Friendly Ice Cream Corporation Announces Employment Inducement Awards to New Chief Executive Officer

  
    
  
  
    
      Friendly Ice Cream Corporation (AMEX: FRN) today reported the grant of 
      stock options to purchase 75,000 shares of the Company’s 
      common stock to George Condos as a material inducement to his employment 
      as the Company’s new President and Chief 
      Executive Officer. These non-qualified stock options were granted 
      pursuant to an exemption from the stockholder approval requirements set 
      forth in Section 711 of the American Stock Exchange Company Guide. The 
      stock options have an exercise price equal to the Company’s 
      closing price on January 8, 2007 and vest over a three-year period.
    
    
      About Friendly Ice Cream Corporation
    
    
      Friendly Ice Cream Corporation is a vertically integrated restaurant 
      company serving signature sandwiches, entrees and ice cream desserts in 
      a friendly, family environment in more than 520 company and franchised 
      restaurants throughout the Northeast. The company also manufactures ice 
      cream, which is distributed through more than 4,500 supermarkets and 
      other retail locations. With a 70-year operating history, Friendly's 
      enjoys strong brand recognition and is currently revitalizing its 
      restaurants and introducing new products to grow its customer base.