Delicious Brands Inc. Appoints Thomas Guinan, President And CEO.

DES PLAINES, Ill.--(BUSINESS WIRE)--Sept. 28, 1999--

Announces The Completion of a $5.25 Million Financing

Delicious Brands, Inc. (NASDAQ: DBSI) (the "Company") today announced the appointment of Thomas Guinan as President and Chief Executive Officer, and his election to the Company's Board of Directors. Mr. Guinan replaces Michael Kirby, who is no longer employed by the Company.

The Company also announced that it has raised $5.25 million in a private convertible debt financing from two of its larger shareholders. The debt will be convertible into shares of common stock, at the conversion price of $5.00 a share, upon NASDAQ's approval of the listing of these shares.

The appointment of Mr. Guinan as President/CEO and the completion of the $5.25 million convertible debt financing are part of a strategic plan to expand the Company's market presence, which will also include the national roll-out of its Frookie(R) line as an all-natural, premium product, using organic ingredients, as well as the introduction of other new products, and the upgrading of its distribution network. In addition, the Company has implemented a series of cost control measures, which it anticipates may reduce operating expenses.

Mr. Guinan has over thirty years of experience in turning around and managing premium branded food companies. Mr. Guinan was co-founder and Partner of Blazek Associates, which provides consulting and acquisition intermediary services to equity funds. In addition, Mr. Guinan provided consulting services to SMS Brands, and served on it's advisory board, where he worked closely on the acquisitions of YoFarm Yogurt and Lemon Chill. In addition, Mr. Guinan served as the interim CEO and Director of both the Cape Cod Potato Chip Company, which was recently sold to Lance Foods, Inc. (NASDAQ: LNCE), and the Frozfruit Company, and was also previously affiliated with the Stolberg Partners food fund. Mr. Guinan previously held executive and/or senior management positions at the Pinkerton Group, Alberto Culver, PET Inc., Lipton/Unilever, and General Foods.

Don Schmitt, the Chairman of Delicious commented, "We are very enthusiastic about the appointment of Tom Guinan as our new president and CEO. I believe that Tom's thirty years of successful executive managerial experience in building brand name products, will be a major factor in helping to achieve maximum returns for our shareholders."

Mr. Guinan commented, " I am excited about the opportunity of establishing Delicious Brands as a major developer and marketer of brand name cookies, crackers and other snack foods. With our existing line of premium branded products, along with meaningful improvements in our distribution network, and recently completed financing, we will capitalize on our established consumer base in the Mid-West and Company-owned Direct Store Delivery (DSD) systems in order to establish Frookies(R) as a prominent all-organic product line during the next year."

Delicious Brands, Inc. markets branded cookie and cracker products. Its list of established, proprietary brand names includes Salerno(R), Delicious(R) and Mama's(R). Another of the Company's brand names is Frookies(R), an all-natural product line made with organic ingredients, a food category of rapidly increasing interest among American consumers. During 1998 sales of foods labeled "natural" or "organic" reached approximately $17 billion, and have been growing at a rate of more than 20% per year since 1992.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty including, without limitations, the ability of the Company to market and develop its products. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved.