"IHOP continues to operate from a position of strength due to the comprehensive brand revitalization and operational improvement strategies implemented over the past several years. Our marketing efforts during the third quarter 2008 continued to focus on limited-time offers, such as Discover America Pancakes and Fruit Crepe Fever, which helped deliver IHOP's 23rd consecutive quarter of same-store sales growth, albeit at a modest level. While IHOP is performing solidly in an exceptionally difficult consumer environment, we remain cautious and are taking additional steps to strengthen our consumer message over and above our core marketing plan for the balance of the year, which we believe is prudent to ensure we maintain our competitive advantage and continue to drive profitable sales at IHOP's franchise restaurants.

"With the Applebee's brand, we are only at the beginning of a multi-year revitalization process and we remain optimistic in our ability to drive sales growth over the long-term. Unfortunately, the strong headwinds in consumer spending we witnessed in the third quarter 2008 were not offset by the new value promotion we introduced. Despite these macro economic pressures, we remain focused our revitalization plans, which will include the introduction of an enhanced value message in the fourth quarter 2008, the rollout of new menu offerings by January 1st, the implementation of comprehensive service and operational improvement initiatives and enhanced advertising and marketing strategies that further leverage Applebee's 'It's a Whole New Neighborhood' campaign."

IHOP's system-wide same-store sales increase of 0.2% for the third quarter 2008 reflected a higher average guest check and negative guest traffic growth. IHOP also estimates that hurricane activity may have adversely impacted system-wide same-store sales performance by as much as 0.5% due to the temporary closure of certain franchise IHOP restaurants during the third quarter 2008. As of September 30, 2008, there were 1,375 IHOP restaurants operating system-wide in 49 states, Canada and Mexico, 10 of which were company-operated in IHOP's dedicated research and development market of Cincinnati, Ohio.

Same-store sales for Applebee's domestic franchise restaurants decreased 3.1% for the third quarter 2008 and decreased 1.6% for the first nine months of fiscal 2008. Same-store sales for Applebee's company-operated restaurants decreased 3.1% for the third quarter 2008 and decreased 0.6% for the first nine months of fiscal 2008. Applebee's company-operated restaurant same-store sales results for the third quarter 2008 reflected traffic declines at company-operated restaurants, which offset an increased average guest check that was primarily driven by an effective pricing increase of nearly 4.0%, reduced level of comps and discounts, and favorable mix shift at company-operated restaurants. Applebee's also reported a negligible impact from hurricane activity on its same-store sales performance at company-operated restaurants and indicated that hurricane activity may have adversely impacted domestic franchise restaurant performance by approximately 0.2% during the third quarter 2008. As of September 30, 2008, there were 1,997 Applebee's restaurants operating system-wide in 49 states, 17 international countries, and one U.S. territory, of which 480 were company-owned.

DineEquity reported that it expects to deliver system-wide same-store sales growth at IHOP at the lower end of its previously stated guidance range of 2% to 4% for fiscal 2008. The Company revised its system-wide domestic same-store sales growth expectations for Applebee's to range between negative 1% and negative 2% for fiscal 2008 versus its previous growth expectations in the range of positive 1% to negative 1% for fiscal 2008.

Stewart said, "This is an unprecedented time facing the restaurant industry, and our 2008 same-store sales performance guidance for IHOP and Applebee's reflects the plans we have in place to be responsive to what we believe will be a continued challenging operating and competitive environment for the balance of the year."

DineEquity will release full third quarter 2008 financial results Monday, October 27, 2008 before the market opens. Additionally, the Company will host an investor conference call on the same day at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) to discuss its third quarter 2008 financial results as well as provide investors an update on its progress to sell approximately 100 company-operated Applebee's restaurants by year-end, managing its debt position and steps to enhance the Company's overall EBITDA performance, among other topics. To participate on the call, please dial (888) 679-8033 and reference pass code 98652293.

About DineEquity, Inc.

Based in Glendale, California, DineEquity, Inc. franchises and operates restaurants under the Applebee's Neighborhood Grill & Bar and IHOP brands. With more than 3,300 restaurants combined, DineEquity is the largest full-service restaurant company in the world. For more information on DineEquity, visit the Company's Web site located at www.dineequity.com.

Forward-Looking Statements

There are forward-looking statements contained in this news release. They use such words as "may," "will," "expect," "believe," "plan," or other similar terminology, and include statements regarding the strategic and financial benefits of the acquisition of Applebee's International, Inc., expectations regarding integration and cost savings, and other financial guidance. These statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed or implied in such statements. These factors include, but are not limited to: the implementation of the Company's strategic growth plan; the availability of suitable locations and terms for the sites designated for development; the ability of franchise developers to fulfill their commitments to build new restaurants in the numbers and time frames covered by their development agreements; legislation and government regulation including the ability to obtain satisfactory regulatory approvals; risks associated with executing the Company's strategic plan for Applebee's; risks associated with the Company's incurrence of significant indebtedness to finance the acquisition of Applebee's; the failure to realize the synergies and other perceived advantages resulting from the acquisition; costs and potential litigation associated with the acquisition; the ability to retain key personnel after the acquisition; conditions beyond the Company's control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company's customers or food supplies; or acts of war or terrorism; availability and cost of materials and labor; cost and availability of capital; competition; continuing acceptance of the IHOP, International House of Pancakes and Applebee's brands and concepts by guests and franchisees; the Company's overall marketing, operational and financial performance; economic and political conditions; adoption of new, or changes in, accounting policies and practices; and other factors discussed from time to time in the Company's news releases, public statements and/or filings with the Securities and Exchange Commission, especially the "Risk Factors" sections of Annual and Quarterly Reports on Forms 10-K and 10-Q. Forward-looking information is provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.

