CoolBrands International Inc. announces the sale of its Yogurt Division

    TORONTO, Jan. 30 /CNW/ - CoolBrands International Inc. ("CoolBrands")
(TSX: COB.A) today announced the closing of the sale of its Yogurt Division to
Lily Acquisition, LLC ("Lily"), an affiliate of Healthy Food Holdings, the
manufacturer and marketer of the YoCrunch family of yogurt products. Lily has
acquired all of the issued and outstanding shares of common stock of
CoolBrands Dairy, Inc., an indirect wholly owned subsidiary of CoolBrands. The
closing occurred today, with an effective date of January 28, 2007.
    CoolBrands Dairy, Inc. manufactures cup yogurt at its plant located in
North Lawrence, New York under the Breyers(R) brand and the Crème Savers(R)
brand. On closing, CoolBrands received US$45,000,000 in cash (subject to a
working capital adjustment), a US$5 million subordinated promissory note, and
a warrant to purchase shares of common stock of Yogurt Holdings II, Inc.
    The US$5 million subordinated promissory note that CoolBrands received
upon closing is repayable on the second anniversary of the closing date of the
transaction, and accrues interests at 12.9% per annum, compounded quarterly.

    About CoolBrands International Inc.: CoolBrands is focused on
manufacturing, marketing and selling a broad range of ice creams and frozen
snacks under nationally and internationally recognized brand names. For
additional information please visit CoolBrands' website at

    Forward Looking Statements

    This press release includes certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 regarding,
among other things, statements relating to goals, plans and projections
regarding CoolBrands' financial position and business strategy. These
statements may be identified by the fact that they use such words as
"anticipate", "estimate", "expect", "intend", "plan", "believe" and other
words and terms of similar meaning in connection with any discussion of future
operating or financial performance. Such forward-looking statements are based
on current expectations and involve inherent risks and uncertainties,
including factors that could delay, divert or change any of them, and could
cause actual outcomes and results to differ materially from current
expectations. These factors include, among other things, market factors,
competitive product development and promotional activity, the level of
consumer interest in CoolBrands' products, product costing, the weather, the
performance of management, including management's ability to implement its
plans as contemplated, CoolBrands' relationship with its customers,
franchisees, licensees and licensors, governmental regulations and legislation
and litigation. CoolBrands undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information, future
events or otherwise.
    %SEDAR: 00003887E          %CIK: 0001005531

For further information:

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

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