Cosi, Inc. TICKER: COSI

Agenda Economy Company Specific Info Financial Statements Recommendation

Economy QE2 – Stimulate Stock Markets Decreases Major Credit Card Delinquency Jobless claims lowest in 2 years Personal Income and spending rising 3Q earnings trends

Cosi, Inc. Delaware corporation incorporated 1998 IPO As of 12/31/ stores 18 states D.C. United Arab Emirates Wide range of markets Business Districts Residential Urban Suburban Appeal to wide variety of customers

Cosi, Inc. Premium convenience restaurants High-quality sandwiches, salads, bagels, flatbreads, deserts, variety of coffees along with other soft beverages, teas and alcoholic beverages Sophisticate taste Service and experience Quality, innovation, flair Building brand awareness Increase comparable sales Operate efficiently

Cosi, Inc. Future Focus Recent partnership new advertising agency Increase brand awareness through “out of store” initiatives Online ordering/catering Social Media Develop breakfast offerings Squagels Breakfast wrap platform Coffee Franchising

Cosi – Key Stats Market Cap – $59M Shares Outstanding – M Stock Price - $ – week low: $ – week high: $ day avg: $ day avg: $1.09

Annual

Quarterly

Internal Revenue Code Section 172 provides there shall be a deduction for the taxable year an amount equal net operating loss carryovers to such year plus the net operating loss carrybacks to such year. NOL carryback 2 years; carryover 20 years DTA ≈ $200 Million

Gross Margin % Operating Margin % 2007(13%) 2008(11.8%) 2009(9.4%) 2010-Q1(11%) 2010-Q2(4.4%) 2010-Q3(4.3%) % % % 2010-Q15.6% 2010-Q212.6% 2010-Q312.3%

Quarterly

Ratios

10 year chart

Book Value Multiple Cosi, Inc. BV/share Price Price/BV $ $ $ $ $0.54 ↓ Current Multiple0.28 $ Current Price $ %

3 year chart

Competitors

Key Points - Future Drive Revenue Growth Advertising agency partnership Franchising Breakfast Operating efficiently Maintain admin costs Improving Bottom Line Reap Benefits of NOL carryforward Possible acquisition target Position in portfolio

Place in Portfolio Panera Bread $3B Market Cap Growth opportunity Major appreciation through realizing Deferred Tax Asset Micro Cap Consumer Discretionary

Recommendation BUY as cheap as possible: $1.10 Position Size: 5000 shares ($5,500)