Rockville, MD - On the occasion of its tenth anniversary, Silver Diner has granted stock ownership and profit sharing benefits to every employee, regardless of position, thereby establishing it as one of the first public restaurant companies to grant shares of common stock to its entire organization. “People are our most precious resource,” cited Robert Giaimo, the Company’s founder and President. “Without the dedication and professionalism of every member of the Silver Diner team, we would not have been able to consistently achieve our Mission of 110% Excellence as we have grown over the past decade.”

Under the Company’s new Associate Ownership and Profit Sharing Plan, all individuals employed by Silver Diner on January 1, 2000 will be granted 100 shares of Silver Diner Common Stock if they are still employed by the Company on January 1, 2001. In addition, all such employees will receive their share of an annual profit sharing stock bonus equal to 10.0% of the improvement in restaurant operating margin dollars in the unit in which they are employed.

Mr. Giaimo continued, “By extending these stock awards and profit sharing incentives throughout the Company, we expect to continue to attract and retain highly-qualified and motivated employees to service our existing stores and future store growth with nominal dilution to existing shareholders. As we have previously announced, the Company plans to open a Silver Diner in Virginia Beach, Virginia in late spring of 2000. This represents the Company’s first entry into the South Atlantic marketplace, and the first in a number of anticipated multi-state openings for the Silver Diner over the next several years. The quality and dedication of all of our employees - the Silver Diner ‘family’ - will always be a key factor in our ability to execute our restaurant concept with excellence and achieve our plan of growth.”

Silver Diner, based in Rockville, Maryland, currently operates eleven Silver Diner restaurants in the Washington, Baltimore and Philadelphia metropolitan areas. The restaurant chain serves breakfast, lunch and dinner as well as late night meals, combining classic diner appeal with innovative menu selections.

On November 8th, 1999, Silver Diner will release its earnings for the third quarter and 40-week period ended October 10th, 1999. Management invites you to visit the Company’s web page at www.silverdiner.com for important information, immediate access to the latest earnings release and Silver Diner news. In addition, at 4:00 p.m. on November 8th, the Company will conduct a conference call to discuss recent performance improvements, future store growth and answer questions. All those interested in participating should call 1-800-677-6200 a few minutes prior to the call.

This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities and Exchange Act of 1934 and is subject to the safe harbor created by these sections. Silver Diner assumes no obligation to update the information contained in this press release.

Certain information included herein may contain statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as operating costs, capital spending, financial sources and the effects of competition. Such forward-looking information is subject to changes and variations which are not reasonably predictable and which could significantly affect future results. Accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the company. These changes and variations which could significantly affect future results include, but are not limited to, those relating to development and construction activities, including delays in opening new Diners, acceptance of the Silver Diner concept, the quality of the Company’s restaurant operations, the adequacy of operating and management controls, dependence on discretionary consumer spending, dependence on existing management, inflation and general economic conditions, and changes in federal or state laws or regulations.