FIGARO’S ACQUIRES SARGO’S SUBS

(Salem, OR)—-Figaro’s Italian Pizza announced today that it has completed the acquisition of the 10-unit Sargo’s Subs, an Italian-themed submarine sandwich retail system. Figaro’s, a national chain with 114 stores, has been recognized as “the best pizza you can have at home” and chairman and CEO Ron Berger is looking to further expand his company as well as the newly-obtained Sargo’s.

Berger announced that Figaro’s would expand Sargo’s by offering Sargo’s franchises both to the existing Figaro’s franchisees and to new prospective individuals and entities. In addition, Figaro’s franchisees would be offered the opportunity to incorporate a selection of the best selling Sargo’s sandwiches in their Figaro’s stores.
“We believe that by marrying the two brands, along with their fabulous products, inventive store designs and terrific customer service, Figaro’s Pizza and Sargo’s Subs will be two of the top-performing restaurants in the industry,” Berger said.

Sargo’s was initially launched in Portland, Oregon in 2004 by founder Richard Persinger. He will be joining Figaro’s in a senior management role, continuing to support the Sargo’s franchise owners and assisting Figaro’s in growing Sargo’s and absorbing the sandwich business. Sargo’s stores are located in California, Oregon and Washington, but will expand to other states as Figaro’s grows the brand.

“Sargo’s builds delicious sandwiches and our Figaro’s owners will benefit from providing these to our customer base,” said Berger.

Figaro’s Pizza speaks for itself. Each distinctive pizza delivers “flavors that sing” because Figaro’s uses only premium meats (no fillers), vegetables (never canned or frozen), cheeses (a special blend of 100 percent real cheese), dough (made fresh daily in each store) and a blend of fresh sauces. Figaro’s Pizza is the only national chain offering delivery of both baked and unbaked pizzas.

States targeted for growth include those where Figaro’s Pizza has its largest number of locations, including Oregon (49 stores), Washington (12) and Wisconsin (11). California and Nevada are also on the list. While Figaro's Pizza currently has three operating stores in California, it has two strong master franchisees in the state. About 30 franchises have been sold in California, many of which are expected to open in 2007.