IBC Reaches Agreement with Lenders on Amended and Restated DIP Facility

Continues Confirmation Hearing
KANSAS CITY, Mo.--(Business Wire)--
Interstate Bakeries Corporation (IBC) (OTC:IBCIQ) today announced
that it has executed a commitment for financing with certain of the
existing lenders under its current debtor-in-possession (DIP) credit
facility, other new lenders and JPMorgan Chase Bank, N.A., as
administrative agent and collateral agent for the lenders, that
provides for an amended and restated credit facility to replace the
current DIP credit facility, which expires on June 2, 2008. Under the
terms of the commitment letter, the maturity of the DIP credit
facility would be extended to September 30, 2008 and the amount
available for borrowing under the DIP credit facility would be
increased from $200 million to $250 million.

The commitment is subject to a number of conditions, including
final documentation and Bankruptcy Court approval. Today, IBC filed a
motion with the U.S. Bankruptcy Court for the Western District of
Missouri seeking authorization to enter into the amended and restated
DIP credit facility and requesting that a hearing on this matter be
held on April 29, 2008, a date that had previously been held on the
court's calendar. There can be no assurance that the Company will be
able to obtain financing on the terms proposed in the amended and
restated DIP credit facility, or at all.

The Company also announced that it has asked the Bankruptcy Court
to continue its plan confirmation hearing, currently scheduled for
April 23, 2008, to a date yet to be determined. The Company said that
additional time is necessary for it to continue its ongoing
discussions with multiple parties regarding modifications to its plan
of reorganization, and related exit financing, that would allow IBC to
emerge from Chapter 11 as a stand-alone company. This additional time
is also needed for the Company to continue to pursue the on-going sale
process which was initiated to sell all or portions of the Company's
businesses and assets in the event that a stand-alone reorganization
plan is not achievable. The Company intends to file further pleadings
with the Bankruptcy Court regarding either of these options as
appropriate.

About the Company

Interstate Bakeries Corporation is one of the nation's largest
commercial bakers and distributors of fresh-baked bread and sweet
goods, sold under various brand names, including Wonder(R), Merita(R),
Home Pride(R), Baker's Inn(R), Hostess(R), Drake's(R), and Dolly
Madison(R). The company is headquartered in Kansas City, Missouri.

Interstate Bakeries Corporation filed for bankruptcy protection on
September 22, 2004, citing liquidity issues resulting from declining
sales, a high fixed-cost structure, excess industry capacity, rising
employee healthcare and pension costs, and higher costs for
ingredients and energy. The Company continues to operate its business
in the ordinary course as a debtor-in-possession.

Forward-Looking Statement

Some information contained in this press release may be
forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements are not historical
in nature and include statements that reflect, when made, the
Company's views with respect to current events and financial
performance. These forward-looking statements can be identified by
forward-looking words such as "may," "will," "expect," "intend,"
"anticipate," "believe," "estimate," "plan," "could," "should" and
"continue" or similar words. These forward-looking statements may also
use different phrases. All such forward-looking statements are and
will be subject to numerous risks and uncertainties, many of which are
beyond our control that could cause actual results to differ
materially from such statements. Factors that could cause actual
results to differ materially include, without limitation: the ability
of the Company to continue as a going concern; the ability of the
Company to successfully negotiate an extension of, and increase in,
the amount available under the debtor-in-possession credit facility;
the evaluation of various alternatives, including, but not limited to,
the sale of some or all of its assets, infusion of capital, debt
restructuring, amending the plan of reorganization previously filed
with the Bankruptcy Court, filing a new plan of reorganization, or any
combination of these options; the Company's ability to obtain the
financing necessary to emerge from Chapter 11, the terms of any
reorganization plan ultimately confirmed; the Company's ability to
implement its business plan developed as a basis for its discussion
regarding one or more plans of reorganization; the Company's ability
to obtain concessions from its unionized workforce to reduce costs and
allow for greater flexibility in the method and manner of distributing
its products; risks associated with the Company's restructuring
activities, including the risks associated with achieving the desired
savings; the ability of the Company to operate pursuant to the
covenants, terms and certifications of its DIP financing facility, as
amended and restated; the ability of the Company to obtain court
approval with respect to motions in the Chapter 11 proceeding filed by
it from time to time; the ability to develop, propose, confirm and
consummate one or more plans of reorganization with respect to the
Chapter 11 proceeding; risks associated with third parties seeking and
obtaining court approval for the appointment of a Chapter 11 trustee
or to convert the Chapter 11 proceeding to a Chapter 7 proceeding;
risks associated with cost increases in materials, ingredients, energy
and employee wages and benefits; the Company's ability to successfully
reject unfavorable contracts and leases; the duration of the Chapter
11 process; the ability of the Company to obtain and maintain adequate
terms with vendors and service providers; the potential adverse impact
of the Chapter 11 proceeding on the Company's liquidity or results of
operations; the Company's ability to operate its business under the
restrictions imposed by the Chapter 11 process, the instructions,
orders and decisions of the bankruptcy court and other effects of
legal and administrative proceedings, settlements, investigations and
claims; the significant time that will be required by management to
implement a plan of reorganization, as well as to evaluate the
Company's various alternatives discussed above; risks associated with
product price increases, including the risk that such actions will not
effectively offset inflationary cost pressures and may adversely
impact sales of the Company's products; the effectiveness of the
Company's efforts to hedge its exposure to price increases with
respect to various ingredients and energy; the ability of the Company
to attract, motivate and/or retain key executives and employees;
changes in our relationship with employees and the unions that
represent them; successful implementation of information technology
improvements; increased costs and uncertainties with respect to a
defined benefit pension plan to which we contribute; costs associated
with increased contributions to single employer, multiple employer or
multi-employer pension plans; the impact of any withdrawal liability
arising under the Company's multi-employer pension plans as a result
of prior actions or current consolidations; the effectiveness and
adequacy of our information and data systems; changes in general
economic and business conditions (including in the bread and sweet
goods markets); changes in consumer tastes or eating habits;
acceptance of new product offerings by consumers and the Company's
ability to expand existing brands; the performance of the Company's
recent and planned new product introductions, including the success of
such new products in achieving and retaining market share; the
effectiveness of advertising and marketing spending; any inability to
protect and maintain the value of the Company's intellectual property;
future product recalls or food safety concerns; actions of
competitors, including pricing policy and promotional spending;
bankruptcy filings by customers; costs associated with environmental
compliance and remediation; actions of governmental entities,
including regulatory requirements; the outcome of legal proceedings to
which we are or may become a party; business disruption from terrorist
acts, our nation's response to such acts and acts of war; and other
factors. These statements speak only as of the date of this press
release, and we disclaim any intention or obligation to update or
revise any forward-looking statements to reflect new information,
future events or developments or otherwise, except as required by law.
We have provided additional information in our filings with the SEC,
which readers are encouraged to review, concerning other factors that
could cause actual results to differ materially from those indicated
in the forward-looking statements.

Similarly, these and other factors, including the terms of any
reorganization plan ultimately confirmed, can affect the value of the
Company's various pre-petition liabilities, common stock and/or other
equity securities. No assurance can be given as to what values, if
any, will be ascribed in the Chapter 11 proceeding to each of these
liabilities and/or securities. Accordingly, the Company urges that the
appropriate caution be exercised with respect to existing and future
investments in any of these liabilities and/or securities.

Sitrick And Company
Lewis M. Phelps
Maya Pogoda
310-788-2850

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