MTY Food Group Inc.

MTY Food Group Inc.

February 01, 2006 09:11 ET

MTY Proposes to Acquire Yogen Fruz Canadian Franchise Rights

MONTREAL, QUEBEC--(CCNMatthews - Feb. 1, 2006) - MTY (TSX VENTURE:MTY) is pleased to announce that it has reached an agreement with Yogen Fruz Canada Inc. ("YFC"), the owner and franchisor of the Yogen Fruz™ frozen dessert retail chain, to acquire the exclusive master franchise rights to franchise Yogen Fruz™ throughout Canada for a period of 20 years, plus an option to renew for a further 10 years.

In consideration, MTY has agreed to pay YFC $3.0 million in common shares of MTY at a price of $4.11 per share (or a total of 729,927 shares). The shares will be subject to escrow restrictions as permitted by regulatory authorities.

There are presently 177 Yogen Fruz™ franchised full stores and non-traditional franchised Yogen Fruz™ stores in Canada.

Commencing the closing date, MTY shall appoint YFC to manage, supervise and further develop the Yogen Fruz™ franchising business in Canada for a two (2) year transition period.

The agreement is subject to formal master franchise agreement and regulatory acceptance.

On Behalf of the Board of Directors of MTY Food Group Inc.


Stanley Ma, Chairman of the Board

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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