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<p ALIGN="CENTER"><b>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</b> </p>

<p ALIGN="CENTER"><b>WASHINGTON, D.C. 20549</b> </p>

<p ALIGN="CENTER"><b>FORM 10-Q</b> </p>

<p>(Mark One) </p>

<p><u>X </u>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE </p>

<p>SECURITIES EXCHANGE ACT OF 1934 </p>

<p>For the quarterly period ended <u>August 29, 1999 </u></p>

<p>OR </p>

<p>__ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE </p>

<p>SECURITIES EXCHANGE ACT OF 1934 </p>

<p>For the transition period from to </p>

<p>Commission file number <u>1-10046 </u></p>

<p><u>TCBY ENTERPRISES, INC. </u></p>

<p>(Exact name or registrant as specified in its charter) </p>

<p><u>Delaware
                                          
                                          
                  71-0552115
<br>
</u>(State of other jurisdiction of
                                          
                               (I.R.S.
Employer <br>
incorporation or organization)
                                          
                              Identification
No.)<br>
</p>

<p><u>425 West Capitol Avenue
                             Little
Rock,
                                Arkansas
72201 </u><br>
(Address of principal executive offices)
                                          
                   (Zip
Code) </p>

<p><u>(501) 688-8229 </u><br>
(Registrant's telephone number, including area code) </p>

<p>Indicate by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 of the Securities Exchange Act of 1934 during the preceding 12 months,
(or for such shorter period that the registrant was required to file such reports) and (2)
has been subject to such filing requirements for the past 90 days. </p>

<p align="center">Yes <u>X </u>  No __ </p>

<p>On September 30, 1999 there were 22,887,174 shares of the registrant's common stock
outstanding. </p>

<p align="center"><font SIZE="3">Sequential Page No. 1</font> </p>

<p ALIGN="CENTER"><b>TABLE OF CONTENTS</b> </p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="620" height="628">
  <tr>
    <td WIDTH="108" ALIGN="LEFT" VALIGN="TOP" height="21"><b>PART I.</b></td>
    <td WIDTH="40" ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td WIDTH="399" ALIGN="LEFT" VALIGN="TOP" height="21"><b>FINANCIAL INFORMATION</b></td>
    <td WIDTH="30" ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td WIDTH="41" ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="CENTER" VALIGN="TOP" height="21">Page</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Item 1.</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Financial Statements (Unaudited)</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Consolidated Balance Sheets</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">August 29, 1999 and November 29, 1998</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="RIGHT" VALIGN="TOP" height="21">3</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Consolidated Statements of Operations</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Quarter ended and nine months ended</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">August 29, 1999 and August 30, 1998</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="RIGHT" VALIGN="TOP" height="21">5</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Consolidated Statements of Cash Flows</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Nine months ended August 29, 1999 and</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">August 30, 1998</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="RIGHT" VALIGN="TOP" height="21">6</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Notes to Consolidated Financial Statements</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">August 29, 1999</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="RIGHT" VALIGN="TOP" height="21">7</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Item 2.</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Management's Discussion and Analysis of
    Financial</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Condition and Results of Operations</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="RIGHT" VALIGN="TOP" height="21">10</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Item 3.</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Quantitative and Qualitative Disclosures About
    Market Risk</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="RIGHT" VALIGN="TOP" height="21">17</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"><b>PART II.</b></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"><b>OTHER INFORMATION</b></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Item 1.</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Legal Proceedings</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="RIGHT" VALIGN="TOP" height="21">18</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="19"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="19"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="19"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" height="19"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="19"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Item 6.</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">Exhibits and Reports on Form 8-K</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="RIGHT" VALIGN="TOP" height="21">18</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" height="21">SIGNATURES</td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" height="21"></td>
    <td ALIGN="RIGHT" VALIGN="TOP" height="21">19</td>
  </tr>
</TABLE>

<p align="center"><font SIZE="3">Sequential Page No. 2</font> </p>

<p ALIGN="CENTER"><font SIZE="3">PART 1</font> </p>

<p ALIGN="CENTER"><font SIZE="3">FINANCIAL INFORMATION</font> </p>

<p><font SIZE="3">ITEM 1 FINANCIAL STATEMENTS (UNAUDITED)</font> </p>

<p><font SIZE="3">TCBY ENTERPRISES, INC.</font> </p>

<p><font SIZE="3">CONSOLIDATED BALANCE SHEETS (UNAUDITED)</font> </p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="605"
style="border-bottom: medium none rgb(0,0,0)">
  <tr>
    <td WIDTH="338" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="9" ALIGN="left" VALIGN="top" style="border-bottom: thin solid"> </td>
    <td WIDTH="99" ALIGN="right" VALIGN="top" style="border-bottom: thin solid">
    <p align="center"><font SIZE="3">August 29,<br>
    1999</font></td>
    <td WIDTH="22" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="19" ALIGN="left" VALIGN="top" style="border-bottom: thin solid"> </td>
    <td WIDTH="106" ALIGN="right" VALIGN="top" style="border-bottom: thin solid">
    <p align="center"><font SIZE="3">November 29,<br>
    1998</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><b><font SIZE="3">ASSETS</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3"><b>CURRENT ASSETS</b>:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Cash and cash equivalents</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">14,212,229</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">16,924,143</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Short-term investments</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">4,121,535</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">2,967,135</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Receivables:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">    Trade accounts</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">15,306,165</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">10,078,733</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">    Notes</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">1,602,367</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">1,695,429</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">    Allowance for
    doubtful accounts </font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">
           and impaired notes</font></td>
    <td ALIGN="left" VALIGN="top" width="9" style="border-bottom: thin solid"> </td>
    <td ALIGN="right" VALIGN="top" width="99" style="border-bottom: thin solid"><font SIZE="3">(480,773)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="left" VALIGN="top" width="19" style="border-bottom: thin solid"> </td>
    <td ALIGN="right" VALIGN="top" width="106" style="border-bottom: thin solid"><font SIZE="3">(439,223)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">16,427,759</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">11,334,939</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Refundable income taxes</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">-</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">156,951</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Deferred income taxes</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">692,712</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">1,204,197</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Inventories</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">13,719,166</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">12,554,875</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Prepaid expenses and other
    assets</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">1,424,231</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">1,540,971</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Assets held for sale</font></td>
    <td ALIGN="left" VALIGN="top" width="9" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="99" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">150,000</font></td>
    <td ALIGN="left" VALIGN="top" width="22" style="border-bottom: thin none"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19" style="border-bottom: thin solid"> </td>
    <td ALIGN="right" VALIGN="top" width="106" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">150,000</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><b><font SIZE="3">    TOTAL
    CURRENT ASSETS</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">50,747,632</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">46,833,211</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3"><b>PROPERTY, PLANT, AND EQUIPMENT</b>:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Land</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">2,154,307</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">2,534,307</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Buildings</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">19,925,338</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">22,763,194</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Furniture, vehicles, and
    equipment</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">47,552,162</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">46,637,567</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Leasehold improvements</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">3,312,134</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">3,603,219</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Construction in progress</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">363,036</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">-</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Allowance for depreciation</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="99" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">(40,333,781)</font></td>
    <td ALIGN="left" VALIGN="top" width="22" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="106" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">(39,546,174)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><b><font SIZE="3">NET PROPERTY, PLANT, AND
    EQUIPMENT</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">32,973,196</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">35,992,113 </font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3"><b>OTHER ASSETS</b>:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Notes receivable, less
    current portion (less allowance</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">     for
    doubtful and impaired notes of $7,731,586 in</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">    1999and
    $8,029,658 in 1998)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">3,952,713</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">4,525,970</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Intangibles (less
    amortization of $2,013,150 in 1999</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">    and $2,226,511
    in 1998)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"><font SIZE="3">4,104,683</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"><font SIZE="3">4,250,684</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">  Other</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="99" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">3,593,496</font></td>
    <td ALIGN="left" VALIGN="top" width="22" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="106" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">2,850,906</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><b><font SIZE="3">     TOTAL
    OTHER ASSETS</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="99" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">11,650,892</font></td>
    <td ALIGN="left" VALIGN="top" width="22" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="106" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">11,627,560 </font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><b><font SIZE="3">     TOTAL
    ASSETS</font></b></td>
    <td ALIGN="left" VALIGN="top" width="9" style="border-bottom: medium double rgb(0,0,0)"><font  SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" width="99" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="3">95,371,720</font></td>
    <td ALIGN="left" VALIGN="top" width="22" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="left" VALIGN="top" width="19" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" width="106" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="3">94,452,884</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"></td>
    <td ALIGN="left" VALIGN="top" width="9"
    style="border-top: thin none rgb(0,0,0); border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" width="99"
    style="border-top: thin none rgb(0,0,0); border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="left" VALIGN="top" width="22"
    style="border-top: thin none rgb(0,0,0); border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="left" VALIGN="top" width="19"
    style="border-top: thin none rgb(0,0,0); border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" width="106"
    style="border-top: thin none rgb(0,0,0); border-bottom: thin none rgb(0,0,0)"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="338"><font SIZE="3">See notes to consolidated
    financial statements.</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="9"></td>
    <td ALIGN="right" VALIGN="top" width="99"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="22"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="19"></td>
    <td ALIGN="right" VALIGN="top" width="106"></td>
  </tr>
</TABLE>

