Franchising is a powerful economic force, demonstrated vividly by a recent study from Price Waterhouse Coopers, which found that there are more than 760,000 U.S. franchised establishments generating in excess of $1.5 trillion in economic activity and producing one-out-of-every-seven jobs. Yet another study by the FRANdata Corporation found that franchising has tremendous benefit for a broad array of concepts, finding that 900 new concepts began franchising in the United States between 2003 and 2005. Of the number of franchising brands in existence, 17 of the 18 industry categories continue to experience significant annual growth (Source: International Franchise Association).

Obee's Franchise Systems, Inc. (OTC: OBFM) is the parent company of obee's® soups salads & subs, a fast casual restaurant chain in a deli setting that offers a refreshing menu of fresh, healthy, and hearty choices. With more than 40 locations currently open, OBFM has commitments from its extensive national network of area developers to open 1,000 restaurants in the next ten years. Obee's Franchise Systems, Inc. has recently announced updates on the current state of expansion efforts in Pennsylvania, New Mexico, Minnesota and Texas. In addition the company's two key territories of Florida and California are attracting inquiries each week for franchising opportunities. The Company has developed and refined its Four Point Plan for Success that provides the brand's direction focusing on the foundational elements that the OBFM Board of Directors has determined are the most crucial for long-term success:

1. Menu items that are in step with the majority of consumer interests.
2. A defendable unique selling proposition against the competition.
3. Sound unit level economics and a well-executed expansion strategy.
4. Quality area developers, franchisees and employees who are dedicated to building and maintaining the obee's® soups salads & subs brand.

Through adherence to its purposeful business plan, Obee's Franchise Systems, Inc. is quickly building its brand and building on its momentum in pursuing additional growth opportunities.

Obee's Franchise Systems has already found substantial success with its more than 40 current locations, and the company recognizes the importance of a deliberate and carefully planned expansion plan. With the appropriate infrastructure already in place, OBFM believes strongly that it retains a competitive advantage for new franchising opportunities in the Quick Serve Restaurant (QSR) market segment. Through careful and extensive research, Obee's Franchise Systems has identified five key territories in the U.S. that are part of the company's existing Area Developer network that it believes have the best circumstances for successful expansion and market penetration. In addition, obee's has developed its Four Point Plan for Success in order to achieve and maintain its quality standards effectively as it expands. With contractual commitments to potentially open over 1,000 locations over the next ten years, Obee's Franchise Systems, Inc. believes that the past year of planning, financial reorganization and infrastructure development has been well spent.

Obee's Franchise Systems has maintained its focus on expansion and development, and recent announcements attest to the successful implementation of its business plan. In late July, for instance, the OBFM announced that it was in the final stages of construction of the first franchise it has contracted with one area developer in Pennsylvania. The agreement calls for an additional 19 restaurants to be built over the next 10 years. In early August, OBFM also announced the signing of an agreement to expand into the greater Dallas area. Since then, the company has announced new or renewed agreements in Pennsylvania, Texas, Minnesota and Florida as it continues to build upon commitments from its extensive national network of area developers to open an additional 1,000 stores in the next ten years. Obee's Franchising Systems, Inc. is currently in negotiations with several new successful area developers, and numerous potential franchisees around the country and abroad. OBFM expects to be able to announce the culmination of a number of these negotiations in the near future.