New World Coffee-Manhattan Bagel, Inc. (Nasdaq: NWCI), a leader in the ‘fast-casual’ sandwich segment of the restaurant industry, Friday (21 September) announced that its shareholders have approved a change in the Company’s name to New World Restaurant Group, Inc. The new name, which was authorized at a special shareholder meeting yesterday, is expected to become effective next week. The Company’s shares will continue to trade under the symbol NWCI.

In addition to the new corporate name, shareholders also approved an increase in the company’s authorized Common Stock, from the existing 50 million shares to 150 million shares, and the authorization of one additional board member, which will bring the maximum number of authorized directors from nine to 10.

“The new name is indicative of the broadened scope of New World’s activities following the Company’s acquisition of the assets of Einstein/Noah Bagel Corp. on June 19, 2001,” said New World Chairman Ramin Kamfar.

The Company said that the additional 100 million shares, which would be a part of the existing class of Common Stock, will provide it with sufficient Common shares to be reserved for the exercise of outstanding options and warrants, thus offering adequate flexibility in the future. The expansion of the Board of Directors by one seat allows for the appointment of new board members as may be required in connection with certain agreements to in connection with New World’s Series F Preferred Stock.

Results of the shareholder vote on a fourth proposal concerning the approval of certain warrants were not available at the time of the meeting. This proposal requires active solicitation of proxies, which typically takes more time than the time between mailing and the date of yesterday’s meeting. The Company did not want to delay the other business of yesterday’s meeting, which involved important changes to the certificate of incorporation, until the vote on Proposal 4 could be obtained. Accordingly, the Company is adjourning the shareholder meeting on this item until October 10, 2001.

Eatontown, NJ-based New World is a leading company in the ‘fast casual’ sandwich industry. The Company operates stores primarily under the Einstein Bros and Noah’s New York brands and primarily franchises stores under the Manhattan Bagel and Chesapeake Bagel Bakery brands. As of July 3, 2001 the Company’s retail system consisted of 499 company-owned stores and 303 franchised and licensed stores. The Company also operates four dough production facilities and one coffee roasting plant.

Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “estimate,” “project,” “intend,” “expect,” “should,” “would” and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company’s actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the Company’s SEC filings.