Stacy Roughan
Director, Investor Relations
DineEquity, Inc.
818-637-3632

SOURCE: DineEquity, Inc.

The Company generated $56.8 million of cash flow from operating activities in the first six months of 2008, a 141% increase from the first six months of 2007. The Company's cash position in the first six months of 2008 was further augmented by $7.9 million from the run-off of the IHOP business' long-term notes receivable. Consolidated capital expenditures were $23.2 million in the first six months of 2008. Free cash flow for the six month period was $41.5 million. See "References to Non-GAAP Financial Measures" below.

Julia A. Stewart, DineEquity's chairman and chief executive officer, said, "We are pleased with the second quarter 2008 performance of the IHOP business, and are optimistic about the progress we continue to make on our plans to re-energize and transform the Applebee's brand and business model. IHOP's success is the result of focused execution of our core marketing, operations and development strategies, and the IHOP team continues to deliver on all fronts. This level of performance is indicative of the type of sustainable system momentum that we envision is possible at Applebee's as we apply similar strategies."

Applebee's Second Quarter 2008 Performance Detail

The following is a summary of key performance drivers of DineEquity's Applebee's business unit for the second quarter 2008:

--  During the quarter, franchisees opened 11 new Applebee's restaurants.

--  Applebee's system-wide domestic same-store sales decreased 1.7% for
    the second quarter 2008, primarily due to advertised promotions that did
    not perform as expected in a value-oriented competitive environment.
    Applebee's will roll out value offerings beginning in August 2008 to
    compete more effectively and to drive improved traffic performance.

--  On a pro forma basis, which compares second quarter 2008 results for
    Applebee's franchise operations segment to the same period last year,
    Applebee's franchise operations profitability grew 2.8% to $37.1 million
    due to a 3.7% increase in effective units, which offset a 1.8% decrease in
    domestic franchise same-store sales for the second quarter 2008.

--  On a pro forma basis, which compares second quarter 2008 results for
    Applebee's company operations segment to the same period last year, sales
    at Applebee's company-operated restaurants decreased 0.9% to $292.9 million
    primarily due to a 1.5% decrease in same-store sales for the second quarter
    2008. Operating margin improved 120 basis points to 12.7% compared to an
    11.5% operating margin, excluding pre-opening expense of 0.2%, in the
    second quarter last year. As a percentage of sales, food and beverage costs
    and labor costs increased by 30 basis points on a consolidated basis. This
    was offset by an approximate 170 basis point improvement in net
    depreciation and rental expense related to extending the useful lives of
    restaurant assets due to purchase price allocation. Together, these
    operating margin performance factors resulted in an 11.8% increase in
    segment profitability to $37.2 million in the second quarter 2008.

Stewart commented, "We continue to work through our performance improvement plan on Applebee's. During the second quarter 2008, we introduced a new advertising campaign and completed successful promotion testing aimed at driving guest traffic. We appointed Mike Archer president of Applebee's to help lead the revitalization of the business. Applebee's same-store sales performance did not meet our expectations and company operating margin improvement did not materialize. We will launch a value promotion system-wide as soon as August, and believe this will benefit our same-store sales performance as well as contribute to Applebee's company restaurant margins in line with expected sales improvements during the second half of 2008."

IHOP Second Quarter 2008 Performance Details

The following is a summary of key performance drivers of DineEquity's IHOP's business unit for the second quarter 2008:

--  During the quarter, franchisees opened 15 new IHOP restaurants.

--  IHOP's system-wide same-store sales increased 2.6% for the second
    quarter 2008, which produced the business' 22nd consecutive quarter of
    positive same-store sales growth and reflected positive traffic growth for
    the system. IHOP's growth was supported primarily by unique limited-time
    offers such as Tour de French Toast and Discover America Pancakes, as well
    as promotional activities around IHOP's year-long 50th birthday
    celebration.

--  IHOP's core franchising business reflected revenue growth of 5.9% to
    $49.7 million compared to the same quarter last year due to a 4.2% increase
    in effective units and the business' solid same-store sales results for the
    second quarter 2008. IHOP's franchise operations expense increased 2.1%,
    resulting in a 9.1% increase in segment profitability to $27.9 million for
    the second quarter 2008.

Stewart commented, "IHOP's performance for the second quarter 2008 reflects our proven financial formula for success, which is centered on driving top line sales through new franchise restaurant openings and same-store sales growth while moderating G&A spending. This approach has allowed us to maximize the benefits of IHOP's high cash flow generating franchise business model. Recently, we appointed Des Hague president of IHOP Restaurants, and, with his leadership, we plan to build upon IHOP's success and take our growth strategies to the next level."

Progress on Applebee's Business Model Transformation

The following is a summary of the key developments of the business model transformation for Applebee's:

--  DineEquity completed the sale-leaseback of 181 company-owned
    Applebee's restaurant properties during the second quarter 2008. This
    transaction generated approximately $303 million in proceeds net of taxes
    and closing costs. The Company also sold one additional Applebee's
    restaurant property during the second quarter 2008, generating
    approximately $1.7 million in after-tax cash proceeds.

--  DineEquity repaid approximately $303 million of $350 million in
    consolidated short-term funded debt during the second quarter 2008.

