Outback Steakhouse, Inc. and Affiliates
Consolidated Statements of Cash Flows



(IN THOUSANDS)
                                                                Years Ended December 31,
                                                              2000        1999        1998   
Cash flows from operating activities:                      
Net income                                                 $ 141,130   $ 124,323   $  96,048
Adjustments to reconcile net income to net cash            
provided by operating activities:                          
    Depreciation                                              52,946      47,184      38,873
    Amortization                                               5,163       3,525       1,898
    Provision for impaired assets and restaurant closings                  5,493
    Cumulative effect of change in accounting principle                                4,880
    Minority partners' interest in consolidated            
      partnerships' income                                    33,884      29,770      21,914
    Income from operations of unconsolidated affiliates       (2,457)     (1,089)       (514)
Change in assets and liabilities:                          
    (Increase) decrease in inventories                        (1,783)     (6,171)        779
    Decrease (increase) in other current assets                1,928      (5,252)     (3,623)
    Increase in other assets                                 (34,265)    (25,754)     (7,820)
    Increase (decrease) increase in accounts payable,      
    sales taxes payable and accrued expenses                  21,052      (7,310)     21,962
    Increase in unearned revenue                               9,270       8,672       8,697
    Increase in income taxes payable                           3,455      10,166
    (Decrease) increase in other long-term liabilities          (500)        500        (500)
    Increase in deferred income taxes                          9,723       7,924       4,878 
    Net cash provided by operating activities                239,546     191,981     187,472 
Cash flows from investing activities:                      
    Capital expenditures                                   $(139,893)  $(116,065)  $(108,148)
    Payments from unconsolidated affiliates                      841         220       1,596
    Distributions to unconsolidated affiliates                (2,707)     (1,470)       (690)
    Investments in and advances to unconsolidated          
      affiliates, net                                         (4,060)     (9,704)     (1,936)
    Net cash used in investing activities                   (145,819)   (127,019)   (109,178)
Cash flows from financing activities:                      
    Proceeds from issuance of common stock                 $  13,315   $  13,292   $  19,121
    Proceeds from issuance of long-term debt                  15,400                   1,013
    Proceeds from minority partners' contributions             4,450       1,250       5,525
    Distributions to minority partners' and stockholders     (39,198)    (38,755)    (24,952)
    Repayments of long-term debt                              (1,908)    (37,516)    (32,231)
    Payments for purchase of treasury stock                  (48,615)     (7,230)     (6,345)
    Proceeds from reissuance of treasury stock                 1,810      12,585       3,451 
    Net cash used in financing activities                    (54,746)    (56,374)    (34,418)
Net increase in cash and cash equivalents                     38,981       8,588      43,876
Cash and cash equivalents at the beginning of the year        92,623      84,035      40,159 
Cash and cash equivalents at the end of the year           $ 131,604   $  92,623   $  84,035 
Supplemental disclosures of cash flow information:         
    Cash paid for interest                                 $     215   $     491   $   2,476
    Cash paid for income taxes                                68,095      41,572      40,170
Supplemental disclosures of non-cash items:                
    Purchase of minority partners' interest                $   6,985   $  17,082   $   1,647
                                                           
The accompanying notes are an integral part of these Consolidated Financial Statements.