BAB Holdings, Inc. Announces Shareholder Approval of Common Stock Combination.

CHICAGO--(BUSINESS WIRE)--Dec. 13, 1999--

BAB Holdings, Inc. (Nasdaq: BAGLC/BAGDC), the Chicago-based operator, franchisor, and licensor of Big Apple Bagels(R), My Favorite Muffin(R), and Brewsters Coffee(R) today announced the approval by shareholders of a Common Stock combination (reverse split) of one share for six shares. Shareholders also approved an increase in authorized Common Stock to restore Common Stock to the pre-consolidation level.

Approximately 90% of the Company's shares were voted in favor of the two proposals.

The stock price will reflect the reverse stock split as of the opening of trading on December 14, 1999. As of that date, the Company's shares will be traded under the stock symbol BAGDC.

BAB Holdings, Inc. operates, franchises, and licenses Big Apple Bagels(R), My Favorite Muffin(R), and Brewster's(R) Coffee and currently has units in 32 states, two Canadian provinces, and Peru. In February of this year it acquired the assets of Jacobs Bros., a Chicago based bagel bakery chain, including eight stores and a central commissary facility. The Company has licensing agreements with Host Marriott, Mrs. Fields Cookies, Beatrice Group, Inc., a division of ConAgra, and Alonti Deli. The Company's stock is traded on the Nasdaq Small-Cap market under the symbol "BAGLC/BAGDC" and its web site can be visited at www.babholdings.com.

Certain statements contained in this press release, including statements regarding the development of the company's business, the markets for the company's products, anticipated capital expenditures, and the effects of completed and proposed acquisitions, and other statements contained herein regarding matters that are not historical facts, are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Certain risks and uncertainties are outside the control of the company and its management, including its ability to attract new franchisees; the continued success of current franchisees; the effects of competition on franchisee and company-owned store results; consumer acceptance of the company's products in new and existing markets; fluctuation in development and operating costs; brand awareness; availability and terms of capital; adverse publicity; acceptance of new product offerings; availability of locations and terms of sites for store development; food, labor and employee benefit costs; changes in government regulation (including increases in the minimum wage law); regional economic and weather conditions; the hiring, training, and retention of skilled corporate and restaurant management; and the integration and assimilation of acquired concepts. Some of these risks and uncertainties are wholly outside of the control of the company. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to publicly release the results of any revision to these forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.