October 2002

Wetzel's Pretzels Reports 7.1% Increase in October Same-store Sales and Announces Two New Multi-brand Stores in Colorado Mills

PASADENA, CA -- Wetzel's Pretzels reported that domestic system-wide comparable store sales rose 7.1 percent in the four week period ending October 27, 2002. Rick Wetzel, President and co-founder said, "This increase continues a trend established in September when same-store sales were up 4.4 percent versus year ago. We believe this trend in same-store sales is the result of our efforts this year to position Wetzel's Pretzels into a new super-premium segment within the soft pretzel category. We're obviously very pleased with the results of this initiative." Separately, the company announced the opening this week of two new multi-brand stores at Colorado Mills in Golden, Colorado. In addition to a full line of Wetzel's Pretzels products, these stores will feature Hot Dog on a Stick and Muscle Beach Lemonade branded products. These are the first two multi-brand stores opened under a trademark license agreement with HDOS Enterprises that allows Wetzel's Pretzels stores to offer Hot Dog on a Stick brand items in the 39 states east of the Rockies. Rick Wetzel said, "Multi-branding is one of the hottest trends in food retailing today and, with this agreement, we're able to team together with HDOS to create stores with the potential for higher volume and better unit economics." A total of seven multi-brand stores are scheduled to open in the next ninety days and up to 20 more are planned for 2003.

Corporate Profile

Wetzel's Pretzels LLC is a privately held company operating over 200 company, franchise and licensed units throughout the United States, Australia, Canada, Dominican Republic and Puerto Rico. The brand's commitment to offering unique pretzel flavors with a '30-minute freshness guarantee' has vaulted Wetzel's Pretzels to become the unparalleled leader of the super-premium soft pretzel category. Operating predominately in enclosed malls and other high traffic venues, Wetzel's Pretzels competes with other 'grab-n-go' snack food operators including Cinnabon, Auntie Anne's, Mrs. Fields, Haagen-Dazs and Orange Julius.

For further information regarding Wetzel's Pretzels, please contact Janice Callado of Morgan Marketing & Public Relations at (949) 261-2216, on email janice@morganmaketingpr.com or click on www.wetzels.com