Dreyer's Grand Ice Cream, Inc. (Nasdaq:DRYR) today announced that it has signed a new, long-term distribution agreement with Ben & Jerry's Homemade, Inc. Under this agreement, Dreyer's will significantly increase its Ben & Jerry's business, becoming the distributor of Ben & Jerry's products for the grocery channel in all of Dreyer's company-operated markets across the country. Dreyer's and Ben & Jerry's will also work together to expand Dreyer's existing role as a Ben & Jerry's distributor in other, "non-grocery," channels, such as convenience stores.

Dreyer's currently distributes Ben & Jerry's in the Midwest and Northwest. The new agreement expands this distribution throughout Dreyer's national direct-store-delivery system. The agreement will take effect on February 28, 2001, extends for five years, and is renewable for two additional five-year periods.

The new Ben & Jerry's agreement broadens Dreyer's role as a significant distributor for Unilever's ice cream businesses in the United States.

"We have had a relationship with Ben & Jerry's for nearly 15 years," said T. Gary Rogers, Chairman and CEO of Dreyer's. "This agreement takes that relationship to a new level, and represents an exciting long-term commitment by both companies. In particular, it is a significant step forward in our strategy to extend our distribution system into a wide variety of smaller accounts. The combination of our own strong portfolio of brands with Ben & Jerry's is an unmatched offering for any retailer. We already have the only national direct-store-delivery system for ice cream in grocery stores. However, a significant portion of all ice cream is sold in non-grocery channels, and we are very excited about the opportunity to expand our unique distribution capabilities into these channels as well."

As part of this channel development strategy, Dreyer's has also recently completed the acquisition of several key distributors in the West. The largest of these is Specialty Frozen Products, with annual sales of $65 million, which Dreyer's acquired in September. Specialty, which is based in Seattle, operates primarily in the states of Washington, Colorado and Alaska, and distributes Haagen-Dazs, M&M/Mars' novelties, and Good Humor-Breyers products, among others, in those territories. Dreyer's is already the distributor for Ben & Jerry's and Nestle products, as well as its own brands, in these markets.

In addition, Dreyer's has acquired Rutledge Distributing, Inc. in Santa Barbara, California, and has agreed to acquire two smaller non-grocery distributors in San Diego as part of a broad non-grocery initiative in Southern California. The total annual revenue of these acquisitions is approximately $7 million.

"Our strategy for growth rests on two foundations: the strength of our own company brands -- which are growing at a rate of 16 percent this year -- and our unique national direct-store-delivery system," said Rogers. "We have a tremendous opportunity to accelerate our growth by continuing our expansion beyond the grocery channel. The Ben & Jerry's agreement, combined with our recent acquisitions, significantly helps to bring together all the elements of this strategy."

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 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. 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 our website at www.icecream.com.

Forward Looking Statements

Certain statements contained in this press release 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, which 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 Company's ability to achieve efficiencies in its manufacturing and distribution operations without negatively affecting sales; 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 the trade and consumers to the Company's new products and marketing and promotional programs.