Big Apple Bagels Opens in Egypt

BAB Holdings, Inc., the Chicago-based operator, franchisor, and licensor of Big Apple Bagels®, My Favorite Muffin®, and Brewsters® Coffee, announced today that it has opened its first location in Cairo under a Master franchise agreement with Egypt's Franchises Co. S.A.E. to open tri-branded Big Apple Bagels retail locations in Egypt. Ten additional locations are to open under a multi-year development plan. "We view the opening of our first location in Egypt as a significant step in our international expansion plans" states Michael W. Evans, BAB Holdings, Inc. President and Chief Executive Officer. "With the recent signing of a master Franchise agreement with a developer in the United Arab Emirates, we believe that the Middle East will provide significant opportunity for growth."

Egypt's franchise Co. S.A.E., is among multiple holdings of Dr. Omar Sayed Alahl. Egypt's Franchise Co., S.A.E. holds the exclusive rights to open Big Apple Bagels® retail units in Egypt. States Director of Operations Haitham M. El-Magraby "We believe that there is terrific opportunity for expanding the Big Apple Bagels® concept throughout Egypt. We have the opportunity to be an early player in a market that is clearly receptive to western retail food concepts."

The Company also announced the appointment of Owen Stern to the position of Vice President- International Development. Mr. Stern is the founder of My Favorite Muffin®, a premium muffin cafe chain which was acquired by BAB Holdings, Inc. in 1997. Mr. Stern previously held the post of Vice President of Product Development for BAB Holdings, Inc. "The appointment of Owen Stern to Vice President- International Development reflects our commitment to international expansion" states Evans.

BAB Holdings, Inc. operates, franchises, and licenses Big Apple Bagels®, My Favorite Muffin®, and Brewster's® Coffee and currently has units in 28 states, two Canadian provinces, Peru and Egypt. It has master franchise agreements for South Korea and the United Arab Emirates. It owns Jacobs Bros. Bagels, a Chicago based bagel bakery chain. The Company has licensing agreements with Host Marriott, Mrs. Fields Cookies, Beatrice Group, Inc., a division of ConAgra and Alonti Deli.