Luby's Shareholders Re-Elect Directors at 2008 Annual Meeting

HOUSTON, Jan. 15 /PRNewswire-FirstCall/ -- Luby's, Inc. (NYSE: LUB) today announced that, at today's annual meeting, based on a preliminary vote count, shareholders voted to re-elect the Board of Directors' nominees, Dr. Judith B. Craven, Arthur R. Emerson, Frank Markantonis and Gasper Mir, III.

"On behalf of Luby's Board and management, we thank our shareholders for their support throughout this process, especially the many shareholders who are also our loyal customers," said Chris Pappas, President and CEO of Luby's. "Today's vote demonstrates that Luby's shareholders believe we are taking the right steps, with the right Board and management team, to build shareholder value. We are very excited about our strategic growth plan to build 45 to 50 new restaurants over the next five years; upgrade and remodel Luby's existing restaurants; and grow the Company's culinary contract business to provide food service at healthcare facilities."

As previously announced, Luby's Board of Directors has unanimously voted to submit and recommend a proposal to shareholders at the annual meeting in 2009 that would amend Luby's certificate of incorporation to declassify its Board.

Over the past several weeks Luby's has held discussions with shareholders over a number of issues including possible corporate governance initiatives. In particular, the company discussed with shareholders eliminating Luby's classified Board structure. Luby's Board takes corporate governance issues raised by its investors seriously and has a long term commitment to strong corporate governance.

Chris and Harris Pappas, Luby's two largest shareholders, intend to vote in favor of the proposal to declassify the Board, which requires an 80% favorable vote of the outstanding stock to be approved.

Following tabulation and certification by the independent Inspector of Elections, IVS Associates, Inc., the final results of the election will then be announced.

About Luby's

Luby's operates 128 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. For more information about Luby's, visit the Company's website at http://www.lubys.com.

Forward-Looking Statements

This document contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this document, other than statements of historical fact, are "forward-looking statements" for purposes of these provisions, including any statements regarding plans for expansion of the Company's business, scheduled openings of new units, the implementation of the Company's strategic growth plan, the effect of alternative business plans and expectations concerning unit sales and investor returns. Forward-looking statements by their nature involve substantial risks and uncertainties that could significantly affect expected results, and actual future results could differ materially from those described in such statements. Some of the factors that could cause actual future results to differ materially are described under the caption "Risk Factors" in the Company's annual reports on Form 10-K and quarterly reports on Form 10-Q, which may be obtained free of charge at the SEC's website at www.sec.gov or from Luby's at www.lubys.com.

    Contact: Rick Black, 713-329-6808

             Matthew Sherman / Jeremy Jacobs
             Joele Frank, Wilkinson Brimmer Katcher
             212-355-4449

             Dan Burch / Charlie Koons
             MacKenzie Partners, Inc.
             212-929-5500