SCOTTSDALE, Ariz.-(BUSINESS WIRE)-Kahala Corp., a Florida corporation (OTC BB: KAHA.OB) (the "Company") - today announced that it has completed the sale of the exclusive development rights in the state of New York for all five of its quick service restaurant concepts for a total of $1,000,000 to an investment group comprised of four experienced hotel, restaurant, and fast food operators and developers based in Raritan, New Jersey (the "Developer"). Under the terms of the development agreement, the Developer has committed to open a total of forty locations of Kahala Corp.'s five concepts throughout the state of New York over the next ten (10) years, of which twenty (20) locations shall be the Ranch * 1 brand.

Kevin Blackwell, the Company's Chairman and CEO, remarked "the combined restaurant and business experience of the Developer's four principals is phenomenal, and I am truly excited to have them aboard. With these experienced developers, I have no doubt that we will see far more than the forty committed locations of Kahala's concepts opening throughout the state of New York over the next ten years."

Prakash Shah, one of the Developer's principals and an experienced real estate broker and financier, added "we are very excited to be the newest member of the Kahala family, and are looking forward to rapidly growing each of the Kahala brands throughout the state of New York." The Developer's other principalsare Pradeep Malhotra, Rajesh Bathija, and Ranbir Bhatia.