New World Coffee-Manhattan Bagel, Inc. announced today that it will be adding five Manhattan Bagel franchise units in the Harrisburg, PA market under an agreement with an existing Chesapeake Bagel Bakery franchisee.

The agreement calls for franchisee Tahoe Corporation to convert four of its current units, one of which is an independent location, to the Manhattan Bagel brand. Additionally, Tahoe Corporation will open a fifth Harrisburg location, currently under construction, as a Manhattan Bagel store. The existing locations are in the process of being converted, and are expected to be operating under the Manhattan Bagel name by the end of June. The fifth store is expected to open by the end of July.

All of the stores will use bagel dough and cream cheese produced in Manhattan Bagel's Eatontown, NJ factory, as well as coffee roasted at the New World plant in Branford, CT. The bagels will be boiled and freshly baked at store level throughout the day.

New World completed its acquisition of the 77-store Chesapeake Bagel Bakery franchise system from Atlanta-based AFC Enterprises in August 1999.

New World Coffee-Manhattan Bagel, Inc. currently franchises, licenses or owns stores under its four brands in 28 states and Washington, D.C. The Company is vertically integrated in bagel dough and cream cheese manufacturing, and coffee roasting, with plants in New Jersey, California and Connecticut.

Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "estimate," "project," "intend," "expect," "should," "would" and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the Company's SEC filings.