BLIMPIE International, Dunkin' Donuts and Baskin-Robbins enter into three-party co-branding agreement.

NEW YORK--(BUSINESS WIRE)--Jan. 26, 1996--BLIMPIE International (NASDAQ/NMS:BMPE), Baskin-Robbins USA Co. and Dunkin' Donuts Incorporated have entered into a co-branding test agreement.

The new co-branding arrangement will be tested in approximately 15 existing Dunkin' Donuts and/or Baskin-Robbins sites across the nation. Plans call for the companies or their franchisees to retrofit existing Dunkin' Donuts and/or Baskin-Robbins units with a full-service BLIMPIE counter, featuring the full BLIMPIE menu of submarine sandwiches, salads and soups. Wherever possible, the companies will attempt to place all three brands under one roof.

"The synergies between the systems are obvious," states Joseph Morgan, vice president of Strategic Planning for BLIMPIE International. "Dunkin' Donuts' products traditionally sell in the morning hours, while BLIMPIE and Baskin-Robbins' offerings are geared toward the afternoon and evening hours respectively... if the franchisee's rent or mortgage covers a full-day lease, this co-branding arrangement can maximize the franchisee real estate investment by increasing sales around the clock."

Under the terms of the agreement, existing Dunkin' Donuts and/or Baskin-Robbins franchisees who agree to the co-branding arrangement will also become BLIMPIE franchisees.

The first units to open under the new agreement are located in Stonington, Conn., six miles from the Foxwoods Casino and Hotel, where an existing Dunkin' Donuts franchisee will add a BLIMPIE unit, and in Tampa Bay, Fla., respectively. In future sites, plans call for Baskin-Robbins to join the other two brands. Additional test sites will be located across the country. Contracts in Connecticut, Florida, Nevada and Long Island, N.Y. are already being negotiated.

Both companies expect the cost of retrofitting existing Dunkin' Donuts and/or Baskin-Robbins units with BLIMPIE counters to be less than the cost of opening a full-scale BLIMPIE store.

According to Bob Higgins, Concept Development Manager of the Randolph, Mass.-based Dunkin' Donuts, "Adding the BLIMPIE concept should increase afternoon customer counts in our units and boost overall store sales. Customers will benefit from the convenience created by bringing the brands together; we expect to see customers cross-purchasing between the three brands."

"The new agreement symbolizes the recognition BLIMPIE has gained as the premium submarine sandwich chain in its segment - the three product lines truly complement one another and together we will represent the leaders in quality within the quick-service industry," says Anthony Conza, president and CEO of BLIMPIE International. "The arrangement will also enable us to further grow the BLIMPIE system in non-traditional venues, as well as increase the overall number of our outlets."

Presiding over 3,200 franchised and company-owned units in 42 states and Canada, Dunkin' Donuts is the number one donut and coffee chain in the world. Based in Glendale, Calif., Baskin-Robbins, operates over 2,400 franchised and company-owned stores in 44 states and is the number one U.S. retailer in the ice cream dipping category. Both companies are wholly owned subsidiaries of U.K.-based Allied Domecq.

BLIMPIE International, Inc. is the franchisor of the nation's second leading submarine sandwich restaurant chain, with approximately 1,300 outlets operating in 44 states. Last year, the company made its initial foray into the international market by opening several outlets in Stockholm, Sweden. In 1995, the company was ranked by Nation's Restaurant News as the fastest growing quick-service restaurant chain in the country. Since its founding in 1964, BLIMPIE has sold hundreds of millions of sandwiches.

CONTACT: Kirshenbaum & Bond

Janina Lieberson

212/337-4542

or

BLIMPIE International

Joseph Morgan

800/447-6258

or

Dunkin' Donuts

Bill Chiccarelli

617/961-4020 x2223