Schlotzsky's, Inc. Retains Trinity Capital for Advisory Services
Sam Coats Appointed to Schlotzsky's Board of Directors

June 24, 2004

AUSTIN, Texas--(BUSINESS WIRE)--June 24, 2004--Schlotzsky's, Inc. (Nasdaq:BUNZ - News) today announced that it has retained the services of Trinity Capital, LLC, a specialty investment banking firm focused on the multi-unit retail and food and beverage industries. Trinity Capital has been engaged to provide restructuring, corporate finance and other advisory services.

"I am pleased to have Trinity Capital, an acknowledged authority in the restaurant franchise sector, as part of our team," said Sam Coats, Chief Executive Officer of Schlotzsky's, Inc.

In addition, the Company also announced today the appointment of Sam Coats to its board of directors. Mr. Coats brings extensive management experience in general business and the airline industry. He has served as CEO of a leading U.S. package tour operator and of a software company that provided revenue management systems to more than 80 airlines and as senior vice president of Continental Airlines, Inc.

The addition of Mr. Coats expands the Schlotzsky's board from seven to eight members.

Schlotzsky's, Inc., founded in Austin, Texas, in 1971, through its wholly owned subsidiaries, is a franchisor and operator of restaurants in the fast casual sector. As of March 31, 2004, there were 537 Schlotzsky's® restaurants open and operating in 37 states, the District of Columbia and six foreign countries. Visit www.schlotzskys.com for more information.