-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 NIBuNebwB9A9nviDpCEzoYQk2R9/Qnhe+BB9L/CkhperfWu3ha5/cVrCCDcLszoY
 hFmVE7Ur58fsJEhhOm/kqg==

<SEC-DOCUMENT>0000950116-04-003710.txt : 20041208
<SEC-HEADER>0000950116-04-003710.hdr.sgml : 20041208
<ACCEPTANCE-DATETIME>20041208111455
ACCESSION NUMBER:		0000950116-04-003710
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		10
CONFORMED PERIOD OF REPORT:	20040925
FILED AS OF DATE:		20041208
DATE AS OF CHANGE:		20041208

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			J&J SNACK FOODS CORP
		CENTRAL INDEX KEY:			0000785956
		STANDARD INDUSTRIAL CLASSIFICATION:	COOKIES & CRACKERS [2052]
		IRS NUMBER:				221935537
		STATE OF INCORPORATION:			NJ
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14616
		FILM NUMBER:		041190023

	BUSINESS ADDRESS:	
		STREET 1:		6000 CENTRAL HGWY
		CITY:			PENNSAUKEN
		STATE:			NJ
		ZIP:			08109
		BUSINESS PHONE:		6096659533

	MAIL ADDRESS:	
		STREET 1:		6000 CENTRAL HIGHWAY
		CITY:			PENNSAUKEN
		STATE:			NJ
		ZIP:			08109
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>ten-k.htm
<DESCRIPTION>10-K
<TEXT>
<html>
<head>
    <title>Prepared and filed by St Ives Burrups</title>
</head>
<body>
<page>
<a name="p?"></a>
<br>
<br>
<br>
<p align="center"><img src="jjsnackfoods2.jpg"></p>

<p align="left"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
<p align="center"><font face="serif" size="2"> </font></p>
<p align="center"><font face="serif" size="6"><b>2004<br>
ANNUAL REPORT</b></font></p><br>
<br>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font face="serif" size="2">To our Shareholders and Friends:</font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Like a little kid taking his report card home, somewhat proud but not too smug, I am delighted to report that we did it again. I believe that expression fits and it is appropriate. For our Fiscal Year 2004 we did it again!!</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In plain words, and this year in plain black and white print without the color pictures and gingerbread, we did it again.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>THE REPORT CARD &#151; SALES AND EARNINGS SET RECORDS AGAIN IN 2004</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">Net sales increased 14% to a record $416.6 million.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">Net earnings rose 14% to $22.7 million.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">Earnings per share increased 13% to $2.48 per share.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">Operating income increased 14% to $35.2 million; also the highest in our history.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">Book Value increased to $23.33 per share.</font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In achieving our record year we benefited from improvements throughout the year in our primary business segments. We delivered exceptional performance despite the commonly shared challenges of cost escalation and other economic factors that have impacted food companies as well
as most businesses in general.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>FOOD SERVICE</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Our Food Service segment sales, led by bakery and soft pretzel sales and the benefit of Country Home Bakers, soared a healthy 25% during the year. While the bakery sales increase was primarily a factor of well-managed co-packer efforts and the acquisition of Country Home Bakers,
Inc., soft pretzel sales were led by an array of new products consisting of several varieties of stuffed and value-added soft pretzels, including PRETZEL FILLERS, GOURMET TWISTS and PRETZELFILS. These new varieties continue to expand the reach and customer trial of soft pretzels.
All are newer products created in recent years. Importantly, each of these product segments remains fertile and growable.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>RETAIL SUPERMARKETS</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Our Retail Supermarket business increased profitability and benefited from sales of PRETZELFILS, introduced this past year. We are currently expanding PRETZELFILS sales to a larger portion of the country.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>FROZEN BEVERAGES</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">ICEE had its best year ever. Frozen beverage and related product sales, including ICEE PEAK, our new entry for the non-carbonated market, increased this year. Our ICEE group further expanded its managed service business by successfully utilizing existing infrastructure already in
place to grow this new opportunity.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>COUNTRY HOME BAKERS ACQUISITION</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In January of 2004 we acquired the assets of the bankrupt Country Home Bakers, Inc. Country Home Bakers manufactures cookies and other bakery products sold to both food service and in-store bakeries in supermarkets. Within 100 days, slightly more than 3 months, we streamlined
and successfully integrated their operations, including the transfer of their executive and headquarter operations in Connecticut to an existing operating J&amp;J facility.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We have also consolidated the management of our branded cookie business (READI-BAKE, CAMDEN CREEK, and MRS. GOODCOOKIE brands), as we seek to grow sales while obtaining manufacturing and distribution efficiencies.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>FINANCIAL STRENGTH</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Our company&#146;s financial strength has never been better. At year&#146;s end our cash and cash equivalents balance was $56.1 million, and we anticipate that we will continue to generate cash flow in excess of our operating requirements. Clearly, we are benefiting from the wisdom of our
strategies and decisions over the years.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>CASH DIVIDEND</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We are pleased to announce that our Board of Directors has declared a cash dividend of $.125 per share of our common stock. This will be payable on January&nbsp;5, 2005 to shareholders of record as of the close of business on December&nbsp;15, 2004. We anticipate that the company will
continue paying this dividend on a quarterly basis.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>THE REPORT CARD</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Well, these are the highlights for the last marking period. We worked hard, had fun, and like a little kid studying hard for the next report period, we will be doing our best.</font></p>
</div>
<p align="left"><font face="serif" size="2">Sincerely,</font></p>
<p align="left"><font face="serif" size="2">Gerald B. Shreiber<br>
President &amp; Chairman</font></p>
<p align="left"><font face="serif" size="2">December&nbsp;6, 2004</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td height="4" valign="bottom" bgcolor="#000000"></td>
  </tr>
  <tr>
    <td height="2" valign="top"></td>
  </tr>
  <tr>
    <td height="1" valign="top" bgcolor="#000000"></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>


<p align="center"><font face="serif" size="4"><b>UNITED STATES</b><br>
      <b>SECURITIES AND EXCHANGE COMMISSION</b><br>
  </font><font face="serif" size="2"><b>Washington, D.C. 20549</b></font>