<p align="center"><font SIZE="3">Sequential Page No. 3</font> </p>

<p>TCBY ENTERPRISES, INC. </p>

<p>CONSOLIDATED BALANCE SHEETS (UNAUDITED) </p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="601">
  <tr>
    <td WIDTH="332" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="15" ALIGN="LEFT" VALIGN="TOP" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="100" ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">
    <p align="center"><font SIZE="3">August 29,<br>
    1999</font></td>
    <td WIDTH="18" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="17" ALIGN="LEFT" VALIGN="TOP" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="107" ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">
    <p align="center"><font SIZE="3">November 29,<br>
    1998</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3"><b>LIABILITIES AND STOCKHOLDERS' </b></font><p><b><font SIZE="3">EQUITY</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3"><b>CURRENT LIABILITIES</b>:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">  Accounts payable</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" width="100"><font SIZE="3">3,654,904</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" width="107"><font SIZE="3">2,130,430</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">  Accrued expenses</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"><font SIZE="3">5,068,471</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"><font SIZE="3">6,682,371</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">  Income taxes payable</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"><font SIZE="3">539,885</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"><font SIZE="3">-</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">  Current portion of
    long-term debt</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="100" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">2,471,268</font></td>
    <td ALIGN="left" VALIGN="top" width="18" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="107" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">3,171,448</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><b><font SIZE="3">    TOTAL
    CURRENT LIABILITIES</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"><font SIZE="3">11,734,528</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"><font SIZE="3">11,984,249</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3"><b>LONG-TERM DEBT</b>, less
    current portion</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"><font SIZE="3">1,265,272</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"><font SIZE="3">2,952,634</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><b><font SIZE="3">DEFERRED INCOME TAXES</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"><font SIZE="3">3,302,747</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"><font SIZE="3">3,319,847</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><b><font SIZE="3">COMMITMENTS AND CONTINGENCIES</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><b><font SIZE="3">STOCKHOLDERS' EQUITY</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">  Preferred stock, par value
    $.10 per share; </font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">    authorized
    2,000,000 shares</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"><font SIZE="3">-</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"><font SIZE="3">-</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">  Common stock, par value
    $.10 per share;</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">    authorized
    50,000,000 shares; issued - </font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">  1999 - 27,908,646; 1998 -
    27,759,021</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"><font SIZE="3">2,790,865</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"><font SIZE="3">2,775,902</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">  Additional paid-in capital</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"><font SIZE="3">30,824,676</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"><font SIZE="3">30,098,602</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">  Retained earnings</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="100" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">77,989,487</font></td>
    <td ALIGN="left" VALIGN="top" width="18" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="107" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">74,751,431</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"><font SIZE="3">111,605,028</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"><font SIZE="3">107,625,935</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">  Less treasury stock, at
    cost (5,012,472 shares </font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">    in 1999 and
    4,839,952 shares in 1998)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="100" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">(32,535,855)</font></td>
    <td ALIGN="left" VALIGN="top" width="18" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="107" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">(31,429,781)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><b><font SIZE="3">    TOTAL
    STOCKHOLDERS' EQUITY</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="100" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">79,069,173</font></td>
    <td ALIGN="left" VALIGN="top" width="18" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" width="107" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">76,196,154</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><b><font SIZE="3">    TOTAL
    LIABILITIES AND </font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><b><font SIZE="3">
           STOCKHOLDERS' EQUITY</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" width="100" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="3">95,371,720</font></td>
    <td ALIGN="left" VALIGN="top" width="18" style="border-bottom: medium none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" width="107" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="3">94,452,884</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="332"><font SIZE="3">See notes to consolidated
    financial statements.</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="100"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="18"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="107"></td>
  </tr>
</TABLE>

<p align="center"><font SIZE="3">Sequential Page No. 4</font> </p>

<p><font SIZE="3">TCBY ENTERPRISES, INC.</font> </p>

<p><font SIZE="3">CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)</font> </p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="606">
  <tr>
    <td WIDTH="221" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="5" ALIGN="CENTER" VALIGN="TOP" width="185"><font SIZE="3">Quarter Ended</font></td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="5" ALIGN="CENTER" VALIGN="TOP" width="186"><font SIZE="3">Nine Months Ended</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td WIDTH="8" ALIGN="LEFT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"> </td>
    <td WIDTH="75" ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)">
    <p align="center"><font SIZE="3">August 29,<br>
    1999</font></td>
    <td WIDTH="16" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="11" ALIGN="LEFT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"> </td>
    <td WIDTH="75" ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)">
    <p align="center"><font SIZE="3">August 30,<br>
    1998</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="14"></td>
    <td WIDTH="11" ALIGN="LEFT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"> </td>
    <td WIDTH="77" ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)">
    <p align="center"><font SIZE="3">August 29,<br>
    1999</font></td>
    <td WIDTH="13" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="10" ALIGN="LEFT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"> </td>
    <td WIDTH="75" ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)">
    <p align="center"><font SIZE="3">August 30,<br>
    1998</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">Sales</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">30,019,442</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">28,791,737</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="TOP" width="77"><font SIZE="3">76,007,381</font></td>
    <td ALIGN="left" VALIGN="top" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">72,604,389</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">Cost of Sales</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)" width="8"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)" width="75"><font SIZE="3">21,569,040</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)" width="75"><font SIZE="3">18,765,675</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)" width="77"><font SIZE="3">53,762,114</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)" width="75"><font SIZE="3">48,197,198</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><b><font SIZE="3">    GROSS
    PROFIT</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">8,450,402</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">10,026,062</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"><font SIZE="3">22,245,267</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">24,407,191</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">Franchising revenues:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">  Initial franchise and
    license fees</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">414,375</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">490,986</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"><font SIZE="3">1,866,331</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">1,851,841</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">  Royalty income</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="8"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">3,182,511</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">3,585,705</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="77"><font SIZE="3">7,757,168</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">8,518,313</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="8"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">3,596,886</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">4,076,691</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="77"><font SIZE="3">9,623,499</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">10,370,154</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">12,047,288</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">14,102,753</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"><font SIZE="3">31,868,766</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">34,777,345</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">Selling, general, and</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">  administrative expenses</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="8"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">7,763,940</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">7,797,861</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="77"><font SIZE="3">22,206,308</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">22,421,305</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><b><font SIZE="3">    INCOME FROM
    </font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><b><font SIZE="3">
          OPERATIONS</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">4,283,348</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">6,304,892</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"><font SIZE="3">9,662,458</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">12,356,040</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">Other income (expense):</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">  Interest expense</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">(78,287)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">(128,220)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"><font SIZE="3">(261,102)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">(433,535)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">  Interest income</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">229,872</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">254,254</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"><font SIZE="3">662,039</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">872,021</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">  Other income</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="8"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">20,292</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">2,169,178</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="77"><font SIZE="3">198,272</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">2,273,085</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="8"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">171,877</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">2,295,212</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="77"><font SIZE="3">599,209</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">2,711,571</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><b><font SIZE="3">    INCOME
    BEFORE</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><b><font SIZE="3">
          INCOME TAXES</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">4,455,225</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">8,600,104</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"><font SIZE="3">10,261,667</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"><font SIZE="3">15,067,611</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">Income tax expense</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="8"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">1,559,328</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">2,924,037</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="77"><font SIZE="3">3,591,584</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">5,122,988</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><b><font SIZE="3">    NET INCOME</font></b></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="8"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">2,895,897</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">5,676,067</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="77"><font SIZE="3">6,670,083</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="10"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">9,944,623</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3"><b>Earnings per share</b>:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">  Basic</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="8"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">0.13</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">0.25</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="77"><font SIZE="3">0.29</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="10"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">0.43</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">  Diluted</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="8"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">0.13</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">0.24</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="77"><font SIZE="3">0.29</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="10"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">0.41</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><b><font SIZE="3">Weighted Average Shares</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3"><b>  Outstanding</b>:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">  Basic</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="8"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">22,896,175</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">23,130,874</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="77"><font SIZE="3">22,879,979</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">23,289,571</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><font SIZE="3">  Diluted</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="8"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">23,114,942</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">23,872,098</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="77"><font SIZE="3">23,223,795</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">24,064,802</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="8"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="right" VALIGN="TOP" width="77"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="75"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="221"><b><font SIZE="3">Cash Dividends Paid Per Share</font></b></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="8"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">0.05</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">0.05</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="11"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="77"><font SIZE="3">0.15</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="16"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="10"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">0.15</font></td>
  </tr>
</TABLE>

