PIZZA GOES TO HOLLYWOOD

Sbarro Goes to the Movies with National Amusements

MELVILLE, NY (Friday, August 08, 2003) - Aiming to give movie goers zesty additions to popcorn and candy, Sbarro, Inc. and National Amusements, Inc. have begun putting the popular quick-Italian-food restaurants in the theatre chain's complexes.

The agreement between the 996-unit restaurant company and the 1,381-screen motion-picture exhibitor calls for Sbarro restaurants in seven National Amusements' complexes initially, with twelve more to follow by the end of 2003.

Gennaro Sbarro, President of Franchising/Licensing for family-run Sbarro, said, "We're proud to be part of the ground-breaking efforts of National Amusements to transform the movie-going experience. This agreement allows us to expand rapidly in a key sector of the entertainment market. Along with our already strong presence in malls, travel facilities and other non-traditional venues, it furthers our strategy of serving our customers as they go about their daily activities such as shopping, traveling or taking in a show."

"We are always looking to build on the movie-going experience and continually offer our patrons new and exciting things within our theatres," noted Shari E. Redstone, President, National Amusements. "This partnership with Sbarro's has been terrific from the start— their team has been wonderful to work with, patron feedback has been tremendous, and pizza sales in our theatres have exceeded our highest expectations."

The first seven Sbarro restaurants in National Amusements complexes are located at Cross County Multiplex Cinemas, Yonkers, NY; Island 16: Cinema de-lux, Holtsville, NY; Linden Boulevard Multiplex Cinemas, Brooklyn, NY; Showcase Cinemas Maumee, Maumee, OH; Showcase Cinemas Springdale, Springdale, OH; Showcase Cinemas Randolph, Randolph, MA; and Showcase Cinemas Revere, Revere, MA. Also scheduled to open in 2003 are restaurants in White Plains, Whitestone, and College Point, NY; and Dayton and Milford, OH; West Springfield, MA; Merrifield and Fairfax, VA; Edgewater, NJ; Ann Arbor, MI; Louisville, KY and Warwick, RI.

Before undertaking the agreement, Sbarro and National Amusements ran focus groups and interviewed moviegoers to evaluate the appeal of theatre-linked Italian quick food. The results convinced the partners that they had a winning concept. The market research provided input for determining the menu for the theatre restaurants: four types of pizza. In addition to enhanced food choices, National Amusements' theatres offer amenities rarely seen at other cinema complexes such as wall-to wall screens, rocking recliners and leather seats, concierge-style services, and on-line advance and print-at-home ticketing.

Based in Melville, NY, Sbarro has been expanding rapidly, both in the U.S. and abroad, opening 70 units domestically and 60 outlets internationally in 2002. Sbarro's existing system includes 644 company-owned-and-operated units and 286 franchisee-operated units.

National Amusements, Inc., a closely held corporation which operates more than 1,380 motion picture screens in the U.S., the U.K. and Latin America, is an equal partner in the online ticketing service, MovieTickets.com and the parent company of Viacom.

For More Infromation Please contact:
Gennaro A.Sbarro, President of Franchise /Licensing
Sbarro
Phone: (631) 715-4148
Email: jerrysbarro@sbarro.com

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