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Maura C. Tobias Friendly's Restaurants 413-543-2400, ext. 2814

FRIENDLY'S INTRODUCES NEW KIDS MENU

Meals Appeal to Distinctive Preferences of Older & Younger Kids to Make Summer Dining Fun & Relaxing

Wilbraham, Mass., (July 27, 2004) - Eating out is a frequent ritual for almost three out of four families. As any parent knows, one size does not fit all when it comes to family dining. While a five year old and a 12 year old may both want to be treated as "grown ups," each wants foods different from mom and dad's, and from one another.

That's why Friendly's Restaurants, twice recognized as having the "Best Kids Menu in America," has created a new, two-sided, kids menu that offers complete meals - drink, entrée and dessert - specifically tailored to two age groups. One side of the menu offers $5.99 Big Kids meals that cater to kids 8 to 12, a group often overlooked by traditional children's menus. The other side features meals designed to appeal to the younger crowd with different tastes and smaller appetites, for $3.99.

Friendly's new kids menu includes more healthy options than ever before, including a choice of healthful and kid-friendly side dishes: applesauce, broccoli, corn, mashed potatoes, mixed vegetables, rice or waffle fries. Colorful menu graphics, zany comic-book style characters, and games make good eating fun.

"Our award-winning kids menu has helped make our restaurants a favorite with families, generation after generation, and we're proud to serve over 10 million youngsters each year," said Larry Rusinko, Senior Vice President for Friendly's. "Now we're taking things to a new level by offering exciting new meal choices specifically designed for children of different ages. Our goal is to make family dining at Friendly's even more fun and relaxing. Parents and kids can come here and know that everyone will find food choices they'll love."

The Big Kids meals include five entrees like Dippin' Chicken (chicken fingers served on a cone shaped skewer, with a variety of dipping sauces and fries) and Chicken in the Garden.

Soup or salad can be added to any meal for just $.99. Each meal includes a free dessert. Big kids can choose from unique ice cream treats like the Fortune Cookie Sundae (Vanilla soft serve ice cream with a hard chocolate shell, served with a fortune cookie and chopsticks) as well as the new Heath® Bar Friend-Z (creamy soft serve whipped with a crushed Heath Bar). Ice cream choices include Friendly's new Carb Fabulous Vanilla as well as fat-free frozen yogurt.

Younger kids can choose from eight complete meals with entrees like Cheese Quesadillas. Soup or salad can be added to any meal for just $.99. And, when it's time for dessert, Friendly's Sundaes like Monster Mash and Cone Head will bring a smile to adults as well as kids.

In addition, all kids have their own breakfast choices that are anything but boring. The Tie-Dyed Pancake and French Toast Sticks are among the offerings, all for $2.99.

Before launching the new menu in all of its 540 restaurants, Friendly's tested it for six months at 30 locations. Additionally, more than 1,800 kids and parents were surveyed for their opinions.

"We knew we had a hit on our hands," said Rusinko. "Kids of all ages told us loud and clear that they liked having a menu with food choices, games and graphics created specifically for them. Kids and parents also appreciated that portion sizes were appropriate for both bigger and smaller kids and that we had a greater variety of vegetables and salads. This positive feedback is important because industry research shows that families today choose a restaurant jointly, with input from children as well as parents.

"Many of the kids and adults we talk with have vivid memories of their first visit to Friendly's. They can even remember their favorite ice cream flavor," added Rusinko. "Our new menu will create new memories for the next generation of children and their families."

Friendly Ice Cream Corporation (Amex: FRN) is a vertically integrated restaurant company serving signature sandwiches, entrees and ice cream desserts in a friendly, family environment in more than 535 company and franchised restaurants throughout the Northeast. The company also manufactures ice cream, which is distributed through more than 4,500 supermarkets and other retail locations. With a 68-year operating history, Friendly's enjoys strong brand recognition and is currently revitalizing its restaurants and introducing new products to grow its customer base.