Rocky Mountain Chocolate Factory, Inc. (the Company) (Nasdaq: RMCF) yesterday announced the refinancing of its long-term fixed and short-term revolving debt. The Company completed the overall refinancing in conjunction with the renewal of its short-term revolving debt. As a result, the Company lowered its scheduled payments, reduced the interest rate on its debt and extended the maturity dates of a portion of its long-term debt.

The interest rate for the long-term debt has been fixed at six percent (6%). The interest rate for the short-term revolving debt will float at prime less fifty basis points and currently stands at six percent (6%). Long-term debt has been increased from approximately $4.0 million to approximately $6.3 million, with maturities of between eighteen months and fifteen years. The balance on the short-term revolving debt outstanding decreased from approximately $2.5 million to approximately $140,000. The Company’s weighted average borrowing rate on long-term debt approximates 6.1% after the refinancing, compared with 7.9% prior thereto and 8.5% at the end of the preceding fiscal year. The Company’s current ratio has also improved to approximately 1.9-to-1.0 from approximately 1-to-1 at the end of the prior quarter and approximately 1.3-to-1.0 at the end of the prior fiscal year.

“The refinancing of our debt at such favorable rates reflects a growing appreciation by the financial markets that our operational and long-term strategic initiatives have strengthened the Company’s financial position,” commented Bryan J. Merryman, Chief Operating Officer of Rocky Mountain Chocolate Factory, Inc. “We believe the flexibility offered by the new financing facility will bolster our ability to grow our network of franchised Rocky Mountain Chocolate Factory stores across the United States.”

Rocky Mountain Chocolate Factory, Inc., headquartered in Durango, Colorado, is an international franchiser of gourmet chocolate and confection stores and a manufacturer of an extensive line of premium chocolates and other confectionery products. The Company’s common stock is listed on The Nasdaq National Market under the symbol “RMCF”.

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, 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.

For further information, please contact: Bryan J. Merryman, COO/CFO, +1-970-259-0554.