Fuzziwig's Candy Factory, Inc. Announces Acquisition of Sweets From Heaven

Combination creates international candy and specialty toy retailer with 63 locations.

Steamboat Springs, CO – November 19, 2003

Retail candy and specialty toy franchiser, Fuzziwig's Candy Factory, Inc. today announced the signing of a definitive agreement to acquire the assets of Sweets From Heaven USA, L.P., a Pittsburgh, PA chain of retail candy stores. The effective date of the agreement was November 1, 2003 at which time Fuzziwig's Candy Factory, Inc. assumed management responsibilities for 9 company-owned and 26 franchised Sweets From Heaven stores. The acquisition results in Fuzziwig's Candy Factory growing to a total of 63 retail candy and specialty toy stores.

Sweets From Heaven is an excellent brand with a strong presence which we are confident can grow
significantly.

According to CEO Don Grueser, the acquisition makes Fuzziwig's Candy Factory the largest franchiser in the bulk "themed candy" segment. "The acquisition of Sweets From Heaven is a perfect fit for us," said Grueser. "Their stores are similar to ours and, like us, demonstrate exceptional sales volumes. Our goal is to merge our strengths and roll out a new generation of stores that are truly the best in the business."

Strategically, the company intends to maintain the Sweets From Heaven brand. "We have no plans to re-position the stores. Sweets From Heaven is an excellent brand with a strong presence which we are confident can grow significantly in select markets," said Kayo Folsom, President of Fuzziwig's Candy Factory. "We're most excited about leveraging our combined strength into greater benefits for our franchisees including increased buying power with vendors, improved positioning with mall landlords and greater resources for training and support."