--  Subsequent to quarter end, Applebee's generated $27 million in after-
    tax cash proceeds from the sale of 26 company-operated restaurants in the
    Southern California market, in line with its strategy to franchise the
    majority of Applebee's company-operated restaurants. The Company completed
    the sale-leaseback of Applebee's corporate office building in Lenexa,
    Kansas, for approximately $39 million in after-tax cash proceeds. These
    transactions enabled the Company to retire the remainder of its $350
    million consolidated short-term funded debt on July 21, 2008. The Company
    avoided the incurrence of make-whole payments that would have otherwise
    been due on those debt obligations.

--  During the quarter, Applebee's also signed an asset purchase agreement
    for the sale of three company restaurants in Delaware with an expected
    closing date during the third quarter 2008. DineEquity expects to complete
    the sale of its 15 company restaurants in Nevada in the fourth quarter
    2008, as previously announced.

--  DineEquity is reiterating its expectation of franchising approximately
    100 company-operated Applebee's restaurants in 2008. However, the majority
    of restaurants expected to be sold during the remainder of the year consist
    of those with profit margins below the company-operated average. As a
    result, the Company expects after-tax cash proceeds from franchising
    company-operated Applebee's to range between $70 and $80 million this year.

2008 Performance Guidance

The following is a summary of DineEquity expectations for key financial metrics for fiscal 2008:

--  The Company revised its consolidated cash from operations expectations
    to range between $95 and $100 million for fiscal 2008. This revision
    reflects increased tax obligations related to the sale-leaseback of 181
    Applebee's company-owned restaurant properties, being offset in part by
    higher cash earnings. On an overall cash basis, this decrease will be
    offset by a reduction in restricted cash associated with the sale-leaseback
    transaction. The Company's revised outlook on cash from operations compares
    to its previous expectation which ranged between $105 and $110 million for
    fiscal 2008.

--  The Company's cash performance is expected to be augmented by
    approximately $17 million from the structural run-off of the IHOP business
    unit's long-term notes receivable in fiscal 2008.

--  The Company reiterated its expectation that consolidated capital
    expenditures will range between $30 and $34 million for fiscal 2008.

--  The Company's revised expectation is that consolidated free cash flow
    will range between $78 and $87 million for fiscal 2008, in line with its
    revised cash from operations outlook for the year.

--  The Company reiterated its expectation of producing system-wide same-
    store sales growth at IHOP in the range of 2% to 4% for fiscal 2008. The
    Company expects system-wide domestic same-store sales growth for Applebee's
    to range between negative 1% and positive 1% for fiscal 2008.

--  The Company reiterated its expectation that consolidated G&A expense
    will range between $186 and $199 million in fiscal 2008.

--  The Company reiterated its expectations that franchisees and its area
    licensee will open between 65 and 70 new IHOP restaurants this year, and
    that franchisees will open between 50 and 65 new Applebee's restaurants in
    fiscal 2008.

--  The Company reiterated its expectation to improve Applebee's company
    operating margin by approximately 150 to 200 basis points for the full-year
    2008. The Company now expects this improvement to result primarily from a
    net depreciation and rental expense benefit due to purchase price
    accounting, as well as from ongoing operational improvement initiatives.

--  The Company's revised expectation is that depreciation and
    amortization will range between $105 and $115 million, in fiscal 2008 due
    to further purchase price accounting adjustments primarily related to
    Applebee's restaurants assets. This compares to the Company's previous
    expectation which ranged between $115 and $125 million this year.

--  The Company reiterated its expectation that interest expense would be
    approximately $203 million in fiscal 2008. Approximately $40 million of
    this interest expense is attributable to non-cash items primarily
    associated with financing related costs.

Investor Conference Call Today

DineEquity will host an investor conference call to discuss second quarter 2008 financial results today at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time). To participate on the call, please dial (888) 680-0869 and reference pass code 35984516. DineEquity's is also providing supplemental information to support today's investor conference call discussion. This information is posted as supporting material to the second quarter 2008 webcast link, which may be accessed by visiting the Calls & Presentations section of DineEquity's Investor Relations website at http://investors.dineequity.com.

A telephonic replay of the call may be accessed through August 5, 2008 by dialing 888-286-8010 and referencing pass code 41685988. An online archive of the webcast also will be available on the Investor Information section of DineEquity's Web site.

About DineEquity, Inc.

Based in Glendale, California, DineEquity, Inc. franchises and operates restaurants under the Applebee's Neighborhood Grill & Bar and IHOP brands. With more than 3,300 restaurants combined, DineEquity is the largest full-service restaurant company in the world. For more information on DineEquity, visit the Company's Web site located at www.dineequity.com.

Forward-Looking Statements

There are forward-looking statements contained in this news release. They use such words as "may," "will," "expect," "believe," "plan," or other similar terminology, and include statements regarding the strategic and financial benefits of the acquisition of Applebee's International, Inc., expectations regarding integration and cost savings, and other financial guidance. These statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed or implied in such statements. These factors include, but are not limited to: the implementation of the Company's strategic growth plan; the availability of suitable locations and terms for the sites designated for development; the ability of franchise developers to fulfill their commitments to build new restaurants in the numbers and time frames covered by their development agreements; legislation and government regulation including the ability to obtain satisfactory regulatory approvals; risks associated with executing the Company's strategic plan for Applebee's; risks associated with the Company's incurrence of significant indebtedness to finance the acquisition of Applebee's; the failure to realize the synergies and other perceived advantages resulting from the acquisition; costs and potential litigation associated with the acquisition; the ability to retain key personnel after the acquisition; conditions beyond the Company's control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company's customers or food supplies; or acts of war or terrorism; availability and cost of materials and labor; cost and availability of capital; competition; continuing acceptance of the IHOP and Applebee's brands and concepts by guests and franchisees; the Company's overall marketing, operational and financial performance; economic and political conditions; adoption of new, or changes in, accounting policies and practices; and other factors discussed from time to time in the Company's news releases, public statements and/or filings with the Securities and Exchange Commission, especially the "Risk Factors" sections of Annual and Quarterly Reports on Forms 10-K and 10-Q. Forward-looking information is provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.

