SOURCE: Market Pulse

December 17, 2007 08:30 ET

Market Pulse Breaking News Alert for Monday, December 17, 2007: SPKL -- Spicy Pickle® Announces Closing of Private Financing in the Amount of $5,992,500 and Two New Restaurant Openings!

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

ATLANTA, GA--(Marketwire - December 17, 2007) - Market Pulse News Alert for this AM, Stocks to Watch are: Spicy Pickle® Franchising, Inc. (OTCBB: SPKL), BioMarin Pharmaceutical Inc. (NASDAQ: BMRN), Microsoft Corp. (NASDAQ: MSFT) and Dendreon Corp. (NASDAQ: DNDN).

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). As of September 1, 2007, the company had sold just under 100 franchises and developments. Of the franchises sold, 35 restaurants are opened and operating, 8 restaurants are under construction, and there are over 50 more sites that are under area development agreements. The company hopes to open 38 to 40 more restaurants in 12 states by the end of 2007. 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 Friday's bell announcing the closing of a private offering of its securities in the amount of Five Million Nine Hundred Ninety Two Thousand Dollars ($5,992,500)! The company said the funds are earmarked to accelerate growth of company-owned stores! In a second press release out after Friday's bell the company also announced two new restaurant openings! Investors should be watching this one closely!

Spicy Pickle® fast casual restaurants (OTCBB: SPKL) today announced the closing of a private offering of its securities in the amount of Five Million Nine Hundred Ninety Two Thousand Dollars ($5,992,500).

On Friday, Spicy Pickle® completed a private placement of 705 Units, priced at $8,500 per unit. Net proceeds of approximately $5.7 million, after commissions and fees, were received by the company.

Each unit contains one share of convertible preferred, which converts into 10,000 shares of common stock at a fixed conversion price of $.85 per share. The preferred shares also carry a 5% dividend in the first and second year and a 7.5% dividend in the third year.

In addition, each unit contains 7,500 warrants, which convert into the common stock at $1.60 per share for a period of five years.

Of the approximately $6 million raised, $1,300,000 came from two of Spicy Pickle's® independent members of the board of directors and their immediate family. The remaining funding came from two large institutional investors and several of the early shareholders who had participated in previous rounds of financing. Midtown Partners acted as placement agent for one for the institutional investors.

The proceeds of the offering will be used to rapidly accelerate the development of company-owned stores along with the continued development of the franchise system. Marc Geman, the CEO of the company, said: "These funds will kick-off the company-owned restaurant program under which we will develop, own and operate Spicy Pickle® Restaurants. The company restaurants will further support the franchise system by adding additional training facilities and focusing on operations and service alongside our multiple unit franchisee owners. Further, the company restaurants are expected to generate more bottom line revenue to the company than the current royalty provides from its franchisees. Taken together, the franchise and company-owned system should set the stage for dramatic growth in the coming years."

The company will file the complete documents representing the transaction with the SEC.

The securities issued by Spicy Pickle® have not been registered under the Securities Act of 1933 or any state securities laws. Therefore, such securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and any applicable state securities laws. This press release does not constitute an offer to sell any securities or a solicitation of an offer to buy any securities.

About Spicy Pickle®:

Founded in 1999, Spicy Pickle® Franchising, Inc. (OTCBB: SPKL) 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 twelve states and many more in development nationwide. For more about Spicy Pickle®, including franchise information and inquiries, visit http://www.spicypickle.com.

About Midtown Partners & Co., LLC

Originally founded in May 2000, Midtown Partners & Co., LLC is an investment bank focused on private placement investment banking opportunities. The investment banking group at Midtown Partners & Co., LLC was founded on the premise that client relationships and industry focus are keys to the success of emerging growth companies. Such companies require investment banking services from a firm with a unique understanding of the marketplace and the nature of these transactions. Midtown Partners was the 5th leading U.S. placement agent in number of closed PIPE transactions for 2006 (source Placementtracker.com). Additional information can be found at http://www.midtownpartners.com.

Stocks in the news and acting well as of late include: BioMarin Pharmaceutical Inc. (NASDAQ: BMRN), Microsoft Corp. (NASDAQ: MSFT) and Dendreon Corp. (NASDAQ: DNDN).

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MP, because it relies on information supplied by various third parties disclaims any responsibility for the accuracy of such information. Any investor considering making an investment in any security which has been the subject of a MP analysis or opinion should, before making any such investment, consult with his/her market professional and/or do his/her own independent research regarding the company which is the subject of an MP opinion, recommendation or analysis. Information regarding companies which MP has opined upon is normally available from many sources including the subject company's filings with the SEC and various press releases issued by the company.

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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