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The rumors where true.
It works as a portable medikit for the heavy.
Hope this stuff is available today!

From the Team Fortress Heavy site:

The Sandvich is the Heavy's first unlockable. It tastes as good as it looks and heals 120 health.
Like in real life, the decision to eat a Sandvich must not be taken lightly; The Heavy is completely vulnerable during the four second eating process, and his loud, happy sounds of vigorous chewing will draw enemies like tiny ant cowards to a picnic. OF DEATH.
On the bright side, the Heavy's Sandvich supply is unlimited, so his only real concern is being caught short while enjoying this delicious edible device. The Sandvich is a great tool for a Heavy defending an area, as it gives him the ability to replenish health between enemy waves without having to abandon his post.
Similarly, an offensive Heavy without a Medic can step back from the front line and grab a quick snack before resuming his rampage. Beware, however: the Heavy must set aside his shotgun to take the Sandvich, and enemy Snipers are much more dangerous for a Heavy wielding only a minigun.

Update: They also have this neat wallpaper of the sandvich schematics. Damn that's a tasty schematic. I love saying schematic. While I don't quite know how to pronounce it.

Update 2:
HOLY CRAP MY TF2 IS UPDATING RIGHT NOW!
I HOPE THIS IS IT!



HHHHHHHHHNNNNNNNNNNNNGGGGGG