Darden Restaurants, Inc. (Darden), incorporated in March 1995, operates in the full-service dining segment of the restaurant industry, primarily in the United States. As of May 25, 2008, the Company operated, through its subsidiaries, 1,702 restaurants in the United States and Canada. In the United States, it operated 1,667 restaurants in 49 states (the exception being Alaska), including 651 Red Lobster, 647 Olive Garden restaurants, 305 LongHorn Steakhouse, 32 The Capital Grille, 23 Bahama Breeze and seven Seasons 52 restaurants, and two specialty restaurants: Hemenway’s Seafood Grille & Oyster Bar and The Old Grist Mill Tavern. In Canada, Darden operated 35 restaurants, including 29 Red Lobster and six Olive Garden restaurants. Through subsidiaries, the Company owns and operates all of its restaurants in the United States and Canada, except three restaurants, which are located in Central Florida and are owned by joint ventures managed by Darden.

On October 1, 2007, the Company completed the acquisition of RARE Hospitality International, Inc. RARE owned and operated two principal restaurant concepts, LongHorn Steakhouse and The Capital Grille, of which 288 and 29 locations, respectively, were in operation as of October 1, 2007. From December 2007 through February 2008, the Company completed the sale of 72 of the Smokey Bones restaurants. The sale of the remaining restaurant was completed in June 2008. During the fiscal year ended May 25, 2008, Darden also permanently closed three Red Lobster restaurants and one Olive Garden restaurant. None of the Company’s restaurants in the United States or Canada are franchised. Of its 1,702 restaurants as of May 25, 2008, 904 were located on owned sites and 798 were located on leased sites. As of May 25, 2008, Darden franchised five LongHorn Steakhouse restaurants in Puerto Rico to an unaffiliated franchisee, and 27 Red Lobster restaurants in Japan to an unaffiliated Japanese corporation, under area development and franchise agreements.

Red Lobster

Red Lobster is a full-service dining, seafood specialty restaurant operator in the United States. It offers a menu featuring fresh fish, shrimp, crab, lobster, scallops and other seafood. The menu includes a variety of specialty seafood and non-seafood entrees, appetizers and desserts. Red Lobster maintains different lunch and dinner menus across its trade areas to reflect geographic differences in consumer preferences, prices and selections, as well as a lower-priced children’s menu.

Olive Garden

Olive Garden Restaurants

Olive Garden restaurants is a full-service dining Italian restaurant operator in the United States. Olive Garden’s menu includes a variety of Italian foods and a wine list that includes a selection of wines imported from Italy. The menu includes antipasti (appetizers); soups, salad and garlic breadsticks; baked pastas; sauteed specialties with chicken, seafood and fresh vegetables; grilled meats, and a variety of desserts. Olive Garden also uses coffee imported from Italy for its espresso and cappuccino. Olive Garden maintains different menus for dinner and lunch and different menus across its trade areas to reflect geographic difference in consumer preferences, prices and selections, as well as children’s menus. Olive garden gift cards area also available

LongHorn Steakhouse

Acquired by Darden in October 2007 as part of the RARE acquisition, LongHorn Steakhouse restaurants are full-service establishments serving both lunch and dinner. With locations in 28 states, primarily in the Eastern half of the United States, LongHorn Steakhouse restaurants feature a variety of menu items, including signature fresh steaks, as well as salmon, shrimp, chicken, ribs, pork chops, burgers and prime rib. LongHorn Steakhouse restaurants maintains different menus for dinner and lunch and different menus across its trade areas to reflect geographic differences in consumer preferences, prices and selections, as well as one children’s menu.

The Capital Grille

Acquired by Darden in October 2007, The Capital Grille has locations in metropolitan cities in the United States. The Capital Grille’s offerings include dry aging steaks and fresh seafood. The restaurants feature a wine list offering over 300 selections and private dining rooms. The Capital Grille maintains different menus for dinner and lunch, and different menus across its trade areas to reflect geographic differences in consumer preferences, prices and selections.

Bahama Breeze

Bahama Breeze restaurants’ menu features Caribbean-inspired fresh seafood, chicken and steaks, as well as signature specialty drinks. As of May 25, 2008, 23 Bahama Breeze restaurants were in operation. Bahama Breeze maintains different menus for dinner and lunch and different menus across its trade areas to reflect geographic differences in consumer preferences, prices and selections, as well as two children’s menus.

Seasons 52

Seasons 52 is an internally developed concept that provides fresh grill and wine bar. It offers an international wine list of more than 130 wines, with 70 available by the glass. As of May 25, 2008, there were seven Seasons 52 restaurants. As of May 25, 2008, there were seven Seasons 52 restaurants.