INDIANAPOLIS, Aug. 7 /EMWNews/ -- The Steak n Shake

Company (NYSE: SNS) today announced that Wayne L. Kelley, the Company's

Interim Chief Executive Officer, resigned from this position on August 4,

2008. Mr. Kelley will retain his position as a member of the Company's

Board of Directors.



    On August 5, 2008 the Company's Board of Directors appointed Sardar

Biglari, the Chairman of the Board of Directors, to serve as the Company's

Chief Executive Officer.



    



    Mr. Kelley commented, "I am pleased to pass the Chief Executive Officer

position to Sardar, who has demonstrated an incredible work ethic and

dedication to the Company since his election to the Board. As Chairman, he

has shown that he is willing and able to lead the Company through its

turnaround process and I believe he is the right Chief Executive Officer to

lead Steak n Shake into the future."



    Mr. Biglari commented, "I would like to thank Wayne for his guidance

over the last several months. In reviewing Steak n Shake and beginning to

implement its restructuring, the Board and I concluded that to achieve the

best results, we need an executive who will be focused on restaurant

operations. As a consequence, we will seek a president with significant

restaurant experience to concentrate on improving restaurant operations,

whereas I will assume the CEO position, leading the organization

principally from a strategic, financial, and governance perspective.

Concurrently, we are presently undergoing a comprehensive examination of

the company and are in the process of implementing a restructuring program

-- closing underperforming locations, reducing G&A, shortening hours of

operation in many locations, and other initiatives -- all on the premise

that Steak n Shake will be managed based on cash flows in order to create

long-term value for shareholders. Steak n Shake is an iconic brand with

greatly talented people working throughout the organization. Because of all

these advantages, I am confident we will regain the chain's prior status as

a great company. Details of our plan will be disclosed within the next 60

days in a shareholder letter."



    The Company will release its third quarter earnings in conjunction with

the filing of its Form 10-Q on Monday, August 11, 2008.

    About Steak n Shake



    Steak n Shake is a full-service, casual dining restaurant serving a

core menu of its famous STEAKBURGER(TM) sandwiches, thin 'n crispy french

fries, old fashioned hand-dipped milk shakes, chili, home style soups,

fresh salads, a variety of desserts and breakfast. All of the food is

prepared to the guest's order and served by friendly, well-trained

associates. Steak n Shake restaurants feature full-service dining areas,

counter service and drive-thru windows and most are open 24 hours a day,

seven days a week.



    Risks Associated with Forward-Looking Statements



    Certain statements contained in this press release represent

forward-looking statements within the meaning of the Private Securities

Litigation Reform Act of 1995. In general, forward-looking statements

include estimates of future revenues, cash flows, capital expenditures or

other financial items, as well as assumptions underlying any of the

foregoing. Forward-looking statements reflect management's current

expectations regarding future events and use words such as "anticipate,"

"believe," "expect," "may" and other similar terminology. A forward-looking

statement is neither a prediction nor a guarantee of future events or

circumstances, and those future events or circumstances may not occur.

Investors should not place undue reliance on the forward-looking

statements, which speak only as of the date of this report. These

forward-looking statements are based on currently available operating,

financial and competitive information and are subject to various risks and

uncertainties. Our actual future results and trends may differ materially

depending on a variety of factors, many beyond our control, including, but

not limited to :the poor performance or closing of even a small number of

restaurants; our ability to attract and retain guests; he ability of our

franchisees to operate profitable restaurants; changes in guest

preferences, tastes and dietary habits; minimum wage rates; the

availability and cost of qualified personnel; fluctuations in food

commodity prices and the availability of food commodities; harsh weather

conditions; unfavorable publicity relating to food safety or food borne

illness; our ability to comply with the restrictions and covenants to our

debt agreements; our ability to renegotiate our debt agreements and

refinance our current debt at similar rates; our ability to comply with

existing and future governmental regulations; our ability to adequately

protect our trademarks, service marks and other components of our brand;

and other risks identified in the periodic reports we file with the

Securities and Exchange Commission. Additional risks and uncertainties not

currently known to us or that are currently deemed immaterial may also

become important factors that may harm our business, financial condition,

results of operations or cash flows. We assume no obligation to update

forward-looking statements except as required in our periodic reports.