Nathan’s Famous Inc. today reported results for its
fiscal year ended March 30, 2008.
For the fifty-three weeks ended March 30, 2008, income from continuing
operations increased by 11.7 percent to $4,849,000, or $0.75 per share as
compared to $4,341,000 or $0.68 per share for the fifty-two weeks ended
March 25, 2007. Total revenue from continuing operations increased by
10.3 percent to $47,395,000 for the 53 weeks ended March 30, 2008 as
compared to $42,969,000 during 52 weeks ended March 25, 2007.

These results represent Nathan’s fifth consecutive year of increased revenues and profits from continuing
operations.

Net income for the 53 weeks ended March 30, 2008 increased by
18.3 percent to $6,555,000 or $1.01 per share as compared to $5,543,000 or
$0.87 per share for the fifty-two weeks ended March 25, 2007.

During the current fiscal year, Nathan’s
realized gains from the sale of certain leasehold interests in Florida
and from the sale of its formerly wholly-owned subsidiary, Miami Subs
Corporation. These gains amounted to $2,489,000 before tax and
$1,576,000 after tax or $0.24 per share. During the fifty-two weeks
ended March 25, 2007, Nathan’s realized a
one-time gain relating to the sale of a leasehold interest in the amount
of $400,000 before tax and $239,000 after tax or $0.04 per share.

For the 14 weeks ended March 30, 2008, income from continuing
operations was $774,000, or $.12 per share as compared to $824,000 or
$0.13 per share for the thirteen weeks ended March 25, 2007. Total
revenue from continuing operations increased by 14.6 percent to $10,274,000, as
compared to $8,962,000 during the thirteen weeks ended March 25, 2007.

Net income for the fourteen weeks ended March 30, 2008 was $752,000 or
$0.12 per share, as compared to $1,242,000 or $0.19 per share for the
thirteen weeks ended March 25, 2007. Discontinued operations for the
thirteen weeks ended March 25, 2007 was $418,000 or $0.06 per share.

In addition, Nathan’s Board of Directors has
approved the amendment of Nathan’s existing
shareholder rights plan to accelerate the final expiration date of the
common stock purchase rights to June 4, 2008, thereby terminating the
existing rights, as well as the adoption of a new stockholder rights
plan (the “New Rights Plan”)
under which all stockholders of record as of June 5, 2008 will receive
rights to purchase shares of common stock (the “Rights”).
The New Rights Plan will replace and update the company’s
existing rights plan, which was in place since 1995, and which was
previously scheduled to expire on June 19, 2010.

The Rights will be distributed as a dividend. Initially, the Rights will
attach to, and trade with, the company’s
common stock. Subject to the terms, conditions and limitations of the
New Rights Plan, the Rights will become exercisable if (among other
things) a person or group acquires 15 percent or more of the company’s
common stock. Upon such an event and payment of the purchase price, each
Right (except those held by the acquiring person or group) will entitle
the holder to acquire shares of the Company’s
common stock (or the economic equivalent thereof) having a value equal
to the purchase price. The company’s board of
directors may redeem the Rights prior to the time they are triggered.

In the event of an unsolicited attempt to acquire the Company, the New
Rights Plan is intended to facilitate the full realization of
stockholder value in the Company and the fair and equal treatment of all
Company stockholders. The New Rights Plan will not prevent a takeover
attempt. Rather, it is intended to guard against abusive takeover
tactics and encourage anyone seeking to acquire the Company to negotiate
with the board of directors. The Company did not adopt the Rights Plan
in response to any particular proposal.

The New Rights Plan will be outlined in greater detail in a summary that
will be mailed to stockholders as of the record date. In addition, the
Company will file a copy of the New Rights Plan with the Securities and
Exchange Commission as an exhibit to the company’s current report on Form 8-K.

The company also reported the following:

• Revenues and operating profits from Nathan’s
  company-owned restaurants, restaurant franchising, retail licensing
  and sales to our television marketer increased by $2,018,000 or 8.6%
  and $1,357,000 or 12.5%, respectively, for the fifty-three weeks ended
  March 30, 2008 as compared to the 52 weeks ended March 25, 2007.
• The Branded Product Program, featuring the sale of Nathan’s
  hot dogs to the foodservice industry, has continued to grow over the
  prior year. Sales increased by 10.0 percent to $20,647,000 for the 53 weeks ended March 30, 2008 as compared to sales of
  $18,774,000 for the fifty-two weeks ended March 25, 2007.
• Nathan’s created a new Limited-menu “Frank
  & Fry” franchise program to enable
  qualified foodservice operators the ability to offer Nathan’s
  hot dogs, crinkle cut French fries and a number of other Nathan’s
  proprietary menu items. Nathan’s opened 28
  of these units during the fiscal year.
• The Board of Directors authorized management to enter into a 10b5-1
  trading plan to purchase shares of its common stock in order to effect
  Nathan’s previously-announced stock
  buy-back program.