</p>
<p align="left"><hr size="1" width="200" noshade><p></p>
<p align="center"><font face="serif" size="4"><b>FORM 10-K</b></font></p>
<p align="left"><font face="serif" size="2"><b>(Mark One)</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><img src="tickedbox.gif"></td>
    <td><div align="left"><font face="serif" size="2"><b>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></div></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">For the fiscal year ended September&nbsp;25, 2004<br>
OR</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><img src="emptybox.gif"></font></td>
    <td><div align="left"><font face="serif" size="2"><b>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></div></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">For the transition period from ___________ to ___________</font></p>
<p align="center"><font face="serif" size="2">Commission File No. 0-14616<br>
</font></p>
<p align="left"><hr size="1" width="200" noshade><p></p>
<p align="center"><font face="serif" size="4"><b><u>J &amp; J SNACK FOODS CORP.</u></b></font><br>
<font face="serif" size="2"><u><b>(Exact name of registrant as specified in its charter)</b></u></font></p>
<table width="70%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr align="center" valign="top">
    <td width="69%"><font face="serif" size="2"><b><u>New Jersey</u></b><br>
        <b>(State or other jurisdiction of</b><br>
        <b>incorporation or organization)</b></font></td>
    <td valign="bottom" width="31%"><font face="serif" size="2"><b><u>22-1935537</u></b><br>
<b>(IRS Employer</b><br>
<b>Identification No.)</b></font></td>
  </tr>
  <tr align="center" valign="top">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr align="center" valign="top">
    <td><font face="serif" size="2"><b>6000 Central Highway</b><br>
<b><u>Pennsauken, New Jersey</u></b><br>
</font><font face="serif" size="1"><b>(Address of principal executive offices)</b></font></td>
    <td valign="bottom"><font face="serif" size="2"><b><u>08109</u></b><br>
</font><font face="serif" size="1"><b>(Zip Code)</b></font></td>
  </tr>
</table>
<br>


<table width="100%" cellspacing="0" cellpadding="0">
  <tr>
    <td width="63%"><font face="serif" size="2"><b>Registrant&#146;s telephone
    number, including area code:</b></font></td>
    <td width="37%" align="right"><font face="serif" size="2">&nbsp;<u><b>(856) 665-9533</b></u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font face="serif" size="2">Securities Registered Pursuant to Section
    12(b) of the Act:</font></td>
    <td align="right"><font face="serif" size="2">&nbsp;None</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td><font face="serif" size="2"><b>Securities Registered Pursuant to Section
    12(g) of the Act:</b></font></td>
    <td align="right"><font face="serif" size="2"><b>Common Stock, no par value</b></font></td>
  </tr>
</table>


<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes <img src="tickedbox.gif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No <img src="emptybox.gif"></font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant&#146;s knowledge, in definitive proxy or information statements incorporated by reference in Part III
of this Form 10-K or any amendment to this Form 10-K. Yes <img src="tickedbox.gif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No <img src="emptybox.gif"></font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).  Yes <img src="tickedbox.gif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No <img src="emptybox.gif"></font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">As of November&nbsp;26, 2004, the latest practicable date, 9,016,674 shares of the Registrant&#146;s common stock were issued and outstanding. The aggregate market value of shares held by non-affiliates of the Registrant on such date was $262,146,132 based on the last sale
price on March&nbsp;24, 2004 of $39.18 per share. March&nbsp;24, 2004 was the last business day of the registrant&#146;s most recently completed second fiscal quarter.</font></p>
</div>
<p align="center"><font face="serif" size="2"><b>DOCUMENTS INCORPORATED BY REFERENCE</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Registrant&#146;s 2004 Annual Report to Shareholders for the fiscal year ended September&nbsp;25, 2004 and Proxy Statement for its Annual Meeting of Shareholders to be held on February&nbsp;10, 2005 are incorporated herein by reference into Parts I, II, III and IV as set forth
herein.</font></p>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td height="1" valign="top" bgcolor="#000000"></td>
  </tr>
  <tr>
    <td height="2" valign="top" bgcolor="#FFFFFF"></td>
  </tr>
  <tr>
    <td height="4" valign="bottom" bgcolor="#000000"></td>
  </tr>
</table><br>
<br>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="contents"></a>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP.</b><br>
<b>2004 FORM 10-K ANNUAL REPORT</b></font></p>
<p align="center"><font face="serif" size="2"><b>TABLE OF CONTENTS</b></font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2"><b><u>Page</u></b></font></td>
  </tr>
  <tr align="center" valign="top">
    <td colspan="3" bgcolor="#ffffff"><font face="serif" size="2">PART I</font></td>
  </tr>
  <tr valign="top">
    <td width="10%"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p1a">Item 1</a></font></div></td>
    <td><font face="serif" size="2"><a href="#p1a">Business</a></font></td>
    <td align="right" width="6%"><font face="serif" size="2">&nbsp;<a href="#p1a">&nbsp;1</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p6a">Item 2</a></font></div></td>
    <td><font face="serif" size="2"><a href="#p6a">Properties</a></font></td>
    <td align="right"><font face="serif" size="2"><a href="#p6a">&nbsp;&nbsp;6</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p7a">Item 3</a></font></div></td>
    <td><font face="serif" size="2"><a href="#p7a">Legal Proceedings</a></font></td>
    <td align="right"><font face="serif" size="2">&nbsp;&nbsp;<a href="#p7a">7</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p7b">Item 4</a></font></div></td>
    <td><font face="serif" size="2"><a href="#p7b">Submission Of Matters To A Vote Of Security Holders</a></font></td>
    <td align="right"><font face="serif" size="2">&nbsp;<a href="#p7b">&nbsp;7</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr align="center" valign="top">
    <td colspan="3" bgcolor="#ffffff"><font face="serif" size="2">PART II</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p8a">Item 5</a></font></div></td>
    <td><font face="serif" size="2"><a href="#p8a">Market For Registrant&#146;s
          Common Equity, Related Stockholder Matters And Issuer Purchases Of
    Equity Securities</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;<a href="#p8a">&nbsp;8</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#p8b">Item 6</a></font></div></td>
    <td><font face="serif" size="2"><a href="#p8b">Selected Financial Data</a></font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;<a href="#p8b">&nbsp;8</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p9a"><font face="serif" size="2">Item 7</font></a></div></td>
    <td><a href="#p9a"><font face="serif" size="2">Management&#146;s Discussion
    And Analysis Of Financial Condition And Results Of Operations</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;&nbsp;<a href="#p9a">9</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p18a"><font face="serif" size="2">Item 7a</font></a></div></td>
    <td><a href="#p18a"><font face="serif" size="2">Quantitative And Qualitative Disclosures About Market Risk</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p18a">18</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p18b"><font face="serif" size="2">Item 8</font></a></div></td>
    <td><a href="#p18b"><font face="serif" size="2">Financial Statements And Supplementary Data</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p18b">18</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p18c"><font face="serif" size="2">Item 9</font></a></div></td>
    <td><a href="#p18c"><font face="serif" size="2">Changes In And Disagreements With Accountants On Accounting And Financial Disclosure</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p18c">18</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p19a"><font face="serif" size="2">Item 9a</font></a></div></td>
    <td><a href="#p19a"><font face="serif" size="2">Controls and Procedures</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p19a">19</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p19b"><font face="serif" size="2">Item 9b</font></a></div></td>
    <td><a href="#p19b"><font face="serif" size="2">Other Information</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p19b">19</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr align="center" valign="top">
    <td colspan="3" bgcolor="#ffffff"><font face="serif" size="2">PART III</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p20a"><font face="serif" size="2">Item 10</font></a></div></td>
    <td><a href="#p20a"><font face="serif" size="2">Directors And Executive Officers Of The Registrant</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p20a">20</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p20b"><font face="serif" size="2">Item 11</font></a></div></td>
    <td><a href="#p20b"><font face="serif" size="2">Executive Compensation</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p20b">20</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p20c"><font face="serif" size="2">Item 12</font></a></div></td>
    <td><a href="#p20c"><font face="serif" size="2">Security Ownership Of Certain Beneficial Owners And Management And Related Stockholder Matters</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p20c">20</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p21a"><font face="serif" size="2">Item 13</font></a></div></td>
    <td><a href="#p21a"><font face="serif" size="2">Certain Relationships And Related Transactions</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p21a">21</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p21b"><font face="serif" size="2">Item 14</font></a></div></td>
    <td><a href="#p21b"><font face="serif" size="2">Principal Accounting Fees and Services</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p21b">21</a></font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr align="center" valign="top">
    <td colspan="3" bgcolor="#ffffff"><font face="serif" size="2">PART IV</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#p22a"><font face="serif" size="2">Item 15</font></a></div></td>
    <td><a href="#p22a"><font face="serif" size="2">Exhibits, Financial Statement Schedules</font></a></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#p22a">22</a></font></td>
  </tr>
</table>

