Cold Stone Creamery to Open First Japan Store; Franchisor Taking 'The Ultimate Ice Cream Experience' Overseas.

SCOTTSDALE, Ariz. -- Cold Stone Creamery(R), the fastest-growing ice cream franchise in the United States, has announced plans to open its first store in Tokyo. Alongside the company's strategic partner KIACON, Cold Stone Creamery's first franchise is slated to open during the fall of 2005.

"When our vision is the world knowing us as 'The Ultimate Ice Cream Experience,' it's imperative that we grow beyond the U.S. borders," said Doug Ducey, Cold Stone Creamery chairman & CEO. "We are very pleased to have KIACON as our partner, and look forward to making every day a great day for ice cream for the ice cream lovers of Japan."

To carry out the company's international expansion in Japan, Cold Stone has partnered with Lawrence Maltz, chairman of Borderless Investment Group Inc., to form Cold Stone Creamery Japan. Maltz was the original COO of Starbucks Coffee Co., and has considerable experience introducing American brands in Asia. After retirement from Starbucks, Borderless Investment Group facilitated Starbucks' entry into the Asia Pacific region. Maltz founded and was chairman of the first Starbucks Co. in China and Krispy Kreme in Australia/New Zealand. Additionally, Maltz was involved in the first Kinko's operation in China.

KIACON, who specializes in international retail expansion, will be Cold Stone Creamery's partner for Japan, as well as oversee and manage store operations. "We are very proud to be Cold Stone Creamery's first international partner," said Takashi Sawada, KIACON president and CEO, and newly appointed Cold Stone Creamery Japan chairman & CEO. "We look forward to the successful launch of our first store and we are confident that we will experience continued success as we further expand 'The Ultimate Ice Cream Experience' throughout Japan."

This Creamery milestone reflects the company's aggressive growth plan and the execution of the company's mission to make people happy by selling the world's highest-quality, most creative ice cream experience to the American consumer and worldwide. The company's proven formula is a key contributor to a bite out of the $20.5 billion ice cream industry. Boasting a $405,000 annualized average unit volume, the highest of any super-premium ice cream concept, Cold Stone Creamery 2004 systemwide revenues exceeded $283 million, up 86 percent from $152 million in 2003.

About KIACON

KIACON is a private equity investment company specializing in the growth and turnaround of the retail and distribution industry in Japan. By leveraging our global network, KIACON supports the presence of international businesses in Japan, as well as providing the global channels for Japanese businesses. KIACON also supports the development of a global sourcing and manufacturing network. KIACON develops the critical strategies, and formulates the action plans that achieve optimum performance, and gain the support of the business community and the customers.

About Cold Stone Creamery

Cold Stone Creamery aims to deliver "The Ultimate Ice Cream Experience(R)," and this vision is carried through by a community of franchisees passionate about ice cream. The secret recipe for smooth and creamy ice cream is handcrafted fresh daily in each store, and then customized by combining a variety of mix-ins on a frozen granite stone. With more than 1,000 stores from coast to coast, Cold Stone Creamery currently operates in 47 states including Alaska, Hawaii, the Caribbean and Guam. Cold Stone Creamery is an independently owned franchise system, headquartered in Scottsdale, Ariz. For more information about Cold Stone Creamery, visit the company's Web site at www.coldstonecreamery.com.