Friendly Ice Cream Corporation (AMEX: FRN) said yesterday that Paul Kelley has resigned from his position as Senior Vice President and Chief Financial Officer.

"Paul Kelley has been a valuable member of senior management for the past year and was instrumental in reorganizing the financial department, building a strong team that will continue to manage the day-to-day financial affairs of the Company," said Donald N. Smith, Friendly Ice Cream Corporation's Chairman and Chief Executive Officer.

The Company started an active search for a CFO. In the interim, Paul J. McDonald will advise the company on financial matters. McDonald, an experienced financial professional, is a special advisor to Friendly's Board and was formerly Senior Executive Vice President and Chief Financial Officer for Friendly Ice Cream Corporation. McDonald retired from the CFO position in January 2000 after 24 years with Friendly's.

Friendly's is a full-service, family restaurant operator and has a leading position in premium frozen dessert sales in the Northeast. The Company owns and operates over 440 and franchises over 120 full-service restaurants in 17 states and manufactures a complete line of packaged frozen desserts distributed through more than 3,500 supermarkets and other retail locations. Friendly Ice Cream Corporation is a publicly traded company trading on AMEX under the symbol FRN.