Exhibit 99.1

                      Luby's Retires Term Debt;
        Consolidation of Senior Debt Will Lower Interest Rate

    HOUSTON--(BUSINESS WIRE)--April 6, 2005--Luby's, Inc. (NYSE:LUB)
today announced that it has completely repaid and terminated the term
debt facility originally established in June 2004 as part of the
refinancing of the Company's senior debt. The term debt, which was
funded by Guggenheim Corporate Funding, LLC, had an outstanding
balance of $14.6 million as of the end of the second quarter ended
February 9, 2005. Funds for the repayment, which occurred on April 1,
2005, came from an $8.0 million draw down of the Company's revolving
line of credit, cash generated from operations, and proceeds from real
estate sales since the end of the second quarter. As of April 6, 2005,
the balance of the revolving line of credit is $36.0 million.
    "This is an important step for Luby's," said Chris Pappas,
President and CEO. "By consolidating our senior debt into one
instrument we are both streamlining our capital structure and saving
money through a lower interest rate. We will continue to pay down our
senior debt with proceeds from the sale of closed restaurant
properties, much as we have been doing over the past two years."
    In March 2003, Luby's launched a business plan which included a
program of closing under-performing restaurants, selling those closed
restaurant properties, and using the proceeds from those properties to
pay down senior debt. In June 2004, the Company refinanced its
outstanding senior debt into two debt instruments -- a $50.0 million
revolving line of credit and a $27.9 million term loan. As the Company
sold properties, the proceeds from those sales have been used to repay
the term loan.
    "Guggenheim has been a good partner over the past ten months,"
continued Pappas. "They made an investment in Luby's, our management
team, and our business plan which enabled us to construct a capital
structure addressing our unique needs. As we move forward, we want to
express our appreciation for their confidence in Luby's."
    Luby's provides its customers with delicious, home-style food,
value pricing, and outstanding customer service at its 133 restaurants
in Dallas, Houston, San Antonio, the Rio Grande Valley, and other
locations throughout Texas and other states. Luby's stock is traded on
the New York Stock Exchange (symbol LUB). For more information about
Luby's, visit the Company's website at www.lubys.com.

    The company wishes to caution readers that various factors could
cause its actual financial and operational results to differ
materially from those indicated by forward-looking statements made
from time to time in news releases, reports, proxy statements,
registration statements, and other written communications, as well as
oral statements made from time to time by representatives of the
company. Except for historical information, matters discussed in such
oral and written communications are forward-looking statements that
involve risks and uncertainties, including but not limited to general
business conditions, the impact of competition, the success of
operating initiatives, changes in the cost and supply of food and
labor, the seasonality of the company's business, taxes, inflation,
governmental regulations, and the availability of credit, as well as
other risks and uncertainties disclosed in periodic reports on Form
10-K and Form 10-Q.

    CONTACT: Luby's, Inc., Houston
             Adam Carter, 713-329-6808