FOR:      NATHAN'S FAMOUS, INC.

COMPANY   Ronald G. DeVos, Vice President - Finance and CFO
CONTACT:  (516) 338-8500 ext. 229

                                                           FOR IMMEDIATE RELEASE
                                                           ---------------------
                          NATHAN'S FAMOUS, INC. AMENDS
                          COMMON SHARE PURCHASE RIGHTS
                          ----------------------------

     WESTBURY, NY, December 10, 1999 - Effective today the Board of Directors of
Nathan's Famous Inc. (Nasdaq Symbol: NATH) amended the terms of its Common Share
Purchase  Rights to  reduce to 15% the  threshold  at which  the  rights  become
exercisable.

     Howard M. Lorber,  Chairman and Chief Executive Officer of Nathan's stated:
"The Rights were adopted to assure that all of our stockholders receive fair and
equal  treatment  in the event of any  proposed  takeover  of the Company and to
guard against  abusive  tactics to gain control of Nathan's  without  paying all
stockholders  a premium for that  control.  The Rights are not being  amended in
response  to any  specific  takeover  threat,  but are a response to the general
takeover environment."

     The Rights will not prevent a takeover, but should encourage anyone seeking
to acquire  the  Company  to  negotiate  with the Board  prior to  attempting  a
takeover.

     As  amended,  the  Rights  will be  exercisable  only if a person  or group
acquires 15% or more of Nathan's  common stock or announces a tender offer,  the
consummation  of which would  result in ownership by a person or group of 15% or
more of the common stock.  Each Right entitles  stockholders to buy no less than
one share of Nathan's  common  stock at an exercise  price of $4. If Nathan's is
acquired in a merger or other business  combination  transaction  after a person
has acquired 15% or more of the Company's  outstanding  common stock, each Right
will entitle its holder to purchase, at the Right's then-current exercise price,
a number of the acquiring company's common shares having a market value of twice
such price. The acquiring person will not be entitled to exercise these Rights.

     Prior to the  acquisition  by a person or group of beneficial  ownership of
15% or more of the Company's  common stock,  the Rights are redeemable for $.001
per Right at the option of the Board of Directors.

     The Rights  were  initially  adopted by  Nathan's on June 20, 1995 and will
expire on June 20, 2005.

     As a result of the  acquisitions  of Miami Subs and Kenny Rogers  Roasters,
Nathan's today consists of 37  Company-owned  units,  421 franchised or licensed
units in  addition  to over 900  Branded  Product  points of  distribution  that
feature  Nathan's world famous all-beef hot dogs,  located in forty-one  states,
the District of Columbia and seventeen foreign countries.