<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page> <a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>PART I</b></font></p>

<a name="p1a"></a>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 1.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Business</b></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><i>General</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">J &amp; J Snack Foods Corp. (the &#147;Company&#148; or &#147;J &amp; J&#148;) manufactures nutritional snack foods and distributes frozen beverages which it markets nationally to the food service and retail supermarket industries. The Company&#146;s principal snack food products are soft pretzels
marketed primarily under the brand name SUPERPRETZEL and frozen juice treats and desserts marketed primarily under the LUIGI&#146;S, ICEE, BARQ&#146;S*, CHILL, and MINUTE MAID** brand names. J &amp; J believes it is the largest manufacturer of soft pretzels in the United
States, Mexico and Canada. Other snack food products include churros (an Hispanic pastry), funnel cake, popcorn and bakery products. The Company&#146;s principal frozen beverage product is the ICEE brand frozen carbonated beverage.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s Food Service and Frozen Beverages sales are made primarily to food service customers including snack bar and food stand locations in leading chain, department, discount, warehouse club and convenience stores; malls and shopping centers; fast food
outlets; stadiums and sports arenas; leisure and theme parks; movie theatres; independent retailers; and schools, colleges and other institutions. The Company&#146;s retail supermarket customers are primarily supermarket chains. The Company&#146;s restaurant group sells direct to the
public through its chains of specialty snack food retail outlets, BAVARIAN PRETZEL BAKERY and PRETZEL GOURMET, located primarily in the Mid-Atlantic States.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company was incorporated in 1971 under the laws of the State of New Jersey.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company operates in four business segments: Food Service, Retail Supermarkets, The Restaurant Group and Frozen Beverages. These segments are described below.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Chief Operating Decision Maker for Food Service, Retail Supermarkets and The Restaurant Group and the Chief Operating Decision Maker for Frozen Beverages monthly review and evaluate operating income and sales in order to assess performance and allocate
resources to each individual segment. In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment (see Item 7&nbsp;&#151; Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations and Item 8&nbsp;&#151; Financial Statements and Supplementary Data for financial information about segments).</font></p>
</div>
<p align="left"><font face="serif" size="2"><i>Food Service</i></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The primary products sold by the food service segment are soft pretzels, frozen juice treats and desserts, churros and baked goods. Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and
shopping centers; fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. Within the food service industry, our products are purchased by the consumer primarily
for consumption at the point-of-sale.</font></p>
</div>
<p align="left"><font face="serif" size="2"><i>Retail Supermarkets</i></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The primary products sold to the retail supermarket industry are soft pretzel products&nbsp;&#151; including SUPERPRETZEL, frozen juice treats and desserts including LUIGI&#146;s Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, BARQ&#146;S FLOATZ and
ICEE Squeeze Up Tubes and TIO PEPE&#146;S Churros. Within the retail supermarket industry, our frozen and prepackaged products are purchased by the consumer for consumption at home.</font></p>
</div>
<p align="left"><font face="serif" size="2"><i>The Restaurant Group</i></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We sell direct to the public through our Restaurant Group, which operates BAVARIAN PRETZEL BAKERY and PRETZEL GOURMET, our chain of specialty snack food retail outlets.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="100"><hr noshade size="1" align="left" width="100%"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%" align="right"><font face="serif" size="2">*</font></td>
    <td width="2%">&nbsp;</td>
    <td width="95%"><font face="serif" size="2"> BARQ&#146;s is a registered trademark of
    Barq&#146;s Inc.</font></td>
  </tr>
  <tr valign="top">
    <td align="right"><font face="serif" size="2">**</font></td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">Minute Maid is a registered trademark of the Coca-Cola Company.</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">1</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p2"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Frozen Beverages</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We sell frozen beverages to the food service industry primarily under the names ICEE and ARCTIC BLAST in the United States, Mexico and Canada.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Products</i></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><b>Soft Pretzels</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s soft pretzels are sold under many brand names; some of which are: SUPERPRETZEL, PRETZEL FILLERS, PRETZELFILS, GOURMET TWISTS, MR. TWISTER, SOFT PRETZEL BITES, SOFTSTIX, SOFT PRETZEL BUNS, HOT KNOTS,
DUTCH TWIST, TEXAS TWIST and SANDWICH TWIST and; to a lesser extent, under private labels. Soft pretzels are sold in the Food Service, Retail Supermarket and The Restaurant Group segments. Soft pretzel sales amounted to 25% and 27% of the Company&#146;s revenue
in fiscals 2004 and 2003, respectively.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s soft pretzels qualify under USDA regulations as the nutritional equivalent of bread for purposes of the USDA school lunch program, thereby enabling a participating school to obtain partial reimbursement of the cost of the Company&#146;s soft pretzels from
the USDA.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s soft pretzels are manufactured according to a proprietary formula. Soft pretzels, ranging in size from one to ten ounces in weight, are shaped and formed by the Company&#146;s proprietary twister machines. These soft pretzel tying machines are automated,
high speed machines for twisting dough into the traditional pretzel shape. Additionally, we make soft pretzels which are extruded or shaped by hand. Soft pretzels, after processing, are primarily quick-frozen in either raw or baked form and packaged for delivery.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s principal marketing program in the Food Service segment includes supplying ovens, mobile merchandisers, display cases, warmers and similar merchandising equipment to the retailer to prepare and promote the sale of soft pretzels. Some of this
equipment is proprietary, including combination warmer and display cases that reconstitute frozen soft pretzels while displaying them, thus eliminating the need for an oven. The Company retains ownership of the equipment placed in customer locations, and as a result,
customers are not required to make an investment in equipment.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Frozen Juice Treats and Desserts</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s frozen juice treats and desserts are marketed under the LUIGI&#146;S, ICEE, BARQ&#146;S, MINUTE MAID, SHAPE-UPS, CHILL and MAMA TISH&#146;S brand names. Frozen juice treats and desserts are sold in the Food Service and Retail Supermarkets segments.
Frozen juice treat and dessert sales were 14% and 17% of the Company&#146;s revenue in fiscal years 2004 and 2003, respectively.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s SHAPE-UPS and MINUTE MAID frozen juice and fruit bars are manufactured from an apple juice base to which water, sweeteners, coloring (in some cases) and flavorings are added. The juice bars contain two to three ounces of apple or pear juice and
the minimum daily requirement of vitamin C, and qualify as reimbursable items under the USDA school lunch program. The juice bars are produced in various flavors and are packaged in a sealed push-up paper container referred to as the Milliken M-pak, which the Company
believes has certain sanitary and safety advantages.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">LUIGI&#146;S Real Italian Ice and MAMA TISH&#146;S Italian Ice and Sorbets are manufactured from water, sweeteners and fruit juice concentrates in various flavors and are packaged in plastic cups and in squeeze up tubes.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">ICEE Squeeze Tubes are designed to capture the carbonated frozen taste of a traditional ICEE drink. They are packaged in three and four ounce squeeze up tubes.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">MINUTE MAID soft frozen lemonade and fruit and cream swirl and BARQ&#146;S FLOATZ are packaged in squeeze up tubes and cups.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">2</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p3"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Churros</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s frozen churros are sold primarily under the TIO PEPE&#146;S brand name. Churros are sold to the Food Service and Retail Supermarkets segments. Churro sales were 3% and 4% of the Company&#146;s sales in fiscal years 2004 and 2003, respectively. Churros are
Hispanic donuts in stick form which the Company produces in several sizes according to a proprietary formula. The churros are deep fried, frozen and packaged. At food service point-of-sale they are reheated and topped with a cinnamon sugar mixture. The Company also sells
fruit and creme filled churros. The Company supplies churro merchandising equipment similar to that used for its soft pretzels.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Bakery Products</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s bakery products are marketed under the MRS. GOODCOOKIE, CAMDEN CREEK BAKERY, READI-BAKE, COUNTRY HOME and PRETZEL COOKIE brand names, and under private labels. Bakery products include primarily cookies, muffins and
donuts. Bakery products are sold to the Food Service segment. Bakery products sales amounted to 27% and 18% of the Company&#146;s sales in fiscal years 2004 and 2003, respectively.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Frozen Beverages</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company markets frozen beverages primarily under the names ICEE and ARCTIC BLAST in the United States, Mexico and Canada. Additional frozen beverages are ICEE PEAK, JAVA FREEZE and CALIFORNIA NATURAL. Frozen beverages are sold in the
Food Service, The Restaurant Group and Frozen Beverages segments. Frozen beverage sales amounted to 22% of revenue in fiscal 2004 and 25% of revenue in fiscal 2003.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Under the Company&#146;s principle marketing program, it installs frozen beverage dispensers at customer locations and thereafter services the machines, arranges to supply customers with ingredients required for production of the frozen beverages, and supports customer
retail sales efforts with in-store promotions and point-of-sale materials. In most cases, the Company retains ownership of its dispensers and, as a result, customers are not required to make an investment in equipment or arrange for the ingredients and supplies necessary to
produce and market the frozen beverages. In fiscal 1999, the Company began providing installation and maintenance service only to a large quick service restaurant and others, which resulted in the increase of customer owned beverage dispensers beginning in 1999. The
