Blimpie International, Inc. (Amex: BLM) reports
financial results for the fiscal year 2001 third quarter ended March 31, 2001.

Revenues for the three months ended March 31, 2001, were $7,211,000, compared
to $7,249,000 for the same quarter in the prior year. Net income for the third quarter
of fiscal 2001 was $195,000, or $0.02 per diluted share, compared to $263,000, or
$0.03 per diluted share for the same period in the prior year. Revenues for the nine
months ended March 31, 2001, were $22,927,000, compared to $22,842,000 for the
same period in the prior year. Net income for the first nine months of fiscal 2001 was
$551,000, or $0.06 per diluted share, compared to $1,012,000, or $0.11 for the
same period in the prior year.

Revenues from continuing fees, the ongoing fees paid by franchisees to Blimpie
International, decreased 0.2% to $4,575,000 for the quarter ended March 31, 2001,
from $4,582,000 for the same period in the prior year. Revenues from subfranchisor
fees, master license fees, and the sale of franchises were $968,000 for the quarter,
compared with $912,000 for the same period in the prior year. Store equipment
sales were $1,052,000 for the quarter, compared to $1,451,000 for the same period
in the prior year. License fees and other income was $207,000 for the quarter,
compared to $114,000 for the same period in the prior year. Company restaurant
sales were $409,000 for the quarter, compared with $190,000 for the same period in
the prior year.

Blimpie® Subs & Salads’ traditional location same store sales grew 0.4% for the
third quarter, and increased 3.3% for the nine months ended March 31, 2001.
Beginning in February 2000, Blimpie Subs & Salads generated positive same store
sales for 13 straight months before experiencing a decline in March 2001 due to an
extremely strong March 2000 comparison. For the quarter, Blimpie Subs & Salads
opened 50 locations and closed 51 locations. There were 1,970 Blimpie Subs &
Salads locations open at March 31, 2001, as compared to 2,125 locations open at
March 31, 2000.

For the nine months ended March 31, 2001, losses from Company restaurant operations were $948,000, compared
to losses of $188,000 for the same period in the prior year. Because these operations have been unable to achieve
profitability, the company has decided to sell or close most of its company-owned locations. These sales and/or
closings may result in a one-time charge to operations if the company is unable to recover its investment in the
stores. However, the company considers the potential of short-term charges against income to be preferable to
continuing to incur operating losses at these locations.

Tony Conza, co-founder, chairman, and chief executive officer, commented, “Our Blimpie Subs & Salads group
continues to perform well, and we’ve begun to see improvements in Maui Tacos and Pasta Central as well. We plan
to sell or close most of the unprofitable company-owned restaurants that are continuing to cause our earnings to
suffer. Doing so will enable us to enter next fiscal year focused on franchising and equipment sales, and to improve
our profitability by exiting these unprofitable businesses. ”

Headquartered in New York, with offices in Atlanta and Houston, Blimpie International, Inc. franchises Blimpie®
Subs & Salads and Pasta Central(TM) and is the majority owner of Maui Tacos International, Inc., the
franchisor of Maui Tacos(TM) and Smoothie Island(TM). Blimpie International, Inc. has approximately 2,100
franchises operating under these four brands in the United States and in 15 other countries. Blimpie Subs &
Salads is a quick-service sandwich chain operating in traditional free-standing outlets as well as new concept
locations, such as college campuses, hospitals, mini-marts, institutional food service operations, convenience stores
and sporting arenas. Pasta Central is a quick service Italian food concept that addresses current eating trends
for eat-in or take home meals. Maui Tacos offers a healthy, affordable restaurant-quality menu of
“Maui-Mex(TM)” items, including traditional Mexican food marinated in Hawaiian spices. Smoothie Island offers
a menu of blended beverages of frozen yogurt, fruit and nutritional supplements. The company also owns the
subsidiary B I Concept Systems, Inc., a professional design and equipment service company. Blimpie International
recently introduced another concept into the beverage category, Smoothie Island Juice Bar, a concept that
offers consumers a healthier alternative to typical fruit and yogurt-based beverages.