Friendly Ice Cream Names new Chief Executive Officer

Friendly Ice Cream Corporation, New England's largest full service Restaurant chain and the market share leader for retail sales of premium ice cream products, today announced the appointment of John L. Cutter as Chief Executive Officer and President. He succeeds Donald N. Smith who will continue to serve as chairman of Friendly's Board of Directors.

Cutter, 58, who has vast experience in restaurant, corporate and financial management has served as Friendly's President and Chief Operations Officer since 1999.

"We are pleased to promote John as the new leader of Friendly Ice Cream Corporation," said Donald N. Smith, who is also one of the company's largest shareholders. "As an industry veteran who has successfully led operational, marketing and financial initiatives on behalf of the company and its franchisees, John exhibits a number of critical strengths that will enable Friendly's to continue to capitalize on industry trends and grow profitably."

Said Cutter, "I am delighted to have the opportunity to continue to execute the vision and operating philosophy for Friendly's great concept and strong brand. The Company has assembled a strong executive team, which has delivered sales and profit growth, along with improved operational and guest service performance. I am confident that we have the platform to achieve outstanding profitability and sustained earnings growth."

Prior to joining Friendly's, Cutter served as Chief Operating Officer at Boston Chicken, Inc. from 1997 through October 1998. From 1993 through 1997, he served as Chief Executive Officer and President of Boston Chicken Golden Gate, LLC, a franchisee of Boston Chicken, Inc. From 1991 through 1993, Mr. Cutter held the position of President and Chief Operating Officer for Nanco Restaurants, Inc. Prior to 1991, Mr. Cutter held the position of Group President at Saga Corporation/American Restaurant Group, Inc.

Separately, the Company also announced the promotion of Paul V. Hoagland to the newly created position of Executive Vice President of Administration. Hoagland will report directly to Cutter and will continue to serve as the Company's Chief Financial Officer. The Company's manufacturing, distribution and purchasing departments will also report to Hoagland.

"Based on Paul's broad executive background covering finance and operations in the restaurant and consumer product/manufacturing industries, he has provided Friendly's with strong business acumen and financial discipline and is a true complement to our CEO, John Cutter", said Smith.

Friendly Ice Cream Corporation is a vertically integrated restaurant company serving signature sandwiches, entrees and ice cream desserts in a friendly, family environment in 550 company and franchised restaurants throughout the Northeast. The company also manufactures ice cream, which is distributed through more than 3,500 supermarkets and other retail locations. With a 68-year operating history, Friendly's enjoys strong brand recognition and is currently revitalizing its restaurants and introducing new products to grow its customer base.