Non-GAAP Financial Measures

This news release includes references to the Company's "net income available to common stockholders, excluding impairment charges" and the non-GAAP financial measure "free cash flow." The former is computed for a given period by deducting from net (loss) income available to common stockholders for such period the effect of any loss related to impairment and closure charges incurred in such period. This is presented on an aggregate basis and a per share (diluted) basis. For the latter, the Company defines "free cash flow" for a given period as cash provided by operating activities, plus receipts from notes and equipment contracts receivable ("long-term notes receivable"), less capital expenditures. Management utilizes free cash flow to determine the amount of cash remaining for general corporate and strategic purposes after the receipts from long-term notes receivable, and the funding of operating activities and capital expenditures. Management believes this information is helpful to investors to determine the Company's cash available for these purposes. Free cash flow is a supplemental non-GAAP financial measure and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with generally accepted accounting principles. The following table reconciles the Company's cash provided by operating activities to free cash flow for the Company's fiscal 2008 performance guidance:

                                          For the Six Months
                                                Ended          Fiscal 2008
                                             June 30, 2008      Guidance
                                          --------------------------------
                                                    (in millions)
Cash flows from operating activities            $  57           $  95-100
Receipts from long term notes receivable            8                  17
Capital expenditures                              (23)           (30)-(34)
                                          ------------------   -----------
Free cash flow                                  $  42           $   78-87
                                          ==================   ===========

