Blimpie International, Inc. (Amex: BLM),
is selling or closing
seven company-owned restaurants in order to focus on its core businesses of
franchising multiple concepts and providing design and equipment services.

The Company intends to sell the Maui Tacos(TM) New York City location as a
franchised Maui Tacos restaurant. The six Smoothie Island Juice Bar(TM)
locations in Houston, Texas, will be sold as independent juice bars, not as
franchises. According to Joe Morgan, Group President, Blimpie(TM) Subs &
Salads/Pasta Central(TM), the action is part of the Company’s long-term
strategy of developing successful restaurant concepts and franchising them.

“Blimpie International, Inc. is in the business of developing and franchising
restaurant concepts,” said Morgan. As we develop new branded concepts, we will
continue to operate a limited number of company stores as a sales tool to help open
up new geographic territories or alternate concepts. Based on our franchising
strategy, however, we may ultimately sell those restaurants to organizations better
suited to operate the locations long term.”

In April 2001, the company opened a tri-branded restaurant in Athens, Georgia,
featuring Blimpie Subs & Salads, Pasta Central and Smoothie Island. The company
also owns and operates a Maui Tacos/Smoothie Island store in Atlanta.

Today’s information amplifies the news regarding store closings contained in the
financial results released May 8, 2001, for the third quarter of fiscal year 2001 which
ended on March 31, 2001.