<p><font SIZE="3">See notes to consolidated financial statements.</font> </p>

<p align="center"><font SIZE="3">Sequential Page No. 5</font> </p>

<p><font SIZE="3">TCBY ENTERPRISES, INC.</font> </p>

<p><font SIZE="3">CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)</font> </p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="632">
  <tr>
    <td WIDTH="413" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="5" ALIGN="CENTER" VALIGN="TOP" width="219"><font SIZE="3">Nine Months Ended</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"></td>
    <td WIDTH="10" ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="76" ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">
    <p align="center"><font SIZE="3">August 29,<br>
    1999</font></td>
    <td WIDTH="11" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="108" ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">
    <p align="center"><font SIZE="3">August 30,<br>
    1998</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><b><font SIZE="3">OPERATING ACTIVITIES</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">Net income</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">6,670,083</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">9,944,623</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">Adjustments to reconcile net
    income to net</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">    cash provided
    by operating activities:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Depreciation</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">2,973,197</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">3,102,444</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Amortization of
    intangibles</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">186,686</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">196,214</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Provision for doubtful
    accounts and impaired notes</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">85,170</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">49,497</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Deferred income taxes </font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">494,385</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(372,083)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Tax benefit from stock
    options</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">-</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">760,000</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Loss (gain) on sales of
    property and equipment</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">55,687</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(2,140,740)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Changes in operating
    assets and liabilities:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">    Receivables</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">(5,274,622)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(5,514,077)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">    Inventories</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">(1,164,291)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(2,706,487)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">    Prepaid
    expenses</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">116,740</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">142,292</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">    Intangibles
    and other assets</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">(858,512)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(277,050)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">    Accounts
    payable and accrued expenses</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">(89,426)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(56,263)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">    Income taxes</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="76"><font SIZE="3">696,836</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="11"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="14"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="108"><font SIZE="3">1,891,907</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><b><font SIZE="3">    NET CASH
    PROVIDED BY OPERATING ACTIVITIES</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">3,891,933</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">5,020,277</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><b><font SIZE="3">INVESTING ACTIVITIES</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Purchases of property,
    plant, and equipment</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">(1,726,905)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(1,546,343)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Proceeds from sales of
    property and equipment</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">1,792,176</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">4,826,288</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Origination of notes
    receivable</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">(204,092)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(436,204)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Principal collected on
    notes receivable</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">873,980</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">1,220,160</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Purchases of short-term
    investments</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">(3,287,671)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(1,455,648)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Proceeds from maturity of
    short-term investments</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="76"><font SIZE="3">2,133,271</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="11"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="14"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="108"><font SIZE="3">734,079</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><b><font SIZE="3">    NET CASH
    (USED IN) PROVIDED BY</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><b><font SIZE="3">
          INVESTING ACTIVITIES</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">(419,241)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">3,342,332</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><b><font SIZE="3">FINANCING ACTIVITIES</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Proceeds from sale of
    Common Stock options</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">741,037</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">3,357,480</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Dividends paid</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">(3,432,027)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(3,506,316)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Treasury stock
    transactions</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">(1,106,074)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(9,551,457)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">  Principal payments on
    long-term debt</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="76"><font SIZE="3">(2,387,542)</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="11"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="14"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="108"><font SIZE="3">(2,552,512)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><b><font SIZE="3">    NET CASH
    USED IN FINANCING ACTIVITIES</font></b></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="10"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="76"><font SIZE="3">(6,184,606)</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="11"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="14"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="108"><font SIZE="3">(12,252,805)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><b><font SIZE="3">    DECREASE IN
    CASH AND CASH EQUIVALENTS</font></b></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">(2,711,914)</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">(3,890,196)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3">Cash and cash equivalents at
    beginning of period</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"><font SIZE="3">16,924,143</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"><font SIZE="3">19,693,693</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="10"></td>
    <td ALIGN="right" VALIGN="TOP" width="76"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="11"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="right" VALIGN="TOP" width="108"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="413"><font SIZE="3"><b>CASH AND CASH EQUIVALENTS AT
    END</b> <b>OF PERIOD</b></font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="10"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="76"><font SIZE="3">14,212,229</font></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="11"></td>
    <td ALIGN="left" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="14"><font SIZE="3">$</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="108"><font SIZE="3">15,803,497</font></td>
  </tr>
</TABLE>

<p><font SIZE="3">See notes to consolidated financial statement</font>s. </p>

<p align="center"><font SIZE="3">Sequential Page No. 6</font> </p>

<p>TCBY ENTERPRISES, INC. </p>

<p>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) </p>

<p>August 29, 1999 </p>

<p>NOTE A -- FINANCIAL STATEMENT PRESENTATION </p>

<p>The accompanying unaudited consolidated financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they
do not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the quarter and nine months ended
August 29, 1999 are not necessarily indicative of the results that may be expected for the
year ended November 28, 1999. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's annual report on Form 10-K for
the year ended November 29, 1998. </p>

<p>NOTE B -- NEW PRONOUNCEMENTS </p>

<p>In June 1997, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 130 ("SFAS No. 130"),
"Reporting Comprehensive Income." SFAS No. 130, which is effective for fiscal
1999, establishes standards for the reporting and display of comprehensive income and its
components. Comprehensive income is defined as the change in equity of a business
enterprise during a period from transactions and other events and circumstances from
non-owner sources. Comprehensive income for the quarter and nine months ended August 29,
1999 and August 30, 1998 was equal to net income as reported. </p>

<p>In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative Instruments
and Hedging Activities," which is effective for years beginning after June 15, 2000
and requires that all derivatives be recognized on the balance sheet at fair value. SFAS
No. 133 establishes "special accounting" for fair value hedges, cash flow
hedges, and hedges of foreign currency exposures of net investments in foreign operations.
Derivatives that are not hedges must be adjusted to fair value through income. If the
derivative is a hedge, depending on the nature of the hedge, changes in the fair value of
derivatives will either be offset against the change in fair value of the assets,
liabilities, or firm commitments through earnings or recognized in other comprehensive
income until the hedged item is recognized in earnings. The ineffective portions of a
derivative's change in fair value will be immediately recognized in earnings. The adoption
of SFAS No. 133 is not expected to have a material impact on the Company's financial
condition or results of operations. </p>

