Contact:

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

FRIENDLY'S DISHES OUT ECONOMIC BENEFITS AS WELL AS ICE CREAM AT NEW RESTAURANT IN OLD BRIDGE, NEW JERSEY

Wilbraham, MA (August 20, 2004) - The arrival of a new Friendly's Restaurant will mean some sweet economic benefits for Old Bridge, New Jersey as well as the best ice cream in town.

The restaurant, which opens August 23, 2004 at 180 Ferry Road, will bring jobs, tax revenues, and other benefits, according to William Haiback of Kracke Enterprises, which owns the restaurant.

"When people see a new Friendly's Restaurant, they think of family-friendly dining, and favorites like our Big Beef Hamburgers and Fribbles®. People in Old Bridge probably don't realize that the franchisee will hire approximately 100 full and part-time employees for the new restaurant and is buying local services like construction and landscaping," said Larry Rusinko, Senior Vice President, Marketing for Friendly's. "They also support area schools and charities through programs as the Easter Seals 'Cones for Kids' program".

For a limited time, guests at the Old Bridge Friendly's can also enjoy some extra special treats: a free Happy Ending Sundae with the purchase of any of our featured chicken meals. Guests can also indulge on the featured ice cream flavor - Velvet Praline Crunch.

The over 200-seat restaurant will be open from 7AM to 12AM every day.

Partner and General Manager, John Kracke and Managing Partner,

William Haiback, have more than 13 years combined of experience in the food and hospitality business. "We're looking forward to serving the people of Old Bridge the great food and ice cream that Friendly's is known for and to being an active member of the community," said John Kracke.

The Old Bridge restaurant is one of approximately 12 new Friendly's Restaurants planned for opening this year throughout the chain. The company has enjoyed strong comparable sales growth in the past few years.

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 540 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.