BAB Holdings, Inc. Signs Master franchise Agreement for United Arab Emirates

CHICAGO (October 7, 1999) -- BAB Holdings, Inc., the Chicago-based operator, franchisor, and licensor of Big Apple Bagels®, My Favorite Muffin®, and Brewster's Coffee® today announced that an agreement has been signed with the Al Shamsi Group of the United Arab Emirates. Under this agreement, the Al Shamsi Group will act as master franchisee of Big Apple Bagels® tri-branded bagel bakery/cafe's throughout the UAE.

Initial development is expected to start in Dubai, with an anticipated opening of a first location during the first quarter of 2000. Shortly thereafter, expansion is anticipated in Abu Dabi and other cities within the United Arab Emirates.

The Al Shamsi Group, headed by Yousuf Ahmed Al Shamsi, is a diversified conglomerate of manufacturing, trading, and service sector businesses. "We are excited to expand our presence in the Middle East," states BAB Holdings, Inc. Chief Executive Officer Michael W. Evans. "The Al Shamsi Group is an ideal partner. They bring vast knowledge and significant resources to their role as master franchisee. We look forward to continued growth in the Middle East and throughout the world."

BAB Holdings, Inc. operates, franchises, and licenses Big Apple Bagels®, My Favorite Muffin®, and Brewster's® Coffee and currently has units in 32 states, two Canadian provinces, and Peru. In February of this year it acquired the assets of Jacobs Bros., a Chicago based bagel bakery chain, including eight stores and a central commissary facility. The Company has licensing agreements with Host Marriott, Mrs. Fields Cookies, Beatrice Group, Inc., a division of ConAgra, Oberweis Dairy and and Alonti Deli.

For Franchise information visit Big Apple Bagels on BISON.