Schlotzsky’s Inc. (Nasdaq:BUNZ) today announced sales trends of the Schlotzsky’s® Deli system for the four-week period of August 2000.

These sales include all restaurants in the system, including both franchised restaurants and company-owned restaurants.

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Same store sales for the four-week period of August 2000 increased 4.9% over August 1999. Average weekly sales for August 2000 were $12,301, an 8.3% increase over the same period in 1999. Systemwide sales for all restaurants in the Schlotzsky’s® Deli system for August 2000 were $35.8 million, a 6.7% increase over the same period in 1999.

Schlotzsky’s Inc., founded in Austin, Texas, in 1971, is a brand licensor and franchisor of quick-service deli restaurants featuring sandwiches served on distinctive sourdough bread, along with pizzas, salads, soups and deli items. As of June 30, 2000, there were 745 Schlotzsky’s® Deli restaurants operating in 37 states and D.C. and 12 foreign countries. Visit www.schlotzskys.com for more information and e-coupons. For easy spelling, try www.cooldeli.com.

This press release may contain statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe,” “intend” and similar expressions are intended to identify forward-looking statements. Any such forward-looking statements are not guaranties of future performance and involve risks and uncertainties, and actual results may differ materially from those projected in the forward-looking statements as a result of various factors, including those identified in the Company’s filings with the Securities and Exchange Commission.

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