Max & Erma’s Restaurants, Inc. (Nasdaq/GM: MAXE) announced today that on December 13, 2007, it received a NASDAQ Deficiency Letter from The NASDAQ Stock Market informing the company that the company has not maintained a minimum market value of publicly held shares (“MVPHS”) (i.e., the Max & Erma’s total shares outstanding less any shares held by officers, directors or 10 percent beneficial owners) of $5,000,000 as required for continued listing on the NASDAQ Global Market under Marketplace Rule 4450(a)(2).

In accordance with Marketplace Rule 4450(e)(1), NASDAQ has granted the company 90 calendar days, or until March 12, 2008, to regain compliance if the MVPHS of the Max & Erma’s common stock is $5,000,000 or greater for a minimum of 10 consecutive trading days. If compliance is not demonstrated by March 12, 2008, the NASDAQ staff will provide written notification that the Max & Erma’s common stock will be delisted.

Max & Erma’s is currently evaluating its alternatives to resolve the listing deficiency. If the company does not resolve the listing deficiency, the company may apply to transfer its common stock to the NASDAQ Capital Market. In order to transfer to the NASDAQ Capital Market, Max & Erma’s must satisfy the continued inclusion requirements for that market set forth in Marketplace Rule 4310(c). Max & Erma’s is currently in compliance with the listing standards of the NASDAQ Capital Market. If Max & Erma’s submits a transfer application and pays the applicable listing fees by March 12, 2008, the initiation of the delisting proceedings will be stayed pending the NASDAQ staff’s review of the application.