Marc Geman, CEO of Spicy Pickle, stated, "The recent financial crisis hasput the brakes on retail development. Now, for the first time in months,expansion activity is regaining some traction, and we are starting to seethe early signs of a return to expansion in the system."

One new lease in Houston, Texas has been signed for our Spicy Pickle chainand another new lease for our Bread Garden Urban Café chain in WesternCanada.

The new Spicy Pickle in Houston will be located at an existing end capspace at the South East corner of I-10 (Katy Freeway) and Kirkwood Road, inthe Nottingham Shopping Center. It is positioned on the eastern side ofHouston's "energy corridor"; already one of Houston's largest employmentcenters. The space is expected to be delivered within 60 days, andarchitectural planning is already underway.

The new location for the Bread Garden Café extends the reach of the chainto the magnificent setting in Vancouver on the campus of the University ofBritish Columbia. This new restaurant will be located in a newlyconstructed housing project a block from the student union and in themiddle of university housing. It has its own heated outdoor seating areawhich is weather protected.

Marc Geman, CEO of Spicy Pickle Franchising, Inc., commented: "The Houstonlocation marks the end of a long process for our franchisee. From here, wecan get started on the design, build out, training and grand opening. Thepremises will be available to the franchisee at the start of 2009. OurHouston franchisee is already looking at additional sites."

Mr. Geman further stated: "As we said before we have been working on sitesin the Vancouver area even as we were negotiating the purchase of the BreadGarden Urban Café chain. This new site, along with the new VancouverAirport site, represents the fruits of our labor and the hard work on thepart of the team in Vancouver.

"It's a tough environment for expansion domestically, but there is a brightspot. Commercial real estate prices are finally starting to come down, andwe are now in a position to negotiate some very favorable terms in primelocations for those franchisees that are ready to expand. We are on theverge of a number of additional new lease signings. We are still lookingfor locations in several US cities. Our Canadian subsidiary, Bread GardenUrban Cafés, is also looking for a number of additional locations. WesternCanada is not experiencing the heightened financial turmoil we have in theUS, and we anticipate continued expansion there as well."

The Spicy Pickle location in Sioux Falls, South Dakota was closed withoutnotice to the franchisor in October and the premises, in full operationalcondition, was abandoned. The franchisee apparently has left the area. Weare looking for another operator and have been in contact with the landlordwho has secured the premises.

Mr. Geman commented, "In these economic times I expect we are going to seesome fallout from franchisees that are not sufficiently capitalized to workthrough an economic downturn. We are confident the whole the system willcontinue to grow and most likely will be stronger by the time the economystarts to recover. Overall system-wide sales are what become important toachieving profitability and we are cumulatively adding to those sales.

"At the corporate level, we have been taking some cost savings steps tobring our overhead down to a level commensurate with the new environmentand our ongoing cash flow. We plan to increase revenues while reducingcosts at the corporate level to protect our shareholders as we move throughthis painful recession."

About Spicy Pickle(TM):

Founded in 1999, Spicy Pickle Franchising, Inc. (OTCBB: SPKL) serves highquality meats and fine artisan breads, baked fresh daily, along with a widechoice of eight different cheeses, twenty-two different toppings, andfourteen proprietary spreads to create healthy and delicious panini and subsandwiches with flavors from around the world. As a leading "fast-casual"concept, Spicy Pickle offers menu items that are far beyond traditionalfast food but without the price point of casual dining. The hallmark of aSpicy Pickle® restaurant is quality, service and an enjoyable atmosphere.The company is headquartered in Denver, Colorado, with restaurants open orunder construction across 14 states and several more in developmentnationwide. Spicy Pickle Franchising, Inc. also operates as franchisor forBread Garden Urban Cafés, a concept with 11 restaurants in the metropolitanVancouver, Canada area. Bread Garden Urban Cafés serve coffee, pastriesand breakfast items as well as lunch and dinner along with a wide varietyof desserts. To find out more about Spicy Pickle (OTCBB: SPKL), visit ourwebsite at www.spicypickle.com/.

Forward-Looking Statements:

Certain statements in this press release, including statements regardingthe number of restaurants we intend to open, are forward-lookingstatements. We use words such as "anticipate," "believe," "could,""should," "estimate," "expect," "intend," "may," "predict," "project,""target," and similar terms and phrases, including references toassumptions, to identify forward-looking statements. The forward-lookingstatements in this press release are based on information available to usas of the date any such statements are made and we assume no obligation toupdate these forward-looking statements. These statements are subject torisks and uncertainties that could cause actual results to differmaterially from those described in the statements. These risks anduncertainties include, but are not limited to, the following: factors thatcould affect our ability to achieve and manage our planned expansion, suchas the availability of a sufficient number of suitable new restaurant sitesand the availability of qualified franchisees and employees; risks relatingto our expansion into new markets; the risk of food-borne illnesses andother health concerns about our food products; changes in the availabilityand costs of food; changes in consumer preferences, general economicconditions or consumer discretionary spending; the impact of federal, stateor local government regulations relating to our franchisees and employees,and the sale of food or alcoholic beverages; the impact of litigation; ourability to protect our name and logo and other proprietary information; thepotential effects of inclement weather; the effect of competition in therestaurant industry; and other risk factors described from time to time inour SEC reports.

Company Contact:Marc GemanSpicy Pickle Franchising, Inc.(303) 297-1902Email Contactwww.spicypickle.comInvestor Relations Contact:Pamela A. SollyCirrus Financial Communications, LLC(720) 489-4912Email Contactwww.CirrusFC.com