Brands You Can Trust! THE BRANDED-PRODUCT PROGRAM RETAIL LICENSING STRATEGIC EXPANSION IN CONCLUSION Fiscal 2004 marked the sixth year of our branded product program, where we feature the sale of Nathan’s hot dogs to the foodservice industry. During each year of the program, we have realized sales increases compared to the prior year. Sales increased by 20.5% to $7,651,000 in Fiscal 2004 compared to Fiscal 2003. A unique and special example of the branded-product program has been the recent introduction of a Nathan’s pretzel dog into over five hundred Auntie Anne’s outlets. License royalties were $2,970,000 in Fiscal 2004 as compared to $2,585,000 in Fiscal 2003. In addi- tion to Nathan’s signature food products, last year a Nathan’s griddle was marketed through infomercials and by retailers during the 2003 holiday season. New products that have been recently or that are expected to soon be introduced at retail include Nathan’s french fries, bratwurst, and breakfast-sausage products, as well as Nathan’s corn dogs. For the first time, last year Nathan’s products were sold through our website and we began a test marketing program for the sale of Nathan’s hot dog products on QVC. Due to the success of that pro- gram, we anticipate our products will continue to be sold on QVC during Fiscal 2005. Long-term profitable growth continues to be the centerpiece of our objectives. We continue to suc- cessfully expand through advances in our branded-marketing approach and points-of-distribution strategy. Due to our retail licensing program, Nathan’s signature products are sold in over 6,000 supermarkets and club stores. In addition, as of March 28, 2004, 345 restaurant outlets and more than 3,300 branded- product points of sale were represented within 44 states, the District of Columbia, and 12 foreign countries featuring the Nathan’s, Miami Subs, and Kenny Rogers Roasters brands. Howard M. Lorber Chairman and Chief Executive Officer Our focused strategies, creative approaches, ever-expanding opportunities and commitment to quality highlight Nathan’s path towards continued long-term success. We believe significant benefit will be afforded to our consumers, business partners, employees and to you—our shareholders. We are appreciative of your continued support. Wayne Norbitz President and Chief Operating Officer 2004 Annual Report  Nathan’s Famous, Inc. & Subsidiaries page two