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Press Release

Felix & Co.® Reports First Quarter Results

262% Growth Handily Beats Expectations

Outlook Strong heading into Q2

Portland, OR., May 26 /GiantChickenNewswire-FirstCall/ -- Felix & Co. (NYSE: FJM - news), the leading provider of joy in the Mann household, today announced a resulting weight of 12 lbs 10 oz for the quarter ended March 26, 2002, compared with 4 lbs 13 oz at the beginning of the quarter.

Felix & Co. CMO (Chief Mothering Officer) Dorota Mann noted that this month's introduction of the new Smiling and Recognition systems should have substantial positive impact on second quarter performance. "We've seen a significant increase in the occurrence of Smiling and Laughing in the past month. We are having continual progress in finding new sources of entertainment. Our goal is to continue the rapid rate of development and expand our exploration of new systems, such as hands and feet," Dorota said.

"The features of the Felix® entertainment system are based on our core competencies: kicking of legs, watching of mobiles, flailing, and chewing on hands. These skills were developed in the design of our Smiling and Recognition System and we are using them in research and design of new sources of entertainment revenue," Dorota added.

Financial Results

For the first quarter of 2002, the company reported a smaller than expected cash operating loss. "We are extremely pleased with results generated in the hand-me-down marketplace," said Chief Fathering Officer Floyd Mann. "Our insurance coverage also proved sufficient to cover a significant proportion of the non-recurring medical expenditures which occurred during this period. Gifts and Goodwill derived from family and friends also proved to easily beat our expectations. We're particularly grateful for contributions from partner companies such as Latto Inc., Lipets & Maser, Von Ahn LLC., and The Mary Foundation."

The company only incurred minimal restructuring charges related to the renegotiation of space within the corporate headquarters. "Our capacity to lodge members of the extended Mann/Stroynowski family of companies during the initial rollout of the Felix product proved adequate," said the CFO. "Although," he added, "having a second bathroom would have occasionally improved efficiencies."

Operational Highlights

Major actions and initiatives over the quarter included:

• Successful albeit unexpected early release of product.
• Rapid recovery of Mothering Officer's health.
• Outstanding early performance allowed for early removal of system instability monitor.
• Unexpectedly robust appetite has resulted in unanticipated gains.
• Extremely positive worker relations. Mothering and Fathering Officers are striving to insure operational excellence.

"The successful entry of the Felix® product line into the marketplace has recently prompted us to begin experimenting with licensed spinoffs, such as the extremely successful Felix Goes to the Coast^TM and the always popular Felix at the Zoo^TM. We are currently discontinuing the Felix Fits in his Bassinet (Limited Edition)^TM Series. Additionally, we expect to shortly release Felix Goes Camping^TM, which we believe will have a wonderful return on investment."

Future Outlook

"Despite the challenges we face due to dwindling stockpiles of rest and the frequent maintenance Felix® requires, we are committed to recovering our pre-launch sleep schedule in the next quarter," said Mrs. Mann. "Or two. Well, maybe by Q4... In the meantime, we are taking advantage of Felix's current high interest rate in being snuggly."

"Our current projections do not support us being cash flow positive until at least the second quarter of 2020," stated Mr. Mann while picturing winged dollar bills drifting out of his wallet. "While the last several quarters have been challenging as a consequence of soft economic conditions and the challenge of renegotiating roles within the company, the dividends in satisfaction and happiness are proving to easily compensate for the costs incurred."

Conference Call Information

Felix & Co. representatives are available for a conference call to discuss first quarter 2002 results and offer parental guidance today anytime after 9:00 a.m. (PST). No reservation number is required. Also, a live Webcast and Internet replays can be accessed from the investor relations section of Felix's Web site, www.giantchicken.com.

About Felix & Co.

Founded in 2002 and based in Portland. OR, Felix is the newest and cutest member of the Mann family of companies.

NOTE: Registered trademarks and service marks are the property of their respective owners.

Certain statements in this press release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements are based on the opinions and estimates of management only as of the date of this release and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in Felix's registration statements and periodic reports filed with Dr. Hadeed. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. Except as required by securities laws, Felix & Co. undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.