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Statement by Cara Operations on the Announcement of an Offer by Fairfax Financial Holdings Limited for Prime Restaurants Inc.

VAUGHAN, Nov. 21, 2011 /CNW/ - On October 17, 2011, Cara Operations Limited ("Cara"), owner of such brands as Swiss Chalet Rotisserie & Grill® and Harvey's®, announced that it had reached an agreement (the "Acquisition Agreement") with Prime Restaurants Inc. ("Prime") under which Cara would acquire Prime. On November 14, 2011, Cara announced that it had completed its financing for the transaction and waived the financing condition contemplated in the Acquisition Agreement. The company announces today that it has been notified by Prime, in accordance with the terms of the Acquisition Agreement, that Prime has received an acquisition proposal from Fairfax Financial Holdings Limited ("Fairfax") that Prime's Board considers to be a superior proposal for the purposes of the Acquisition Agreement. Together with its financial and legal advisors, Cara is examining the acquisition proposal from Fairfax and will evaluate Cara's alternatives under the provisions of the Acquisition Agreement.

About Cara

Cara Operations Limited (Cara) is Canada's leading branded full service restaurant organization. The company is more than 125 years old and operates some of the most recognized brands in the country, including Swiss Chalet Rotisserie & Grill®, Harvey's®, Milestones Grill & Bar®, Montana's Cookhouse® and Kelsey's Neighbourhood Bar & Grill®. Canadian-owned and led, Cara is the restaurant family that brings Canadians together. For more information visit www.cara.com.

For further information: Media Contact: Katie Clark, (416) 979-1979 or Cell: (416) 200-3394, Katie.clark@edelman.com