Big Apple Bagels - Miami Subs Grill Announce Co-Branding Agreement.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 17, 1998--

Big Apple Bagels, My Favorite Muffins, Brewster's Coffee All to be Offered At Miami Subs Restaurants

Miami Subs Corporation (NASDAQ:SUBS) and BAB Holdings, Inc. (NASDAQ:BAGL) the Chicago based operator of Big Apple Bagels, My Favorite Muffins and Brewster's Coffee concept stores announced today that they have signed a licensing agreement that provides for Miami Subs to offer the three BAB concepts at Miami Subs restaurants.

The companies are in the final stages of integrating the gourmet bagels, muffins and specialty coffee drinks into a Miami Subs company owned restaurant, which will be used as a test store which will provide for the framework for the eventual integration of BAB products throughout the Miami Subs system.

BAB's agreement with Miami Subs supplements its growing non-traditional business. "We have always viewed non-traditional licensing and co-branding opportunities as strategies for our continued growth," said Michael W. Evans, President and Chief Executive Officer of BAB Holdings. "The link with another aggressive franchisor of specialty food, especially one with a shared commitment to freshly prepared products and customer service, will greatly enhance the name recognition of the Big Apple Bagels, My Favorite Muffins, and Brewster's Coffee brands of products."

"I have indicated before that we are pursuing opportunities to increase our sales and leverage our operating costs," said Don Perlyn, newly appointed President and Chief Operating Officer of Miami Subs. "This is just one more way that we will be able to do that. Our restaurants have historically had a strong lunchtime and late night business, and we have achieved a strong track record and success in co-branding with other significant companies to compliment our existing business and provide even greater variety for our guests."

"However, we have never offered breakfast because we did not have a strong competitive brand name and partner. BAB, with its strong brand awareness and variety of quality products, now gives us this opportunity also, and enables us to maximize all day parts. Our great locations combined with our ability to offer bagels, muffins, and specialty coffees to our guests with drive-thru convenience will set us apart in the industry. We believe that breakfast can give us as much of a sales opportunity as anything we have ever done before," concluded Perlyn.

Miami Subs Corporation currently operates and franchises 191 restaurants located in 17 states, Puerto Rico, the Dominican Republic, and Ecuador. The Company currently has co-branding agreements with Baskin Robbins and Arthur Treacher's, Inc. The Company's common stock trades on the Nasdaq National Market tier of The Nasdaq Stock Market(sm) under the symbol: "SUBS."

BAB Holdings, Inc. operates, franchises, and licenses Big Apple Bagels, My Favorite Muffin, and Brewster's coffee concept stores and currently has 275 units in operation in 33 states and two Canadian provinces, 25 of which are Company-owned. In addition to the Agreement with Miami Subs, the Company has licensing agreements with Host Marriott, Mrs. Fields Cookies, Oberweis Dairy, and Choice Picks Food Courts. The Company's stock is traded in the United States on the Nasdaq Small-Cap Market under the symbol "BAGL."

    CONTACT:  BAB Holdings, Inc.
               Tom Fletcher
               773/380-6100
               or
               Miami Subs Corp.
               Donald L. Perlyn
               954/973-0000