BAB, Inc. (OTCBB: BABB), the Chicago-based operator and franchisor of Big Apple Bagels, My Favorite Muffin, and Brewster's Coffee, announced today that its Big Apple Bagels concept has been ranked No.1 in its category in Entrepreneur magazine's 22nd annual Franchise 500 listing. The fresh bagel franchise also achieved a No.6 rating across all bakery product categories, which include bagels, breads, cinnamon rolls, donuts, and pretzels, and was ranked No.180 out of the complete listing of the top 500 franchise concepts that were selected.

The listing, contained within this month's issue, is designed to help its readers identify the top franchise opportunities available. The companies are rated based on objective, quantifiable data, which is then put through a verification process by the magazine. Subjective elements that are often used in other such listings are not measured. For this reason the "Franchise 500" is considered by many to be the best and most comprehensive ranking of franchise concepts. Factors considered in the ranking process include aspects such as financial strength and stability, growth rate, size of system, length of time franchising, start-up costs, litigation history, and percentage of franchise terminations. Additionally, Entrepreneur has an independent CPA firm audit the financial data that is supplied by each company in their Uniform Franchise Offering Circular.

"We have moved up substantially from last year's rating of No.233," pointed out Michael W. Evans, President and Chief Executive Officer of BAB, Inc. "We believe the improvement to our overall rating and our winning position within our category are the results of our carefully implemented strategy to evolve with the changing industry. We are constantly striving to update and improve our franchise opportunity and are gratified to receive this recognition."

Indeed, today there is little resemblance to the carryout bagel counter that was the original Big Apple Bagels concept. In recent months, the chain has launched its New Life menu as an important element of its growth strategy. In addition to more than 18 varieties of fresh bagels and breads baked throughout the day and up to a dozen varieties of My Favorite Muffin®, the new stores feature an extensive selection of sandwiches served on either a bagel or roll; freshly tossed to order gourmet salads; an assortment of party platters and My Favorite Muffin gift baskets; and a selection of fresh brewed Brewster's® coffees and espresso-based specialty beverages.

It is no wonder that the Franchise 500 listing also identifies Big Apple Bagels as No.61 of the Fastest-Growing Franchises. As its product offering has evolved, so has its franchise support program. Technological advancements have made it possible for BAB to create an array of on-line tools and services for its franchisees, in the form of an ever-expanding Web site available exclusively to and for the benefit of its franchisees.

BAB, Inc. operates, franchises, and licenses Big Apple Bagels®, My Favorite Muffin®, and Brewster's®Coffee. It currently has units in 28 states, two Canadian provinces, Peru and Egypt and has master franchise agreements for South Korea and the United Arab Emirates. The Company owns Jacobs Bros. Bagels; a Chicago based bagel bakery chain and has licensing agreements with Host Marriott, Mrs. Fields Cookies, Beatrice Group, Inc., a division of ConAgra, Alonti Deli, and Kohr Bros. Frozen Custard. The Company's stock is traded on the OTCBB under the symbol BABB and its web site can be visited at www.babcorp.com.

Certain statements contained in this press release, including statements regarding the development of the company's business, the markets for the company's products, anticipated capital expenditures, and the effects of completed and proposed acquisitions, and other statements contained herein regarding matters that are not historical facts, are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Certain risks and uncertainties are outside the control of the company and its management, including its ability to attract new franchisees; the continued success of current franchisees; the effects of competition on franchisee and company-owned store results; consumer acceptance of the company's products in new and existing markets; fluctuation in development and operating costs; brand awareness; availability and terms of capital; adverse publicity; acceptance of new product offerings; availability of locations and terms of sites for store development; food, labor and employee benefit costs; changes in government regulation (including increases in the minimum wage law); regional economic and weather conditions; the hiring, training, and retention of skilled corporate and restaurant management; and the integration and assimilation of acquired concepts. Some of these risks and uncertainties are wholly outside of the control of the company. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to publicly release the results of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.