Company also provides managed service and sells equipment in its Frozen Beverages segment.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Each new customer location requires a frozen beverage dispenser supplied by the Company or by the customer. Company supplied frozen carbonated dispensers are purchased from outside vendors, built new or rebuilt by the Company at an approximate cost of $6,000
each.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company provides managed service and/or products to approximately 49,000 Company owned and customer owned dispensers.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company has the rights to market and distribute frozen beverages under the name ICEE to all the continental United States, except for portions of eleven states.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Other Products</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Other products sold by the Company include soft drinks, funnel cakes sold under the FUNNEL CAKE FACTORY brand name, popcorn sold under the AIRPOPT brand name and smaller amounts of various other food products. These products are sold in the Food
Service, The Restaurant Group and Frozen Beverages segments.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Customers</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company sells its products to two principal customer groups: food service and retail supermarkets. The primary products sold to the food service group are soft pretzels, frozen beverages, frozen juice treats and desserts, churros and baked goods. The primary
products sold to the retail supermarket industry are soft</font></p>
</div>
<p align="center"><font face="serif" size="2">3</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p4"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font face="serif" size="2">pretzels and frozen juice treats and desserts. Additionally, the Company sells soft pretzels, frozen beverages and various other food products direct to the public through its restaurant group,
which operates BAVARIAN PRETZEL BAKERY and PRETZEL GOURMET, our chain of specialty snack food retail outlets.</font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Food Service, The Restaurant Group and the Frozen Beverages segments sell primarily to the food service industry. The Retail Supermarkets segment sells to the retail supermarket industry.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s customers in the food service industry include snack bars and food stands in chain, department and mass merchandising stores such as Kmart, Wal-Mart and Target; malls and shopping centers; fast food outlets; The Company&#146;s customers in the food
service industry include snack bars and food stands in chain, department and stadiums and sports arenas; leisure and theme parks such as Disneyland, Walt Disney World, Universal Studios, Sea World, Six Flags, Hershey Park and Busch Gardens; convenience stores such as
7-Eleven, Circle K, AM/PM and Wawa; movie theatres; warehouse club stores such as Sam&#146;s Club, Costco and B.J.&#146;s; schools, colleges and other institutions; and independent retailers such as Mrs. Fields. Food service concessionaires purchasing soft pretzels and other
products from the Company for use in sports arenas and for institutional meal services include ARAMARK, Sodexho and Delaware North. Machines and machine parts are sold to other food and beverage companies. Within the food service industry, the Company&#146;s products
are purchased by the consumer primarily for consumption at the point-of-sale.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Sales to certain of our chain, department and mass merchandising customers decreased in 2004 and may decline further in 2005 as a result of store closings and other factors affecting their operations. However, we do not expect these declines to have a significant
impact on our operating income.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company sells its products to over 90% of supermarkets in the United States. Products sold to retail supermarket customers are primarily soft pretzel products, including SUPERPRETZEL, frozen juice treats and desserts including LUIGI&#146;S Real Italian Ice, MINUTE
MAID Juice Bars and Soft Frozen Lemonade, BARQ&#146;S FLOATZ and ICEE Squeeze Up Tubes and TIO PEPE&#146;S churros. Within the retail supermarket industry, the Company&#146;s frozen and prepackaged products are purchased by the consumer for consumption at home.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Marketing and Distribution</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company has developed a national marketing program for its products. For Food Service and Frozen Beverages segments&#146; customers, this marketing program includes providing ovens, mobile merchandisers, display cases, warmers, frozen beverage dispensers and
other merchandising equipment for the individual customer&#146;s requirements and point-of-sale materials as well as participating in trade shows and in-store demonstrations. The Company&#146;s ongoing advertising and promotional campaigns for its Retail Supermarket segment&#146;s
products include trade shows, newspaper advertisements with coupons, in-store demonstrations, billboards, and periodically, television advertisements.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company develops and introduces new products on a routine basis. The Company evaluates the success of new product introductions on the basis of sales levels, which are reviewed no less frequently than monthly by the Company&#146;s Chief Operating Decision
Makers.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s products are sold through a network of about 200 food brokers and over 1,000 independent sales distributors and the Company&#146;s own direct sales force. For its snack food products, the Company maintains warehouse and distribution facilities in
Pennsauken, Bellmawr and Bridgeport, New Jersey; Vernon (Los Angeles), California; Scranton, Pittsburgh, Hatfield and Lancaster, Pennsylvania; Carrollton (Dallas), Texas; Atlanta, Georgia and Solon, Ohio. Frozen beverages are distributed from 88 Company managed
warehouse and distribution facilities located in 42 states, Mexico and Canada which allow the Company to directly service its customers in the surrounding areas. The Company&#146;s products are shipped in refrigerated and other vehicles from the Company&#146;s manufacturing and
warehouse facilities on a fleet of Company operated tractor-trailers, trucks and vans, as well as by independent carriers.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">4</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p5"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Seasonality</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s sales are seasonal because frozen beverage sales and frozen juice treats and desserts sales are generally higher during the warmer months and sales of the Company&#146;s retail stores are generally higher in the Company&#146;s first quarter during the holiday
shopping season.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Trademarks and Patents</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company has numerous trademarks, the most important of which are SUPERPRETZEL, DUTCH TWIST, TEXAS TWIST, MR. TWISTER, SOFT PRETZEL BITES, SOFTSTIX, PRETZEL FILLERS and PRETZELFILS for its pretzel products; FROSTAR,
SHAPE-UPS, MAZZONE&#146;S, MAMA TISH&#146;S and LUIGI&#146;S for its frozen juice treats and desserts; TIO PEPE&#146;S for its churros; ARCTIC BLAST for its frozen beverages; FUNNEL CAKE FACTORY for its funnel cake products, and MRS. GOODCOOKIE, READI-BAKE,
COUNTRY HOME and CAMDEN CREEK for its bakery products. The trademarks, when renewed and continuously used, have an indefinite term and are considered important to the Company as a means of identifying its products.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company markets frozen beverages under the trademark ICEE in all of the continental United States, except for portions of eleven states, and in Mexico and Canada. Additionally, the Company has the international rights to the trademark ICEE.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company has numerous patents related to the manufacturing and marketing of its product.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Supplies</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s manufactured products are produced from raw materials which are readily available from numerous sources. With the exception of the Company&#146;s soft pretzel twisting equipment and funnel cake production equipment, which are made for J &amp; J by
independent third parties, and certain specialized packaging equipment, the Company&#146;s manufacturing equipment is readily available from various sources. Syrup for frozen beverages is purchased from The Coca-Cola Company, the Pepsi Cola Company, and Western Syrup
Company. Cups, straws and lids are readily available from various suppliers. Parts for frozen beverage dispensing machines are manufactured internally and purchased from other sources. Frozen beverage dispensers are purchased primarily from IMI Cornelius, Inc.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Competition</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Snack food and bakery products markets are highly competitive. The Company&#146;s principal products compete against similar and different food products manufactured and sold by numerous other companies, some of which are substantially larger and have greater
resources than the Company. As the soft pretzel, frozen juice treat and dessert, bakery products and related markets grow, additional competitors and new competing products may enter the markets. Competitive factors in these markets include product quality, customer service,
taste, price, identity and brand name awareness, method of distribution and sales promotions.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company believes it is the only national distributor of soft pretzels. However, there are numerous regional and local manufacturers of food service and retail supermarket soft pretzels. Competition is also increasing in that there are several chains of retail pretzel
stores that have aggressively expanded over the past several years. These chains compete with the Company&#146;s products.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In Frozen Beverages the Company competes directly with other frozen beverage companies. These include several companies which have the right to use the ICEE name in portions of eleven states. There are many other regional frozen beverage competitors throughout
the country and one large retail chain which uses its own frozen beverage brand.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company competes with large soft drink manufacturers for counter and floor space for its frozen beverage dispensing machines at retail locations and with products which are more widely known than the ICEE and ARCTIC BLAST frozen beverages.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">5</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p6"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company competes with a number of other companies in the frozen juice treat and dessert and bakery products markets.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Employees</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company has approximately 2,300 full and part time employees as of September&nbsp;25, 2004. Certain production and distribution employees at the Pennsauken and Bridgeport, New Jersey plants are covered by a collective bargaining agreement which expires in
September 2005. The production employees at our Atlanta, Georgia plant are covered by a collective bargaining agreement which expires in January 2008. The Company considers its employee relations to be good.</font></p>
</div>
<a name="p6a"></a>

