Third quarter 2002 sales decreased to $9,525,900 from $10,099,300 for the same period in 2001. Average sales per store decreased 5.7% in the third quarter of 2002 compared to 2001, due primarily to increased competition and road construction at several restaurants which significantly affected sales, and a slowing economy in the third quarter of 2002. Same store sales decreased 8.8% for the third quarter of 2002 compared to the same period in 2001, for the same reasons. Net loss for the third quarter was $654,200 compared to net loss of $397,100 for the same period in 2001. Loss per share for the third quarter of 2002 was 18 cents compared to loss per share of 16 cents for the third quarter of 2001.

Net loss for the nine months ended October 2, 2002 was $439,100 compared to net loss of $710,600 for the same period in 2001. Loss per share for this period was 12 cents compared to loss per share of 29 cents for the same period in 2001.

Loss from operations and net loss for the nine months was impacted by an asset valuation charge of $260,000, or 7 cents per diluted share. This charge was based on management's review of the estimated disposal value of two closed restaurants held for sale.

The results for the third quarter of 2002 include realized losses of $100 from the sale of marketable securities, compared to realized gains of $55,300 in 2001. For the nine months ended October 2, 2002, total realized gains were $24,500 compared to realized losses of $440,900 for the same period of 2001.

Family Steak Houses of Florida, Inc.
Condensed Consolidated Results of Operations
(Unaudited)

                    For The Quarters Ended   For The Nine Months Ended
                   ------------------------  ------------------------
                      Oct. 2,     Oct. 3,      Oct. 2,      Oct. 3,
                       2002        2001         2002         2001
                   -----------  -----------  -----------  -----------
Revenues:
 Sales             $ 9,525,900  $10,099,300  $32,855,700  $32,276,500
 Vending revenue        47,000       53,100      152,400      163,000
                   -----------  -----------  -----------  -----------
   Total revenues    9,572,900   10,152,400   33,008,100   32,439,500
                   -----------  -----------  -----------  -----------

Cost and expenses:
 Food and beverage   3,589,700    3,844,600   12,206,000   12,284,900
 Payroll and
  benefits           2,993,200    3,131,100    9,649,500    9,639,500
 Depreciation and
  amortization         558,500      560,100    1,667,500    1,607,400
 Other operating
  expenses           1,637,300    1,654,700    4,934,200    4,884,100
 General and
  administrative
  expenses             596,900      674,600    2,032,300    1,938,300
 Franchise fees        381,000      302,600    1,313,800      967,300
 Asset valuation
  charge                    --           --      260,000           --
 Loss on store
  closings and
  disposition of
  equipment             68,800       43,600      207,300      144,000
                   -----------  -----------  -----------  -----------
                     9,825,400   10,211,300   32,270,600   31,465,500
                   -----------  -----------  -----------  -----------

  (Loss) earnings
   from operations    (252,500)     (58,900)     737,500      974,000

Investment (loss)
 gain                     (100)      55,300       24,500     (440,900)
Interest and other
 income                 56,600       21,700       96,500       76,200
Interest expense      (458,200)    (415,200)  (1,297,600)  (1,319,900)
                   -----------  -----------  -----------  -----------

  Loss before income
   taxes              (654,200)    (397,100)    (439,100)    (710,600)
Provision for income
 taxes                      --           --           --           --
                   -----------  -----------  -----------  -----------

 Net loss            ($654,200)   ($397,100)   ($439,100)   ($710,600)
                   -----------  -----------  -----------  -----------
                   -----------  -----------  -----------  -----------

Basic (loss) earnings
 per share              ($0.18)      ($0.16)      ($0.12)      ($0.29)
                   -----------  -----------  -----------  -----------
                   -----------  -----------  -----------  -----------
Basic weighted
 average common
 shares outstanding  3,706,200    2,432,500    3,522,000    2,425,200
                   -----------  -----------  -----------  -----------
                   -----------  -----------  -----------  -----------
Diluted (loss)
 earnings per share     ($0.18)      ($0.16)      ($0.12)      ($0.29)
                   -----------  -----------  -----------  -----------
                   -----------  -----------  -----------  -----------
Diluted weighted
 average common
 shares outstanding  3,706,200    2,432,500    3,522,000    2,425,200
                   -----------  -----------  -----------  -----------
                   -----------  -----------  -----------  -----------

Contact:
Family Steak Houses of Florida, Inc., Neptune Beach
Edward B. Alexander, 904/249-4l97
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