<p align="center"><font SIZE="3">Sequential Page No. 7</font> </p>

<p>NOTE C -- EARNINGS PER SHARE </p>

<p>The following table sets forth the computation of basic and diluted earnings per share:
</p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="601">
  <tr>
    <td WIDTH="212" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="5" ALIGN="CENTER" VALIGN="TOP" width="181"><font SIZE="3">Quarter Ended</font></td>
    <td WIDTH="12" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="5" ALIGN="CENTER" VALIGN="TOP" width="185"><font SIZE="3">Nine Months Ended</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"></td>
    <td WIDTH="7" ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="75" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">August 29,<br>
    1999</font></td>
    <td WIDTH="13" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="12" ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="74" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">August 30,<br>
    1998</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="12" ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="74" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">August 29,<br>
    1999</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="13" ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="74" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="3">August 30,<br>
    1998</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">Numerator:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">Net Income</font></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="7"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">2,895,897</font></td>
    <td WIDTH="13" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">5,676,067</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">6,670,083</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="13"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">9,944,623</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">Denominator:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">Denominator for basic earnings
    per share -- weighted average shares</font></td>
    <td ALIGN="LEFT" VALIGN="bottom" width="7"></td>
    <td ALIGN="RIGHT" VALIGN="bottom" width="75"><font SIZE="3">22,896,175</font></td>
    <td ALIGN="LEFT" VALIGN="bottom" width="13"></td>
    <td ALIGN="LEFT" VALIGN="bottom" width="12"></td>
    <td ALIGN="RIGHT" VALIGN="bottom" width="74"><font SIZE="3">23,130,874</font></td>
    <td ALIGN="LEFT" VALIGN="bottom" width="12"></td>
    <td ALIGN="LEFT" VALIGN="bottom" width="12"></td>
    <td ALIGN="RIGHT" VALIGN="bottom" width="74"><font SIZE="3">22,879,979</font></td>
    <td ALIGN="LEFT" VALIGN="bottom" width="12"></td>
    <td ALIGN="LEFT" VALIGN="bottom" width="13"></td>
    <td ALIGN="RIGHT" VALIGN="bottom" width="74"><font SIZE="3">23,289,571</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3"> </font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">Potential dilutive effect of</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">employee stock options</font></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="7"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="75"><font SIZE="3">218,767</font></td>
    <td WIDTH="13" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="12"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="74"><font SIZE="3">741,224</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="12"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="74"><font SIZE="3">343,816</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="13"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="74"><font SIZE="3">775,231</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">Denominator for diluted </font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">earnings per share -- weighted-</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">average shares and assumed<b> </b></font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">conversions</font></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="7"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">23,114,942</font></td>
    <td WIDTH="13" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">23,872,098</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12">
      </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">23,223,795</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="13"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">24,064,802</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">Basic earnings per share</font></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="7"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">0.13</font></td>
    <td WIDTH="13" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">0.25</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">0.29</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="13"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">0.43</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">Diluted earnings per share</font></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="7"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">0.13</font></td>
    <td WIDTH="13" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">0.24</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">0.29</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="13"><font SIZE="3">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">0.41</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"> </td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">Anti-dilutive employee stock</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="7"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="75"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="74"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="212"><font SIZE="3">options excluded</font></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="7"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="75"><font SIZE="3">1,048,485</font></td>
    <td WIDTH="13" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">59,771</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">642,528</font></td>
    <td WIDTH="12" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="13"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="74"><font SIZE="3">62,804</font></td>
  </tr>
</TABLE>

<p>NOTE D -- INVENTORIES </p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="558">
  <tr>
    <td WIDTH="312" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="2" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">August
    29,<br>
    1999</td>
    <td WIDTH="55" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td COLSPAN="2" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">November
    29,<br>
    1998</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">Manufacturing materials and supplies</td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="TOP">$</td>
    <td WIDTH="80" ALIGN="RIGHT" VALIGN="TOP">6,115,483</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="TOP">$</td>
    <td WIDTH="81" ALIGN="RIGHT" VALIGN="TOP">5,088,456</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">Finished yogurt and other food products</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP">4,842,950</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP">4,526,777</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">Equipment and other products</td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">2,760,733</td>
    <td WIDTH="55" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">2,939,642</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)">$</td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)">13,719,166</td>
    <td WIDTH="55" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)">$</td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)">12,554,875</td>
  </tr>
</TABLE>

<p align="center"><font SIZE="3">Sequential Page No. 8</font> </p>

<p>NOTE E -- ACCRUED EXPENSES </p>

<p>Accrued expenses consist of the following: </p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="554">
  <tr>
    <td WIDTH="268" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="2" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">August
    29,<br>
    1999</td>
    <td WIDTH="97" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td COLSPAN="2" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">November
    29,<br>
    1998</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">Rent</td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="TOP">$</td>
    <td WIDTH="80" ALIGN="RIGHT" VALIGN="TOP">541,813</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="TOP">$</td>
    <td WIDTH="79" ALIGN="RIGHT" VALIGN="TOP">602,272</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">Compensation</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP">1,911,519</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP">2,234,893</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">Other</td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">2,615,139</td>
    <td WIDTH="97" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">3,845,206</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)">$</td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)">5,068,471</td>
    <td WIDTH="97" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)">$</td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)">6,682,371</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
</TABLE>

<p>NOTE F -- CONTINGENCIES </p>

<p>There is no material litigation pending against the Company. A small number of legal
and administrative proceedings are pending against the Company which are incidental to the
business of the Company. The ultimate legal and financial liability of the Company in
connection with such proceedings cannot be estimated with certainty, but the Company
believes, based upon its examination of these matters, its experience to date, and its
discussions with legal counsel, that resolution of these proceedings will have no material
adverse effect upon the Company's financial condition, either individually or in the
aggregate; of course, any substantial loss pursuant to any litigation might have a
material adverse impact upon results of operations in the quarter or year in which it were
to be incurred, but the Company cannot estimate the range of any reasonably possible loss.
</p>

<p align="center"><font SIZE="3">Sequential Page No. 9</font> </p>

<p>ITEM 2 </p>

<p>MANAGEMENT'S DISCUSSION AND ANALYSIS OF </p>

<p>FINANCIAL CONDITION AND RESULTS OF OPERATIONS </p>

<p>The Company's sales for the third quarter and first nine months of 1999 increased four
percent and five percent, respectively, over the same periods in 1998. This increase
results from improved sales of specialty products as described below, which offset
decreases of product and equipment sales to TCBY locations. The following table sets forth
sales by category within the Company's primary segments (food products and equipment) of
operation: </p>

<p><font SIZE="2">(dollars in thousands)</font> </p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="582">
  <tr>
    <td WIDTH="140" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="9" ALIGN="CENTER" VALIGN="TOP"><font SIZE="2">Quarter Ended</font></td>
    <td WIDTH="37" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="9" ALIGN="CENTER" VALIGN="TOP"><font SIZE="2">Nine Months Ended</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="4" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">August 29, 1999</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td COLSPAN="4" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">August 30, 1998</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="4" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">August 29, 1999</font></td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td COLSPAN="4" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">August 30, 1998</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="32" ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">Sales</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="31" ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">
    <p align="center"><font SIZE="2">%</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="33" ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">Sales</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="30" ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">
    <p align="center"><font SIZE="2">%</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="34" ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">Sales</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="32" ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">
    <p align="center"><font SIZE="2">%</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="33" ALIGN="left" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">Sales</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td WIDTH="30" ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">
    <p align="center"><font SIZE="2">%</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">Food Products:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">TCBY frozen</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">products sales for</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">distribution to TCBY</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">locations</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">$</font></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">13,737</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">46%</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">$</font></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">15,021</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">52%</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">$</font></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">36,035</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">47%</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">$</font></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">37,829</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">52%</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">Sales of specialty</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">products</font></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"><font SIZE="2">11,821</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"> </td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"><font SIZE="2">39%</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"><font SIZE="2">9,005</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"><font SIZE="2">32%</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"><font SIZE="2">27,888</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"><font SIZE="2">37%</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"><font SIZE="2">21,152</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin dashed rgb(0,0,0)"><font SIZE="2">29%</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">25,558</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">85%</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">24,026</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">84%</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">63,923</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">84%</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">58,981</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">81%</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">Equipment:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">Sales by the Company's</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">equipment distributor</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">4,129</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">14%</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">4,357</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">15%</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">10,918</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">14%</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font SIZE="2">12,424</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"><font SIZE="2">17%</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">Other </font></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">332</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1%</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">409</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1%</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1,166</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">2%</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1,199</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">2%</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">Total Sales</font></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">30,019</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">100%</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">28,792</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">100%</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">76,007</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">100%</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">$</font></td>
    <td ALIGN="RIGHT" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">72,604</font></td>
    <td WIDTH="14" ALIGN="left" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">100%</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="TOP"></td>
  </tr>
</TABLE>

