Sbarro today announced
separate international development agreements with leading franchisers in both
Mexico and Egypt.

Sbarro will partner with the Italian Restaurant Developers
de Mexico and Egypt’s Sewedy Foods to open more than 50 new Sbarro restaurants
during the next five years, including 30 locations in Mexico and 20
restaurants in Egypt. Sbarro will be the first Italian franchise in both
countries to offer a broad menu that includes pizza, pastas, salads, desserts
and other Italian foods. While the Mexican and Egyptian menus will mirror
Sbarro’s 200-item menu in the United States, each franchiser will make
adjustments to suit the likes and cultural and religious needs of their
customers. Currently, Sbarro has 1,000 restaurants in 30 counties across the
globe including in the United Kingdom, Puerto Rico, Canada, Russia and Israel.

“We are very excited to grow Sbarro’s international presence with 50 new
locations across both Mexico and Egypt, and are proud to partner with top
restaurateurs in the Italian Restaurant Developers de Mexico and Sewedy
Foods,” said Peter Beaudrault, president and CEO of Sbarro. “For 50 years,
Sbarro has been synonymous with delicious and authentic Italian food, both at
home in the U.S. and overseas. We have an international franchise team that
is among the best in the business and a concept that for decades has proven to
be remarkably adaptable and successful across all continents and in virtually
every world culture.”

As part of the agreement with Italian Restaurant Developers de Mexico,
Sbarro will open nine Mexican franchises by the end of 2006 with 21 more
anticipated openings in the next five years. During the early stages of
expansion, the restaurants will be concentrated in Mexico City and its
surrounding metropolitan areas, with growth into other cities planned for the
following years. While there will be two free-standing Mexican Sbarro
franchises, the majority of the restaurants will be housed in shopping malls
including Plaza Satelite, the nation’s most popular shopping mall and Antara
Polanco, a high-end mall slated to open in March of 2006. The Mexican Sbarro
menu will be tropicalized to include chorizo and other authentic Mexican
flavors.

Separately, Sbarro and Sewedy Foods expect to open six locations in Egypt
by the end of 2006, with plans for 14 additional restaurants over the next
five years. The Sbarro eateries will all be located in Cairo with the
exception of a single restaurant located in the Red Sea tourist area. In
keeping with the Islamic faith, the Egypt-based Sbarro restaurants will not
use pork in any recipes or serve alcoholic beverages.

“Sbarro is a concept that has succeeded throughout the world and we expect
that these new franchises will be very warmly embraced by Egyptian consumers,”
said Ahmed El Aawar, chief executive officer of Sewedy Foods. “We’ve enjoyed
working with the franchise team at Sbarro to deliver a restaurant experience
that reflects the company’s proven formula of providing an extended menu of
authentic Italian food at a great value, while offering dishes that stay true
to Egyptian flavors.”