Consolidated net sales for the quarter ended June 27, 1998 increased by 16% to $58,749,000 compared to $50,701,000 for the same period in 1997. Net income for the quarter totaled $2,130,000 as compared to $1,741,000 for the same period in 1997. Diluted net income per common share was $0.28 in the second quarter of 1998 compared to a diluted net income per common share of $0.24 in the second quarter of 1997.

Consolidated net sales for the first six months of 1998 increased by 15% to $100,305,000, compared to 1997 sales of $86,849,000. Net income was $2,510,000 for the first six months of 1998, compared to $682,000 for the first six months of 1997. Diluted net income per common share for the first six months of 1998 was $0.33 compared to $0.09 for the first six months of 1997.

The Company's profitability improved over last year's second quarter due primarily to a strong increase in net sales. Gross profit for the second quarter increased by $2,002,000; however, the Company's gross profit margin decreased to 36.0% as compared to 37.8% in the same period last year. The decrease in gross profit margin is the result of substantial increases in dairy commodity costs, which have been partially offset by favorable manufacturing variances resulting from better plant utilization due to higher volumes. Had the Company been able to purchase its ingredients at the same prices in 1998 as in 1997, the Company's gross profit would have increased by an additional $1,035,000 in the second quarter of 1998. The Company has announced a price increase effective July 15, 1998 which will partially offset the increase in its ingredient costs

Ben & Jerry's 1998 products significantly contributed to the second quarter with seven new pint flavors ranking in the company's top 20 flavors based on sales rates. Dilbert's-World ™ Totally Nuts ™, a flavor based on the Dilbert ™ cartoon character continued to perform well. Other flavor successes include strong performance in Ben & Jerry's new low-fat ice cream flavors particularly S'Mores which ranked in Ben & Jerry's top 10 flavors in May. Ben & Jerry's also kicked off a summer radio advertising campaign in 14 major markets in the second quarter.

Ben & Jerry's produces super premium ice cream, ice cream novelties, low-fat ice cream, low-fat and non-fat yogurt, and sorbet using Vermont dairy products, Vermont spring water, and high quality natural ingredients. Ben & Jerry's products are distributed nationwide and in selected foreign countries in supermarkets, grocery stores, convenience stores, scoop shops, restaurants and other venues.