<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 2.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Properties</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s primary east coast manufacturing facility is located in Pennsauken, New Jersey in a 70,000 square foot building on a two acre lot. Soft pretzels are manufactured at this Company-owned facility which also serves as the Company&#146;s corporate headquarters.
This facility operates at approximately 80-90% of capacity. The Company leases a 101,200 square foot building adjacent to its manufacturing facility in Pennsauken, New Jersey through March 2012. The Company has constructed a large freezer within this facility for
warehousing and distribution purposes. The warehouse has a utilization rate of 80-90% depending on product demand. The Company also leases, through September 2011, 16,000 square feet of office and warehouse space located next to the Pennsauken, New Jersey plant.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company owns a 150,000 square foot building on eight acres in Bellmawr, New Jersey. Approximately 30% of the facility is leased to a third party. The remainder is used by the Company to manufacture some of its products including funnel cake, pretzels, churros
and cookies.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s primary west coast manufacturing facility is located in Vernon (Los Angeles), California. It consists of a 137,000 square foot facility in which soft pretzels, churros and various lines of baked goods are produced and warehoused. Included in the 137,000
square foot facility is a 30,000 square foot freezer used for warehousing and distribution purposes which was constructed in 1996. The facility is leased through November 2017. The Company leases an additional 45,000 square feet of office and warehouse space, adjacent to its
manufacturing facility, through November 2017. The manufacturing facility operates at approximately 60% of capacity.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company leases a 85,000 square foot bakery manufacturing facility located in Atlanta, Georgia. The lease runs through December 2010. The facility operates at about 50% capacity.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company owns a 46,000 square foot frozen juice treat and dessert manufacturing facility located on three acres in Scranton, Pennsylvania. The facility, which was expanded from 26,000 square feet in 1998, operates at approximately 60% of capacity.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company leases a 29,635 square foot soft pretzel manufacturing facility located in Hatfield, Pennsylvania. The lease runs through June 2017. The facility operates at approximately 70% of capacity.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company leases a 19,200 square foot soft pretzel manufacturing facility located in Carrollton, Texas. The lease runs through April 2006. The facility operates at approximately 50% of capacity.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s fresh bakery products manufacturing facility offices are located in Bridgeport, New Jersey in two buildings totaling 94,320 square feet. The buildings are leased through December 2011. The manufacturing facility operates at approximately 50% of
capacity.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s Bavarian Pretzel Bakery headquarters and warehouse and distribution facilities are located in a 11,000 square foot owned building in Lancaster, Pennsylvania.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company also leases approximately 100 warehouse and distribution facilities in 42 states, Mexico and Canada.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">6</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p7"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<a name="p7a"></a>

