Dreyer's Grand Ice Cream, Inc. (NNM:DRYR) today announced results for the third quarter ended September 29, 2001. The company earned $.17 per diluted common share in the quarter compared with earnings of $.31 per diluted common share for the third quarter of 2000. The decrease in earnings largely reflects the effect of higher commodity costs, particularly for dairy ingredients.

Operating Results

Consolidated sales for the thirteen weeks ended September 29, 2001 were $419,911,000, an increase of 22 percent over sales of $345,017,000 in the third quarter of 2000. Net income for the third quarter was $6,048,000, or $.17 per diluted common share, a $4,942,000 decrease from net income of $10,990,000, or $.31 per diluted common share, in the third quarter of 2000.

Consolidated sales for the thirty-nine weeks ended September 29, 2001 were $1,076,773,000, an increase of 18 percent over sales of $909,256,000 in the same period last year. The company recorded year-to-date net income of $8,657,000, or $.24 per diluted common share, a $17,515,000 decrease from net income of $26,172,000, or $0.75 per diluted common share, in the same period of 2000.

Sales of the company's branded products increased nine percent in the quarter. The increase was led by sales of premium Dreyer's and Edy's Grand Ice Cream, sales of the company's superpremium portfolio, most notably Dreamery and Whole Fruit Sorbet, and Whole Fruit Bars.

Sales of partner brands, products distributed for other manufacturers, increased 51 percent and accounted for 38 percent of sales in the quarter. The increase continues to be driven largely by the acquisition of independent distributors in 2000 and by increased sales of Ben & Jerry's Homemade, Inc. superpremium products. The company expanded its distribution of Ben & Jerry's products in the grocery channel to all of Dreyer's company-operated markets in March 2001.

Gross profit increased by $5,504,000 to $98,744,000 in the quarter, representing a 24 percent gross margin for the period compared with a 27 percent gross margin in the third quarter of 2000. The cost of cream, the company's primary ingredient, continued to rise during the quarter resulting in a $12.0 million pre-tax cost impact versus the same quarter last year, and a $27.0 million year-to-date impact versus prior year.

Selling, general and administrative expenses increased by 20 percent, or $14,416,000, for the third quarter to $87,012,000, representing a slight decrease as a percent of sales from the same quarter of last year. The dollar increase in SG&A expenses primarily reflects trade and consumer promotion spending and, to a lesser extent, increases in administrative expenses.

Chairman's Comments

T. Gary Rogers, Chairman and Chief Executive Officer of Dreyer's, had the following comments on the quarterly results: "We are very encouraged by the current trends in our business. Clearly, our third quarter results suffered from the continuing effects of the extraordinary spike in butter costs this year, and from the impact of related ice cream industry price increases on consumer demand. However, our sales, particularly in company brands, enjoyed a strong recovery in August and September, and that trend has continued into the fourth quarter. At the same time, the price of butter, which determines our dairy costs, has dropped by almost 45 percent since late September, reflecting the artificial nature of the previous price level. The combination of strengthening sales and sharply declining dairy costs increases our confidence that we will end 2001 with a very strong base for profit growth in 2002 and beyond."

Dreyer's Grand Ice Cream, Inc. manufactures and distributes a full spectrum of premium and superpremium ice creams. The company's product lines are marketed under the Dreyer's brand name throughout the thirteen western states, Texas and certain markets in the Far East, and under the Edy's brand name throughout the remainder of the United States. Taken together, Dreyer's and Edy's is the best-selling brand of packaged ice cream and other premium frozen dairy dessert products in the country. Other brands currently manufactured and distributed by Dreyer's include Homemade, Whole Fruit Sorbet, Starbucks®, Godiva®, Dreamery(TM), M&M/Mars and Healthy Choice®. For more information on the company and its products, please visit the Dreyer's websites at www.dreyersinc.com and www.dreyers.com.

Forward-Looking Statements

Certain statements contained in this press release, the forthcoming conference call, simultaneous webcast and audio replay are forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties at the time such statements are made in a press release, conference call or webcast, or are recorded for later audio replay. Such known and unknown risks and uncertainties may cause the company's actual actions or results to differ materially from those contained in the forward-looking statements. Specific factors that might cause such a difference include, but are not limited to, the following: the company's ability to achieve efficiencies in its manufacturing and distribution operations without negatively affecting sales; the cost of energy used in manufacturing and distribution; the cost of dairy raw materials and other commodities used in the company's products; competitors' marketing and promotion responses; market conditions affecting the prices of the company's products; the company's ability to increase sales of its own branded products; and responsiveness of both the trade and consumers to the company's new products and marketing and promotional programs.

For further information contact: William C. Collett 510/601-4339

              Condensed Consolidated Statement of Income
         (In thousands, except per share amounts - unaudited)

                    Thirteen Weeks Ended     Thirty-Nine Weeks Ended
                    Sep. 29,    Sep. 23,        Sep. 29,    Sep. 23,
                      2001        2000            2001        2000

Revenues:
 Sales              $419,911    $345,017      $1,076,773    $909,256
 Other income          1,029         531           2,198       3,660
                     -------     -------       ---------     -------
                     420,940     345,548       1,078,971     912,916

Costs and expenses:
 Cost of goods
  sold               321,167     251,777         832,496     669,780
 Selling, general
  and administrative  87,012      72,596         223,144     191,801
 Interest, net of
  amounts
  capitalized          2,814       3,420           9,092       9,053
                     -------     -------       ---------     -------
                     410,993     327,793        1,064,732    870,634

Income before income
 tax provision         9,947      17,755          14,239      42,282
Income tax provision   3,899       6,765           5,582      16,110
Net income             6,048      10,990           8,657      26,172
Preferred dividends
 and accretion            -         280              560         840
Net income available
 to common
 stockholders         $6,048     $10,710         $ 8,097    $ 25,332
                      ======     =======         =======    ========
Weighted average
 common shares
 outstanding
 - diluted            36,221      35,407          36,218      35,092
                      ======      ======          ======    ========
Net income
 per common share
 - diluted          $    .17    $    .31        $    .24    $    .75
                    ========    ========        ========    ========

Dividends per
 common share       $    .06    $    .03       $     .18   $     .09
                    ========    ========       =========   =========


                 Condensed Consolidated Balance Sheet
                            (In thousands)

                              Sep. 29, 2001     Dec. 30, 2000
                              -------------     -------------
                                (unaudited)
Assets

Current Assets:
Cash and cash equivalents          $  2,529        $  2,721
Receivables                         149,210          95,012
Inventories                          81,489          68,801
Prepaid expenses and other           10,345          11,534
                                     ------          ------
   Total current assets             243,573         178,068

Property, plant and
 equipment, net                     195,387         190,833
Goodwill, distribution
 rights and other
 intangibles, net                    94,903          92,892
Other assets                          5,842           6,658
                                     ------          ------

Total assets                       $539,705        $468,451
                                   ========        ========

Liabilities and Stockholders' Equity

Current Liabilities:
Accounts payable and
 accrued liabilities               $148,167        $105,019
Current portion of long-term
  debt                                   -           15,043
                                     ------          ------
   Total current liabilities        148,167         120,062

Long-term debt, less current
 portion                            156,771         121,214
Deferred income taxes                26,322          26,263
                                     ------          ------
Total liabilities                   331,260         267,539

Redeemable preferred stock               -          100,540

Stockholders' equity                208,445         100,372
                                    -------         -------

Total liabilities and
   stockholders' equity            $539,705        $468,451
                                   ========        ========