Effective February 28, 2006, NF Treachers Corp., a wholly owned subsidiary of Nathan's Famous, Inc., acquired from PAT Franchise Systems, Inc., a wholly owned subsidiary of TruFoods Systems, Inc., the worldwide rights to all trademarks and other intellectual property relating to the "Arthur Treacher's" brand (including the worldwide rights to all trademarks, recipes and other intellectual property comprising the "Arthur Treacher's" restaurant system).

Simultaneously with the acquisition, NF Treachers Corp. granted a license back to PAT Franchise Systems, Inc. to allow it to act as the franchisor of traditional "Arthur Treacher's" quick service restaurants within a limited geographic region.

For a number of years prior to the acquisition, Nathan’s licensed from PAT Franchise Systems, Inc. the right to use the Arthur Treacher’s trademarks and signature products for the purpose of co-branding within its own Nathan’s and Miami Subs restaurants. Wayne Norbtiz, President and Chief Operating Officer said, “Based upon the success of our co-branding effort, we realized the value of the Arthur Treacher’s trademarks and are very pleased to have been able to complete this acquisition. We intend to explore the possibility of marketing Arthur Treacher’s products outside of our restaurant system through various channels of distribution.”

At February 19, 2006, Nathan’s products were distributed in 48 states, and the District of Columbia through its domestic restaurant system, Branded Product Program and retail licensing activities. At February 19, 2006, Nathan’s restaurant system consisted of 364 franchised or licensed units, and six company-owned units (including one seasonal unit), within the United States and 12 foreign countries featuring the Nathan’s, Miami Subs and Kenny Rogers Roasters brands. For additional information about Nathan’s, Kenny Rogers Roasters or Miami Subs please visit our website at www.nathansfamous.com.

Except for historical information contained in this news release, the matters discussed are forward looking statements that involve risks and uncertainties. Words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, and similar expressions identify forward-looking statements, which are based on the belief of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions; the impact of competitive products and pricing; capacity; the regulatory and trade environment; and the risk factors reported from time to time in the Company’s SEC reports.