Schlotzsky?s Austin Market Growth Up 42%

Schlotzsky's Inc. (Nasdaq:BUNZ), franchisor of Schlotzsky's Deli restaurants, today reported that total sales for the Austin area Schlotzsky's restaurants were $1.5 million during October 1999, which was a 42% increase over total Austin market sales for October 1998.

Average weekly sales for the eight company-owned Schlotzsky's Deli restaurants in the Austin television market were $27,390 for the four-week period in October 1999. Average weekly sales for the 12 franchisee-owned restaurants in this market for the same time period were $12,841 and, as previously announced, average weekly sales for the entire system for October 1999 were $11,060. Same store sales for the Austin restaurants for October 1999 were a positive 4.6% increase as compared to a positive 4.3% for the entire system, as previously announced.

"The October results show the strength of Schlotzsky's freestanding building program and its new operating system," said John C. Wooley, President and CEO of Schlotzsky's Inc.

During 2000, the Company has plans for new Schlotzsky's¨ Deli openings. In addition, the Company is currently negotiating for ten additional sites in the Austin area to be developed during 2001.Some of the future sites will be franchised and some will be company-owned.

"We see a lot of potential in the redevelopment of some of the early Schlotzsky's markets such as Austin. We expect Austin to become the national model for redevelopment of other markets in the future," added Wooley.

Schlotzsky's Inc., founded in Austin in 1971, is a franchisor of quick-service restaurants featuring made to order sandwiches served on distinctive sourdough bread, along with pizzas, salads and soups. As previously announced, as of Sept. 30, 1999, there were 760 Schlotzsky's restaurants operating in 37 states, the District of Columbia and 12 foreign countries. Wed Mar 22 06:33:58 2000