<p>Sales from the Company's food products segment include (i) wholesale sales of frozen
yogurt and ice cream products to AmeriServe Food Distribution Inc. (formerly ProSource
Distribution Services) and other foodservice distributors, which distribute frozen yogurt,
ice cream, and other products to TCBY stores and non-traditional locations, and sales to
international master franchisees of frozen products and proprietary ingredients for the
manufacture of frozen products in the countries that produce locally, and (ii) sales of
TCBY frozen packaged products and other specialty dairy food products to customers
including supermarkets, convenience stores, dairies, foodservice distributors, club
stores, and private label suppliers. </p>

<p>Wholesale sales of frozen yogurt and ice cream products to TCBY locations decreased
nine percent and five percent during the third quarter and first nine months of 1999,
respectively, due to a reduction in the number of domestic traditional TCBY stores and a
decline in yogurt purchases by existing TCBY locations. These decreases have significantly
impacted the Company's earnings compared to the prior year. The decrease in store sales
will result in additional closings of existing locations, but the Company cannot
reasonably estimate the number. The Company will continue its effort to improve sales in
existing units. These efforts will include continued emphasis on neighborhood store
marketing programs and expansion of participation by franchisees, continued focus on
operational standards at TCBY locations through increased store visits by Company
associates and representatives, and working with franchisees to relocate </p>

<p align="center"><font SIZE="3">Sequential Page No. 10</font> </p>

<p>marginal stores or pursue co-branding opportunities to provide additional dayparts. In
addition, the Company has worked with an international design firm to develop enhancements
to the current store format. A prototype location opened late in the third quarter. All of
these efforts are intended to improve our customers' experience and ultimately sales
volumes in the TCBY locations. However, barriers have been encountered in implementing
some of the above strategies, including financial capability and willingness of existing
franchisees to participate, lack of availability of co-branded partners due to existing
encroachment problems within their chains, size of TCBY stores, lease restrictions, and
limitations of corporate resources. The Company is operating in a highly competitive
environment where consumers have many alternatives. Therefore, the future results of any
of the above strategies is unknown, and even with the successful implementation of these
programs, store sales may decline and store closings may continue. The Company will
continue to develop additional TCBY non-traditional locations with over 300 TCBY locations
under agreement for development as of August 29, 1999. Most of the TCBY locations under
development will be co-branded locations with petroleum or other food operations. The
revenue from new co-branded locations may not offset the revenue lost from store closings
and lower purchases by existing units in future periods. </p>

