Rocky Mountain Chocolate Factory and Cold Stone Creamery to Extend Co-Branding Option to Several Hundred Stores

Rocky Mountain Chocolate Factory, Inc. (NASDAQ Global Market: RMCF), which franchises gourmet chocolate and confection stores and manufactures an extensive line of premium chocolates and other confectionery products, and Cold Stone Creamery, which franchises super-premium ice cream stores, today announced the expansion of the companies' co-branding option to several hundred stores nationwide based on the double-digit sales gains posted by the test stores, to date.

Under the terms of an agreement that was announced in October 2008, the two companies agreed to operate a limited number of franchised stores that were co-branded with both the Rocky Mountain Chocolate Factory and the Cold Stone Creamery brands. The Rocky Mountain Chocolate Factory concept was integrated into four Cold Stone Creamery stores and the co-branded locations have been operating for the past several months. Based on the double-digit sales gains posted by these co-branded stores, the two companies have decided to extend and expand their co-branding agreement beyond the 'test' stage.

'We have been very pleased with the performance of the four test stores, each of which has enjoyed a significant increase in same-store sales following the introduction of the co-branding concept,' stated Bryan Merryman, Chief Operating Officer of Rocky Mountain Chocolate Factory, Inc. 'This was particularly encouraging in light of the fact that the tests were conducted during the seasonally slow winter months for Cold Stone Creamery retail locations.'

'While several more stores are scheduled to participate in the market test, the impressive performance of test stores, to date, has prompted Rocky Mountain Chocolate Factory and Cold Stone Creamery management teams to agree to accelerate the number of stores that will be converted to the co-branded concept over the next 12 months,' added Merryman. 'Cold Stone Creamery franchisees operate nearly 1,400 stores in the U.S., and we believe several hundred could be candidates for co-branding over the next few years.'

'The two concepts are highly complementary in terms of reputation, brand awareness and seasonality, and together create the ultimate dessert destination, which has resulted in double-digit sales increases at co-branded stores,' said Dan Beem, President of Cold Stone Creamery. 'We see tremendous potential for an extensive co-branding agreement moving forward and literally hundreds of our franchisees have expressed interest in being involved.'

Logos, product and company names mentioned are the property of their respective owners.

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