Luby's Reports Fourth Quarter EPS of $.04

Luby's, Inc.

today announced its unaudited financial results for the fourth quarter fiscal 2010, a sixteen-week period, which ended on August 25, 2010. In the fourth quarter fiscal 2010, Luby's reported income from continuing operations of $1.1 million, or $0.04 per share, compared to a loss of $13.3 million in the same quarter last year, or $0.47 per share. Income from continuing operations in the fourth quarter fiscal 2010 included $1.4 million after-tax gain from auction rate securities that were redeemed at par value during the 2010 fourth quarter, a decrease in the tax valuation allowance of $2.4 million, $2.0 million in after-tax expenses associated with an accrual for a pending legal settlement and costs associated with the acquisition of Fuddruckers, and $0.2 million after-tax non-cash asset impairment charge. Last year's results included (1) $4.1 million after-tax non-cash asset impairment charge, and (2) a non-cash charge of $5.1 million related to a valuation allowance established on the Company's deferred tax assets, and (3) $0.1 million after-tax decrease in fair market value of investments.. The table below reflects the impact of these special items.