SOURCE: Market Pulse

February 01, 2008 08:45 ET

Market Pulse Breaking News Alert for Friday, Feb. 1, 2008: SPKL - Spicy Pickle™ Expansion Continues to Accelerate With Two New Corporate Locations to Open in Spring!

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Market Pulse.

ATLANTA, GA--(Marketwire - February 1, 2008) - Market Pulse News Alert for this AM, Stocks to Watch are: Spicy Pickle™ Franchising, Inc. (OTCBB: SPKL), Motorola Inc. (NYSE: MOT), TiVo Inc. (NASDAQ: TIVO) and E-Trade Financial Corp. (NASDAQ: ETFC).

Investors need to be watching Spicy Pickle Franchising, Inc. (OTCBB: SPKL) this AM! Spicy Pickle™ is engaged in the business of marketing, franchising and operating Spicy Pickle restaurants located throughout the United States. Spicy Pickle™ is a fast casual restaurant where fresh, made-to-order culinary-inspired panini, submarine style sandwiches, pizzetti (Neapolitan thin crust gourmet pizza), salads and soups with a large international variety of toppings and spreads are served using fresh baked breads and high quality ingredients. Spicy Pickle™ locations and marketing efforts are directed principally to white collar administrative, managerial, professional, and sales personnel who are willing to pay a little more for better flavor profiles. The company's menu items appeal to diners of all ages and preferences and will soon accommodate breakfast and dinner segments. Spicy Pickle™ recently added its new catering program, featuring the chain's culinary-inspired subs and panini sandwiches. Spicy Pickle™ is a unique franchise opportunity. The company offers franchise agreements for single and multiple store owners but prefers single franchisees that can develop multiple stores in their market. These franchisees sign development agreements for multiple stores in a defined geographic area and grant them the exclusive rights to the development area. These include agreements for developers that plan on owning and operating a large number of restaurants over a larger territory (state or larger). The company has sold 113 franchises and developments. Of the franchises sold, 36 restaurants are opened and operating, 7 restaurants are under construction, and there are over 70 more sites that are under area development agreements. The company continues to interview prospective franchisees and relies on the cash deposits from the franchise sales as well as royalty fees from the existing stores to support the expenses of the business. The $70 billion fast-casual segment of the restaurant industry is growing fast. Spicy Pickle Franchising is well-positioned to continue to grow their market position in existing and new markets. Spicy Pickle Franchising, Inc. has sufficient capital to carry it forward as they have recently raised $4.5 million. The company's five year plan includes opening 300 stores. The company would like to see more development areas like the one in Indianapolis that includes 10 stores or the one in southern California that includes 12 stores. The royalties create a continuous revenue stream and shareholder wealth. A significant amount of value is created for the company with each new franchise added. Spicy Pickle™ is poised to become a significant player in the fast-casual segment of the restaurant industry! Spicy Pickle™ just had excellent news out in a press release after Thursday's bell announcing it expands with two new corporate locations! The company also announced the hiring of a 17-year fast casual veteran, Mike Neil, to manage the corporate store division! This could be great news for investors!

Spicy Pickle™ fast casual restaurants (OTCBB: SPKL) announced the signing of two leases for new corporate restaurant locations, both to be completed in the spring of this year. In conjunction with the expansion of its company-owned units, Spicy Pickle™ also announces the hiring of 17-year fast casual veteran, Mike Neil, to manage the corporate store division.

Construction has begun on these two new Spicy Pickle locations. Once completed, there will be a total of three company-owned restaurants, including the new corporate commissary bakery and training facility already in operation at 1298 S. Broadway in downtown Denver.

The first new restaurant unit, located at the high-traffic intersection of Parker Rd. and Iliff St in South Denver, is part of a newly renovated restaurant park known as the Promenade on Parker. Spicy Pickle will share common space with Chipotle, Starbucks, Tokyo Joes, and 5 Guys Burgers.

Marc Geman, CEO of Spicy Pickle Franchising, Inc. commented, "We are very pleased to have secured this lease in an underserved area of Denver. The complimentary restaurants will significantly add to the customer traffic in the Promenade development."

The second new site will be located in Ft. Collins, Colorado at 2120 E. Harmony Road. Spicy Pickle will share retail space with Chipotle in this newly constructed shopping area. Nearby is a large Hewlett Packard campus and other white-collar offices that represent the ideal Spicy Pickle demographic.

To help manage the growth in its corporate operations, Spicy Pickle has recruited Mike Neil to run the operations of its company-owned restaurants. Neil previously worked for the Jason's Deli chain for 17 years, and managed their growth from 5 units to over 100 units. Neil is a Certified Franchise Executive with the International Franchise Association, and earned his MBA degree after leaving the company.

Mr. Geman commented, "Mike Neil is a great addition to our infrastructure, and this is key to running a successful restaurant operation. Mike comes to us with significant experience in growing a concept and has overseen restaurants with similar operations. We expect Mike to make an immediate impact on our system."

About Spicy Pickle™:

Founded in 1999, Spicy Pickle Franchising, Inc. serves high quality meats and fine artisan breads, baked fresh daily, along with a wide choice of eight different cheeses, twenty-two different toppings, and fourteen proprietary spreads to create healthy and delicious panini and sub sandwiches with flavors from around the world. As a leading "fast-casual" concept, Spicy Pickle™ offers menu items that are far beyond traditional fast food, but without the price point of casual dining. The hallmark of a Spicy Pickle™ restaurant is quality, service and an enjoyable atmosphere. The company is headquartered in Denver, Colorado, with franchise locations now open across 12 states and many more in development nationwide. For more about Spicy Pickle, including franchise information and inquiries, visit http://www.spicypickle.com.

Stocks in the news and acting well as of late include: Motorola Inc. (NYSE: MOT), TiVo Inc. (NASDAQ: TIVO) and E-Trade Financial Corp. (NASDAQ: ETFC).

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You should be aware that MP is often compensated for issuing analyses, recommendations or opinions concerning particular companies. Its opinion is therefore not unbiased and you should consider this factor when evaluating MP's statements regarding a company. MP has been compensated thirty thousand dollars from Spicy Pickle Franchising, Inc. In addition, MP has been compensated three hundred thousand restricted shares of Spicy Pickle Franchising, Inc. from the company. In 2006, MP acquired two hundred thousand shares of Spicy Pickle Franchising, Inc. directly from the company in a private offering for fifty thousand dollars. These shares were subsequently included in a registration statement filed by the company with the SEC. To date, MP has sold two hundred thousand shares of stock in Spicy Pickle Franchising, Inc. for proceeds totaling one hundred ninety thousand seven hundred dollars. MP's officers and directors reserve the right to buy additional shares of the companies discussed in this opinion and may profit in the event those shares rise in value. When MP receives free trading shares as compensation for a profiled company, MP may sell part or all of any such shares during the period in which MP is performing such services. Market-Pulse.com and Market Pulse Breaking News Alert are owned by Market Pulse LLC.

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