                    DINEEQUITY, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share amounts)
                                (Unaudited)
                                 Three Months Ended     Six Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------
Revenues
  Franchise revenues            $  87,421  $  46,934  $ 177,355  $  93,984
  Company restaurant sales        296,496      4,625    608,418      8,609
  Rental income                    32,568     33,058     65,533     66,068
  Financing revenues                7,648      4,870     15,616     10,950
                                ---------  ---------  ---------  ---------
   Total revenues                 424,133     89,487    866,922    179,611
                                ---------  ---------  ---------  ---------
Costs and Expenses
  Franchise expenses               22,384     21,369     45,761     42,590
  Company restaurant expenses     259,723      5,371    536,269      9,985
  Rental expenses                  24,561     24,594     49,270     49,175
  Financing expenses                2,548         57      5,887        529
  General and administrative
   expenses                        49,230     14,103     96,804     30,224
  Interest expense                 51,561      3,277    102,208      5,492
  Impairment and closure
   charges                         41,080         48     41,155         55
  Amortization of intangible
   assets                           3,080         --      5,979         --
  Other (income) expense, net          (3)       509     (1,860)     1,250
  Early debt extinguishment
   costs                               --         --         --      2,223
                                ---------  ---------  ---------  ---------
   Total costs and expenses       454,164     69,328    881,473    141,523
                                ---------  ---------  ---------  ---------
(Loss) income from continuing
 operations before income taxes   (30,031)    20,159    (14,551)    38,088
Benefit (provision) for income
 taxes                             10,760     (6,029)     9,222    (12,645)
                                ---------  ---------  ---------  ---------
(Loss) income from continuing
 operations                       (19,271)    14,130     (5,329)    25,443
Loss from discontinued
 operations, net of tax              (114)        --       (202)        --
                                ---------  ---------  ---------  ---------
Net (loss) income               $ (19,385) $  14,130  $  (5,531) $  25,443
                                =========  =========  =========  =========
Net (loss) income               $ (19,385) $  14,130  $  (5,531) $  25,443
  Less: Series A preferred
   stock dividends                 (4,750)        --     (9,500)        --
  Less: Accretion of Series B
   preferred stock                   (535)        --     (1,056)        --
  Less: Unvested restricted
   stock share of loss                930         --        539         --
                                ---------  ---------  ---------  ---------
Net (loss) income available to
 common stockholders - basic    $ (23,740) $  14,130  $ (15,548) $  25,443
                                =========  =========  =========  =========
Net (loss) income available to
 common stockholders per share
  Basic                         $   (1.42) $    0.82  $   (0.93) $    1.45
                                =========  =========  =========  =========
  Diluted                       $   (1.42) $    0.82  $   (0.93) $    1.44
                                =========  =========  =========  =========
Weighted average shares
 outstanding
  Basic                            16,768     17,156     16,735     17,500
                                =========  =========  =========  =========
  Diluted                          16,768     17,328     16,735     17,688
                                =========  =========  =========  =========
Dividends declared per common
 share                          $    0.25  $    0.25  $    0.50  $    0.50
                                =========  =========  =========  =========
Dividends paid per common share $    0.25  $    0.25  $    0.50  $    0.50
                                =========  =========  =========  =========
                             DineEquity, Inc.
                            IHOP BUSINESS UNIT
The following table sets forth, for the three-month and six-month periods
ended June 30 of the current year and prior year, the number of effective
restaurants in the IHOP system and information regarding the percentage
change in sales at those restaurants compared to the same periods in the
prior year. "Effective restaurants" are the number of restaurants in a
given period, adjusted to account for restaurants open for only a portion
of the period. Information is presented for all effective restaurants in
the IHOP system, which includes IHOP restaurants owned by the Company, as
well as those owned by franchisees and area licensees. Sales at
restaurants that are owned by franchisees and area licensees are not
attributable to the Company. However, we believe that presentation of this
information is useful in analyzing our revenues because franchisees and
area licensees pay us royalties and advertising fees that are generally
based on a percentage of their sales, as well as rental payments under
leases that are usually based on a percentage of their sales. Management
also uses this information to make decisions about future plans for the
development of additional restaurants as well as evaluation of current
operations. Pro forma information on Applebee's restaurant data and
restaurant development and franchising activity is presented in the
section entitled "Pro Forma Comparison of Three Months and Six Months
ended June 30, 2008 with Three Months and Six Months ended June 30,
2007 -- Applebee's" herein.
                                          Three Months      Six Months
                                             Ended            Ended
                                            June 30,         June 30,
                                        ----------------  ----------------
                                          2008     2007     2008     2007
                                        -------  -------  -------  -------
Restaurant Data
Effective restaurants(a)
  Franchise                               1,185    1,137    1,180    1,133
  Company                                    10       13       10       12
  Area license                              158      159      157      159
                                        -------  -------  -------  -------
   Total                                  1,353    1,309    1,347    1,304
                                        =======  =======  =======  =======
System-wide(b)
  Sales percentage change(c)                6.3%     7.9%     7.1%     6.6%
  Same-store sales percentage change(d)     2.6%     2.5%     3.2%     1.6%
Franchise(b)
  Sales percentage change(c)                6.9%     8.0%     7.7%     6.6%
  Same-store sales percentage change(d)     2.6%     2.6%     3.2%     1.6%
Area License(b)
  Sales percentage change(c)                2.2%     4.0%     2.7%     4.5%
(a) "Effective restaurants" are the number of restaurants in a given fiscal
    period adjusted to account for restaurants open for only a portion of
    the period. Information is presented for all effective restaurants in
    the IHOP system, which includes IHOP restaurants owned by the Company
    as well as those owned by franchisees and area licensees.
(b) "System-wide sales" are retail sales at IHOP restaurants operated by
    franchisees, area licensees and the Company, as reported to the
    Company. Franchise restaurant sales were $543.2 million and $1,090.4
    million for the second quarter and first six months ended June 30,
    2008, respectively, and sales at area license restaurants were $53.9
    million and $111.3 million for the second quarter and first six months
    ended June 30, 2008, respectively.  Franchise restaurant sales were
    $508.0 million and $1,012.2 million for the second quarter and first
    six months ended June 30, 2007, respectively, and sales at area
    license restaurants were $52.8 million and $108.3 million for the
    second quarter and first six months ended June 30, 2007, respectively.
    Sales at restaurants that are owned by franchisees and area licensees
    are not attributable to the Company.
(c) "Sales percentage change" reflects, for each category of restaurants,
    the percentage change in sales in any given fiscal period compared to
    the prior fiscal period for all restaurants in that category.
(d) "Same store sales percentage change" reflects the percentage change in
    sales, in any given fiscal period compared to the prior fiscal period,
    for restaurants that have been operated throughout both fiscal periods
    that are being compared and have been open for at least 18 months.
    Because of new unit openings and store closures, the restaurants open
    throughout both fiscal periods being compared will be different from
    period to period. Same store sales percentage change does not include
    data on restaurants located in Florida.
                             DineEquity, Inc.
                            IHOP BUSINESS UNIT
The following table summarizes our restaurant development and franchising
activity:
                                          Three Months     Six Months
                                         Ended June 30,   Ended June 30,
                                       ----------------- -----------------
                                         2008     2007     2008     2007
                                       -------- -------- -------- --------
Restaurant Development Activity
Beginning of period                       1,353    1,306    1,344    1,302
New openings
  Company-developed                          --       --       --       --
  Domestic franchisee-developed              13       15       24       21
  International franchisee-developed          1       --        1        2
  Area license                                1       --        1       --
                                       -------- -------- -------- --------
    Total new openings                       15       15       26       23
Closings
  Company and  domestic franchise            (4)      (1)      (6)      (5)
  International franchise                    (1)      --       (1)      --
  Area license                               (2)      (1)      (2)      (1)
                                       -------- -------- -------- --------
End of period                             1,361    1,319    1,361    1,319
