Tasty Baking Company Enters into Agreement to Sell Hunting Park Bakery as Well as Its Former Offices and Distribution Center

Sale price of $6.0 million for Philadelphia properties the Company is vacating

PHILADELPHIA--(Business Wire)--
Tasty Baking Company (NasdaqGM: TSTY) announced today that it has entered into a
Purchase and Sale Agreement with TKMG Associates, L.P. and its guarantor, Metro
Development Company, for the sale of Tasty Baking Company`s Philadelphia bakery
property located at 2801 Hunting Park Avenue and its former corporate offices
and distribution center located at 3413 Fox Street for $6.0 million. These are
the properties that the Company is vacating in connection with its move to the
Philadelphia Navy Yard.

TKMG Associates, L.P. is a single purpose entity formed by Metro Development
Company which is a private, Philadelphia company that specializes in the
development of large-scale real estate projects with leading national retailers.
Metro Development Company has developed over five million square feet of retail
space and currently its affiliates own and manage approximately one million
square feet of retail space with over two hundred tenant leases under its
management.

The closing of the transaction contemplated by the Purchase and Sale Agreement
is subject to completion of due diligence by the buyer and the Company receiving
a zoning change for the properties from the City of Philadelphia. The Purchase
and Sale Agreement provides for the transaction to be closed within 60 days
after the expiration of a 90 day due diligence period provided an agreed upon
zoning change has been made. In the event the zoning has not been changed as
required within a period ending 60 days after the due diligence period, the
Company can extend the period to obtain the zoning for up to 6 months. The buyer
may terminate the Agreement in its sole discretion at any time during the due
diligence period.

Charles P. Pizzi, president and chief executive officer of Tasty Baking Company,
said, "This transaction is an important step in the completion of our
manufacturing strategy. Upon consummation of the transaction, the cash proceeds
from the sale will allow Tasty Baking to reduce the debt associated with the
investment in our new manufacturing facility at the Philadelphia Navy Yard."

Mr. Pizzi continued, "We are also pleased to note that TKMG Associates L.P.
anticipates developing the site into a retail center to serve the surrounding
area. We believe this will create jobs and improve the overall quality of life
in the community. Further, in addition to the support that Tasty Baking will
continue to provide to the Allegheny West Foundation, TKMG Associates, L.P. has
committed to providing funds to that organization and its efforts to support
local residents and improve the community. This transaction will be a win-win
for everyone involved and we are very pleased about that."

Mr. Pizzi concluded, "Completing the transition into our new bakery at the
Philadelphia Navy Yard will truly be a significant and transformative event for
Tasty Baking as the new bakery is expected to increase production flexibility
and provide the Company with $13-15 million per year in pre-tax cash savings net
of leases, but before debt service. As a company, we are intently focused on
completing this project while at the same time carefully managing the day to day
needs of our business."

ABOUT TASTY BAKING COMPANY

Tasty Baking Company (NasdaqGM: TSTY), founded in 1914 and headquartered in
Philadelphia, Pennsylvania, is one of the country`s leading bakers of snack
cakes, pies, cookies, and donuts with manufacturing facilities in Philadelphia
and Oxford, Pennsylvania. Tasty Baking Company offers more than 100 products
under the Tastykake brand name. For more information on Tasty Baking Company,
visit www.tastykake.com. In addition, consumers can send Tastykake products
throughout the United States from the company`s website or by calling
1-800-33-TASTY.

"Safe Harbor Statement" Under the Private Securities Litigation Reform Act of
1995

Except for historical information contained herein, the matters discussed herein
are forward-looking statements (as such term is defined in the Securities Act of
1933, as amended) that are subject to risks and uncertainties that could cause
actual results to differ materially from those stated or implied herein.These
forward-looking statements may be identified by the use of words such as
"anticipate,'' "believe,'' "could,'' "estimate,'' "expect,'' "intend,'' "may,''
"plan,'' "predict,'' "project,'' "should,'' "would,'' "is likely to,'' or "is
expected to'' and other similar terms.There are a number of factors that may
cause actual results to differ from these forward-looking statements, including,
without limitation, the possibility that the buyer chooses not to complete the
transaction to purchase the company`s real estate, the possibility that the
company is unable to obtain the required zoning change for its properties, the
costs to complete a new facility and relocate thereto, the risks of business
interruption while transitioning to a new facility, possible disruption of
production efficiencies arising out of the company`s announcement of and
subsequent reduction in workforce, the costs and availability of capital to fund
improvements or new facilities, the success of marketing and sales strategies
and new product development, the ability to enter new markets successfully, the
price of raw materials, and general economic and business conditions.Other risks
and uncertainties that may materially affect the company are provided in the
company`s annual report to shareholders and the company`s periodic reports filed
with the Securities and Exchange Commission from time to time, including,
without limitation, reports on Forms 10-K and 10-Q.Please refer to these
documents for a more thorough description of these and other risk factors.There
can be no assurance that the company will succeed in selling the facilities it
is vacating or that estimated operating cash savings will be realized.The
company assumes no obligation to update publicly or revise any forward-looking
statements.

Tasty Baking Company
Paul Ridder, 215-221-8727
paul.ridder@tastykake.com
or
Vault Communications, Inc.
Meg Kane, 610-455-2746
mkane@vaultcommunications.com

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