Blimpie International, Inc. (Amex:
BLM), reports financial results for the fiscal
year 2001 second quarter ended December 31, 2000.

Revenues for the three months ended December 31, 2000 were
$7,537,000, compared to $7,191,000 for the same quarter
in the prior year. Net income for the second quarter of
fiscal 2001 was $196,000, or $0.02 per diluted share, compared
to $466,000, or $0.05 for the same period in the prior year.
Revenues for the six months ended December 31, 2000 were
$15,716,000, compared to $15,593,000 for the same period
in the prior year. Net income for the first half of fiscal
2001 was $356,000, or $0.04 per diluted share, compared
to $749,000, or $0.08 for the same period in the prior year.

Revenues from continuing fees, the ongoing fees paid by
franchisees to Blimpie International, decreased 1.0% to
$4,475,000 for the quarter ended December 31, 2000, from
$4,518,000 for the same period in the prior year. Revenues
from subfranchisor fees, master license fees, and the sale
of franchises were $1,010,000 for the quarter, compared
with $862,000 for the same period in the prior year. Store
equipment sales were $1,536,000 for the quarter, compared
to $1,448,000 for the same period in the prior year. License
fees and other income was $148,000 for the quarter, compared
to $230,000 for the same period in the prior year. company
restaurant sales were $368,000 for the quarter, compared
with $133,000 for the same period in the prior year.

Blimpie Subs & Salads’ traditional location same store
sales grew 3.8% for the second quarter, and increased 4.7%
for the six months ended December 31, 2000. Beginning in
February 2000, Blimpie Subs & Salads generated positive
same store sales for 11 straight months and finished the
calendar year with a 4.1% increase in same store sales.
For the quarter, Blimpie Subs & Salads opened 36 locations
and closed 55 locations. There were 1,971 Blimpie Subs &
Salads locations open at December 31, 2000 as compared to
2,126 locations open at December 31, 1999.

Tony Conza, co-founder, chairman, and CEO, commented, "Our
Blimpie Subs & Salads group continues to increase same
store sales and improve its operating performance. Likewise,
we opened several Maui Tacos and co-branded Blimpie Subs
& Salads / Pasta Central) locations during the past
few months, including a Maui Tacos location in the Minneapolis
airport, that should help improve the performance of these
new concepts. Our profitability during the quarter was hurt
by the performance of our company- owned stores, which are
still relatively new and have yet to reach their revenue
or profitability targets.”

Headquartered in New York, with offices in Atlanta and
Houston, Blimpie International, Inc. franchises Blimpie
Subs & Salads and Pasta Central) and is the majority
owner of Maui Tacos International, Inc., the franchisor
of Maui Tacos and Smoothie Island). Blimpie International,
Inc. has approximately 2,100 franchises operating under
these four brands in the United States and in 13 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.