Luby’s, Inc. signs agreement to sell theFuddruckers franchise business to affiliate of nicholas perkins

HOUSTON, TX – June 17, 2021 – Luby’s,Inc. (“Luby’s” or the “Company”) (NYSE: LUB), today announced the Company has entered into an agreementto sell the Fuddruckers franchise business operations to a newly formed affiliate of Nicholas Perkins. The Company had previously sold/franchiseda number of Company owned Fuddruckers restaurants to a Perkins affiliate, making him one of the largest Fuddruckers franchisees.

The purchase by the Perkins affiliate, Black Titan Franchise SystemsLLC, encompasses the master ownership of the Fuddruckers brand worldwidei. The Fuddruckers brand currently has 92 locationsoperating in the United States, including 13 locations operated by affiliates of Mr. Perkinsii. It is currently anticipatedthe Fuddruckers franchise brand sale transaction could provide Luby’s, Inc. with approximately $18.5 million of value (most of whichwill be derived from the purchaser’s issuance of a note to Luby’s and assumption of certain liabilities). There can be noassurance that the Company will realize or receive the full value of such consideration. The Company does not currently plan to adjustthe estimated liquidation value of the Company as a result of this transaction. This amount is in addition to the value the Company willrealize from the sale of Company owned real estate at a number of Fuddruckers Company owned stores.

“We’re excited to be purchasing Fuddruckers and look forwardto working with Fuddruckers’ many dedicated, highly capable franchisees to further build this brand,” said Mr. Perkins, CEOof Black Titan Franchise Systems. “As a Fuddruckers franchisee, I have a vested interest in ensuring that all Fuddruckers franchiseeshave the resources, infrastructure, and operational and marketing support they need to maximize their return on investment. This strategicalignment, when combined with the fact that we sell the ‘World’s Greatest Hamburgers’™, will ensure the long-termsuccess of the brand and our franchisees.”

The sale of the Fuddruckers franchise operations is another step inthe execution of the previously announced plan of Luby’s to sell its assets, pay its liabilities, and return the remaining cashto shareholders under a formal plan of liquidation and dissolution approved by its shareholders on November 17, 2020. The Company andits financial advisor ran a robust sales process for the Fuddruckers franchise business, contacting over 150 entities before acceptingthe best offer, which came from the Perkins group. The Special Committee of the Board of the Company is being advised by Gibson, Dunn& Crutcher LLP on legal matters and Brookwood Associates on financial matters. The Company is also being advised by Sidley AustinLLP on legal transaction matters. The purchaser is being advised by Gebhardt & Smith LLP on legal matters and Intyllus Advisors LLCon financial matters.