Schlotzsky’s
Inc. (Nasdaq:BUNZ) today announced that it intends
to repurchase shares of its common stock in the open market
or in negotiated private transactions.

Such repurchases will be pursuant to a program previously
approved by the Company’s Board of Directors in September
1998 which authorized the repurchase of up to 380,000 shares
(approximately 5% of the outstanding shares), of which 10,000
shares were purchased in 1998. The decision to repurchase
common stock will be based on its availability and price
and will be subject to the discretion of the Company’s management.

Schlotzsky’s Inc., founded in Austin, Texas, in 1971, is
a brand licensor and franchisor of quick-service deli restaurants.
As of Sept.
30, 2000, there were 722 Schlotzsky’s Deli restaurants
open and operating in 38 states, the District of Columbia
and 11 foreign countries.