Consolidated net sales for the quarter ended September 26, 1998 increased by 29% to $64,566,000, compared to $49,956,000 for the same period in 1997. Net income for the quarter totaled $2,892,000, as compared to $2,528,000 for the same period in 1997. Diluted net income per common share was $0.39 in the third quarter of 1998 compared to a diluted net income per common share of $0.34 in the third quarter of 1997.

Consolidated net sales for the first thirty-nine weeks of 1998 increased by 20% to $164,871,000, compared to 1997 sales of $136,805,000. Net income was $5,402,000 for the first thirty-nine weeks of 1998, compared to $3,210,000 for the first thirty-nine weeks of 1997. Diluted net income per common share for the first thirty-nine weeks of 1998 was $0.72 compared to $0.43 for the first nine months of 1997.

The Company's profitability improved over last year's third quarter due primarily to a strong increase in domestic net sales, and launch of the Company's new single-serving products in Japan. Gross profit for the third quarter increased by $5,109,000 however the Company's gross profit margin decreased to 37.5% as compared to 38.3% 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 dairy commodities at the same prices in 1998 as in 1997, the Company's gross profit would have increased by approximately $3,000,000 in the third quarter of 1998.

Ben & Jerry's marketing efforts in the third quarter included a substantial increase in radio advertising, in-store programs to drive product trial and brand awareness, scoop truck marketing and the continued rollout of the new pint package design.

Ben & Jerry's produces super premium ice cream, ice cream novelties, low-fat ice cream, low-fat and non-fat frozen 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.