Steak n Shake Shareholders: Reasons To Vote Only the GOLD Proxy Card

SAN ANTONIO, Feb. 28 /PRNewswire-FirstCall/ -- The following is from The Lion Fund, L.P. and Western Sizzlin Corp. NASDAQ: WEST:

    -- Institutional Shareholder Services (ISS) recommended on February 26,
       2008 that shareholders should vote the GOLD card and ignore the white
       card. ISS said in their report, "[T]he company's stock price and
       operating margins have underperformed its peer group over the last five
       year period. Additionally, the market seems to have little confidence
       in the current board's ability to execute its turnaround plan ...."
    -- Glass Lewis & Co. recommended on February 25, 2008 that shareholders
       should vote the GOLD card in favor of The Lion Fund nominees because
       "the current board has done little to hold executives accountable for
       the long-term performance of the business. Moreover, the directors have
       taken recent action to entrench themselves on the board. As such, we
       believe that new independent voices are needed on the Steak n Shake
       board to effect change."
    -- The board's rhetoric will not conceal its dismal record. Nothing said
       or written can disguise the obvious fact that the board has failed to
       make money for Steak n Shake's NYSE: SNS shareholders. The record
       below speaks for itself. (To avoid disagreement with the Company on the
       selection of a comparable peer group, we purposely selected the S&P
       Restaurant Index because the Company selects it in its public filings.)


    Relative Shareholder Returns
                                   Total Shareholder Returns
                                   10-year    5-Year    3-Year

    Steak n Shake                   (32.7%)   (12.1%)   (56.5%)
    S&P Restaurant Index            184.4%    222.8%     48.4%

Note: All share prices used to calculate Total Shareholder Returns are as of February 22, 2008. Source: Research Data Group

-- In contrast, our involvement in two other restaurant companies, Western

       Sizzlin Corp. and Friendly Ice Cream Corp., has
       generated substantial shareholder value. At Western Sizzlin, our
       cumulative return on investment from the beginning in mid 2005 until
       the present is approximately 110%. Our investment in Friendly yielded a
       return of approximately 80% in over a one-year holding period. In both
       situations, we entered the stock with a long-term mindset and never
       sold a share in the public market. With Friendly, the company was sold
       with our consent to a private equity firm because the price, in our
       assessment, reflected full value. Our decision, we determined, was in
       the best interest of all shareholders. Consequently, we have the
       experience and expertise to serve knowledgeably and to explore all
       avenues to begin generating returns for all shareholders of The Steak n
       Shake Company.

    -- The current board members have clearly failed to adequately address the
       problems confronting the company, and if we allow them to continue, in
       our view, the company will continue to suffer and shareholders will
       lose even more money. Current members of the board and management are
       pursuing all avenues to win your votes. They are doing their best to
       turn the spotlight away from their poor performance. In the final
       analysis, they have destroyed value, and the board must be held
       responsible for the company's regrettable long-term record.

-- Our interests are aligned with yours. As one of the largest

shareholders of the firm, we seek to make money with you, not off you.

-- We urge you to vote the GOLD card and NOT to sign any white proxy card

       sent to you by Steak n Shake. Even if you have sent a white proxy card
       to Steak n Shake, you have every right to change your vote. You may
       revoke that proxy and vote FOR our nominees, Biglari and Cooley, by
       signing, dating, and mailing the enclosed GOLD proxy card in the
       enclosed postage-paid envelope.

    -- Please vote each GOLD proxy card you receive since each account must be
       voted individually. Remember: Since you will be receiving multiple
       mailings, only your latest dated proxy counts.  To ensure accuracy,
       please do not delay your vote.

 If you have any questions on how to vote your shares, please call our proxy
                                  solicitor:
                     MORROW & CO., LLC at (800) 607-0088
                   E-mail: enhancesteaknshake@morrowco.com

                             Shareholder Meetings
                    Place: Marriott Indianapolis Downtown
                Address: 350 West Maryland Street, First Floor
               Shareholder Gathering, March 6, 2008 at 6:00 pm
             Shareholder Annual Meeting, March 7, 2008 at 1:30 pm

 To RSVP for the Shareholder Gathering on March 6, 2008, call (800) 607-0088
                    or e-mail rsvp@enhancesteaknshake.com