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The Phelps Group Awarded Franchise Sales Marketing Account for CKE Restaurants, Inc.

SANTA MONICA, Calif. – (May 17, 2002) – CKE Restaurants, Inc., the owner and franchiser of Carl’s Jr. and Hardee’s restaurants through its wholly owned subsidiaries, Carl Karcher Enterprises, Inc. and Hardee’s Food Systems, Inc., respectively, has chosen The Phelps Group to develop marketing communications for sales of franchises.

“Carl’s Jr. and Hardee’s restaurants have food that people love and a reputation that people respect,” said Cynthia Clotzman, VP, team leader at The Phelps Group. ”Carl’s Jr. and Hardee’s restaurants are really hot right now, thanks to popular menu items like The Six Dollar Burger ™ and promotions like the Spider-Man tie-in. We’ll be letting potential franchisees know that CKE has multi-unit territories available in key markets.”

An integrated communications strategy will include: direct, public relations and media campaign.

CKE Restaurants, Inc., through its subsidiaries, franchisees and licensees, operates over 3,400 quick-service restaurants, including 2,390 Hardee’s restaurants in 32 states and 11 foreign countries and 969 Carl’s Jr. restaurants located in 12 Western states, Mexico and the Philippines. The company is headquartered in Santa Barbara, Calif.
The Phelps Group is a fully integrated marketing firm offering public relations, advertising, direct response, promotions, strategic alliance and interactive services. Its clients, most of which are world leaders in their industry, include Tahiti Tourism, Countrywide, City of Hope, IndyMac Bank, Panasonic Broadcast & A/V, Bushnell Sports Optics, Petco, Whole Foods Markets, Fairmont Hotels & Resorts, Dunn-Edwards Paints, Monrovia Growers and Pepperdine University.

The agency has 60 associates and annual billings in excess of $51 million. For more information about The Phelps Group, visit the Web site: www.thephelpsgroup.com

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