30th anniversary gift idea

Sports Editors & Football/Basketball/Soccer Writers & Columnists

AUSTIN, Texas--(BW SportsWire)--Aug. 2, 2001

For its 30th anniversary, Schlotzsky's Inc. (Nasdaq:BUNZ) is giving a gift that it hopes will become a lifesaver for young athletes everywhere.

The Company has teamed up with the Austin Heart Foundation and Children's Cardiology Associates to create a pilot project in Austin, Texas, to screen high school athletes for hypertrophic cardiomyopathy (HCM), a genetic heart condition that affects one in 500 people and is the leading cause of sudden cardiac death in young people.

"There's no better way to celebrate our anniversary than to create something meaningful and lasting," said John C. Wooley, chairman and CEO since 1981. "When the doctors came to us with this idea, we could see it was a natural for our company."

Health insurance seldom covers the test, and high schools cannot afford the test, which can cost $1,000 per student, with a cost to Austin area taxpayers of $1.5 million/year if 1,500 student athletes were tested for the hidden killer.

As part of the Youth Athletes Cardiac Health Testing Study (YACHTS), cardiologists will bring a portable device to area high school campuses to screen dozens of athletes in an afternoon, just as they screen University of Texas athletes. Schlotzsky's is underwriting and helping to promote the program, while volunteer cardiologists are donating their time to go to the schools and conduct the screenings.

For students who may discover that they have HCM, it's not the end of their athletic careers. Instead of rough-and-tumble sports like football, basketball and soccer, they would be steered toward less strenuous sports such as golf. "Instead of Michael Jordan, their role model could be Tiger Woods," said Wooley.

"I think we've hit on a winning formula that could be replicated in communities all over the U.S. as we demonstrate YACHTS in Austin," said Dr. George Rodgers, president of Austin Heart cardiology practice and a Foundation volunteer. Rodgers will speak at Thursday's kick-off event at Schlotzsky's flagship restaurant at 218 S. Lamar Blvd.

Schlotzsky's plans to continue its participation in future years by distributing sustaining coupons to Austin schools, booster clubs and PTAs so that they can designate a portion of their dining tabs toward the program. Company officials are working to make YACHTS a model that can be adopted in other communities in Texas and the United States.

YACHTS joins a 30-year list of Schlotzsky's Inc. charitable and community projects, which include the Austin Children's Museum, Riverbend Church, historically black Huston-Tillotson College and Austin Sunshine Camps for disadvantaged children, a beneficiary of the Schlotzsky's 5K annual Bun Run. Charitable gifts by Schlotzsky's Inc. and its senior executives since 1981 total over $3.5 million.

"This is what we love to do -- help people in ways that might not otherwise happen," said Wooley. "It's been our experience that the more we do for our community, the more our business grows."

Coach Darrell Royal, the legendary University of Texas coach, and Mickey Moss, head football coach and athletic director for Austin High School, will attend Thursday's kick-off.

Thirty years ago, when the first tiny Schlotzsky's storefront opened in south Austin, UT students and State legislators lined up around the block for the New Orleans Muffaletta-inspired Original sandwich that was the only offering ("Just one sandwich...it's that good!"(tm)). Its near-cult appeal continues even as the menu has expanded to an array of sandwiches and pizzas, true to its Mediterranean origins, all on its signature bread, baked daily from scratch.

When the company began in August 1971, "burger giants" dominated the American landscape. But in recent years, the trend has been toward upscale sandwich restaurants, with Schlotzsky's(R) Deli in the lead. Find a 30-year timeline, "The Little Brand that Grew," at www.cooldeli.com.

Donations to YACHTS may be made directly to the Austin Heart Foundation at www.austinheartfoundation.com.

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Schlotzsky's Inc., founded in Austin, Texas, in 1971, is a franchisor of quick-service restaurants featuring made-to-order hot sandwiches served on distinctive sourdough bread, along with sourdough crust pizzas, salads and soups. As of March 31, 2001, there were 711 Schlotzsky's(R) Deli restaurants open and operating in 38 states, the District of Columbia and 10 foreign countries. Visit www.schlotzskys.com or www.cooldeli.com for more information and e-coupons.

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This news release contains "forward-looking statements," as defined under the federal securities laws. Forward-looking statements include those regarding the business plans and prospects of the Company. Forward-looking statements reflect the Company's expectations based on current information. The Company undertakes no obligation to update any forward-looking statements. Shareholders and prospective investors are cautioned that actual future results may be materially different because of various risks and uncertainties including but not limited to: the factors identified in the Company's Form 10-K under the heading "Risk Factors."