Friendly tender offer nearly complete.

Ice Cream Reporter, August, 2007

Friendly Ice Cream Corp. has announced that as of August 8, 2007, holders of about 89.7% of its outstanding 8-3/8% Senior Notes due 2012 had tendered notes and delivered consents in connection with the company's tender offer and consent solicitation announced on July 26, 2007. The tender offer is scheduled to expire on August 22, 2007.

The price to be paid for each $1,000 principal amount of notes tendered and accepted for payment would be $1,032.45, plus accrued and unpaid interest to the payment date. In addition, holders who delivered consents on or before August 8, 2007, received a consent fee of $30 per $1,000 principal amount of Notes, for a total consideration (excluding accrued and unpaid interest) of $1,062.45 per $1,000 principal amount. The yield on

As previously announced, the tender offer is scheduled to expire at midnight, New York City time, on August 22, 2007, unless extended by the Company. As of the expiration of the consent period at 5:00 P.M., New York City time, on August 8, 2007, tendered Notes could no longer be withdrawn.

On June 17, 2007, the company entered into an agreement and plan of merger by and among the company, Freeze Operations Holding Corp. and Freeze Operations Inc., a subsidiary of the parent or "Merger Sub", under which, Merger Sub will merge with and into the company. The completion of the tender offer and the consent solicitation is not a condition to the consummation of the merger. Barclays Capital Inc. is the Dealer Manager and Solicitation Agent for the tender offer and consent solicitation.

Friendly also announced financial results for :he second quarter and six months ended July I, 2007. Highlights for the second quarter included an increase in net revenues increased of $0.7 million, or 0.5%, to $142.2 million. Comparable restaurant sales were relatively flat for company-operated restaurants, decreasing 0.3%. Franchised restaurants comparable sales decreased 2.7%. The net loss was $0.04 met share versus net income of $0.58 in the prior year second quarter.

The net loss for the first six months of 2007 was $6.2 million, or $0.77 per share, compared to net income of $2.8 million, or $0.35 per share, reported for the first six months of 2006. The net loss for the first six months of 2006 included $3.3 million, or $0.41 per share, in net income from discontinued operations. Total revenues in the first six months of 2007 were $264.5 million compared to total revenues of $267.2 million for the first six months of 2006. Year-to-date, comparable restaurant sales decreased 2.1% for company-operated restaurants and 3.7% for franchised restaurants.