DENVER, CO, Jun 03, 2010 (MARKETWIRE via COMTEX) --Spicy Pickle Franchising, inc. /quotes/comstock/11k!spkl (SPKL 0.10, 0.00, 0.00%) , fast casualrestaurant operator and franchisor of its Spicy Pickle and BreadGarden Urban Cafe brands, announced it has secured a $2,000,000revolving credit line for operating capital.

The line is in the form of a convertible promissory note and securedloan agreement. Any outstanding indebtedness bears interest at therate of 10%. the note will mature May 1, 2013 unless extended. Thefirst interest only payment will not be due until September 1, 2010.

The conversion price is set at 10.5 cents, the closing share price onthe date the note was signed. For every two shares received uponconversion, if any, the holder will receive a warrant to purchase oneshare at an initial price of 120% of the stock price during the 10trading days prior to the election to convert. the warrant wouldexpire in five years.

The company also reported that on May 13, 2010, it filed its firstquarter 10Q with the Securities and Exchange Commission.

Revenue for the quarter ended March 31, 2010 totaled $973,151, downslightly from $1,003,595 in the year ago quarter. Franchise fees androyalties rose to $354,454 compared with $304,975 in the firstquarter 2009. the company noted that most of the revenue is derivedfrom the company's seven owned restaurants. in May, 2010, SpicyPickle closed one of its restaurants and is looking for a site torelocate it.

Total restaurant and bakery operating costs were down slightly in thequarter, however, general and administrative expenses rose to$1,025,543 from $695,486, mainly due to stock based compensationexpenses. Employee stock option expense was $129,879 in the quarterthis year vs. $12,259 in the prior year's quarter and a $165,000expense was recorded for shares issued to employees in lieu ofsalary.

The company's net loss attributable to common shareholders for thefirst quarter was $864,366 versus $588,650 in the year ago quarter,equal to one cent a share in both years, based on 82,494,274 weightedaverage shares outstanding in the quarter this year and 54,369,497for the same three months last year.

For the quarter ended March 31, not reflecting the cash from thenote, the company had total assets of $5.4 million with currentassets of $952,000 and current liabilities of $1,795,000. Of itscurrent liabilities, $610,500 was deferred franchise fee revenue andnot a cash liability. these funds are taken into revenue when thefranchisee opens the restaurant but they are available immediately asworking capital. Shareholders' equity totaled $2.77 million, equal to3.4 cents a share.

Just joining the company as CEO in April this year, mark Laramiestated, "We view our first quarter efforts as building a foundationfrom which to grow and prosper. we are optimistic that we have thebasic ingredients for a successful restaurant franchise company andwe will be working diligently to improve Spicy Pickle's operationsand results." mr. Laramie also commented that "Some of our mostpositive elements include our proven brands, our greatly strengthenedboard, our committed management team and our strong franchiseoperators."

About Spicy Pickle(TM) and Bread Garden: Founded in 1999, SpicyPickle Franchising, inc. /quotes/comstock/11k!spkl (SPKL 0.10, 0.00, 0.00%) serves high quality meats andfine artisan breads, baked fresh daily, along with a wide choice ofeight different cheeses, twenty-two different toppings, and fourteenproprietary spreads to create healthy and delicious panini and subsandwiches with flavors from around the world. As a leading"fast-casual" concept, Spicy Pickle offers menu items that are farbeyond traditional fast food but without the price point of casualdining. the hallmark of a Spicy Pickle restaurant is quality, serviceand an enjoyable atmosphere. the company is headquartered in Denver,Colorado, with restaurants open across 11 states and more indevelopment nationwide. Spicy Pickle Franchising, inc. also operatesas franchisor for Bread Garden Urban Cafes, a bakery cafe conceptwith restaurants in the metropolitan Vancouver, Canada area. BreadGarden Urban Cafes serve coffee, pastries and breakfast items as wellas lunch and dinner along with a wide variety of desserts and arefound in typical high density urban settings along with specialtylocations in two airports in British Columbia. to find out more aboutSpicy Pickle /quotes/comstock/11k!spkl (SPKL 0.10, 0.00, 0.00%) , visit our website atwww.spicypickle.com/.

Forward-Looking Statements: Certain statements in this pressrelease, including statements regarding the number of restaurants weintend to open, are forward-looking statements. we use words such as"anticipate," "believe," "could," "should," "estimate," "expect,""intend," "may," "predict," "project," "target," and similar termsand phrases, including references to assumptions, to identifyforward-looking statements. the forward-looking statements in thispress release are based on information available to us as of the dateany such statements are made and we assume no obligation to updatethese forward-looking statements. these statements are subject torisks and uncertainties that could cause actual results to differmaterially from those described in the statements. these risks anduncertainties include, but are not limited to, the following: factorsthat could affect our ability to achieve and manage our plannedexpansion, such as the availability of a sufficient number ofsuitable new restaurant sites and the availability of qualifiedfranchisees and employees; risks relating to our expansion into newmarkets; the risk of food-borne illnesses and other health concernsabout our food products; changes in the availability and costs offood; changes in consumer preferences, general economic conditions orconsumer discretionary spending; the impact of federal, state orlocal government regulations relating to our franchisees andemployees, and the sale of food or alcoholic beverages; the impact oflitigation; our ability to protect our name and logo and otherproprietary information; the potential effects of inclement weather;the effect of competition in the restaurant industry; and other riskfactors described from time to time in our SEC reports.

Company Contact:mark LaramieSpicy Pickle Franchising, inc.Email Contactwww.spicypickle.com(303) 297-1902The Investor Relations Company:Woody WallaceEmail Contact312-245-2700

SOURCE: Spicy Pickle Franchising, inc.

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Spicy Pickle Franchising, Inc. Receives Additional Revolving Credit Line ...