Wells' Dairy, Weight Watchers in Agreement

Weight Watchers International Inc. and Wells' Dairy have entered into an exclusive licensing agreement commencing October 1, 2004. Under this agreement, Wells' Dairy will be the exclusive marketer, producer and distributor of the extensive line of frozen novelties and ice cream under the Weight Watchers brand.

"This is a unique opportunity for Wells' Dairy, bringing together two organizations that have proven success in the development of Better-For-You products," said Gary Wells, chief executive of Wells' Dairy Inc. "Wells' Dairy is known for making quality ice cream products nationwide, and we believe this expertise will help build upon the success of ice cream and frozen novelties offered under the Weight Watchers brand."

Commenting on the licensing agreement, Steve Marlowe, general manager of licensing for Weight Watchers, said, "Wells' Dairy is a terrific partner to help continue to build the Weight Watchers extensive line of frozen novelties and ice cream. Weight-conscious consumers continue to demand healthy and good tasting frozen treats. We believe the trusted Weight Watchers brand in combination with Wells' high-quality products will garner a high level of consumer appeal and satisfaction."

In related news, CoolBrands International Inc. announced that, as a result of the inability of Weight Watchers International and CoolBrands to conclude an extension of their existing license agreement on mutually agreeable terms, the license agreement will end on September 28, 2004. CoolBrands has the right to continue to market Smart Ones frozen desserts using the Weight Watchers name on its packaging for approximately the next one year and two months until September 28, 2005. Thereafter, the company intends to continue marketing its line of lowfat and fat-free "better for you" frozen desserts under an alternative brand licensing arrangement currently under discussion.