Tasty Baking Company (NYSE:TBC), today announced financial results for the second quarter and twenty-six weeks ended June 30, 2001.

For the second quarter, gross sales were $66.5 million compared with $62.9 million last year, an increase of 5.8%. Gross sales, less discounts and allowances, resulted in net sales of $43.0 million compared with $41.7 million reported last year, an increase of 3.1%. Net income for the thirteen weeks was $2.5 million compared with $2.2 million reported last year, an increase of 12.3%. Net income per diluted share was $0.31 compared with $0.28 reported last year, an increase of 10.7%.

For the twenty-six weeks ended June 30, 2001, gross sales were $132.2 million compared with $124.0 million last year, an increase of 6.6%. Gross sales, less discounts and allowances, resulted in net sales of $85.4 million compared with $82.1 million reported last year, an increase of 4.1%. Net income was $4.6 million or $0.57 per diluted share compared with $4.2 million or $0.54 per diluted share reported during the prior period.

Carl S. Watts, Chairman and Chief Executive Officer, commented, ``We are extraordinarily pleased with the results of our second quarter as it continued our trend of showing record sales, our seventh in a row. Route sales operations for the quarter were up 3.9%. This is a nice turnaround from the first quarter despite heavy promotional activity from competition in all of our route marketing areas. We look for continued similar results from our route sales throughout the year.''

Mr. Watts continued, ``Our effort to grow our business nationally is showing excellent results, with a 13.8% increase for the quarter. We are continuing to seek new sales opportunities, including mass merchandisers, limited assortment retailers, and other new methods of distribution. We continue to build on our relationship with Wal-Mart and we could not be more pleased with our results. We are working hard to establish relationships with other national mass merchandisers and we expect that some of this will occur during the third quarter of this year.''

Mr. Watts added, ``We are moving closer to our goal of opening twenty thrift stores during 2001 and we currently have seventeen stores open. These stores are operating in our direct-store-delivery area, and we are pleased with our progress to date.''

Mr. Watts further noted, ``I am very pleased with the overall operation of the company. Each of our expense categories as a percent of sales declined throughout the quarter. All three of our producing plants continue to perform according to schedule.''

Mr. Watts concluded, ``We remain committed to executing our four major strategies which include growing our sales in our route operations, establishing alternative methods and channels of distribution, introducing new products, and continuing with the operation and opening of new thrift outlets. We are optimistic about the future and we will work hard to deliver superior results for the remainder of the year.''

Tasty Baking Company is one of the largest independent baking companies in the United States, and is the leading snack cake provider of the Mid-Atlantic region. The Company operates three bakeries in the Mid-Atlantic region, and distributes its products in 49 states under the Tastykake brand name.

Except for historical information contained herein, the matters discussed are forward-looking statements (as such term is defined in the Securities Act of 1933, as amended) and because such statements include risks and uncertainties, actual results may differ materially from those forward-looking statements. Factors that may cause actual results to differ from the forward-looking statements in this release include, but are not limited to, changes in general economic and business conditions and other factors described in the Company's filings with the Securities and Exchange Commission.

                 TASTY BAKING COMPANY AND SUBSIDIARIES
             CONSOLIDATED HIGHLIGHTS OF OPERATING RESULTS
                              (Unaudited)

                  13 Weeks Ended                26 Weeks Ended
               ------------------------     -------------------------
               06/30/2001    06/24/2000     06/30/2001     06/24/2000
               ----------    ----------     ----------     ----------

Gross sales  $ 66,520,073  $ 62,899,396  $ 132,175,447  $ 124,047,156
Less
 discounts
 and
 allowances   (23,495,955)  (21,181,024)   (46,757,240)   (41,985,438)
             ------------  ------------  -------------  -------------
Net sales      43,024,118    41,718,372     85,418,207     82,061,718
             ------------  ------------  -------------  -------------

Cost of sales  27,095,930    26,379,584     53,509,774     52,376,596
Depreciation    1,703,058     1,819,469      3,552,088      3,681,836
Operating
 expenses      10,258,751     9,984,356     20,990,837     19,307,783
Interest
 expense and
 other
 (income),
 net               17,277        72,102        (18,832)       100,793
             ------------  ------------  -------------  -------------

               39,075,016    38,255,511     78,033,867     75,467,008
             ------------  ------------  -------------  -------------

Income
 before
 provision
 for income
 taxes          3,949,102     3,462,861      7,384,340      6,594,710
Provision
 for income
 taxes         (1,450,570)   (1,238,468)    (2,766,357)    (2,347,801)
             ------------  ------------  -------------  -------------


Net income    $ 2,498,532   $ 2,224,393    $ 4,617,983    $ 4,246,909
             ============  ============  =============  =============


Average
 number of
 shares
 outstanding:
  Basic         7,998,041     7,831,331      7,950,222      7,827,270
  Diluted       8,137,241     7,847,203      8,085,533      7,835,206

Per share
 of common
 stock:

Net income :
  Basic             $0.31         $0.28          $0.58          $0.54
                    =====         =====          =====          =====
  Diluted           $0.31         $0.28          $0.57          $0.54
                    =====         =====          =====          =====
Cash Dividend       $0.12         $0.12          $0.24          $0.24
                    =====         =====          =====          =====