Darden Restaurants, Inc., headquartered in Orlando, FL, owns and operates over 1,250 Red Lobster, Olive Garden, Bahama Breeze and Smokey Bones restaurants with annual sales of $4.4 billion

"This was a strong quarter for Darden," said Clarence Otis, Chairman and Chief Executive Officer of Darden. "We had outstanding financial results despite some difficult prior year comparisons, driven by continued strength at Red Lobster and Olive Garden. Throughout this fiscal year, both have demonstrated the power of combining effective brand management and continuously improving in-restaurant excellence. With this solid foundation, we expect continued momentum into the fourth quarter and beyond. We also had good progress at Smokey Bones and Bahama Breeze, as they work to become more broadly appealing. Our direction is clear -- we are passionately focused on nourishing and delighting everyone we serve, so we earn the distinction of being the best in casual dining, now and for generations." 

Highlights for the quarter ended February 26, 2006, include the following: 

* Net earnings in the third quarter were $105.3 million, or 67 cents per diluted share, on sales of $1.47 billion. Last year, net earnings were $92.6 million, or 56 cents per diluted share, on sales of $1.38 billion. 

* Total sales of $1.47 billion represent a 7.1% increase over prior year. 

* Olive Garden achieved its 46th consecutive quarter of U.S. same- restaurant sales growth with a 5.7% increase. 

* Red Lobster's U.S. same-restaurant sales growth was 1.6% for the quarter, its 6th consecutive quarter of same-restaurant sales growth, despite the shift of Lent and Red Lobster's signature Lobsterfest into this year's fourth quarter, which adversely affected same-restaurant sales by an estimated two percentage points. 

* The Company incurred costs to resolve legal disputes in California related to the exempt classification of certain managerial employees, which reduced diluted net earnings per share by approximately four cents. The Company also incurred costs related to the impairment of five Smokey Bones restaurants, which reduced diluted net earnings per share by approximately three cents. 

* The Company's tax rate this quarter was lower than anticipated and lower than reflected in its previously announced expectations for the 2006 fiscal year due to the favorable resolution of prior year tax matters and higher than projected tax credits. These items benefited diluted earnings per share for the quarter by approximately six cents. 

* The Company continued its share repurchases, buying back over 3.7 million shares of its common stock in the quarter. 

* The Company revised upwards its earnings guidance for fiscal 2006 and now expects diluted net earnings per share growth to be at the top of its previously announced 15% to 20% growth range.