<p>The following table sets forth TCBY and Juice Works location activity for the third
quarter and first nine months of 1999 and 1998. </p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="627">
  <tr>
    <td WIDTH="125" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="40" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="42" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="31" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="31" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP"><font SIZE="2">International</font></td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP"><font SIZE="2">Non-traditional</font></td>
    <td WIDTH="14" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP"><font SIZE="2">Total</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP"><font SIZE="2">Franchised Stores</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP"><font SIZE="2">Company Stores</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP"><font SIZE="2">Locations</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP"><font SIZE="2">Locations</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP"><font SIZE="2">Locations</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1999</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1998</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1999</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1998</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td WIDTH="35" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1999</font></td>
    <td WIDTH="14" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td WIDTH="33" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1998</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td WIDTH="38" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1999</font></td>
    <td WIDTH="14" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td WIDTH="39" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1998</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td WIDTH="39" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1999</font></td>
    <td WIDTH="14" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td WIDTH="38" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1998</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">For the third quarter:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">Locations open at</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">beginning of period</font></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">986</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">1,091</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">2</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">2</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">230</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">217</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">1,817</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">1,605</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">3,035</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">2,915</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">Opened</font></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">10</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">10</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">-</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">-</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">27</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">8</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">96</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">108</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">133</font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"><font SIZE="2">126</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">Closed</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">(27)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">(31)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">-</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">-</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">-</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">(8)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">(42)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">(38)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">(69)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">(77)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">Locations open at end </font></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
    <td ALIGN="right" VALIGN="top"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><font SIZE="2">of period</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">969</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">1,070</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">2</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">2</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">257</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">217</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">1,871</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">1,675</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">3,099</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)"><font SIZE="2">2,964</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
</TABLE>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="625">
  <tr>
    <td WIDTH="624" ALIGN="LEFT" VALIGN="TOP" colspan="20"><br>
    <p> </td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP" width="99"><font SIZE="2">Franchised Stores</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP" width="89"><font SIZE="2">Company Stores</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP" width="82"><font SIZE="2">International<br>
    Locations</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP" width="90"><font size="2">Non-traditional<br>
    Locations</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td COLSPAN="3" ALIGN="CENTER" VALIGN="TOP" width="86"><font size="2">Total<br>
    Locations</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="43"><font SIZE="2">1999</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="14"></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="42"><font SIZE="2">1998</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="14"></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="37"><font SIZE="2">1999</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="14"></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="35"><font SIZE="2">1998</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="14"></td>
    <td WIDTH="35" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1999</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="14"></td>
    <td WIDTH="34" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1998</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="14"></td>
    <td WIDTH="39" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1999</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="14"></td>
    <td WIDTH="38" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1998</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="14"></td>
    <td WIDTH="40" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1999</font></td>
    <td ALIGN="center" VALIGN="top" style="border-bottom: thin none rgb(0,0,0)" width="14"></td>
    <td WIDTH="35" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"><font SIZE="2">1998</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"><font SIZE="2">For the first nine months:</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="43"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="42"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="37"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="35"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="35"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="34"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="39"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="38"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="40"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="35"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"><font SIZE="2">Locations open at</font></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="43"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="42"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="37"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="35"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="35"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="34"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="39"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="38"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="40"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="35"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"><font SIZE="2">beginning of period</font></td>
    <td ALIGN="right" VALIGN="top" width="43"><font SIZE="2">1,031</font></td>
    <td ALIGN="right" VALIGN="top" width="14"></td>
    <td ALIGN="right" VALIGN="top" width="42"><font SIZE="2">1,110</font></td>
    <td ALIGN="right" VALIGN="top" width="16"></td>
    <td ALIGN="right" VALIGN="top" width="37"><font SIZE="2">2</font></td>
    <td ALIGN="right" VALIGN="top" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="35"><font SIZE="2">2</font></td>
    <td ALIGN="right" VALIGN="top" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="35"><font SIZE="2">216</font></td>
    <td ALIGN="right" VALIGN="top" width="13"></td>
    <td ALIGN="right" VALIGN="top" width="34"><font SIZE="2">229</font></td>
    <td ALIGN="right" VALIGN="top" width="14"></td>
    <td ALIGN="right" VALIGN="top" width="39"><font SIZE="2">1,711</font></td>
    <td ALIGN="right" VALIGN="top" width="13"></td>
    <td ALIGN="right" VALIGN="top" width="38"><font SIZE="2">1,467</font></td>
    <td ALIGN="right" VALIGN="top" width="12"></td>
    <td ALIGN="right" VALIGN="top" width="40"><font SIZE="2">2,960</font></td>
    <td ALIGN="right" VALIGN="top" width="12"></td>
    <td ALIGN="right" VALIGN="top" width="35"><font SIZE="2">2,808</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"><font SIZE="2">Opened</font></td>
    <td ALIGN="right" VALIGN="top" width="43"><font SIZE="2">28</font></td>
    <td ALIGN="right" VALIGN="top" width="14"></td>
    <td ALIGN="right" VALIGN="top" width="42"><font SIZE="2">30</font></td>
    <td ALIGN="right" VALIGN="top" width="16"></td>
    <td ALIGN="right" VALIGN="top" width="37"><font SIZE="2">-</font></td>
    <td ALIGN="right" VALIGN="top" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="35"><font SIZE="2">-</font></td>
    <td ALIGN="right" VALIGN="top" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="35"><font SIZE="2">46</font></td>
    <td ALIGN="right" VALIGN="top" width="13"></td>
    <td ALIGN="right" VALIGN="top" width="34"><font SIZE="2">21</font></td>
    <td ALIGN="right" VALIGN="top" width="14"></td>
    <td ALIGN="right" VALIGN="top" width="39"><font SIZE="2">263</font></td>
    <td ALIGN="right" VALIGN="top" width="13"></td>
    <td ALIGN="right" VALIGN="top" width="38"><font SIZE="2">284</font></td>
    <td ALIGN="right" VALIGN="top" width="12"></td>
    <td ALIGN="right" VALIGN="top" width="40"><font SIZE="2">337</font></td>
    <td ALIGN="right" VALIGN="top" width="12"></td>
    <td ALIGN="right" VALIGN="top" width="35"><font SIZE="2">335</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"><font SIZE="2">Closed</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="43"><font SIZE="2">(90)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="14"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="42"><font SIZE="2">(70)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="16"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="37"><font SIZE="2">-</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="17"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="35"><font SIZE="2">-</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="15"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="35"><font SIZE="2">(5)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="13"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="34"><font SIZE="2">(33)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="14"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="39"><font SIZE="2">(103)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="13"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="38"><font SIZE="2">(76)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="12"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="40"><font SIZE="2">(198)</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="12"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)" width="35"><font SIZE="2">(179)</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"></td>
    <td ALIGN="right" VALIGN="top" width="43"></td>
    <td ALIGN="right" VALIGN="top" width="14"></td>
    <td ALIGN="right" VALIGN="top" width="42"></td>
    <td ALIGN="right" VALIGN="top" width="16"></td>
    <td ALIGN="right" VALIGN="top" width="37"></td>
    <td ALIGN="right" VALIGN="top" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="35"></td>
    <td ALIGN="right" VALIGN="top" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="35"></td>
    <td ALIGN="right" VALIGN="top" width="13"></td>
    <td ALIGN="right" VALIGN="top" width="34"></td>
    <td ALIGN="right" VALIGN="top" width="14"></td>
    <td ALIGN="right" VALIGN="top" width="39"></td>
    <td ALIGN="right" VALIGN="top" width="13"></td>
    <td ALIGN="right" VALIGN="top" width="38"></td>
    <td ALIGN="right" VALIGN="top" width="12"></td>
    <td ALIGN="right" VALIGN="top" width="40"></td>
    <td ALIGN="right" VALIGN="top" width="12"></td>
    <td ALIGN="right" VALIGN="top" width="35"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"><font SIZE="2">Locations open at end </font></td>
    <td ALIGN="right" VALIGN="top" width="43"></td>
    <td ALIGN="right" VALIGN="top" width="14"></td>
    <td ALIGN="right" VALIGN="top" width="42"></td>
    <td ALIGN="right" VALIGN="top" width="16"></td>
    <td ALIGN="right" VALIGN="top" width="37"></td>
    <td ALIGN="right" VALIGN="top" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="35"></td>
    <td ALIGN="right" VALIGN="top" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="35"></td>
    <td ALIGN="right" VALIGN="top" width="13"></td>
    <td ALIGN="right" VALIGN="top" width="34"></td>
    <td ALIGN="right" VALIGN="top" width="14"></td>
    <td ALIGN="right" VALIGN="top" width="39"></td>
    <td ALIGN="right" VALIGN="top" width="13"></td>
    <td ALIGN="right" VALIGN="top" width="38"></td>
    <td ALIGN="right" VALIGN="top" width="12"></td>
    <td ALIGN="right" VALIGN="top" width="40"></td>
    <td ALIGN="right" VALIGN="top" width="12"></td>
    <td ALIGN="right" VALIGN="top" width="35"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"><font SIZE="2">of period</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="43"><font SIZE="2">969</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="14"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="42"><font SIZE="2">1,070</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="16"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="37"><font SIZE="2">2</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="17"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="35"><font SIZE="2">2</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="15"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="35"><font SIZE="2">257</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="13"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="34"><font SIZE="2">217</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="14"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="39"><font SIZE="2">1,871</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="13"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="38"><font SIZE="2">1,675</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="40"><font SIZE="2">3,099</font></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="12"></td>
    <td ALIGN="right" VALIGN="top" style="border-bottom: medium double rgb(0,0,0)" width="35"><font SIZE="2">2,964</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"></td>
    <td ALIGN="right" VALIGN="top" width="43"></td>
    <td ALIGN="right" VALIGN="top" width="14"></td>
    <td ALIGN="right" VALIGN="top" width="42"></td>
    <td ALIGN="right" VALIGN="top" width="16"></td>
    <td ALIGN="right" VALIGN="top" width="37"></td>
    <td ALIGN="right" VALIGN="top" width="17"></td>
    <td ALIGN="right" VALIGN="top" width="35"></td>
    <td ALIGN="right" VALIGN="top" width="15"></td>
    <td ALIGN="right" VALIGN="top" width="35"></td>
    <td ALIGN="right" VALIGN="top" width="13"></td>
    <td ALIGN="right" VALIGN="top" width="34"></td>
    <td ALIGN="right" VALIGN="top" width="14"></td>
    <td ALIGN="right" VALIGN="top" width="39"></td>
    <td ALIGN="right" VALIGN="top" width="13"></td>
    <td ALIGN="right" VALIGN="top" width="38"></td>
    <td ALIGN="right" VALIGN="top" width="12"></td>
    <td ALIGN="right" VALIGN="top" width="40"></td>
    <td ALIGN="right" VALIGN="top" width="12"></td>
    <td ALIGN="right" VALIGN="top" width="35"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP" width="121"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="43"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="42"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="16"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="37"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="17"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="35"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="15"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="35"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="34"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="14"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="39"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="13"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="38"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="40"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="12"></td>
    <td ALIGN="LEFT" VALIGN="TOP" width="35"></td>
  </tr>
</TABLE>

<p>During the first nine months of 1999, significantly more TCBY non-traditional locations
than traditional locations opened. The Company believes this trend will continue during
the remainder of 1999. The non-traditional locations may include sites at airports, travel
plazas, colleges, hospitals, theme parks, and stadiums but more likely will include
locations in conjunction with petroleum stores and other food concepts (co-branded
locations). The majority of the 263 non-traditional openings in the first nine months of
1999 were TCBY co-branded locations. The rate of development of non-traditional locations
is partially determined by co-branding partners, who must approve each location in a
process not controlled by the Company, and in </p>

<p align="center"><font SIZE="3">Sequential Page No. 11</font> </p>

<p>some cases, delays have been experienced while the Company and the prospective TCBY
franchisee awaited such approval; new development may also be slowed when existing TCBY
franchisees express their concerns regarding new TCBY locations; and the desire of the
Company to maintain good relationships with all TCBY franchisees in the markets under
consideration results in occasional delays in development while those concerns are
addressed. During the first nine months of 1999, 103 non-traditional locations were
closed. Most of these locations generally purchased low volumes of yogurt from the
Company. However, the cumulative effect of the total closings does have a negative impact
on the Company's profitability. The Company expects that there may be additional closings
of low volume non-traditional locations as they are not efficient for the Company to
service or the franchisee to operate. </p>

<p>During the first nine months of 1999, a total of 90 franchised stores were permanently
closed by franchisees. Each store closed is the result of the franchisee's evaluation of
its financial condition, cash flow, lease expiration, profitability and store operations,
among other things. Of the locations closed, 52 operated for a portion of the first nine
months of 1999, with the remainder having originally closed for relocation in prior years.
Therefore, some stores shown as closed did not make any contribution to sales during the
periods presented. Included in the franchised store information are 47 and 79 TCBY stores
closed for relocation or for the season at August 29, 1999 and August 30, 1998,
respectively. Closings of traditional stores could accelerate as the franchisees have
experienced lower unit volumes during 1999. </p>

<p>Sales of specialty products increased 31 percent and 32 percent during the third
quarter and first nine months of 1999, respectively, as compared to the same periods in
1998. These increases are attributed primarily to increased sales of private label
products. The Company continues to pursue private label opportunities to utilize the
available capacity at its manufacturing facility in Dallas. The Company has capacity
available for additional manufacturing opportunities and the current capacity can be
expanded with reasonable capital investments and staffing increases should they be
warranted. The time frames required to make these capital investments and staffing
increases could limit the Company's growth abilities on certain product lines in the short
term. </p>

