Incredible franchise demand causes unprecedented growth as Company enters new markets in California, Virginia and Texas.

As Carvel celebrates 70 years of sweet success, the nation’s first retail ice cream franchise is experiencing record franchise sales growth in 2004, to date granting over 100 new franchise licenses and opening 37 new locations. These outstanding results stem from the company’s continued efforts to reinvigorate the brand image through a new store prototype; 20+ new products including a fresh baked waffle program and new hand dipped flavors; and an extensive franchise support system.

The leading manufacturer of uniquely shaped ice cream cakes, and a leading provider of premium soft serve and hand-dipped ice cream products, Carvel has become one of the best-loved and most recognized names in its industry. With products made fresh daily in the store, the company has more than over 470 franchised and foodservice locations serving delicious, high-quality cakes, novelties, cups, cones, sundaes and shakes. In addition, the company sells its famous ice cream cakes through over 7,000 supermarket outlets.

Carvel was established in Hartsdale, N.Y., by a young Greek immigrant named Thomas Carvel. After borrowing $15 from his future wife Agnes, Tom began his company by selling ice cream from the back of his mobile truck. Memorial Day weekend of 1934, Tom’s truck suffered a flat tire so he pulled his trailer into the parking lot next to a pottery store. As the hot sun began melting his product, Tom was thrilled as droves of cars began pulling off the road at the site of his truck. Within two days, Tom had sold his entire supply of melting ice cream, and realized that he could make a lot more money working from a fixed location. With no money to repair the tire, the generous potter allowed Tom to hook into his store’s electricity, plant a few shrubs around the trailer and open for business. Two years later, Tom bought the pottery store, converted it into a roadside stand, and permanently established himself as the first retailer to develop and market soft ice cream.

Considered by many as the “father of franchising”, Tom was passionate about creating and selling one of the country’s favorite ice cream brands. By developing equipment, perfecting manufacturing processes and creating innovative marketing tools, Carvel was a pioneer for today’s ice cream and franchise industries. In 1936, he created and patented a “no air pump” ice cream machine and, over the next five decades, introduced over 500 other patents, trademarks and copyright registrations from mechanical and product designs to methods and technical developments of food equipment. A marketing genius, Carvel also set the franchise world on fire with his “Buy One Get One Free” concept (1936) and gift certificates (1954), as well as blazed the paths for Chrysler’s Lee Iacocca and other outspoken CEOs by doing his own radio and TV commercials (1955).

In 1947, Carvel became the first retail ice cream shop to franchise its brand, four years before his friend Ray Kroc began to franchise McDonalds. With fervor for perfection, Tom was committed to his franchisees and worked with them daily to help each one effectively and efficiently run their operations. In support of this commitment, Carvel opened its first training school in 1949 for storeowners, known as the Carvel College of Ice Cream Knowledge, but affectionately referred to as “Sundae School”.

After 70 years, Carvel enjoys brand awareness of over 90% in its core markets and continues to build upon its rich heritage. This sweet success has earned the company a place in the nation’s American History Museum in the Smithsonian Institute. In addition, Carvel holds the Guinness World Record? for the Largest Ice Cream Pyramid and the Largest Ice Cream Cake.

In November 2001, Roark Capital Group purchased Carvel. Playing on its strong history and mystique, Carvel plans to capitalize on its outstanding brand recognition and customer loyalty, and expand its following to a more national audience. Carvel products provide the smile for not only the special occasions in life, but for the little things as well.