Big Apple Bagels Ranks No. 1 in Category in Annual Franchise Rating

CHICAGO (December 22, 1999) -- 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 been informed by Entrepreneur magazine that its Big Apple Bagels® concept will be ranked No. 1 in its category in its April issue.

The Company's Big Apple Bagels® concept was listed in the just-released January 2000 issue of Entrepreneur as one of the 500 best franchises in the United States and Canada. The list is designed to help readers identify top Franchise Opportunities available. The companies are rated based on objective, quantifiable data which is then put through a verification process by the magazine. Subjective elements that are often used in other such listings are not measured. For this reason the "Franchise 500" is considered by many to be the best and most comprehensive ranking of franchise concepts.

Factors considered in the ranking process include-- but are not limited to--franchise companies' financial strength and stability, growth rate, size of system, length of time franchising, start-up costs, litigation history, percentage of franchise terminations, and financing available to franchisees. Financial data, as supplied within each company's Uniform Franchise Offering Circulars, was audited by an independent CPA firm.

"We are honored to be recognized as `best of category' in Entrepreneur's Franchise 500," states Michael W. Evans, President and Chief Executive Officer of BAB Holdings, Inc. "It is a testament to the excellence of our product and commitment to our core business of Franchising and licensing. Consistent with our 'back to basics' strategy, all efforts are focused upon delivering competitive advantage to our franchisees. This approach maximizes the Company's profitability while enhancing the value of our brands. This benefits both BAB and its franchisees, and represents the best in successful franchising."

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, and Peru.

For franchise information visit Big Apple Bagels on BISON.