                                       ======== ======== ======== ========
Summary-end of period
Franchise                                 1,195    1,147    1,195    1,147
Company                                      10       13       10       13
Area license                                156      159      156      159
                                       -------- -------- -------- --------
    Total                                 1,361    1,319    1,361    1,319
                                       ======== ======== ======== ========
Restaurant Franchising Activity
Company-developed                            --       --       --       --
Franchisee-developed                         13       15       24       21
International franchisee-developed            1       --        1        2
Rehabilitated and refranchised                5       --        9        2
                                       -------- -------- -------- --------
    Total restaurants franchised             19       15       34       25
Reacquired by the Company                    (6)      --       (9)      (6)
Closed                                       (4)      (1)      (6)      (4)
                                       -------- -------- -------- --------
    Net addition                              9       14       19       15
                                       ======== ======== ======== ========
                             DineEquity, Inc.
                        APPLEBEE'S BUSINESS UNIT
Pro Forma Comparison of Three Months and Six Months ended June 30, 2008
with Three Months and Six Months ended June 30, 2007 -- Applebee's
The following is a comparison of (i) information for three months and six
months ended June 30, 2008 for our Applebee's segment and (ii) information
for the for three months and six months ended June 30, 2007 for Applebee's
International, Inc. prior to the acquisition date ("Predecessor
Applebee's").
Restaurant Data
The following table sets forth, for the three and six months ended June 30,
2008 and 2007, the number of effective restaurants in the Applebee's system
and information regarding the percentage change in sales at those
restaurants compared to the same period in the prior year.
                                         Three Months        Six Months
                                         Ended June 30,    Ended June 30,
                                        ---------------   ---------------
                                                  2007              2007
                                         2008     (e)      2008     (e)
                                        ------   ------   ------   ------
Applebee's Restaurant Data
Effective restaurants(a)
  Company                                  510      505      510      505
  Franchise                              1,480    1,427    1,474    1,419
                                        ------   ------   ------   ------
   Total                                 1,990    1,932    1,984    1,924
                                        ======   ======   ======   ======
System-wide(b)
  Applebee's domestic sales percentage
   change(c)                               0.3%     3.2%     1.6%     1.7%
  Applebee's domestic same-store sales
   percentage change(d)                   (1.7)%   (0.9)%   (0.6)%   (2.5)%
Franchise(b)
  Applebee's domestic sales percentage
   change(c)                               0.8%     3.6%      1.7%    2.1%
  Applebee's domestic same-store sales
   percentage change(d)                   (1.8)%   (0.8)%    (0.9)%  (2.4)%
Company
  Applebee's domestic sales percentage
   change(c)                              (1.0)%    2.2%      1.1%    0.7%
  Applebee's domestic same-store sales
   percentage(d)                          (1.5)%   (1.2)%     0.3%   (2.8)%
(a) "Effective restaurants" are the number of restaurants in a given fiscal
    period adjusted to account for restaurants open for only a portion of
    the period. Information is presented for all effective restaurants in
    the Applebee's system, which includes restaurants owned by Applebee's
    as well as those owned by franchisees and international licensees.
(b) "System-wide sales" are sales of Applebee's restaurants operated by
    franchisees and Applebee's as reported to the Company. The Company
    acquired Applebee's International, Inc. on November 29, 2007. Domestic
    franchise restaurant sales for Applebee's restaurants were $859.7
    million and $852.8 million for the three months ended June 30, 2008 and
    2007, respectively and $1,757.5 million and $1,727.7 million for the
six
    months ended June 30, 2008 and 2007, respectively. Franchise restaurant
    sales are sales recorded at restaurants that are owned by franchisees
    and are not attributable to either the Company or Predecessor
    Applebee's. Franchise restaurant sales are useful in analyzing our
    franchise revenues because franchisees pay royalties and other fees
    that are generally based on a percentage of their sales.
(c) "Sales percentage change" reflects, for each category of restaurants,
    the percentage change in sales in any given fiscal year compared to
    the prior fiscal year for all restaurants in that category. All
    periods for company-owned Applebee's restaurants exclude the impact
    of discontinued operations.
(d) "Same-store sales percentage change" reflects the percentage change in
    sales, in any given fiscal year compared to the prior fiscal year, for
    restaurants that have been operated throughout both fiscal periods
    that are being compared and have been open for at least 18 months.
    Because of new unit openings and store closures, the restaurants open
    throughout both fiscal periods being compared will be different from
    period to period.
(e) Data for Predecessor Applebee's
                            DineEquity, Inc.
                         APPLEBEE'S BUSINESS UNIT
The following table summarizes Applebee's restaurant development and
franchising activity:
                                    Three Months      Six Months
                                    Ended June 30,   Ended June 30,
                                  ----------------- -----------------
                                     2008   2007(a)   2008    2007(a)
                                  -------- -------- -------- --------
Applebee's Restaurant Development
 Activity
Beginning of period                  1,986    1,930    1,976    1,930
New openings
  Company-developed                     --        3        1       10
  Franchisee-developed                  11       15       27       28
                                  -------- -------- -------- --------
    Total new openings                  11       18       28       38
Closings
  Company                               (2)      (4)      (3)     (23)
  Franchise                             (2)      (1)      (8)      (2)
                                  -------- -------- -------- --------
End of period                        1,993    1,943    1,993    1,943
                                  ======== ======== ======== ========
Summary-end of period
  Company                              509      508      509      508
  Franchise                          1,484    1,435    1,484    1,435
                                  -------- -------- -------- --------
    Total                            1,993    1,943    1,993    1,943
                                  ======== ======== ======== ========
Applebee's Restaurant Franchising
 Activity
Domestic franchisee-developed            6        9       17       21
International
 franchisee-developed                    5        6       10        7
                                  -------- -------- -------- --------
    Total restaurants franchised        11       15       27       28
Closings
  Domestic franchisee                   (2)      (1)      (7)      (2)
  International franchisee              --       --       (1)      --
                                  -------- -------- -------- --------
    Net addition                         9       14       19       26
                                  ======== ======== ======== ========
(a) Data for Predecessor Applebee's
The following table summarizes Applebee's segment profit:
                                    Three Months Ended   Six Months Ended
                                         June 30,            June 30,
                                    ------------------- -------------------
                                      2008    2007 (a)    2008    2007 (a)
                                    --------- --------- --------- ---------
Franchise revenues                  $  37,713 $  36,506 $  75,650 $  74,027
Franchise expenses                        566       370       996       743
                                    --------- --------- --------- ---------
Franchise segment profit            $  37,147 $  36,136 $  74,654 $  73,284
                                    ========= ========= ========= =========
Company restaurant revenues         $ 292,866 $ 295,650 $ 600,893 $ 594,267
Company restaurant expenses           255,618   262,328   527,733   522,733
                                    --------- --------- --------- ---------
Company restaurant segment profit   $  37,248 $  33,322 $  73,160 $  71,534
                                    ========= ========= ========= =========
(a) Data for Predecessor Applebee's
                    DINEEQUITY, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                   (In thousands, except share amounts)
                                                   June 30,   December 31,
                                                     2008         2007
                                                  -----------  -----------
                                                  (Unaudited)
                   Assets
Current assets
  Cash and cash equivalents                       $    38,033  $    26,838
  Restricted cash                                     142,003      128,138
  Short-term investments, at market value                 278          300
  Receivables, net                                     87,260      115,335
  Inventories                                          13,323       13,280
  Prepaid income taxes                                     --       30,695
  Prepaid expenses                                     12,288       30,831
  Deferred income taxes                                40,649       21,862
  Assets held for sale                                 40,168       60,347
  Current assets related to discontinued
   operations                                           5,775        6,052
                                                  -----------  -----------
   Total current assets                               379,777      433,678
