February 2006

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February 2006
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Forward-Looking Statement
Certain statements in this presentation
constitute forward-looking statements or
statements which may be deemed or construed to be
forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of
1995. The words "forecast," "estimate,"
"project," "plan to," "is designed to,"
"expectations," "intend," "indications,"
"expect," "should," "would," "believe," "trend"
and similar expressions and all statements which
are not historical facts are intended to identify
forward-looking statements. These forward-looking
statements involve and are subject to known and
unknown risks, uncertainties and other factors
which could cause the Company's actual results,
performance (financial or operating), or
achievements to differ from the future results,
performance (financial or operating), or
achievements expressed or implied by such
forward-looking statements. These factors include
but are not limited to (i) the improvement in
period over period comparable store sales and
transaction counts is not necessarily indicative
of future results and is subject to shifting
consumer preferences, economic conditions,
weather, and competition, among other factors
(ii) the results for fiscal 2005 are not
necessarily indicative of future results which
are subject to increasing utility and other
costs, and other seasonal effects, and there is
no assurance that full year results will be
consistent (iii) the Company's expectations of
improving liquidity and increased financial
flexibility, that annual after-tax cash flow will
increase by 5.5 million, and that the average
cash interest expense rate on all debt will
decline significantly are dependent upon the
LIBOR rate remaining stable. These and other
risks are more fully discussed in the Company's
SEC filings.
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Senior Management Representatives
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Agenda
Executive Summary Investment Considerations Compan
y Overview Recent Updates
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Executive Summary
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Executive Summary
New World is a leading quick casual restaurant
operator of bakery/café restaurants.

• The Company currently operates, franchises and
  licenses 626 locations in 34 states and the
  District of Columbia
• New Worlds portfolio of brands include
• Einstein Bros.
• Noahs Bagels
• Manhattan Bagel

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Executive Summary (cont.)
New World management continues to deliver results.

• Since late 2003, when New Worlds current senior
  management team was put in place, the Company has
  achieved
• Substantial improvements in cash flows from
  operations commencing in 4Q03
• Six consecutive quarters of positive operating
  income beginning in 3Q04
• Five consecutive quarters of positive comparable
  store sales
• Three consecutive quarters of positive
  transaction counts

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Business Strategy

• Theoretical model to monitor food costs
• Weekly review of District Managers/General
  Managers performance
• Implement price increases on menu items
• Introduction of catering sales force
• Establishment of a disciplined maintenance
  program
• General Manager and Franchisee conference for all
  brands

• Focus on Revenue and Profitability

Renewed Focus on Guest Experience

• Successfully refreshed 26 stores for a cost of
  1.0 million which improved the physical
  appearance and the customer experience
• Conducted training and established discrete
  targets for improving the customer
  experience-Anything but Routine
• Ensure product availability, consistency and
  implement necessary improvements to enhance speed
  of service

Enhance Catering Program

• Catering drives improvement in both the breakfast
  and lunch dayparts
• Creates a low cost introduction of lunch products
  to new and/or breakfast only guests
• Continue to maintain lunch sales focusing on the
  catering program
• Lunch currently represents approximately 30 of
  revenues

Update Brand Rationalization

• Streamline Manhattan Bagel operations to focus on
  the Northeast
• New World will consider sale on opportunistic
  basis
• Exit strategy in place for Chesapeake Bagel
• Received indications of interest for New World
  Coffee

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Investment Considerations
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Investment Considerations

• Relevant, Robust Format

Favorable Quick Casual Trends
Positive Trend in Operating Results
Business Strategy and Brand Expansion
Hands on Management Team
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Relevant Robust Format

• New World is a leader in the breakfast daypart
• Highest concept ranking by Technomic for Good
  Place for Breakfast
• New World appeals to an attractive, loyal
  demographic with median household income of
  68,000
• 40 are heavy users12 or more visits over a
  three month period
• The Company has enhanced its menu offering
  through increased product selection
• Broader menu selection allows New World to
  further expand into multiple dayparts

