securities and Exchange Commission in opposition to the dissident group. It should be sent to you within the next two weeks. The current Board of Directors and I ask you to please not sign any consent for the dissident group to change the Board of Directors until you receive and carefully consider all of the facts including our response.

        Enclosed is the second cash dividend of 2002, either by check or accounted for on your brokerage statement.

    Sincerely,

 

 

Victor F. Foti
President and Chief Executive Officer

 

 

enclosure