Bruegger's Announces Expansion In Alabama And North Carolina

Signs development agreement with two new franchise groups in two new markets

BURLINGTON, VT (Wednesday, June 08, 2005) - Bruegger's Enterprises, Inc. today announced that it has signed new agreements with two new franchise groups to develop thirteen Bruegger's bakery-cafés in new markets. Under the new development agreements, nine bakery-cafés will be developed in North Carolina with an additional four bakery-cafés in Alabama. The first unit will open in Huntsville, Alabama by year end 2005.

Bama Bagels, led by principals John Greco, M.D., and Joseph Greco, plan to develop a total of four Bruegger's bakery-cafés in the Huntsville, Alabama area by year end 2008. The group plans to build the first two units in Huntsville and site selection for the additional units are underway.

Bagel Boys of the Triad, led by principals Craig Hunter, Guy Hunter and Ralph Heckman, plan to develop nine Bruegger's bakery-cafes in Forsyth County, Alamance County, the city of High Point and Greensboro, North Carolina. The first unit is scheduled for year end 2005 and a projected completion date of May 2009 for all nine units.

"The signing of both new franchise organizations signifies continued growth in our franchising program," said Bruegger's CEO James Greco. "Both groups plan to establish bakery-cafes in new markets, and their first-hand knowledge of the local area will be an integral part of bringing the Bruegger's experience to these areas."

"It's an exciting time to be the first Bruegger's in Alabama," said Dr. John Greco, principal, Bama Bagels. "Bruegger's has great brand awareness in the markets where they operate and is recognized for its healthy and wholesome menu. We're looking forward to establishing Bruegger's as a leader in the quick, casual dining segment in Alabama."

Bagel Boys principal Craig Hunter also added that strong brand recognition in the North Carolina market is what secured his interest to become a franchisee. "Bruegger's is widely recognized in the North Carolina market as a leader," said Hunter. "Because Bruegger's has existing locations in the Charlotte and Raleigh-Durham areas, the Triad region made perfect sense. We're looking forward to developing this market."

Bruegger's recently completed a relaunch of its brand with newly designed bakeries and an expanded menu offering guests more dining options. Based on its market analysis, Bruegger's has developed a three-year growth plan that forecasts development of approximately 100 new Bruegger's bakeries between 2005 and year-end 2007, consisting of approximately 15 new company-owned locations and approximately 85 new franchised locations. Bruegger's is currently seeking qualified franchise partners in select U.S. markets.

About Bruegger's Enterprises, Inc.
Bruegger's Enterprises, Inc., an affiliate of Sun Capital Partners, Inc., is a leader in the quick, casual restaurant segment with 245 neighborhood bakery-cafes in 17 states. Bruegger's menu features a wide variety of authentic boiled and baked bagels, fresh-made salads, carb-friendly wraps, stone hearth breads, hearty soups, specialty and deli made sandwiches, desserts, unique coffee blends and original cream cheese in an assortment of flavors. Founded in 1983, Bruegger's is headquartered in Burlington, Vermont. For more information, please visit www.brueggers.com

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