<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 3.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Legal Proceedings</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company has no material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or of which any of their property is subject.</font></p>
</div>
<a name="p7b"></a>

<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 4.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Submission Of Matters To A Vote Of Security Holders</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">There were no matters submitted to a vote of the security holders during the quarter ended September&nbsp;25, 2004.</font></p>
</div>
<p align="center"><font face="serif" size="2">7</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>PART II</b></font></p>

<a name="p8a"></a>

<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 5.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Market For Registrant&#146;s Common Equity, Related Stockholder Matters And Issuer Purchases Of Equity Securities</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s common stock is traded on the over-the-counter market on the NASDAQ National Market System under the symbol &#147;JJSF.&#148; The following table sets forth the high and low final sale price quotations as reported by NASDAQ for the common stock for
each quarter of the years ended September&nbsp;25, 2004 and September&nbsp;27, 2003.</font></p>
</div>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="60%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>High</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Low</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><u>Fiscal 2003</u></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="12%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="12%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">First quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">40.25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">30.27</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Second quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">37.85</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">25.31</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Third quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">34.00</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28.65</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fourth quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">37.67</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">29.33</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><u>Fiscal 2004</u></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">First quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">39.50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">33.09</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Second quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">48.76</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">35.90</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Third quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">45.47</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">36.10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fourth quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">44.98</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">36.30</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">On November&nbsp;26, 2004, there were 9,016,674 shares of common stock outstanding. Those shares were held by approximately 2,200 beneficial shareholders and shareholders of record.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s Board of Directors has declared a cash dividend of $.125 per common share payable January&nbsp;5, 2005 to shareholders of record on December&nbsp;15, 2004. This will be the first cash dividend paid by the Company. The Company anticipates that its Board of
Directors will continue to declare quarterly cash dividends; however, the continuance of cash dividends is not guaranteed and is dependent on many factors.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company did not repurchase any of its common stock in fiscal years 2004 and 2002. In fiscal year 2003, the Company purchased and retired 297,000 shares of its common stock at a cost of $8,565.000.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">For information on the Company&#146;s Equity Compensation Plans, please see Item 12 herein.</font></p>
</div>
<a name="p8b"></a>
<p align="left"><font face="serif" size="2"><b>Item 6.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Selected Financial Data</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="14" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal year ended in September</b><br>
<b>(In thousands except per share data)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="14" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2001</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2000</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net Sales*</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">416,588</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">364,567</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">353,187</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">328,335</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">296,832</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net Earnings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22,710</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">19,902</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">18,113</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11,876</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,968</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total Assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">277,424</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">239,478</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">220,036</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">224,481</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">220,039</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Long-Term Debt</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28,368</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">42,481</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Stockholders&#146; Equity</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">210,096</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">182,564</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">168,709</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">146,143</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">133,274</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Common Share Data</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings Per Diluted Share</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1.99</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1.36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1.10</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings Per Basic Share</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.55</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.07</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1.40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Book Value Per Share</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">23.33</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">20.85</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">18.95</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16.92</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">15.64</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Common Shares Outstanding</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">At Year End</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,006</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,757</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,903</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,636</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,522</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
 <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="100"><hr noshade size="1" align="left" width="100%"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><div align="left"><font face="serif" size="2">Net sales for 2000 and
          2001 have been reduced as a result of our adoption of EITF 01-9, &#147;Accounting for Consideration Given By a Vendor to a Customer or Reseller of the Vendor&#146;s Products.&#148; These
          reclassifications had no impact on reported net earnings or earnings
          per share.</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">8</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p9"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>

