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DARDEN RESTAURANTS

The Company applies APB 25 in accounting for its stock option plans and, accordingly, no compensation cost has been recognized in the Company’s consolidated financial statements for stock options granted under any of its stock plans. Had the Company determined compensation cost based on the fair value at the grant date for its stock options as prescribed under SFAS 123, the Company’s net earnings and net earnings per share would have been reduced to the pro forma amounts:

Under SFAS 123, stock options granted prior to 1996 are not required to be included as compensation in determining pro forma net earnings. To determine pro forma net earnings, reported net earnings have been adjusted for compensation costs associated with stock options granted from 1996 forward that are expected to eventually vest.

Stock option activity during the periods indicated was as follows:

The following table provides information regarding exercisable and outstanding options as of May 28, 2000:

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