Exhibit 99.1

                    Friendly's Announces Resignation of CEO

             Board Chairman Assumes Oversight Role During Search for
                                   Replacement

    WILBRAHAM, Mass.--(BUSINESS WIRE)--Sept. 28, 2006--Friendly Ice
Cream Corporation (Amex: FRN) said today that John L. Cutter,
President and Chief Executive Officer, has resigned to pursue other
interests. Donald N. Smith, who has served as Chairman since 2003, is
assuming oversight responsibilities on a temporary basis as a search
is conducted for a replacement.

    Cutter has been Chief Executive Officer and President of
Friendly's since February 2003. He served as the President and Chief
Operating Officer from December 1998 to February 2003. Prior to
joining the company, Mr. Cutter served as the Chief Operating Officer
of Boston Chicken, Inc.

    "The Board and I appreciate John's many contributions to the
company and wish him well," Smith said.

    Smith has been Chairman of Friendly's Board since September 1988.
He served as Chief Executive Officer of Friendly's from September 1988
to February 2003, and as Friendly's President from September 1988 to
December 1998. From 1986 to 2005, Mr. Smith served as Chairman of the
Board and Chief Executive Officer of The Restaurant Company (TRC),
which owns and franchises a chain of mid-scale restaurants under the
name Perkins Restaurant and Bakery. He also served as TRC's Chief
Operating Officer from 1998 to March 2004.

    "I accepted the Board's request to take an oversight role over
Friendly's operations temporarily while a search for a new President
and Chief Executive Officer is carried out," Smith said. "We all
recognize the importance of moving quickly to fill those roles."

    "In the meantime, Friendly's remains committed to providing
quality service and products to all of our customers, and I know we
can count on the continuing diligence and professionalism of all of
our employees," Smith concluded.

    About Friendly's

    Friendly Ice Cream Corporation (Amex: FRN) is a vertically
integrated restaurant company serving signature sandwiches, entrees
and ice cream desserts in a friendly, family environment in more than
515 company and franchised restaurants throughout the Northeast. The
company also manufactures ice cream, which is distributed through more
than 4,500 supermarkets and other retail locations. With a 71-year
operating history, Friendly's enjoys strong brand recognition and is
currently revitalizing its restaurants and introducing new products to
grow its customer base.

    CONTACT: Friendly Ice Cream Corporation
             Deborah Burns, 413-731-4124