Magic Brands Completes Asset Sale Auction

Magic Brands, LLC, and Fuddruckers, Inc., announced today that Luby’s, Inc. (NYSE:LUB) has been selected as the highest and best bidder in a competitive auction held Thursday for substantially all of its assets. The bid remains subject to bankruptcy court approval. Luby’s bid has been valued by the Company and the Official Committee of Unsecured Creditors at $63.45 million.

“On behalf of our entire management team, I would like to express how pleased we are with the success of the competitive auction process. After Thursday’s 11-hour auction process, Luby’s proved to be the highest and best bidder with a final bid valued at $63.45 million,” stated Magic Brands CEO Peter Large. “Based on current estimates and assumptions, creditor recoveries are anticipated to be substantial and could reach as high as 100 percent. This is an outstanding result for our creditors.”

The results of the auction will be presented for approval by the United States Bankruptcy Court in the District of Delaware in Wilmington on June 22, 2010. The transaction is expected to close on or before July 9, 2010, subject to satisfaction or waiver of other customary closing conditions.

“Luby’s has the capacity to support and grow the Fuddruckers brand which we believe will be to the benefit of both our corporate restaurants and franchisees,” concluded Mr. Large.

FocalPoint Securities, LLC serves as investment banker to Magic Brands and Goulston & Storrs serves as lead bankruptcy counsel.

For further information regarding the sale transaction and restructuring process, please contact the Company’s information line at 877-340-2764 or visit www.fuddruckersrestructures.com.

About Fuddruckers

Based in Austin, Texas, Magic Brands, LLC currently operates 62 Fuddruckers locations in 11 states and 3 Koo Koo Roo restaurants in California. An additional 135 Fuddruckers restaurants are operated by franchisees who are small business owners and multi-unit operators. Since its founding in 1980, Fuddruckers has delivered uncompromised quality and freshness with its own brand of always fresh, never frozen, 100% All-American, premium-cut, vegetarian-fed beef. Fuddruckers 1/3, 1/2, 2/3 and one-pound Fudds Prime™ burgers are grilled to order and placed on a Fuddruckers scratch-baked bun made fresh daily in Fuddruckers restaurant bakeries — ready for guests to pile it high at Fuddruckers Market Fresh Produce bar for a Build Your Own Burger experience like none other.

About Luby’s

Luby’s operates 96 restaurants in Austin, Dallas, Houston, San Antonio, the Rio Grande Valley and other locations throughout Texas and other states. Luby’s provides its customers with quality home-style food, value pricing, and outstanding customer service. Luby’s Culinary Services provides food service management to 17 sites consisting of healthcare, higher education and corporate dining locations.

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