Rubio's Restaurants Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 27, 2009. For the third quarter, the company reported the total revenues were $48.43 million as compared to the total revenues of $47.01 million for the same period a year ago. Operating income was $0.7 million as compared to the operating income of $1.24 million for the same period a year ago. Income before income taxes was $0.6 million as compared to the income before income taxes of $1.2 million for the same period a year ago. Net income was $0.49 million as compared to the net income of $0.79 million for the same period a year ago. Diluted earnings per share was $0.05 as compared to the diluted earnings per share of $0.08 for the same period a year ago. Adjusted EBITDA was $3.5 million as compared to the adjusted EBITDA of $4.3 million for the same period a year ago. For the thirty-nine weeks ended, the company reported the total revenues were $143.44 million as compared to the total revenues of $134.32 million for the same period a year ago. Net income was $1.24 million as compared to the net income of $0.38 million for the same period a year ago. Diluted earnings per share was $0.12 as compared to the diluted earnings per share of $0.04 for the same period a year ago. Income before income taxes was $1.76 million as compared to the income before income taxes of $0.54 million for the same period a year ago. Operating income was $1.9 million as compared to the operating income of $0.6 million for the same period a year ago. Adjusted EBITDA was $10.66 million as compared to the adjusted EBITDA of $9.04 million for the same period a year ago.

Rubio's Restaurants Inc. issued in responded to a class action lawsuit filed against the company, its directors and officers, and Alex Meruelo in California Superior Court: The company denies the allegations and claims in the recently filed lawsuit. The lawsuit inaccurately asserts that the company's officers and directors breached their fiduciary duties in connection with the company's receipt of an unsolicited proposal to acquire all of the company's outstanding common stock by a group consisting of Alex Meruelo and his affiliates and Levine Leichtman Capital Partners IV, L.P. The lawsuit seeks to enjoin the company and its directors and officers from consummating a sale of the company to the Meruelo Group. The company does not have, and has never had, an agreement or arrangement to sell any stock or assets to the Meruelo Group. The company announced that its Board of Directors had rejected the unsolicited proposal from the Meruelo Group after unanimously determining that the proposal was not in the best interests of the company's stockholders. The company intends to vigorously defend against this meritless lawsuit.

Rubio's Restaurants, Inc. announced that its Board of Directors has unanimously rejected the unsolicited proposal from a group consisting of Alex Meruelo and his affiliates and Levine Leichtman Capital Partners IV, L.P. to acquire all of the Company's outstanding common stock for $8.00 per share. The Board has started a process to evaluate the Company's strategic alternatives to enhance stockholder value, including an evaluation of the expressions of interest received by the Company. No timetable has been set for completion of this evaluation process, and there can be no assurance that any transaction will result. The Board has retained Cowen & Company, LLC to provide financial advice and assist the Board with its evaluation process. Dan Pittard, Rubio's President and CEO, said: "We believe that Rubio's continues to have a winning strategy for Fast Casual, which has become the fastest growing segment of the restaurant industry. We offer an attractive casual ambiance and menu selection at prices significantly below casual dining price points. Our market research confirms that a growing number of guests understand this value proposition, and we believe we are very well-positioned now and when the economy improves. Meanwhile, we believe we can continue to build stockholder value through our proactive response to the changing economy and advancing our winning strategy. We remain confident in our ability to continue this strategy while the Board evaluates the Company's strategic alternatives." The Company does not plan to make any further comment on the evaluation process until the evaluation is complete.