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ESKIMO PIE CORPORATION ADOPTS SHAREHOLDER RIGHTS PLAN

 RICHMOND, Va., Jan. 21 /PRNewswire/ -- The Board of Directors of Eskimo Pie Corporation (NASDAQ-NMS: EPIE) today adopted a shareholder rights plan designed to protect its shareholders from attempts to acquire control of Eskimo at an inadequate price and from other coercive takeover tactics.
 The plan provides for the distribution of a dividend of one right to purchase preferred stock for each outstanding share of the company's common stock. The dividend will be distributed on February 5, 1993, to shareholders of record as of the close of business on such date. The rights will expire on January 21, 2003, unless earlier redeemed or exchanged by the Company.
 David V. Clark, chairman, president and chief executive officer, said, "The plan is being adopted after careful deliberation to promote the Board's ability to protect the interests of the Company's shareholders, and not in response to any specific attempt to acquire control of the Company. The Company is not aware of any such attempt. More than 1,000 companies have adopted similar rights plans. The plan will not prevent the Board from receiving and considering an offer to acquire the Company if the Board concludes that the offer is in the best interest of the shareholders."
 Shareholders of the Company will receive a letter summarizing the details of the plan. Each right will entitle a shareholder to buy one unit of a newly authorized series of preferred stock at an exercise price of $75.00. Each unit is structured to be the economic equivalent of one share of common stock. The rights will be exercisable only if a person or group acquires, or announces a tender offer for, 20 percent or more of the Company's common stock.
 If a person or group acquires 30 percent or more of the Company's common stock or engages in a transaction with the Company in which the Company's common stock is not exchanged, each right will entitle its holder (other than the acquiring person) to purchase at the exercise price preferred stock or, at the option of the Company, common stock having a market value equal to twice the exercise price of the rights.
 If the Company is acquired in a merger or other transaction in which its common stock is exchanged, or if 50 percent of its earnings power or assets is sold in a single transaction or series of transactions, each right will entitle its holder (other than the acquiring person) to purchase at the exercise price securities of the surviving company having a market value equal to twice the exercise price of the rights.
 After a person or group acquires 20 percent or more of the Company's common stock, the company has the option of issuing 1.5 shares of common stock in exchange for and cancellation of each outstanding right (other than rights held by the acquiring person).
 The rights may be redeemed in the discretion of the Board of Directors at any time before announcement that a person or group has acquired 20 percent or more of the Company's common stock and for 10 days after such announcement; such 10-day period may be extended under certain circumstances by the Board.
 Headquartered in Richmond, Eskimo markets branded frozen novelties, including its ESKIMO PIE line of products, through a national network of licensed manufacturers.
 -0- 1/21/93
 /CONTACT: James L. Cheatham of Eskimo Pie Corp., 804-287-5359/
 (EPIE)


CO: Eskimo Pie Corporation ST: Virginia IN: FOD SU: SRP

CM -- CH011 -- 7581 01/21/93 15:56 EST
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Publication:PR Newswire
Date:Jan 21, 1993
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