Lenny's Sub Shop Goes North to Michigan; Franchisees to Open 25 Restaurants in Detroit, Ann Arbor, East Lansing, Kalamazoo and Grand Rapids.

MEMPHIS, Tenn. -- Lenny's Franchisor, LLC, franchisor of Lenny's Sub Shops, today announced an agreement to expand the franchise to a new state - Michigan. Three franchisee groups will be developing 25 restaurants in markets across the state. Sub Nation, LLC will open five Lenny's in Southeastern Michigan, including the Ann Arbor and Lansing areas. Family First Corporation will open 15 restaurants in Kalamazoo, Kent and Calhoun counties, while TREC Development, LLC signed on for five restaurants in the Detroit metro area. All three groups will open their first restaurants in the third quarter of 2006.

"The new franchisees in Michigan are a part of our targeted growth pattern as we expand across the country. Like Nevada has provided an anchor for our Western growth, Michigan will be our anchor for growth and brand awareness in the Midwestern and Northern United States," said George Alvord, Chief Executive Officer of Lenny's Franchisor, LLC. "All three groups bring excellent experience to the franchise and have become a huge part of our growing base of superior franchisees."

Len and Sheila Moore opened the original Lenny's Sub Shop, a genuine Philadelphia-style sub shop with fresh baked bread and the finest quality deli meats and cheeses, in a Memphis suburb in 1998. Lenny's Franchisor Chief Executive Officer George Alvord and private investors acquired majority ownership of the company from Len Moore in 2004. Since that time, Lenny's has granted more than 600 franchises in 16 states from California to Virginia.

Sub Nation partner Bill Bush, a successful Fortune 500 sales representative and a veteran of the restaurant industry, is a native of Southeastern Michigan and will open the first restaurant at 133 W. Michigan Avenue in Jackson, MI in the third quarter of 2006. Sub Nation chose Lenny's as their franchise company because it is a growth oriented company that employs great people who provide excellent support.

"The service oriented culture that Lenny's brings is impeccable, and the subs are of the highest quality and the best that we have ever tasted," said Bush. "We're convinced that once people in Michigan try them and receive the service that Lenny's is known for, we will become their first choice when it comes to subs."

Chris Pannunzio, Managing Owner of Family First, LLC, plans to open five restaurants in the Kalamazoo market, one in Battle Creek, and nine in Grand Rapids. The first is tentatively scheduled to open in Portage in the third quarter of 2006. Pannunzio says he and his partner were looking for a franchise opportunity with a company that believes in a quality product.

"There is nothing like Lenny's in the market, and there is huge real estate potential in the area," said Pannunzio, a 23-year restaurant industry veteran. "Our corporation also brings more than 20 years of restaurant experience to the table - we know we can provide guests with more food, more taste, and more personality."

TREC Development, a group of investors from Detroit, believes in the outstanding product, great taste, and the customer service element that Lenny's offers. Lenny's of Troy says that compared to local competition, Lenny's offers unique value, taste and service. The group is working to establish its first location in the Detroit metro area and expects to announce the first location next month.

Recently, Lenny's has opened several restaurants in new markets, including Las Vegas, San Antonio, and Charlotte. In addition they have sold multi-restaurant packages in several states, including Nevada, California, Virginia, Georgia, South Carolina and Kansas. Lenny's is on track to open between 400 and 500 restaurants in the next few years.

For more information about Lenny's Sub Shops and our locations, visit www.lennys.com.

About Lenny's Sub Shops

Since the beginning, Lenny's commitment to quality and attention to detail has gone into every restaurant and sub sandwich. This dedication has helped Lenny's to become one of the fastest growing sub sandwich chains in the country. Today, Lenny's Sub Shop continues to expand throughout the United States by offering franchise opportunities. Our generous sandwiches and unprecedented customer service is a testament to why our unbelievably loyal customers say they prefer a Lenny's sub hands down to our national competition. Why? Lenny's puts back what has been missing in the sub sandwich business - More Food, More Taste, More Personality!(TM)