<a name="p9a"></a>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 7.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Management&#146;s Discussion And Analysis Of Financial Condition And Results Of Operations</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In addition to historical information, this discussion and analysis contains forward-looking statements. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in
the forward-looking statements. Important factors that might cause such a difference include, but are not limited to, those discussed in the &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations.&#148; Readers are cautioned not to place undue
reliance on these forward-looking statements, which reflect management&#146;s analysis only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise after the date hereof.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Critical Accounting Policies, Judgments and Estimates</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We prepare our financial statements in conformity with accounting principles generally accepted in the United States of America. The preparation of such financial statements requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures of contingent assets and liabilities at the date of those financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company discloses its significant accounting policies in the notes to its audited consolidated financial statements.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Judgments and estimates of uncertainties are required in applying the Company&#146;s accounting policies in certain areas. Following are some of the areas requiring significant judgments and estimates: revenue recognition, accounts receivable, cash flow and valuation
assumptions in performing asset impairment tests of long-lived assets, estimates of the useful lives of intangible assets and insurance reserves.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">There are numerous critical assumptions that may influence accounting estimates in these and other areas. We base our critical assumptions on historical experience, third-party data and various other estimates we believe to be reasonable. A description of the
aforementioned policies follows:</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2"><i>Revenue recognition</i>&nbsp;&#151; We recognize revenue from our products when the products are shipped to our customers and when equipment service is performed for our customers who are charged on a time and material basis. We also sell equipment service contracts with
terms of coverage ranging between 12 and 60 months. We record deferred income on equipment service contracts which is amortized by the straight-line method over the term of the contracts. We record offsets to revenue for allowances, end-user pricing adjustments and trade
spending. Off-invoice allowances are deducted directly from the amount invoiced to our customer when our products are shipped to the customer. Offsets to revenue for allowances, end-user pricing adjustments and trade spending are recorded primarily as a reduction of
accounts receivable based on our estimates of liability which are based on customer programs and historical experience. These offsets to revenue are based primarily on the quantity of product purchased over specific time periods. For our retail supermarket and frozen
beverages segments, we accrue for the liability based on products sold multiplied by per product offsets. Offsets to revenue for our Food Service segment are calculated in a similar manner for offsets owed to our direct customers; however, because shipments to end-users are
unknown to us until reported by our direct customers or by the end-users, there is a greater degree of uncertainty as to the accuracy of the amounts accrued for end-user offsets. Additional uncertainty may occur as customers take deductions when they make payments to us.
This creates complexities because our customers do not always provide reasons for the deductions taken. Additionally, customers may take deductions to which they are not entitled and the length of time customers take deductions to which they are entitled can vary from two
weeks to well over a year. Because of the aforementioned uncertainties, the process to determine the amount of liability to record is cumbersome and subject to inaccuracies. However, we feel that due to constant monitoring of the process, any inaccuracies would not be
material. Our recorded liability for allowances, end-user pricing adjustments and trade spending was approximately $6,916,000 and $4,925,000 at September&nbsp;25, 2004 and September&nbsp;27, 2003, respectively. The increase in our recorded liability resulted from the acquisition of
Country Home Bakers as well as other general increases in allowances throughout our businesses.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">9</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p10"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2"><i>Accounts Receivable</i>&nbsp;&#151; We record accounts receivable at the time revenue is recognized. Bad debt expense is recorded in marketing and administrative expenses. The amount of the allowance for doubtful accounts is based on our estimate of the accounts receivable
amount that is uncollectable. It is comprised of a general reserve based on historical experience and amounts for specific customer&#146;s accounts receivable balances that we believe are at risk due to our knowledge of facts regarding the customer(s). We continually monitor our
estimate of the allowance for doubtful accounts and adjust it monthly. We usually have 2 to 3 customers with accounts receivable balances of between $1.5 million to $3 million. Failure of these customers, and others with lesser balances, to pay us the amounts owed could
have a material impact on our consolidated statement of earnings and our consolidated statement of cash flows.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Accounts receivable due from any of our customers is subject to risk. Our total bad debt expense was $245,000, $556,000 and $372,000 for the fiscal years 2004, 2003 and 2002 respectively. At September&nbsp;25, 2004 and September&nbsp;27, 2003, our accounts receivables
were $47,753,000 and $37,645,000, net of an allowance for doubtful accounts of $1,104,000 and $991,000.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2"><i>Asset Impairment</i>&nbsp;&#151; We completed documentation of our transitional goodwill impairment tests during the quarter ended March&nbsp;30, 2002 and did not record any transitional goodwill impairment loss as a result of our adoption of SFAS 142. Goodwill of our restaurant
group reporting unit decreased by $52,000 in 2004 and goodwill of our frozen beverages reporting unit increased by $679,000 in 2004.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We have three reporting units with goodwill totaling $46,477,000 as of September&nbsp;25, 2004. We utilize historical reporting unit cash flows (defined as reporting unit operating income plus depreciation and amortization) as a proxy for expected future reporting cash
flows to evaluate the fair value of these reporting units. If the fair value estimated substantially exceeds the carrying value of the reporting unit, including the goodwill, if any, associated with that unit, we do not recognize any impairment loss. We do not engage a third party
to assist in this analysis as we believe that our in-house expertise is adequate to perform the analysis.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Licenses and rights are being amortized by the straight-line method over periods ranging from 4 to 20 years and amortization expense is reflected throughout operating expenses. The gross carrying amount of intangible assets for the fiscal year ended September&nbsp;25,
2004 increased by $747,000 in 2004 primarily as a result of the acquisition of $1,016,000 of intangible assets of Country Home Bakers. Long-lived assets, including fixed assets and intangibles, are reviewed for impairment as events or changes in circumstances occur indicating
that the carrying amount of the asset may not be recoverable. Cash flow analyses are used to assess impairment. The estimates of future cash flows involve considerable management judgment and are based upon assumptions about expected future operating performance.
Assumptions used in these forecasts are consistent with internal planning. The actual cash flows could differ from management&#146;s estimates due to changes in business conditions, operating performance, economic conditions, competition and consumer preferences.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2"><i>Insurance Reserves</i>&nbsp;&#151; We have a self-insured medical plan which covers approximately 1,000 of our employees. We record a liability for incurred but not yet paid claims based on our historical experience of claims payments and a calculated lag time period. We
maintain a Microsoft Excel spreadsheet that includes claims payments made each month according to the date the claim was incurred. This enables us to have an historical record of claims incurred but not yet paid at any point in the past. We then compare our accrued liability
to the more recent claims incurred but not yet paid amounts and adjust our recorded liability up or down accordingly. Our recorded liability at September&nbsp;25, 2004 and September&nbsp;27, 2003 was $920,000 and $675,000, respectively. Considering that we have stop loss coverage
of $125,000 for each individual plan subscriber, the general consistency of claims payments and the short time lag, we believe that there is not a material exposure for this liability. Because of the foregoing, we do not engage a third party actuary to assist in this analysis.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We self-insure, up to loss limits, worker&#146;s compensation and automobile liability claims. Accruals for claims under our self-insurance program are recorded on a claims incurred basis. Under this program, the estimated liability for claims incurred but unpaid in fiscal