<p>Sales in the Company's equipment segment include sales from the distribution of
equipment to TCBY locations as well as regional distribution to other food operations.
Sales in the equipment segment decreased five percent and 12 percent during the third
quarter and first nine months of 1999, respectively, compared to the same periods in 1998.
The decreased sales are due to operators of new non-traditional TCBY locations electing in
some cases to purchase equipment from other sources. </p>

<p>As a percent of sales, cost of sales for the third quarter and first nine months of
1999 and 1998 for the Company and its two primary segments are presented below: </p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="602">
  <tr>
    <td WIDTH="339" ALIGN="LEFT" VALIGN="TOP"> </td>
    <td COLSPAN="2" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">Third
    Quarter</td>
    <td COLSPAN="2" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">First
    Nine Months</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)"> </td>
    <td WIDTH="72" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">1999</td>
    <td WIDTH="69" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">1998</td>
    <td WIDTH="65" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">1999</td>
    <td WIDTH="55" ALIGN="CENTER" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">1998</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><ul>
      <p>Food Products Segment</p>
    </ul>
    </td>
    <td ALIGN="CENTER" VALIGN="TOP">71%</td>
    <td ALIGN="CENTER" VALIGN="TOP">64%</td>
    <td ALIGN="CENTER" VALIGN="TOP">70%</td>
    <td ALIGN="CENTER" VALIGN="TOP">65%</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><ul>
      <p>Equipment Segment</p>
    </ul>
    </td>
    <td ALIGN="CENTER" VALIGN="TOP">79%</td>
    <td ALIGN="CENTER" VALIGN="TOP">76%</td>
    <td ALIGN="CENTER" VALIGN="TOP">77%</td>
    <td ALIGN="CENTER" VALIGN="TOP">77%</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"><ul>
      <p>Company Total</p>
    </ul>
    </td>
    <td ALIGN="CENTER" VALIGN="TOP">72%</td>
    <td ALIGN="CENTER" VALIGN="TOP">65%</td>
    <td ALIGN="CENTER" VALIGN="TOP">71%</td>
    <td ALIGN="CENTER" VALIGN="TOP">66%</td>
  </tr>
</TABLE>

<p align="center"><font SIZE="3">Sequential Page No. 12</font> </p>

<p>The increase in the food products segment cost of sales percentage is due to two
primary factors. First, sales of specialty products, which generally have a higher cost of
sales percentage than the other food segment categories, are a larger component of the
food products segment sales in the third quarter and first nine months of 1999 compared to
the same periods in the prior year. (See earlier discussion related to sales.) Secondly,
higher labor expenses and start up costs associated with the production of new products at
the Company's manufacturing facility during 1999 have resulted in additional overhead
expenses being applied to cost of sales during the year. Although dairy costs, which are a
significant portion of the segment's cost of sales, were higher than the prior year for
the quarter and the first nine months of 1999, the effect of the higher costs were negated
by the dairy surcharge (see discussion below) implemented by the Company during a portion
of 1999 and by the structure of much of the Company's private label business which results
in a pass-through of dairy ingredient costs to the customers. </p>

<p>On March 31, 1999 the U.S. Department of Agriculture (USDA) released the Federal Milk
Marketing Order Reform. The reform will expand the classes of milk from three to four and
eliminate the basic formula price (BFP). The price of each class will be determined
monthly and is intended to better reflect the value of milk components (butterfat, nonfat
solids, etc.). The reform was scheduled to be effective October 1, 1999. However, lawsuits
were brought that challenged the new rules and a federal district judge has granted a
temporary restraining order that forbid the USDA from implementing the milk order reforms
on October 1. According to USDA information, the reform would not have resulted in
significant change in average milk cost to the Company over the past five years. However,
greater fluctuations in milk cost may be experienced under the reform should it be
implemented in the future. </p>

<p>The Company has historically minimized pricing adjustments to TCBY franchisees based on
short-term changes in pricing of dairy components, however, due to the record levels of
costs incurred during the latter half of 1998 and continuing into 1999, effective March
15, the Company implemented a dairy surcharge as noted above. The surcharge was delayed to
lessen the impact to franchisees during the low point of their business seasonality. The
surcharge was terminated by the Company on July 31. The Company collected approximately $1
million from the additional surcharge. </p>

<p>Franchising revenues consist of initial franchise and license fees and royalty income.
In the third quarter of 1999, initial franchise and license fees decreased 16 percent and
royalty income decreased 11 percent from the same period in 1998. For the first nine
months of 1999, initial franchise and license fees increased one percent while royalty
income decreased nine percent from the same period in 1998. The fluctuations in initial
franchise and license fees is related to the timing of franchise fees between quarters for
each respective year. On a year-to-date basis, these fees slightly exceed the prior year.
The decreases in royalty income are due primarily to fewer traditional TCBY stores and
decreased purchases by existing TCBY locations. See previous discussion on the sales
trends of TCBY locations. </p>

<p>Operating expenses were approximately the same in the third quarter of 1999 and
decreased one percent for the first nine months of 1999 compared to 1998. The decrease for
the nine month period is due to a reduction in various corporate operating costs. As a
percentage of combined sales and franchising revenues, operating expenses were 23 percent
and 24 percent for the third quarter of 1999 and 1998, respectively. For the first nine
months of 1999 and 1998, operating </p>

<p align="center"><font SIZE="3">Sequential Page No. 13</font> </p>

<p>expenses as a percentage of combined sales and franchising revenues were 26 percent and
27 percent, respectively. </p>

<p>During the third quarter of 1999, the Company's former executive office building being
leased to third parties was sold for cash to the Company's Chairman and Chief Executive
Officer. The sales price approximated the Company's book value, and exceeded the current
appraised value. </p>

<p>During the third quarter of 1998, the Company's aircraft was sold to a third party
which resulted in a gain of approximately $2.1 million which is included in Other Income
on the Income Statement. The after-tax gain on the sale of the Company assets was
approximately $1.4 million or $.06 per share (basic and diluted). The Company
contemporaneously entered into an agreement whereunder an aircraft owned by the Chairman
and Chief Executive Officer could be made available to the Company from time-to-time at an
hourly rate consistent with the cost of operating the aircraft it divested; this hourly
rate is substantially below the fair market rate which normally would be charged to the
Company for use of a similar aircraft. Under the new arrangement, any use of the aircraft
which is charged to the Company is reviewed by the Board of Directors of the Company on a
regular basis. </p>

<p>The forward-looking statements included herein are based on certain assumptions
regarding U.S. and foreign economic conditions, no significant disruptions of business due
to the Year 2000 issue, competition, costs of raw materials, unit openings and closings,
sales volumes per unit, other manufacturing opportunities, no changes in governmental
regulation of the food industry, and no material event which would impact the reputation
of the Company's manufacturing facility or the Company's ability to utilize that facility.
Should the Company's performance differ materially from the assumptions regarding these
areas, actual results could vary significantly from the performance noted in the
forward-looking statements. Thus, the Company cautions readers not to place undue reliance
on any forward-looking statements, which speak only as of the date made. </p>

<p>LIQUIDITY AND CAPITAL RESOURCES </p>

<p>The Company has historically generated cash from operations sufficient to meet its
normal operating requirements. The Company's cash and short-term investments decreased
approximately $1.6 million during the first nine months of 1999. This decrease resulted
primarily from (i) an increase in trade accounts receivable and inventory attributed to
normal seasonal increases, (ii) cash dividends, (iii) principal payments of debt, and (iv)
payment of an incentive allowance. The incentive allowance related to the signing of a
seven-year agreement with a customer that distributes large quantities of frozen dessert
products. The agreement contains minimum annual volumes and any shortfalls in the volumes
results in payments to the Company including the unamortized portion of the incentive
allowance which was determined on a per unit basis. The incentive allowance was recorded
in Other Assets and will be amortized as products are sold to the customer. The Company's
foreseeable cash needs for operations and capital expenditures are expected to be met
through cash flows from operations; however, the Company has available a $5 million
unsecured credit line to meet seasonal cash needs. </p>

