CoolBrands International Inc. announces further developments in Capricorn lawsuit

    TORONTO, Aug. 1 /CNW/ - CoolBrands International Inc. (TSX: COB)
("CoolBrands" or the "Company") announces that, as anticipated, Capricorn
Investors III L.P. ("Capricorn") has renewed its efforts to implicate the
Company and its subsidiary, Integrated Brands Inc. ("Integrated"), in the
ongoing Americana Limited Partnership (the "Partnership") lawsuit in the
Supreme Court of the State of New York - New York County.
    The Company previously announced on June 17, 2008, that Judge Fried had
granted CoolBrands' motion to dismiss seven of the ten claims made by the
plaintiff, Capricorn, in its complaint. Judge Fried had provisionally
dismissed all of Capricorn's claims against CoolBrands and Integrated, but
permitted the plaintiff an opportunity to re-plead its case to include these
parties in the complaint.
    Capricorn has now served its Third Amended Complaint, in which it
alleges, inter alia, that CoolBrands and Integrated are de facto partners in
the Partnership and are obligated to pay Capricorn US $65 million under the
"Change of Control" provision in the Partnership Agreement. Capricorn also
claims unspecified damages from CoolBrands and Integrated based on allegations
that the defendants failed to provide Capricorn with certain information as
required under the LP Agreement.
    The Company continues to deny any liability to Capricorn in this lawsuit
and is vigorously preparing a motion to dismiss all of the plaintiff's claims
against it and Integrated. Judge Fried has set a timetable for this motion
through October, 2008 and has stayed any further discovery steps in the
lawsuit until after the motion is decided.

    Forward Looking Statements

    The information in this document contains certain forward-looking
statements with respect to CoolBrands International Inc., its subsidiaries and
affiliates. These statements are often, but not always made through the use of
words or phrases such as "expect", "should continue", "continue", "believe",
"anticipate", "estimate", "contemplate", "target", "plan", "budget", "may",
"will", "schedule" and "intend" or similar formulations. By their nature,
these forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by management, are
inherently subject to significant, known and unknown, business, economic,
competitive and other risks, uncertainties and other factors affecting
CoolBrands specifically or its industry generally that could cause actual
performance, achievements and financial results to differ materially from
those contemplated by the forward-looking statements. In view of these
uncertainties we caution readers not to place undue reliance on these
forward-looking statements. CoolBrands disclaims any intention or obligation
to update or revise any statements made herein, whether as a result of new
information, future events or otherwise.

    %SEDAR: 00003887E

For further information:

For further information: Carla Aedo, Telephone: (905) 479-8762

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