Rocky Mountain Chocolate Factory, Inc. (Nasdaq: RMCF; the "Company") today reported preliminary and unaudited record earnings per share of $.14 for the quarter ended February 28, 2001 compared to $.07 per share for the quarter ended February 29, 2000, an increase of 100%. The Company also reported preliminary and unaudited record earnings per share for the year ended February 28, 2001 of $.77 compared to $.41 for the year ended February 29, 2000, an increase of 87.8%. When adjusted for the costs associated with the unsolicited tender offer in fiscal 2000, preliminary and unaudited earnings per share increased 51% for fiscal 2001 versus the prior fiscal year. Preliminary and unaudited net income increased 49.1% to $277,000 in the fourth quarter of fiscal 2001 from $186,000 in the fourth quarter of fiscal 2000. Preliminary and unaudited net income increased 47.1% to a record $1,555,000 for fiscal 2001 from $1,057,000 in fiscal 2000. When adjusted for the costs associated with the unsolicited tender offer in fiscal 2000, preliminary and unaudited net income increased 18.3% in fiscal 2001 versus the prior fiscal year. Total preliminary and unaudited revenues decreased 9.0% in the fourth quarter and 8.5% for the year ending February 28, 2001 versus the comparable periods of the prior fiscal year. Total preliminary and unaudited revenues excluding retail sales increased 14.0% in the fourth quarter and 8.2% for the year ending February 28, 2001 versus the comparable periods of the prior fiscal year.

The decrease in retail sales resulted principally from a reduced number of Company-owned stores from 34 at February 29, 2000 to 14 at February 28, 2001. The Company intends to continue franchising its Company-owned stores in order to focus on its franchise system.

On January 5, 2001 the Board of Directors approved the repurchase of an additional 100,000 shares of the Company's outstanding common stock at an aggregate price of up to $500,000. To date, the Company has repurchased 53,000 shares of its common stock for approximately $268,000.

This press release contains forward-looking information that involves risks and uncertainties, and the company undertakes no obligation to update any forward-looking information. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Company's ability to franchise its Company-owned stores, seasonality, consumer interest in the company's products, general economic conditions, consumer trends, costs and availability of raw materials, competition and the effect of government regulation.

Rocky Mountain Chocolate Factory, Inc. is an international franchiser of old-fashion chocolate and confection stores and a manufacturer of an extensive line of premium chocolates and other confectionery products.

For Further Information, contact Bryan J. Merryman, COO/CFO, (970) 259-0554.