"TCBY" Treats Stores and Subway Shops Under One Roof to Satisfy Customers.

LITTLE ROCK, Ark.--(BUSINESS WIRE)--March 26, 1997--TCBY Enterprises, Inc. (NYSE:TBY) today announced that its subsidiary, TCBY Systems, Inc., has signed a landmark agreement with Doctor's Associates, Inc., the franchisor of Subway(R) restaurants in the United States. The alliance clears the way for co-branded locations for Subway(R) and "TCBY" Treats(SM) stores. Within the next few months, customers will be able to visit many locations that offer the full spectrum of Subway(R) sandwiches and salads, and an array of "TCBY"(R) frozen yogurt, sorbet, ice cream, cakes and pies.

"This arrangement provides fantastic benefits, giving Subway(R) owners the ability to leverage the power of another brand. Because TCBY is a proven leader in the frozen dessert category, the two product lines compliment each other nicely," says John Skerritt, co-branding development manager for Doctor's Associates, Inc.

"Since both concepts are well known for their variety of deliciously tempting choices and many lower fat menu selections, it seems to be a natural fit for the two franchise companies," says Skerritt. He adds, "With nearly 11,000 Subway(R) sandwich shops in the United States alone, the development potential for these dual-branded locations is enormous."

Under the terms of the agreement, approved Subway(R) owners wishing to add the "TCBY" Treats(SM) concept to their location would become TCBY franchisees as well. The two concepts would share the same space, labor and management to maximize operations efficiency. Of course, each would maintain its separate identity in terms of uniforms, decor, menu and color scheme. This alliance represents dual-branding opportunities for new site development and existing locations for both brands.

"We are very excited to be working with Subway(R)," said Jim Sahene, President, TCBY Systems, Inc. "This alliance will be beneficial to both brands and both franchise systems. The development opportunities are tremendous." Sahene added, "We welcome the Subway franchisees to our systems and look forward to developing this alliance."

The Subway(R) restaurant system is the world's second largest fast food franchise with more than 12,600 sandwich shops in 59 countries. World-wide sales for the Subway(R) franchises were $3.2 billion (U.S.) in 1996.

TCBY Enterprises, Inc., through subsidiary companies, manufactures and sells soft serve frozen yogurt, hardpack frozen yogurt, hardpack ice cream, and frozen novelty products, and markets foodservice equipment. The Company is the world's largest manufacturer-franchisor of frozen yogurt. The Company, through subsidiaries, develops locations and products under the "TCBY"(R) and Juice Works(R) brands.

CONTACT: TCBY Enterprises, Inc.

Stacy Duckett, 501/688-8229

or

Subway

Jared Nixon, 203/877-4281 ext. 1329

Michele Klotzer, 203/877-4281 ext. 1302