Hess and Quiznos Join Forces to Toast Florida's Convenience Store Experience

Quiznos to Expand Convenience Store Growth Strategy; Open More Than 50 New Restaurants in Florida

DENVER--(BUSINESS WIRE)--Quiznos, one of the nation's premier quick service restaurant (QSR) chains and pioneer of the toasted sandwich, and Hess, the largest independent gasoline-convenience retailer on the East Coast, today announced a partnership to open more than 50 Quiznos restaurants inside Hess locations in Florida. The partnership, the largest to date in terms of Quiznos convenience locations, is a significant milestone in the company's convenience store growth strategy and ambition to be the premier QSR partner for the convenience store channel.

"Through our convenience store growth strategy, we have successfully developed regional partnerships with leading convenience store operators, evolving our c-store platform to best meet their regional needs," said Shultz Hartgrove, senior vice president of convenience and non-traditional development for Quiznos. "This opportunity with Hess represents the culmination of that evolution as we now focus on growing the number of locations."

Quiznos and Hess tested the partnership in nine Florida locations in early 2011 with excellent preliminary results. Based on the success of these test locations, the two companies expanded the agreement to more than 40 additional locations in Tampa by the end of 2011.

"The combination of Quiznos' brand recognition, unique toasted flavors and excellent operating platform gives Hess customers exactly what they are looking for," said Rick Lawlor, vice president of retail sales and marketing for Hess. "The Florida test proved that Quiznos is a solid partner that can attract new traffic into our stores."

The new Quiznos restaurants will be in high-visibility Hess locations in Tampa, known for stellar operations and exceptional customer service. While the initial growth strategy will focus on Tampa, Hess' largest market, Orlando and Miami are strong markets for both Quiznos and Hess, and executives envision a long-term partnership with significant growth potential throughout Hess' 1,350+ locations along the east coast.

"Hess is one of the most established and well-respected players in this industry, and we are pleased to accelerate Quiznos' convenience store presence with such an excellent partner," said Greg MacDonald, chief executive officer for Quiznos. "Hess brings a wealth of experience and understanding of the food business to this partnership. They understand the value of training and exceptional operations. We are confident in the success of this initial market launch and look forward to future growth opportunities through this partnership."

The Quiznos/Hess convenience locations will feature a menu specifically designed for the convenience store customer and retailer, including Quiznos signature toasty favorites and hot breakfast items prepared and packaged to eat on the go.

ABOUT QUIZNOS

Now in its 30th year, Denver-based Quiznos is a national chain designed for today's busy consumers who are looking for a tasty, freshly prepared alternative to traditional fast-food restaurants. Using premium ingredients, Quiznos restaurants offer creative, chef-inspired recipes for sandwiches, soups and salads. CNN Money ranked toasty sub pioneer Quiznos as the No. 2 most popular franchise of the past decade in 2010. In 2009, Quiznos' Toasty Torpedoes® earned a spot as one of the top 10 new product introductions from the Most Memorable New Product Launch Survey. Also in 2009, QSR Magazine ranked Quiznos No. 19 overall in its Top 50 Chains in system-wide sales. In October 2007, Quiznos was recognized for leading the QSR industry in wait time performance by the Mystery Shopping Providers Association's (MSPA) 2007 Wait Time Study. In May 2007, Zagat's consumer surveys listed Quiznos in the top 5 for Top Food, Top Facilities, Top Service and Top Overall, ahead of its direct competitors. For further information, please visit www.quiznos.com.

ABOUT HESS CORPORATION

Hess Corporation (NYSE: HES), with headquarters in New York, is a global integrated energy company engaged in the exploration, production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum, natural gas and electricity products. Hess is one of the leading independent gasoline-convenience retailers on the East Coast with more than 1,350 stations and convenience stores in 18 states including 290 Hess branded locations in Florida. For more information, please visit www.hessexpress.com.

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