Exhibit 99.1

Eatery Concepts                                       News Release
                                                  EACO Corporation
                                            2113 Florida Boulevard
                                      Neptune Beach, Florida 32266
                                                    (904) 249-4197
                                               Fax: (904) 249-1466


Contact:                                FOR IMMEDIATE RELEASE
          Stephen Travis
          Director of Finance
          (904) 249-4197                September 8, 2004

                     EACO CORPORATION ANNOUNCES
                      PREFERRED STOCK PLACEMENT


NEPTUNE BEACH, FLORIDA - EACO Corporation (OTCBB:EACO), announced
today that it has completed a private placement of newly
authorized Class A cumulative convertible Preferred Stock to Glen
Ceiley, its Chairman and CEO, which provided $900,000 cash to the
Company.

Edward Alexander, President of the Company, commented that "this
additional capital allows us to continue the process of converting
our restaurants to our new concepts, Whistle Junction and Florida
Buffet, giving us the opportunity to increase sales while reducing
franchise fee expenses.  We will convert at least one restaurant
before year-end to our successful Whistle Junction concept, which
to date has shown significant sales increases at the two locations
we have converted.  We are excited about resuming these
conversions, and expect to obtain additional financing soon to
expedite this process."

EACO Corporation currently operates three Whistle Junctions, three
Florida Buffets and 12 Ryan's restaurants.  The Company plans to
convert all of its Ryan's restaurants by June 2005, most to the
Whistle Junction concept.  Whistle Junction restaurants include a
significant remodel to the exterior and interior to resemble an
old train station.  In addition, the buffet menu is upgraded to
include several signature items not found at competitors.