Rocky Mountain Chocolate Factory Corrects the Record Regarding AB Value’s Misleading Claims and Inaccurate Statements

Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) (the "Company" or “RMCF”), one of North America's largest retailers, franchisers and manufacturers of premium, handcrafted chocolates and confections, today issued the following statement to the Company’s stockholders to set the record straight regarding the repeated misleading claims and inaccurate statements disseminated by the dissident group led by AB Value Management LLC (“AB Value”).

“Do not be misled by the numerous inaccurate claims and slanted information the dissident group continues to disseminate publicly. The simple facts are that they have only presented a superficial and ineffective plan for RMCF, lack the expertise to create value for stockholders and are pursuing a self-serving public contest at your expense. We believe it is unacceptable that they would ask stockholders for majority control of your Board without a plausible, detailed plan to grow the Company and serve your best interests.

“As yet another example of the dissident group’s misleading and disingenuous approach, their public statements continue to misrepresent RMCF’s relationship with Immaculate Confection, operator of RMCF’s Canadian master franchise network. Here are the facts: We now have a good working engagement, after resolving this dispute in early August, and we are working productively with Immaculate Confection to generate new business opportunities for RMCF. The dissident group’s Andrew Berger knows this because he voted on August 4 to approve the settlement. Further, as he aware – or should be aware – RMCF owns the intellectual property for Canada, making his false claims about the design of the Toronto Pearson International Airport location even more puzzling. Why is he misleading stockholders about a decision he voted for? We believe stockholders deserve better.

“Moreover, the Company is very concerned about Mr. Berger’s destructive and ill-fated track record with retail and consumer companies where he has taken control. As one example, he took control of the Board of sandwich chain Cosi, installed himself as CEO despite having no relevant industry nor operational experience, and guided that company to file for bankruptcy. We do not believe that this is a stockholder-friendly group that will serve the interests of all stockholders.