                                                  -----------  -----------
Non-current restricted cash                            57,763       57,962
Restricted assets related to captive insurance
 subsidiary                                             6,401       10,518
Long-term receivables                                 281,886      288,452
Property and equipment, net                           933,371    1,139,616
Goodwill                                              820,686      730,728
Other intangible assets, net                        1,008,423    1,011,457
Other assets, net                                     155,272      156,193
Non-current assets related to discontinued
 operations                                             2,558        2,558
                                                  -----------  -----------
   Total assets                                   $ 3,646,137  $ 3,831,162
                                                  ===========  ===========
Liabilities and Stockholders' Equity
Current liabilities
  Accounts payable                                $    44,960  $    99,019
  Accrued employee compensation and benefits           46,209       56,795
  Deferred revenue                                     43,170       76,802
  Accrued financing costs                              41,361       63,045
  Other accrued expenses                               73,414       49,203
  Deferred compensation                                    71       21,236
  Accrued interest payable                              5,502       15,240
                                                  -----------  -----------
   Total current liabilities                          254,687      381,340
                                                  -----------  -----------
Long-term debt                                      1,955,238    2,263,887
Financing obligation                                  332,031           --
Capital lease obligations, less current
 maturities                                           165,331      168,242
Deferred income taxes                                 426,207      504,865
Other liabilities                                     124,406      113,103
Non-current liabilities related to discontinued
 operations                                             2,594        3,302
Commitments and contingencies
Preferred stock, Series A, $1 par value, 220,000
 shares authorized; 190,000 shares issued and
 outstanding as of June 30, 2008 and December 31,
 2007                                                 187,050      187,050
Stockholders' equity
  Convertible Preferred stock, Series B, at
   accreted value, 10,000,000 shares authorized;
   35,000 shares issued and outstanding at June
   30, 2008 and December 31, 2007                      36,237       35,181
  Common stock, $.01 par value, 40,000,000 shares
   authorized; June 30, 2008: 23,695,962 shares
   issued and 17,465,367 shares outstanding;
   December 31, 2007: 23,359,664 shares issued
   and 17,105,469  shares outstanding                     230          230
Additional paid-in-capital                            157,918      149,564
Retained earnings                                     314,080      338,790
Accumulated other comprehensive loss                  (33,353)     (36,738)
Treasury stock, at cost (6,230,595 shares and
 6,254,195 shares at June 30, 2008 and December
 31, 2007, respectively)                             (276,519)    (277,654)
                                                  -----------  -----------
   Total stockholders' equity                         198,593      209,373
                                                  -----------  -----------
   Total liabilities and stockholders' equity     $ 3,646,137  $ 3,831,162
                                                  ===========  ===========
                    DINEEQUITY, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (In thousands)
                                                         Six Months Ended
                                                             June 30,
                                                        ------------------
                                                          2008      2007
                                                        --------  --------
Cash flows from operating activities
Net (loss) income                                       $ (5,531) $ 25,443
  Adjustments to reconcile net income to cash flows
   provided by operating activities
    Depreciation and amortization                         55,369    10,830
    Impairment and closure charges                        41,155        55
    Debt extinguishment and other costs                       --     2,223
    Deferred income taxes                                (38,420)   (2,753)
    Stock-based compensation expense                       7,057     2,245
    Tax benefit from stock-based compensation                945     2,343
    Excess tax benefit from stock options exercised         (315)   (2,343)
    Gain on disposition of assets                           (166)      (98)
    Changes in operating assets and liabilities
      Receivables                                         28,336     2,595
      Inventories                                            (43)       94
      Prepaid expenses                                    26,090    (2,603)
      Accounts payable                                   (27,007)   (6,986)
      Accrued employee compensation and benefits         (10,586)   (3,915)
      Deferred revenues                                  (33,632)       --
      Other accrued expenses                              12,439    (2,243)
      Other                                                1,125    (1,308)
                                                        --------  --------
        Cash flows provided by operating activities       56,816    23,579
                                                        --------  --------
Cash flows from investing activities
   Additions to property and equipment                   (23,216)   (1,449)
   Additions to long-term receivables                     (1,573)     (893)
   Payment of accrued acquisition costs                  (10,063)       --
   Collateral released by captive insurance subsidiary     3,823        --
   Proceeds from sale of property and equipment               --       795
   Principal receipts from notes and equipment
    contracts receivable                                   7,871     8,283
   Reductions (additions) to assets held for sale         11,930      (429)
   Property insurance proceeds                               478      (173)
                                                        --------  --------
     Cash flows (used in) provided by investing
      activities                                         (10,750)    6,134
                                                        --------  --------
Cash flows from financing activities
  Proceeds from issuance of long-term debt                    --   208,000
  Proceeds from financing obligations                    333,617        --
  Repayment of long-term debt                           (312,800) (129,206)
  Principal payments on capital lease and financing
   obligations                                            (3,167)   (2,809)
  Dividends paid                                         (15,115)   (8,820)
  Payment of preferred stock issuance costs               (1,500)       --
  Purchase of treasury stock, net                             --   (77,020)
  Reissuance of treasury stock                               755        --
  Proceeds from stock options exercised                      989     6,370
  Excess tax benefit from stock options exercised            315     2,343
  Payment of debt issuance costs                         (24,299)  (14,307)
  Prepayment penalties on early debt extinguishment           --    (1,219)
  Restricted cash related to securitization              (13,666)       --
                                                        --------  --------
      Cash flows used in financing activities            (34,871)  (16,668)
                                                        --------  --------
  Net change in cash and cash equivalents                 11,195    13,045
  Cash and cash equivalents at beginning of year          26,838    19,516
                                                        --------  --------
  Cash and cash equivalents at end of year              $ 38,033  $ 32,561
                                                        ========  ========
Supplemental disclosures
  Interest paid                                         $ 90,487  $ 15,694
  Income taxes paid                                     $ 12,514  $ 17,513
                    DINEEQUITY, INC. AND SUBSIDIARIES
                       NON-GAAP FINANCIAL MEASURES
                (In thousands, except per share amounts)
                               (Unaudited)
                                 Three Months Ended     Six Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------
Net (loss) income available to
 common stockholders, as
 reported                       $ (23,740) $  14,130  $ (15,548) $  25,443
Impairment and closure charges
 Early debt extinguishment
 costs                             41,080         48     41,155         55
Income tax benefit Early debt
 extinguishment costs             (14,719)       (14)   (26,083)       (18)
Net income allocated to
 unvested participating
 restricted stock                    (994)        --       (504)        --
                                ---------  ---------  ---------  ---------
Net income (loss) available to
 common stockholders, as
 adjusted                       $   1,627  $  14,164  $    (980) $  25,480
                                =========  =========  =========  =========
 Diluted net income available
 to common stockholders per
 share:
Net (loss) income available to
 common stockholders per share,
 as reported                    $   (1.42) $    0.82  $   (0.93) $    1.44
Impairment and closure charges
 per share Early debt
 extinguishment costs                2.45         --       2.46         --
Income tax benefit per share
 Early debt extinguishment
 costs                              (0.87)        --      (1.56)        --
Net income allocated to
 unvested participating
 restricted stock per share         (0.06)        --      (0.03)        --
                                ---------  ---------  ---------  ---------
Diluted net income (loss)
 available to common
 stockholders per share, as
 adjusted                       $    0.10  $    0.82  $   (0.06) $    1.44
                                =========  =========  =========  =========