(1) Source Technomic, 2003. Consumer survey
based on a scale of 1.0 (lowest) to 7.0 (highest).
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Favorable Quick Casual Trends
( in millions)

• Increasing white collar employment and more dual
  income households has led to desire for the
  following
• Speed and convenience
• Healthier menu items
• More pleasant dining experience
• Quick Casual is taking market share from both QSR
  and casual dining concepts

Quick Casual Concept Distribution and Growth(1)
(1) Source Technomic, 2003.
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Positive Trends in Operating Results
Quarterly Comparable Store Sales Growth

• Since New Worlds appointment of its new senior
  management team in late 2003 the Company has
  achieved the following
• Exhibited a positive growth trend in comparable
  store sales since early 2004 and
• Generated positive comparable store sales growth
  for 14 consecutive periods

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Hands on Management Team

• New management team has been disciplined and
  measured in its approach
• Back-to-basics focus on margin improvement
  initiatives
• Revitalization of image via brand enhancement and
  brand rationalization, menu and price
  improvements

2003 2004 2005
Same Store Growth (3.3) (2.5) 5.2 Gross
Margin 65.6 67.2 73.7 Adjusted
EBITDA 34.7 36.7 39.0 Margin 9.1 9.8 10.0
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Company Overview
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New World Restaurants
New World is a leading quick casual restaurant
operator of bakery/café restaurants.

• Restaurants 427
• Revenues 81.3
• Contribution 81.1

• Restaurants 76
• Revenues 16.2
• Contribution 12.5

• Restaurants 109
• Revenues 2.2
• Contribution 5.8

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Format Overview

• 360 company-operated and 67 licensed EBB
  locations

• 73 company-operated and 3 licensed NNYB locations

• 109 franchised MBC locations, 8 franchised CBB
  locations and 2 company-operated and 4 franchised
  NWC locations

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Commissaries

• New World operates 11 commissaries throughout the
  United States that service Company-operated and
  franchised/licensed restaurants
• The commissary network affords it a significant
  competitive advantage because it minimizes the
  amount of food preparation at the store level

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Locations and Restaurant Count
West Lafayette1
Indianapolis9
Minneapolis 9
Seattle4
Philadelphia13
Milwaukee7 Madison5
Pittsburgh7
Portland6
Boston3
Detroit17
Las Vegas9
Cleveland9 Columbus4
Chicago30
New York City2
Denver29 Colorado Springs3
Salt Lake City19
Kansas City 13
Sacramento7 San Francisco36 Santa Cruz 1
Baltimore5
St. Louis10
Richmond5
Washington, DC16
Phoenix20 Tucson2
Charlotte2
Albuquerque5
Dallas15 Austin4 Houston6
Los Angeles20 Palm Springs1 San Diego16
Atlanta13
West Palm Beach8 Miami21
Einsteins
Tampa10 Orlando10 Naples1
Noahs
Einsteins and Noahs
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Locations and Restaurant Count (cont.)
( in thousands)
(1) Average unit volume during 2004.
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Financial Overview
( in millions)
Net Sales
Adjusted EBITDA
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Financial Overview (cont.)
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Recent Updates
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Recent Accomplishments
The Company has continued to improve its
operations and financial results.

• Fiscal year ended 2005 Comparable Store Sales
  growth was 5.2 compared to (2.5) in 2004
• Increased traffic in comparable stores during 2Q,
  3Q, and 4Q 2005, reversing a two year negative
  trend
• Upgraded ratings on both the Company and the
  refinanced debt from both Moodys and SP

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Recent Accomplishments (cont.)