<p>In December, 1997, the Board of Directors of the Company authorized the repurchase of
two million shares of its outstanding stock. As of August 29, 1999, 625,403 shares have
been </p>

<p align="center"><font SIZE="3">Sequential Page No. 14</font> </p>

<p>purchased under this authorization. During the first nine months of 1999, the Company
has purchased 172,520 shares of common stock at a cost of $1,106,074. All repurchases have
been funded with cash flows from operations. Future repurchases may be funded with cash
flows from operations or long-term financing. </p>

<p>The following summarizes statistics related to the Company's financial position: </p>

<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="605">
  <tr>
    <td WIDTH="277" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="28" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="124" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">August
    29,<br>
    1999</td>
    <td WIDTH="50" ALIGN="CENTER" VALIGN="TOP"></td>
    <td WIDTH="124" ALIGN="center" VALIGN="top" style="border-bottom: thin solid rgb(0,0,0)">November
    29,<br>
    1998</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">Current Ratio</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="CENTER" VALIGN="TOP">4.3 to 1.0</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="CENTER" VALIGN="TOP">3.9 to 1.0</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">Working Capital (in millions)</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="CENTER" VALIGN="TOP">39.0</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="CENTER" VALIGN="TOP">34.8</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">Long-Term Debt to Equity Ratio</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="CENTER" VALIGN="TOP">.02 to 1.0</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="CENTER" VALIGN="TOP">.04 to 1.0</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">Tangible Net Worth (in millions)</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="CENTER" VALIGN="TOP">75.0</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="CENTER" VALIGN="TOP">71.9</td>
  </tr>
</TABLE>

<p>On September 17, 1999, the Company's Board of Directors declared a five cents per share
dividend payable on October 8, 1999 to the stockholders of record on September 28, 1999.
The Company will consider adjustments to the dividend rate after giving consideration to
return to stockholders, profitability expectations and financing needs. </p>

<p>YEAR 2000 </p>

<p>The worldwide "Year 2000 problem" has arisen due to the fact that many
computer hardware and software systems along with components of certain automated
equipment utilize only the last two digits of a date to refer to the year, failing to
distinguish dates within the twentieth century from those of the twenty-first century. </p>

<p>The Company's primary hardware platform is Year 2000 compliant. The Company has
completed a review of its inventory of personal computers (PC's) and has remediated or
replaced those PC's found not to be compliant. Additionally, a review of automated
equipment other than computer systems has been performed. Remediation of this equipment
has been completed. </p>

<p>The Company's primary manufacturing and accounting software is sourced from an external
vendor and has been independently certified as being Year 2000 compliant. The Company has
performed testing that supports this certification. Software developed internally along
with other purchased software has been reviewed for compliance and has been remediated
where necessary. The Company's cost to remediate both its Year 2000 hardware and software
was approximately $250,000. The Company will continue testing its systems throughout the
fourth quarter of 1999. </p>

<p>The Year 2000 issues may have an impact on certain of the Company's material business
partners, potentially causing disruptions in the supply of raw materials, services and/or
the ability of customers to take delivery of products which could in turn have a material
effect upon the Company's results of operation. The degree of this effect is uncertain.
The Company has developed a structured methodology for evaluating the Year 2000 readiness
of its material </p>

<p align="center"><font SIZE="3">Sequential Page No. 15</font> </p>

<p>business partners which was completed during the third quarter of 1999. Most of these
business partners indicate they are taking steps they deem appropriate to address the Year
2000 issue; however, they will provide no assurances in regard to the global impact of the
Year 2000. In terms of a contingency plan, the Company, where practical, has identified
alternative sources of raw materials, packaging, and other manufacturing supplies should
the Company's primary vendors experience business interruptions as a result of the Year
2000 issue. The Company has no assurance the alternate vendors can meet the supply needs
on a timely basis. The Company will allow reasonable inventory levels to provide for
short-term disruptions in the supply chain. </p>

<p>The forward-looking statements contained herein with regard to the timing and overall
cost estimates of the Company's efforts to address the Year 2000 problem are based upon
the Company's experience thus far in this effort. Should the Company encounter unforeseen
difficulties either in the continuing testing of its computerized systems, their ultimate
remediation, or changes in the responses of its business partners, the actual results
could vary significantly from the estimates contained in these forward-looking statements.
</p>

<p align="center"><font SIZE="3">Sequential Page No. 16</font> </p>

<p>ITEM 3 </p>

<p>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK </p>

<p>The Company is exposed to market risk from changes in interest rates and changes in
commodity prices. </p>

<p>The primary commodities purchased by the Company are dairy products. See earlier
discussion for information regarding the market for dairy products. As part of its risk
management strategy, the Company began purchasing exchange traded milk future contracts
during the first quarter of 1999 to manage its exposure to changes in milk prices. The
milk future contracts obligate the Company to make or receive a payment equal to the net
change in value of the contract at its maturity. Such contracts are designated as hedges
of the Company's projected purchases, are short-term in nature to correspond to the
projection period, and are effective in hedging the Company's exposure to changes in milk
prices during the cycle. The Company hedged approximately 75% of its milk purchases for
TCBY branded products during 1999. Due to the changes of the USDA's Federal Milk Marketing
Order Reform, the Company has closed its hedging contracts and the Company's ability to
hedge against milk prices may be limited in the short term. The Company has not purchased
milk future contracts for private label products as the customers generally bear the risk
of increased commodity prices. </p>

<p>Milk future contracts are marked to market with unrealized gains and losses deferred
and recognized in earnings when the contracts close as an adjustment to cost of goods sold
(the deferral accounting method). </p>

<p>This market risk discussion contains forward-looking statements. Actual results may
differ materially from this discussion based upon general market conditions and changes in
domestic and global financial markets. </p>

<p align="center"><font SIZE="3">Sequential Page No. 17</font> </p>

<p><b>PART II. OTHER INFORMATION</b> </p>

<table CELLSPACING="0" CELLPADDING="0" WIDTH="610">
  <tr>
    <td WIDTH="71" ALIGN="LEFT" VALIGN="TOP">ITEM 1.</td>
    <td WIDTH="43" ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="3" ALIGN="LEFT" VALIGN="TOP">LEGAL PROCEEDINGS</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="33" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="33" ALIGN="LEFT" VALIGN="TOP"></td>
    <td WIDTH="428" ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td COLSPAN="5" ALIGN="LEFT" VALIGN="TOP">There are no changes from previously reported
    litigation.</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">ITEM 6.</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td COLSPAN="3" ALIGN="LEFT" VALIGN="TOP">EXHIBITS AND REPORTS ON FORM 8-K</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP">a)</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP">Exhibits</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">27(a)</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP">Article 5, Financial Data Schedule for the Third Quarter
    1999 Form 10-Q</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP">99(a)</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP">Press release, dated September 17, 1999, "TCBY Reports
    Operating Results for First Nine Months of 1999"</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP">b)</td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP">The Company did not file any reports on Form 8-K during the
    three periods ended August 29, 1999.</td>
  </tr>
  <tr>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
    <td ALIGN="LEFT" VALIGN="TOP"></td>
  </tr>
</TABLE>

<p align="center"><font SIZE="3">Sequential Page No. 18</font> </p>

<p ALIGN="CENTER"><u>SIGNATURES</u> </p>

<p>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto duly
authorized. </p>

<p>
                                          
                    TCBY
ENTERPRISES, INC. </p>

<p>Date: 10/11/99
                                     <u>/s/
Frank D. Hickingbotham</u><br>
                                          
                  Frank
D. Hickingbotham,<br>
                                          
                  Chairman
of the Board and <br>
                                          
                  Chief
Executive Officer </p>

<p>Date: 10/11/99
                                     <u>/s/
Gene H. Whisenhunt </u><br>
                                          
                  Gene
H. Whisenhunt <br>
                                          
                  Executive
Vice President<br>
                                          
                  Chief
Financial Officer <br>
<font SIZE="3">   </font>
                                          
               </p>

<p><font SIZE="3"> </font></p>

<p align="center"><font SIZE="3">Sequential Page No. 19</font> </p>
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