Stacy Roughan
Director, Investor Relations
DineEquity, Inc.
818-637-3632

SOURCE: DineEquity, Inc.

Earlier this year, IHOP opened its second franchise restaurant in Mexico in Mexico City, and today announced that two more restaurants are scheduled to open in the fourth quarter of this year in the Mexican cities of Monterrey, Nuevo Leon and Hermosillo, Sonora, respectively. These new restaurants will mark the third and fourth IHOP restaurants to open in Mexico.

"The expansion of IHOP into Ontario and the continued development in Mexico by experienced restaurant operators demonstrates the appeal that IHOP holds for consumers and entrepreneurs," said Des Hague, President, IHOP Restaurants. "As an American icon celebrating 50 years, IHOP's continued international growth is an integral part of our strategy to maximize franchise development and expand the brand's accessibility to an increasing number of new guests every day."

ABOUT IHOP

For 50 years, the IHOP family restaurant chain has served its world famous pancakes and a wide variety of breakfast, lunch and dinner items that are loved by people of all ages. IHOP offers its guests an affordable, everyday dining experience with warm and friendly service. The first IHOP opened in Toluca Lake, Calif. in 1958, and as of June 30, 2008, there were 1,361 IHOPs in 49 states, Canada and Mexico. IHOP restaurants are franchised and operated by Glendale, Calif.-based IHOP, a subsidiary of DineEquity, Inc. (NYSE: DIN).

Forward-Looking Statements

There are forward-looking statements contained in this news release. They use such words as "may," "will," "expect," "believe," "plan," or other similar terminology, and include statements regarding the strategic and financial benefits of the acquisition of Applebee's International, Inc., expectations regarding integration and cost savings, and other financial guidance. These statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed or implied in such statements. These factors include, but are not limited to: the implementation of the Company's strategic growth plan; the availability of suitable locations and terms for the sites designated for development; the ability of franchise developers to fulfill their commitments to build new restaurants in the numbers and time frames covered by their development agreements; legislation and government regulation including the ability to obtain satisfactory regulatory approvals; risks associated with executing the Company's strategic plan for Applebee's; risks associated with the Company's incurrence of significant indebtedness to finance the acquisition of Applebee's; the failure to realize the synergies and other perceived advantages resulting from the acquisition; costs and potential litigation associated with the acquisition; the ability to retain key personnel after the acquisition; conditions beyond the Company's control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company's customers or food supplies; or acts of war or terrorism; availability and cost of materials and labor; cost and availability of capital; competition; continuing acceptance of the IHOP, International House of Pancakes and Applebee's brands and concepts by guests and franchisees; the Company's overall marketing, operational and financial performance; economic and political conditions; adoption of new, or changes in, accounting policies and practices; and other factors discussed from time to time in the Company's news releases, public statements and/or filings with the Securities and Exchange Commission, especially the "Risk Factors" sections of Annual and Quarterly Reports on Forms 10-K and 10-Q. Forward-looking information is provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.

Contact:
Jennifer Pendergrass
IHOP
818-637-3603

SOURCE: IHOP