Big Apple Bagels Singled Out as Best of the Best in Entrepreneur's Top 137 Franchises.

CHICAGO--(BUSINESS WIRE)--Feb. 24, 1999--BAB Holdings, Inc. (Nasdaq: BAGL), the Chicago-based operator and franchisor of Big Apple Bagels, My Favorite Muffin, and Brewster's Coffee concept stores, announced today that its Big Apple Bagels concept has been distinguished on Entrepreneur magazine's listing of the "137 Top Franchises for 1999." Big Apple Bagels was named Best of the Best in the bagel category.

The listing which is contained within the March issue, was designed to highlight the best of the best in each franchise category. It was derived by reducing its 1999 "Franchise 500" to the top franchises in each of the 137 categories ranked. These listings are designed to help the reader identify top franchise opportunities available. The companies are rated based on objective, quantifiable data which is then put through a verification process by the magazine. Financial data as supplied within each company's Uniform Franchise Offering Circular, is audited by an independent CPA firm. Subjective elements that are often used in other such listings are not measured. For this reason Entrepreneur's ranking is considered by many to be the best and most comprehensive ranking of franchise concepts.

"We believe that this listing exemplifies our present position in the industry," noted Michael W. Evans, President and Chief Executive Officer of BAB Holdings. "The growth initiatives which have been implemented within our franchise offering have indeed singled us out as the category leader. We are committed to ongoing development of our concept in order to maintain the leadership standard we have set."

BAB Holdings, Inc. operates, franchises, and licenses Big Apple Bagels, My Favorite Muffin, and Brewster's Coffee concept stores and currently has units in 32 states, two Canadian provinces, and Peru. Recently 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, Oberweis Dairy, Miami Subs Corporation, Alonti Deli's and Choice Picks Food Courts. The Company's stock is traded on the Nasdaq Small-Cap market under the symbol "BAGL" 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.