For
      more
      information call:

    Warren
      Nelson 

    (813)
      961-0944

    


    SHELLS
      SEAFOOD RESTAURANTS, INC. AND FOOD AND ENTERTAINMENT CO., LTD.
      SIGN

    AGREEMENT
      FOR 10 RESTAURANTS IN MIDDLE EAST

    


    TAMPA,
      FL, December 10, 2007 - Shells Seafood Restaurants, Inc. (OTC Bulletin Board:
      SHLL) announced that it has signed a major international agreement that will
      bring 10 new Shells restaurants to several countries in the Middle East, over
      the next decade.

    


    Saudi
      Arabia-based Food and Entertainment Co., Ltd., which operates numerous
      restaurants throughout the region, has purchased the rights to the Shells brand
      within a 10-nation territory, and has agreed to open a minimum of 10 Shells
      restaurants over the next 10 years. Food and Entertainment has purchased
      exclusive rights to the Shells concept within Saudi Arabia, Egypt, Jordan,
      Qatar, Oman, Bahrain, United Arab Emirates, Kuwait, Pakistan and India, with
      an
      option for future rights to Tunisia and Morocco. 

     

    Under
      the
      terms of this agreement, Food and Entertainment Co. purchased for $1,750,000
      over a nine-month period, Shells service marks and proprietary systems for
      expansion within the territory. Under a separate services agreement, Shells
      will
      provide, among other things, training, operations, menu development and
      marketing support to Food and Entertainment for the 10-year period.


    


    “We
      are
      pleased to begin our brand’s first international expansion with a highly
      qualified restaurant operator in Food and Entertainment Co.” stated Leslie
      Christon, President and CEO of Shells. “We look forward to their future
      successes in growing the Shells Seafood brand. We welcome the opportunity to
      expand the quality and value that Shells brings to other markets.”

    


    About
      Shells

    


    Shells
      Seafood Restaurants, Inc. manages and operates 23 full-service, neighborhood
      seafood restaurants in Florida under the name “Shells”. Shells restaurants
      feature a wide selection of seafood items, including shrimp, oysters, clams,
      mussels, scallops, lobster, crab and daily fresh fish specials, cooked to order
      in a variety of ways: steamed, sautéed, grilled, blackened and fried. Shells
      restaurants also offer a wide selection of signature pasta dishes, steaks and
      chicken, appetizers, salads, desserts and full bar service.

    


    
      
         

      

      
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    About
      Food and Entertainment Co., Ltd.

    


    Food
      and
      Entertainment Co., Ltd. operates multiple foodservice brands throughout the
      Middle East. Food and Entertainment’s parent, the Al Hokair Group, is one of the
      region’s leading real estate, retail and mall developers.

    


    Forward-Looking
      Statements

    


    In
      addition to seasonal fluctuations, the Company’s quarterly and annual operating
      results are affected by a wide variety of other factors that could materially
      and adversely affect revenues and profitability, including changes in consumer
      preferences, tastes and eating habits; increases in food, labor and other
      operating costs; the availability of food acceptable to our quality standards
      at
      acceptable prices; the availability of qualified labor; national, regional
      and
      local economic and weather conditions; international economic, cultural and
      political conditions; promotional timings and seasonality; demographic trends
      and traffic patterns; changes in travel and tourism tendencies, particularly
      in
      light of world events; competition from other restaurants and food service
      establishments; availability of third party financing to fund capital or
      operating activities, if required; and the timing, costs and charges relating
      to
      restaurant openings, closings and remodelings. As a result of these and other
      factors, the Company may experience material fluctuations in future operating
      results on a quarterly or annual basis, which could materially and adversely
      affect its business, financial condition and stock price. Furthermore, this
      press release and other documents filed by the Company with the Securities
      and
      Exchange Commission (“SEC”) contain certain forward-looking statements with
      respect to the business of the Company and the industry in which it operates.
      These forward-looking statements are subject to certain risks and uncertainties,
      including those mentioned above, which may cause results to differ significantly
      from these forward-looking statements. The Company undertakes no obligation
      to
      update these forward looking statements on a regular basis. An investment in
      the
      Company involves various risks, including those mentioned above and those that
      are detailed from time-to-time in the Company’s SEC filings. 

    


    
      
         

      

      
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