Big City Bagels Reports Fourth Quarter and Year End Results.

HICKSVILLE, N.Y.--(BUSINESS WIRE)--March 31, 1998--Big City Bagels, Inc., (NASDAQ:BIGC) announced today results for its fourth quarter and year ended Dec. 31, 1997.

Revenues for the year ended Dec. 31, 1997 were $2,746,029, a 14% increase over revenues of $2,414,976 reported for the year ended Dec. 31, 1996. Net loss for the year ended Dec. 31, 1997 was ($3,543,066), or ($0.67) per share, compared to ($2,537,451), or ($0.61) per share, reported for the year ended Dec. 31, 1996. There were 5,326,327 and 4,174,061 weighted average common shares outstanding for the years ended Dec. 31, 1997 and 1996, respectively.

Revenues for the quarter ended Dec. 31, 1997 totaled $645,963, a 3.2% decrease over revenues of $667,341 reported for the fourth quarter of 1996. The company reported a net loss of ($1,543,580), or ($0.25) per share, for the quarter ended Dec. 31, 1997, compared with a net loss of ($725,195), or ($0.15) per share, for the fourth quarter of 1996. There were 6,102,705 and 4,891,767 weighted average common shares outstanding for the quarters ended Dec. 31, 1997 and 1996, respectively.

Mark Weinreb, Chairman and Chief Executive Officer of Big City Bagels, commenting on the financial results said, "We are pleased with the growth in revenues for the third consecutive year. This year's growth was primarily attributable to store and commissary product sales, as well as royalty income. During the year our wholesale business increased and we became the exclusive supplier of bagels to Northwest Airlines on certain domestic flights."

Weinreb added, "This year we are introducing stores with a new design and an expanded concept to further differentiate us from other bagel chains. Our new and expanded menu includes gourmet sandwiches, soups, salads and a new selection of fresh baked breads." He continued, "We recently entered the New York City market with the acquisition of Bagel and Bean, a bagel/deli store. We plan to change the name of this store to Big City Bagels and Deli and redesign the store to conform with our new concept. Current plans call for the opening of a second location in New York City near Grand Central Station. These urban stores allow us to take advantage of increased sales through office catering and corporate accounts and will enable us to open small satellite locations. Additionally, two franchise stores have opened this year with two more opening in April."

Big City Bagels, operates and franchises upscale bagel/deli cafes specializing in oversized, fresh-baked bagels, gourmet sandwiches, soups, salads, fresh baked breads and other breakfast and lunch products. Currently, there are 18 stores in operation and the company has sold 16 additional franchises. The company also provides bagels to numerous restaurants, airlines, hotel chains and hospitals. -0-

This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. Such risks and uncertainties are described in the company's filings with the SEC, including the company's prospectus, dated July 9, 1997.

This release is available on the KCSA Worldwide website at www.kcsa.com. -0-

                        BIG CITY BAGELS, INC.
                         FINANCIAL HIGHLIGHTS

                                          Three Months Ended
                                             December 31,
                                             (Unaudited)
                                         1997            1996

Revenues                            $   645,963    $   667,341
Net loss                            $(1,543,580)   $  (725,195)
Basic and diluted loss per
  common share                      $     (0.25)   $     (0.15)
Weighted average number of
  common shares outstanding           6,102,705      4,891,767

                                              Year Ended
                                             December 31,
                                              (Audited)
                                         1997            1996

Revenues                            $ 2,746,029    $ 2,414,976
Net loss                            $(3,543,066)   $(2,537,451)
Basic and diluted loss per
  common share                      $     (0.67)   $     (0.61)
Weighted average number of
  common shares outstanding           5,326,327      4,174,061

CONTACT: Big City Bagels Inc., Hicksville

Mark Weinreb, 516/932-5050

or

KCSA, New York

Joseph A. Mansi/Jeff Corbin

212/682-6300, ext 205/214