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SKOLNIKS INC. CONTINUES TURNAROUND AND REORGANIZATION WITH NAMING OF NEW DIRECTORS AND APPOINTMENT OF CO-CHAIRMAN

 SKOLNIKS INC. CONTINUES TURNAROUND AND REORGANIZATION WITH
 NAMING OF NEW DIRECTORS AND APPOINTMENT OF CO-CHAIRMAN
 MOORESTOWN, N.J., Sept. 29 /PRNewswire/ -- Skolniks Inc. (NASDAQ: SKNS SKNSU SKNSP) parent company to Skolniks Bagel Bakery Restaurants, today announced completion of a major step in the reorganization plan of this company, with the naming of San Antonio investor/businessman William P. Williams and Oklahoma businessman Ronald Wigington to its board of directors.
 In addition to his board appointment, Williams was named co-chairman and chairman of the executive committee. The executive committee, made up of Williams, Wigington and Joe R. Love, will have total control over the day to day operations of the company. Love, former CEO of the company has resigned this position. President and COO James Kiser, who joined the company in his present capacity, from Marriott Corp. in January, has been given a full vote of confidence by the board, and his responsibilities increased. The final step in the reorganization will be completed at the company's annual shareholders meeting in November when the new slate of directors, who will be nominated by the executive committee will be affirmed by shareholders vote. Assuming his expected election to the board by shareholders, Williams will then become sole chairman.
 Williams, president of San Antonio based Shelton Financial Inc., who prior to March of this year was not familiar with Skolniks, last month disclosed through an SEC filing that he owned in excess of 17 percent of the company's voting shares and warrants. These were acquired through a series of both public and private transactions. This made him, by far, the largest shareholder of the company. Wigington, president of American Trading & Investments, an Oklahoma City based securities firm who recently co-managed a $3.5 million secondary stock offering of the company's common stock, was asked by Williams to join him on the board.
 Skolniks, whose proprietary assortment of bagels and spreads was awarded, in August, "Best of Philly" by Philadelphia Magazine. Skolniks' bagels and spreads were selected through a blind taste test of 10 pre-selected bagel entrants, including a top New York bagel, by a panel of media judges. Skolniks' present chain of 40 company owned and franchised stores covering seven states has its heaviest concentrations in the Philadelphia and Chicago areas. The bagels, which are made in the company's Moorestown plant, until recently, have only been available to its restaurant outlets in raw frozen form. A recent upgrade of the facility has not only more than doubled the plant's production capacity, but also enables the company to deliver a pre-baked bagel of equal quality to the wholesale market.
 When asked why he has taken such a major interest in Skolniks, Williams stated, "Basically I loved the bagels and spreads. Let's face it. If you have a great proprietary product well received by the public, time tested over eight years, in a market growing at a double digit rate, a product which is relatively easy to produce in large quantities, you have to believe serious money can be made if the right team is behind it. While it has been necessary to develop our company owned stores in order to establish our product in the marketplace, I would be less than candid if I told you that this is where I felt the future of this company was. Wholesale distribution and franchising is where I want to see the company concentrate." Williams went on to say, "This company made some mistakes over the past three years, trying to concentrate on opening restaurants. The shareholders at the end of last year, were fortunate when Jim Kiser, formerly director of Northeast Restaurant Operations for Marriott Corp. joined Skolniks as president last January. This man has run successful restaurant operations all his life, and was brought in to turn around our existing operations. Considering the economy, he is doing an admirable job in getting rid of our unprofitable stores and improving our remaining stores. But early on he realized the future of this company was in capitalizing on our good name and rolling out our proprietary products nationwide through wholesale distribution."
 Continuing, Williams went on to say, "Thanks to the confidence of Skolniks investment bankers, underwriters, stockbrokers, shareholders, franchisees, employees and creditors, the company has been given a second chance. With the successful completion of an exchange offering of some $2.5 million of the company's convertible debentures and its $3.5 million secondary stock offering, the companies' balance sheet has been returned to very positive respectability with no expected need to return to the equity markets. This, even taking in the long expected $2 million plus loss for the year ended July 29, 1992. The cause of this loss was primarily due to the closing of some nine unprofitable stores and their associated lease reserves, the immediate expending of normally capitalized costs due to the success of our bond to equity exchange and other non-recurring charges. Our first quarter should see the company give or take a little from break even and then a major improvement, to record earnings per share levels by year end. Then if next year doesn't see at least a couple of dollars per share earnings, then I am not as smart as I thought I was. I have effectively given our President Jim Kiser the opportunity to do what is necessary to achieve this, which we both believe, is a realistic goal."
 When asked his feelings for the future of Skolniks, President Jim Kiser stated, "I couldn't be more excited. Bill Williams has told me the ball's in my court. I can honestly say that in my over 30 years in this industry, that I have never seen the potential opportunity that we presently have, particularly in the wholesale sector. While we were already making advances in our wholesale expansion, winning 'The Best of Philly' has caused an avalanche of requests for our products from major convenience store chains, restaurant chains and grocery store chains. It appears our growth will only be slowed by making sure our special quality remains high. Something that absolutely will happen. I have informed Bill Williams that the plant which is presently producing 3,000 cases a week will be up to 7,000 cases per week by the end of December and up to over 20,000 cases per week by mid next summer. After this we will be prepared to open regional facilities and go nationwide."
 Kiser went on to say, "The beauty of this national exposure is that it will expand the reputation of our restaurant chain, which has been solely responsible putting us in the position we are today to achieve this national recognition. While we do not plan on concentrating on opening company owned stores, we expect to accelerate the growth of our franchise operation on a national basis."
 -0- 9/29/92
 /CONTACT: Bill Williams, co-chairman of Skolniks Inc., 512-490-0091/
 (SKNS) CO: Skolniks Inc. ST: New Jersey IN: LEI SU:


TS -- NY026 -- 4271 09/29/92 09:59 EDT
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Date:Sep 29, 1992
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