Schlotzsky's Premieres National Network Advertising Campaign

AUSTIN, Texas (April 5, 1999) -- Schlotzsky's Inc. will launch its first national network television advertising campaign in the Company's 28-year history.

The four, 15-second network television spots were developed to help enhance brand awareness and to reinforce the quality and originality of the Schlotzsky's® product.

The first flight of spots will premiere to an estimated 25 million viewers tonight and will run until May 2, 1999. A second and third flight of network advertising will follow in July and October, with spots airing on prime-time, late night and early morning programs on major national broadcast and cable networks.

Research indicates that the $14 million campaign will reach an estimated 50 million target consumers.

The spots were created by McGarrah/Jessee Advertising, based in Austin, Texas. Award-winning directors Mark Story and Peter Elliott were responsible for comedic direction and food photography, respectively. Wally Williams of Tequila Mockingbird in Austin rounded out the creative team, overseeing sound and music production.

The humorous ads feature people in "The Schlotzsky's Zone™" who are thinking so intensely about Schlotzsky's® Deli that they cannot focus on routine activities.

On April 15, Schlotzsky's® will once again step into the spotlight when Jay Leno is scheduled to personally welcome Schlotzsky's® Deli as a new advertiser on The Tonight Show. "You never know how far Leno will take this once he's on air," said Applbaum. "With a name like Schlotzsky's, he's got great material to work with."

Schlotzsky's Inc., founded in Austin, Texas, in 1971, is a franchisor of quick-service restaurants featuring made-to-order sandwiches served on distinctive sourdough bread, along with pizzas, salads and soups. The Company previously announced that as of Dec. 31, 1998, there were 750 restaurants in 38 states, the District of Columbia and 13 foreign countries.

Schlotzsky's, 512-236-3821