BAB, Inc. Introduces New Bakery Cafe Concept.

DEERFIELD, Ill. -- BAB, Inc. (OTCBB:BABB), has announced the debut of its new concept, My Favorite Muffin[R] "Your All Day Bakery Cafe." The first two units are now open in Littleton and Highlands Ranch, Colorado.

BAB, the franchisor and licensor of Big Apple Bagels[R] and My Favorite Muffin[R], is no stranger to the Bakery Cafe trend that is sweeping the fast casual restaurant industry. The new concept incorporates the strengths of both original BAB concepts into a newly designed cafe that features a contemporary and comfortable interior and a menu offering that crosses over multiple day parts while maintaining its focus on fresh baked products.

But the starring role in this new BAB concept has been given to its unique cake-like muffins. "Our muffins are truly something special," said Michael Evans, President and CEO of BAB. "They set us apart from the competition because nobody else has anything like them." It was this thought that triggered development of the muffin-focused concept. In front of a huge display case featuring 20 different varieties of six-ounce "Jumbo" muffins, some of which are Fat-Free, and 8 varieties of "Mini's," customers stand in awe deciding between options such as Blueberry and Cinnamon Crumb for the traditionalist or more decadent creations like Chocolate Cheesecake and Boston Creme Pie. The muffins are made from proprietary batter formulations from which literally hundreds of varieties can be created. My Favorite Muffin has also recently launched a spin-off to its original product in the form of its own line of custom decorated "Celebration Cupcakes[TM]" which are targeted for special occasion catering.

Beyond muffins, Your All Day Bakery Cafe offers freshly baked bagels with BAB's exclusive cream cheese spreads, breakfast sandwiches, a full range of lunch sandwiches, fruit smoothies, and BAB's own brand of Brewster's Coffee, roasted in small batches from the finest specialty beans according to carefully monitored specifications.

Your All Day Bakery Cafe is designed to work in 1600-2000 square feet of space and the layout can be flexible to accommodate varying space configurations. BAB is planning on nationwide expansion of the new concept with area development and individual franchise agreements.

BAB, Inc. operates, franchises, and licenses Big Apple Bagels [R], My Favorite Muffin [R] Jacobs Bros. Bagels [R] and Brewster's [R] Coffee. The Company's stock is traded on the OTCBB under the symbol BABB and its web site can be visited at www.babcorp.com.

Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "estimate," "project," "intend," "expect," "should," "would," "believe" and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the company's actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the company's SEC filings.