Breeden Capital Management LLC, a Greenwich, CT., based investment fund manager, announced here today that Breeden Partners LP has nominated a slate of four candidates for election to the Board of Directors of Applebee's International, Inc. at the company's 2007 annual meeting. It has also been informed that Applebee's current board of directors consists of 12 members, only 4 of whom will be elected in 2007 due to Applebee's staggered board. However, Breeden Partners and affiliated domestic and off-shore investment funds managed by Breeden Capital Management own 3.9 million shares of Applebee's.

Breeden Capital Management is a frontrunner fund investment firm based in Greenwich, Connecticut. Both the Breeden Partners and Breeden Capital Management were founded by Richard C. Breeden, the former Chairman of the U.S. Securities and Exchange Commission. The firm is said to have a total of approximately 20 professionals, and, together with its affiliates, it has more than $1 billion in assets under management.

It has been noted, that the Breeden Partners slate consists of Messrs. Richard C. Breeden, Steven J. Quamme, Raymond G. H. Seitz and Laurence E. Harris. Mr. Breeden is Chairman and CEO of Breeden Capital Management and is serving at present as a Managing Partner and Chief Investment Officer of Breeden Partners. He is the a former Chairman of the U.S. Securities and Exchange Commission and happens to be the Corporate Monitor of WorldCom, Inc. He has been credited through serving on a number of other corporate boards and is a nationally recognized expert in corporate governance practices. Mr. Quamme is one of the founding partners of Breeden Partners and also the former co-CEO of Milestone Merchant Partners, a merchant banking firm, having a vast experience in the restaurant and retail industries. In addition, he has previously been a major franchisee of Blockbuster Video, Boston Chicken and Einstein Bros. Bagels, among others. While Mr. Seitz is the former Vice Chairman of Lehman Brothers (Europe) and is a former United States Ambassador to the United Kingdom as well as a former Assistant Secretary of State, Mr. Harris is of counsel to the Washington law firm Patton Boggs LLP. He is moreover a Director and Chairman of the Audit Committee of Sports Brands International, Inc. and also currently serves on the board of Inphonic Inc.

It is stated that Applebee's Severe Performance Problems that over the three years ended December 1, 2006, Applebee's total return to shareholders was 13th worst out of 14 comparable companies. It was at this time that Applebee's total return was a negative 13.4%, costing shareholders hundreds of millions of dollars in lost value. While speaking to Mr. Breeden in this respect he said, “Over the last three years, the board approved spending hundreds of millions in shareholder capital to build new company-owned restaurants even though Applebee's enjoys a wonderful network of efficient franchisees who could have opened similar facilities with limited capital expenditures by Applebee's. The company earns a vastly higher return on capital from franchise operations than the returns Applebee's seems to be generating on the capital to buy land and construct new company-owned restaurants. The failure of the board to consider returns on invested capital in a systematic fashion is inexcusable, and it shows why change in the membership of the board is necessary to create a more valuable company in the future”.