Schlotzsky's Deli to Feature La Brea Breads; Sandwich Recipe by La Brea Bakery Founder Nancy Silverton is Featured Below.

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AUSTIN, Texas--(BUSINESS WIRE)--Nov. 19, 2002

Schlotzsky's Inc. (Nasdaq:BUNZ), the Austin-born company that knows a thing or two about building delicious sandwiches and the importance of bread, will begin this month baking the unique, European-style baguettes, rounds and loaves of award-winning chef-author Nancy Silverton of California's Campanile restaurant and famed La Brea Bakery, one of the most respected artisan bakeries in America.

To introduce Silverton and her breads to Austin, The Texas Hill Country Wine & Food Festival and Schlotzsky's Inc. will co-host a "Wine and Bread Pairing" featuring Silverton from 6 to 8 p.m., Tuesday, Nov. 19, at the Schlotzsky's(R) Deli at 218 S. Lamar Blvd. at Town Lake, the flagship location where 14 varieties of La Brea Bakery breads will be baked.

During the evening event, Texas wines will be paired with La Brea Bakery's signature breads. Ranch 616 chef Kevin Williamson, president of The Texas Hill Country Wine & Food Festival, will prepare open-faced sandwiches based on recipes in "Nancy Silverton's Sandwich Book" and a sampling of panini. One of her recipes, French Baguette with Butter and Prosciutto, appears below.

Autographed copies of her latest sandwich book will be available. Event proceeds will benefit the Texas Hill Country Wine & Food Festival. Featured wineries will be Fall Creek Vineyards, Flat Creek Estate, Becker Vineyards, Spicewood Vineyards and Llano Estacado Winery.

"Schlotzsky's is about bread," says John Wooley, Schlotzsky's Inc. president and CEO. "It is the basis of everything we do. We study bread. We celebrate bread."

As part of its continuing quest to bring the best of European artisan crusty breads to its customers and increase its own level of skill, Schlotzsky's sought out the award-winning chef and author.

"Nancy Silverton is perhaps the finest artisan bread baker in the country, and we are inspired by her purist roots, her commitment to artisan bread-making traditions and her unique understanding of fine European crusty breads," Wooley says. "We believe that the availability of Nancy Silverton's bread in Austin will change the bread on the tables of Austin's finest restaurants."

Schlotzsky's first raised the bar on bread in 1994, when it brought Dan Leader of Bread Alone Bakery in Woodstock, N.Y., to Austin. Via Leader's knowledge of old-style, hand-made European crusty loaves and Schlotzsky's own wood-fired Spanish brick ovens, the Company raised table bread in Austin to a new level of excellence. Leader and the Company most recently collaborated on a beautiful Ciabatta roll for the new line of cold sandwiches featured in several Company-owned restaurants.

Since the 1980s, Schlotzsky's has consulted with fine dining chefs in Austin and around the country on culinary and menu issues; currently consulting with the restaurant team are Austin chefs Emmett Fox and Lisa Fox of Asti Tratoria.

Silverton, founder of La Brea Bakery, is perhaps the most highly regarded bread baker and one of a handful of the most respected pastry chefs in America today. She has written four award-winning books on the bread and culinary arts, including "Nancy Silverton's Breads from the La Brea Bakery: Recipes for the Connoisseur."

Silverton's breads are earthy, rustic and delicious, with thick, crunchy crusts and soft and chewy interiors. They taste terrific, with flavor in the caramelized crusts and aromatic insides. Her sourdough breads have a remarkable texture: dense but elastic with a crisp, chewy exterior that boasts just the right tang.

Just to start, Schlotzsky's will introduce 14 La Brea Bakery breads: French Baguette, Italian Round, Sourdough Baguette, French Loaf, Whole Grain Loaf, Roasted Garlic Loaf, Country White Oval, Pain Rustique, Rosemary Olive Oil Loaf, Organic Wheat Loaf, Olive Oval, Potato Dill Oval, Pecan Raisin Oval and Sesame Semolina Loaf.

Silverton is the winner of numerous awards including James Beard Who's Who in American Cooking, James Beard Best Pastry Chef of the Year, James Beard Outstanding Restaurant Award, Nation's Restaurant News Fine Dining Award, Southern California Restaurant Writers Restaurant of the Year and Restaurateur of the Year awards, Bon Appetit "Food Artisan," Nation's Restaurant News "50 New Taste Makers," DiRoNA Distinguished Restaurant of North America, Nation's Restaurant News Fine Dining Award, Chocolatier Magazine Best Pastry Chef, Fine Spirit Wine & Food Tasting Exhibition Los Angeles Culinary Master of the Year and Food & Wine Magazine Best New Chef.

Silverton was 18 and studying liberal arts at California State University, Sonoma, when she began working as a vegetarian cook in her dorm kitchen. After apprenticing at a small northern California restaurant, she attended the Cordon Bleu in London. Upon her return to Los Angeles, she worked as an assistant pastry chef at Michael's in Santa Monica.

After completing a series of pastry courses at Ecole Le Notre in Plaiser, France, she was appointed head pastry chef at Wolfgang Puck's Spago restaurant, where she was responsible for developing its highly acclaimed desserts. In 1985, she and her husband, Mark Peel, moved to Manhattan and spent six months revamping Maxwell's Plum. Back in L.A. in 1989, they opened La Brea Bakery and Campanile.

    From "Nancy Silverton's Sandwich Book"

    Recipe: French Baguette with Butter and Proscuitto

    Ingredients:

    1 recipe Scallion Oil (optional) See Below

    11/2 baguettes, cut into 4 7-inch pieces

    1-11/2 sticks (4-6 ounces) unsalted butter, slightly softened but
not greasy

    6 ounces prosciutto di San Daniele, or Serrano ham, thinly sliced
into about 24 slices

    Slice through the center of each piece of baguette horizontally.

    To assemble the sandwiches: Smear 2-3 tablespoons of butter over
the bottom half of each baguette piece. If you're using scallion oil,
spoon 1-2 tablespoons of it over and place about 6 slices of rumpled
prosciutto on top. Put the top half of the baguette over the ham, and
squeeze the sandwich together with your fingers to compress it before
taking the first bite.

    Recipe: Scallion Oil

    Ingredients:

    1 bunch scallions, green parts only, coarsely chopped (about 1/3
cup)

    1/3 cup coarsely chopped fresh Italian parsley leaves

    1/2 cup extra-virgin olive oil

    To Make the Scallion Oil: In a food processor fitted with a metal
blade, or with a mortar and pestle, process or pulverize the scallions
and parsley until finely chopped. Add the olive oil and process or
pulverize another few seconds to combine.

The Texas Hill Country Wine & Food Festival is a nonprofit organization that promotes Texas wineries, culinary specialties and great restaurants. The annual festival attracts more than 5,000 people with over 300 chefs, restaurants and wineries represented.

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Schlotzsky's Inc., founded in Austin, Texas, in 1971, is a franchisor of fast casual restaurants featuring upscale made-to-order hot sandwiches served on distinctive sourdough bread, along with sourdough crust pizzas, salads and soups. As of Sept. 30, 2002, there were 658 Schlotzsky's(R) Deli restaurants open and operating in 37 states, the District of Columbia and nine 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 factors identified in the Company's Form 10-K under the heading "Risk Factors.

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