Bandera Partners Urges Luby's Stockholders to Vote for Change

Bandera Partners LLC, a significant stockholder of Luby’s Inc. (NYSE: LUB), issued the following statement and letter to stockholders.

Luby’s underperforming Board of Directors, which has overseen an 84% stock price collapse in the five years leading up to Bandera’s nomination letter, yesterday sent a letter to stockholders filled with falsehoods and inaccuracies. The incumbent Board specifically targeted Bandera Portfolio Manager Jeff Gramm, who today sent the following letter to Luby’s stockholders, setting the record straight and asking for your support by voting the GOLD Proxy to improve and refresh the Board of Directors:

January 11, 2019

Dear Fellow Luby’s Stockholder,

As Luby’s January 25^th Annual Stockholder Meeting approaches, I want to thank every owner that has taken time to consider Bandera’s minority slate of nominees to the Board of Directors. By my estimates, I have recently interacted with owners of 68% of the Luby’s shares not controlled by Bandera or the incumbent Board. I’m grateful for the outpouring of support for our message that Luby’s poor stewardship of your capital necessitates immediate change to the Board of Directors. In the coming weeks, I look forward to speaking with the rest of you. Whether you side with our slate or not, this is what shareholder democracy is about—bringing power to shareholders to seek change if they believe it is warranted. If our minority slate is elected, this will be a historic win that sends a message to all public company investors that their vote can make a difference.

Yesterday, Luby’s incumbent Board published a letter asking you to reject Bandera’s nominees, and let the Company continue down its worn path of value destruction. I was disturbed by the distortions and falsehoods leveled at our slate. In a desperate attempt to distract your attention from the Company’s prolonged, dismal performance, the incumbent Board has embraced the politics of destruction with a barrage of personal attacks on our accomplished nominees. This is a cynical tactic that smacks of desperation, and, in my opinion, it will not sway Luby’s stockholders.

Luby’s wants you to believe that our four nominees, 1) a highly-respected former United States Senator with a sterling record and reputation, 2) the CEO of a public company almost ten times Luby’s size, 3) a Texas gubernatorial appointee, and 4) a five-time public company director, are unfit to serve on “any public company board.” Does the incumbent Luby’s Board think you were born yesterday?