Friendly Ice Cream Corporation (AMEX:FRN) today reported net income for the third quarter of 2001 of $2.3 million, or $.32 per share, as compared to net income of $3.2 million, or $.44 per share, for the third quarter of 2000. Exclusive of write-downs, extraordinary items, gains on franchise sales and dispositions of other properties and equipment, income before income taxes increased by $0.8 million, or 24%, to $4.3 million for the third quarter of 2001 from $3.5 million in the same quarter of 2000. Comparable restaurant revenues increased 1.5% in the third quarter of 2001.