COOLBRANDS ANNOUNCES CLOSING OF
                         SALE OF ITS FRANCHISE DIVISION

Toronto, Canada, December 28, 2005 - CoolBrands International Inc.
("CoolBrands") (TSX: COB.SV.A) today announced that the sale of substantially
all of its franchising division to International Franchise Corp. for cash
consideration of US$8 million was completed on December 23, 2005.

The portion of the franchise division sold operates by franchising and licensing
retail outlets serving primarily frozen yogurt and ice cream under the
Bresler's, I Can't Believe It's Yogurt, Ice Cream Churn, Swensen's, and Yogen
Fruz trademarks. CoolBrands continues to operate as franchisor of retail outlets
under the Jerry Tucci's Pizza Pasta and Tropicana Smoothies trademarks.

International Franchise Corp. is a company controlled by Mr. Aaron Serruya. As a
result of the transaction, Mr. Aaron Serruya is no longer an executive officer
of CoolBrands but he remains on the board of directors of CoolBrands.

About CoolBrands International: CoolBrands International is a leading marketer
of dairy based snacks in the refrigerated and frozen snack foods categories. In
the frozen snack foods category, CoolBrands manufactures and distributes such
well known brands as Godiva Ice Cream, Whole Fruit Sorbet, Eskimo Pie frozen
snacks, Tropicana Fruit Bars, Chipwich Ice Cream Cookie Sandwiches and many
others. In the refrigerated dairy category, CoolBrands manufactures and
distributes Breyer's Yogurt and Creme Savers Yogurt. CoolBrands operates a
"direct store delivery" (DSD) ice cream distribution system in selected markets
in the U.S., serving CoolBrands products and a growing family of Partner Brands
to supermarkets, convenience stores and other retail customers. CoolBrands'
50.1% owned subsidiary, Americana Foods, is a leading U.S. manufacturer and
supplier of soft serve mixes, packaged ice cream, frozen yogurt and sorbet
products, frozen snacks and other food products to well known national
retailers, food companies and restaurant chains. CoolBrands' Foodservice
Division manufactures and sells premium soft serve ice cream and frozen yogurt
to the foodservice industry. CoolBrands' Dairy Components Division manufactures
and sells a full line of quality flavours, chocolate coatings, fudge sauces,
powders for chocolate milk, egg nog bases and other ingredients and flexible
packaging products for use in private label dairy products in addition to the
Company's brands.

For more information about CoolBrands, visit www.coolbrandsinc.com.

Forward Looking Statements

This press release includes certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 regarding, among
other things, statements relating to goals, plans and projections regarding the
Company's financial position and business strategy. These statements may be
identified by the fact that they use such words as "anticipate," "estimate,"
"expect," "intend," "plan," "believe," and other words and terms of similar
meaning in connection with any discussion of future operating or financial
performance. Such forward-looking statements are based on current expectations
and involve inherent risks and uncertainties, including factors that could
delay, divert or change any of them, and could cause actual outcomes and results
to differ materially from current expectations. These factors include, among
other things, market factors, competitive product development and promotional
activity, the level of consumer interest in the Company's products, product
costing, the weather, the performance of management, including management's
ability to



implement its plans as contemplated, the Company's relationship with its
customers, franchisees, licensees and licensors, governmental regulations and
legislation and litigation. The Company undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new information,
future events or otherwise.

For more information, please contact:

David Stein
Co-Chairman, President and Chief Executive Officer
(631) 737-9700