Ramius Partner Jeffrey C. Smith stated, “Although we are disappointed that our nominees were not elected to the board of Luby’s, we believe the independent shareholders of Luby's have sent a strong message. The preliminary indications show that a majority of the independent shareholders of Luby’s voted in favor of changes to the composition of the Luby’s board. In fact, if you exclude the Pappases’ share ownership above the 15% poison pill threshold from the vote, it appears that a majority of shares voting would have supported change to the Luby’s Board of Directors.”

Mr. Smith concluded, “This should be a wake up call for the independent members of the Luby's board. They must be accountable to independent shareholders and represent the best interests of all shareholders, not just the best interests of the Pappases. We hope and expect that the board will enter 2008 with a re-invigorated sense of independence and oversight. It is clearly needed at Luby's. We greatly appreciate the strong support we received from the independent shareholders of Luby’s and hope that our voice has been heard.”

About Ramius Capital Group, L.L.C.

Ramius Capital Group is a registered investment advisor that manages assets of approximately $9.6 billion in a variety of alternative investment strategies. Ramius Capital Group is headquartered in New York with offices located in London, Tokyo, Hong Kong, Munich, and Vienna.