• Renewed focus on the guest experience using a
  three pronged approach
• People - Established a baseline on the level of
  training and the service expectations. Recognize
  the issues and needs of Generation Why associates
  and developing programs for motivating and
  retaining these associates to ensure a superior
  guest experience.
• Product New menu items that solidify the
  breakfast daypart, increase speed of service and
  address on the go lifestyles. Use of catering
  program to grow lunch awareness and trial.
• Place Developed operational improvements to
  enhance speed of service while maintaining our
  heritage of guest interaction with our store
  level associates. Refresh and/or remodel stores
  to standardize trade dress while maintaining our
  neighborhood feel.
• Conducted market wide training on new menu and
  customer service prior to the introduction of
  menu only changes for stores in the St. Louis
  market.

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Recent Accomplishments (cont.)

• Significantly upgrading management and field
  training for 2006
• Launched Einstein Brothers, Noahs and Manhattan
  GM/Franchisee Summit in early 2006 with a focus
  on key initiatives and specific tools and
  training to execute those initiatives
• Noahs conducted this summit in February 2005 and
  their post summit performance far exceeded
  projections. Currently experiencing double digit
  comp improvements driven by both transaction and
  average check growth
• Developing a matrix organizational structure with
  an operational leader over each group responsible
  for PL performance
• Successfully refinancing our existing debt which
  will result in an after tax cash savings of
  approximately 5.5 million based on current LIBOR
  rates

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Strong 2005 Operating Performance
of Restaurants with Positive Comparable Store
Sales
Quarterly Comparable Store Sales
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6.3
6.0
6
4.6
3.9
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2
0
1Q05
2Q05
3Q05
4Q05
Restaurants with Positive Contribution
Gross Profit Contribution
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20.7
19.7
18.4
16.7
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15
10
5
0
1Q05
2Q05
3Q05
4Q05
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Comparable Store Sales
Comparable store sales continue to drive the top
line Store traffic turned positive in the
second quarter.
Quarterly ComparisonComp Store Sales Growth
Check Transactions Total
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2005 Year End
( in millions)
Year-to-date 2005 the Company exceeded its
financial budget.
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Refinancing
( in millions)
(1) Facility size of 15.0 million.
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Where We Go From Here

• Manufacturing/Commissary
• EBB/MBC Franchise
• License Growth
• New Stores
• Customer Experience Initiative

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Manufacturing and Commissary

• Manufacturing
• Maintain growth with Costco and Super Target
  Brand National and International
• Expand International Partnership Asia with
  Shinsege (existing partner)
• Primarily bagel and cream cheese sales
• Develop contacts in South Pacific and U.K.
• Explore domestic partnerships Cream cheese
  sales
• Commissary
• Utilize USDA Commissary Network to expand 3rd
  party sales (regional basis) sandwiches, salad
  kits, salad toppers, i.e. HEB
• Develop national presence in grocery channels
  through partnership, i.e. Dole Foods salad
  kits, salad toppers

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EBB and MBC Franchise Opportunity

• EBB
• Filed UFOC, December 2005 refresh March 2006
• Fill out franchise organizational support in 2006
• Initial conversations with area developers in
  2006
• Begin building in 2007
• MBC
• Continue regionalization core being the
  Northeast
• Begin growth of 15-20 per year in 2007 multiple
  store profile

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License Growth

• Continue relationship with Aramark Sohdexo on
  campus growth
• Expand relationship with Host, CA1 and other
  airport centric operators
• Expand AAFEs locations domestically, investigate
  overseas bases
• Target partnership with multiple locations per
  year capability, i.e. Hyatt
• Expand the roles of Noahs and Manhattan in the
  license program

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New Stores

• Build real estate pipeline in 2006 feed growth
  2007 and beyond
• Fill out strategy to maximize marketing
  effectiveness
• Concentrate on drive-thru locations
• Grow both EBBs and Noahs Company stores

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Guest Experience Initiatives

• In depth consumer research against needs and
  wants (understanding our guest)
• Daypart relevant menu products
• Speed of service initiatives to impact the
  convenience factor
• Understanding of the labor force motivation and
  retention of Generation Why, i.e. Pals

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February 2006