year 2004 and 2003 was $2,400,000 and $1,700,000, respectively. Our total recorded liability for all years&#146; claims incurred but not yet paid was $4,825,000 and $4,324,000 at September&nbsp;25, 2004 and September&nbsp;27, 2003, respectively. We estimate the</font></p>
</div>
<p align="center"><font face="serif" size="2">10</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p11"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font face="serif" size="2">liability based on total incurred claims and paid claims adjusting for loss development factors which account for the development of open claims over time. We estimate the amounts we expect
to pay for some insurance years by multiplying incurred losses by a loss development factor which is based on insurance industry averages and the age of the incurred claims; our estimated
liability is then the difference between the amounts we expect to pay and the amounts we have already paid for those years. Loss development factors that we use range from 1.0 to 1.82.
However, for some years, the estimated liability is the difference between the amounts we have already paid for that year and the maximum we could pay under the program in effect for that
particular year because the calculated amount we expect to pay is higher than the maximum. For other years, where there are few claims open, the estimated liability we record is the amount the
insurance company has reserved for those claims. We evaluate our estimated liability on a continuing basis and adjust it accordingly. Due to the multi-year length of these insurance programs,
there is exposure to claims coming in lower or higher than anticipated; however, due to constant monitoring and stop loss coverage on individual claims, we believe our exposure is not material.
Because of the foregoing, we do not engage a third party actuary to assist in this analysis. In connection with these self-insurance agreements, we customarily enter into letters of credit
arrangements with our insurers. At September&nbsp;25, 2004 and September&nbsp;27, 2003, we had outstanding letters of credit totaling approximately $6,900,000 and $5,900,000, respectively.</font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Refer to Note A to the consolidated financial statements for additional information on our accounting policies.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>RESULTS OF OPERATIONS</b></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><b>Fiscal 2004 (52 weeks) Compared to Fiscal 2003 (52 weeks)</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Net sales increased $52,021,000 or 14% to $416,588,000 in fiscal 2004 from $364,567,000 in fiscal 2003. Approximately $36,000,000 of the sales increase resulted from the acquisition of Country Home Bakers in January 2004. Excluding these sales, sales increased
approximately 4%.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We have four reportable segments, as disclosed in the notes to the consolidated financial statements: Food Service, Retail Supermarkets, The Restaurant Group and Frozen Beverages.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Chief Operating Decision Maker for Food Service, Retail Supermarkets and The Restaurant Group and the Chief Operating Decision Maker for Frozen Beverages monthly review and evaluate operating income and sales in order to assess performance and allocate
resources to each individual segment. In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Food Service</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Sales to food service customers increased $49,995,000 or 25% to $250,523,000 in fiscal 2004. Excluding Country Home Bakers, sales increased $14,142,000, or 7%. Soft pretzel sales to the food service market increased $4,661,000, or 6%, to $80,723,000 for the 2004
year due primarily to increased sales of PRETZEL FILLERS and GOURMET TWISTS. Significant decreases in sales to two customers were more than offset by increases in sales to three other customers. The net increase in sales to these five customers accounted for
approximately 75% of the overall sales increase of soft pretzel sales to the food service market. Sales of bakery products increased $46,546,000, or 69%, for the year. Excluding sales from the acquisition of Country Home Bakers, sales of bakery products increased $10,693,000
or 16% with approximately 80% of this increase coming from sales to four customers resulting primarily from increased sales of existing and new products to their customers. Approximately $700,000 of the balance of the bakery sales increase was of our branded products sold
primarily to school food service accounts and approximately $1,000,000 of the balance was of sales of private label products with increases and decreases among many customers. Churro sales increased 2% to $13,244,000 with no significant increases or decreases among our
customers. Frozen juice bar and ices sales decreased $1,109,000 or 3% to $37,011,000 for the year. Continued strength in our school food service business and sales of BARQ&#146;S FLOATZ, a frozen root beer and ice cream float, in warehouse club stores offset most of the
decline, approximately $2,800,000, which resulted from replacement of our products with low carb products in some warehouse club stores. The changes in sales throughout the food service segment were from a combination of volume changes and price increases.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">11</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p12"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Retail Supermarkets</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Sales of products to retail supermarkets decreased $859,000 or 2% to $38,843,000 in fiscal 2004. Total soft pretzel sales to retail supermarkets were $29,383,000, an increase of 6% from fiscal 2003. The increase was entirely due to the introduction of PRETZELFILS
just prior to the beginning of fiscal year 2004 and a price increase. Sales of frozen juice bars and ices decreased $4,417,000 or 11% to $34,011,000 in 2004 from $38,428,000 in 2003. Even though case sales of frozen juices and ices were down 19%, sales were down only 11%
because of reduced trade spending in 2004 compared to 2003. We believe that our decline in frozen juices and ices sales was in line with industry wide declines in the frozen novelty product category.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>The Restaurant Group</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Sales of our Restaurant Group, which operates BAVARIAN PRETZEL BAKERY and PRETZEL GOURMET retail stores in the Mid-Atlantic region, declined by 22%, primarily due to reduced mall traffic and closings or licensings of 18 unprofitable stores. At
September&nbsp;25, 2004, we had 30 stores open with plans to continue to close down unprofitable stores and reduce overhead costs in hopes of improving the operating results of this business.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Frozen Beverages</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Frozen beverage and related product sales increased $5,017,000 or 4% to $119,599,000 in fiscal 2004. Beverage sales alone were essentially unchanged for the year. Excluding lower sales to one customer, beverage sales alone would have been up about 2%. Sales to this
customer may decline further in 2005 although we do not believe the impact on consolidated operating income would be material. Service revenue increased $2,836,000, or 19%, to $18,108,000 for the year as we continue to emphasize growing this part of our business.
Machine sales increased $2,803,000 to $11,228,000 for the year. Sales to one customer accounted for all of the machine sales&#146; increase.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Consolidated</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Other than as commented upon above by segment, there are no material specific reasons for the reported sales increases or decreases. Sales levels can be impacted by the appeal of our products to our customers and consumers and their changing tastes, competitive and
pricing pressures, sales execution, marketing programs, seasonal weather, customer stability and general economic conditions.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Gross profit as a percent of sales, although at 34% of sales for both 2004 and 2003, decreased .58 of a percentage point. Excluding the lower margin of the acquired Country Home Bakers, gross margin as a percentage of sales increased slightly over 2003. Gross profit
of the existing businesses was impacted by increases in the unit costs of raw materials and packaging of about $1,800,000 and increases in insurance costs of about $900,000 and benefitted from lower depreciation of approximately $1,600,000. Also helping to improve the gross
profit percentage were price increases and efficiencies related to higher volume.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Total operating expenses increased $11,019,000 to $105,017,000 in fiscal 2004 but as a percentage of sales decreased about  1/2 of one percent to 25% in 2004. Marketing expenses decreased to 13% of sales in fiscal 2004 from 14% in 2003. The decrease in marketing
expense as a percent of sales was the result of controlled spending throughout all our business and the increased level of bakery sales. Distribution expenses, which increased less than  1/2 of 1 percent of sales, were 8% of sales in both years. Distribution expenses increased as
a percent of sales because of higher fuel and outside carrier costs as well as by differences in product mix. Administrative expenses were 4% in both years. Administrative expenses benefitted from lower legal expenses of about $300,000 this year compared to last year. Other
general expense of $29,000 in 2004 compared to other general income of $384,000 in 2003. The $384,000 of general income in 2004 included income from the positive resolution of prior acquisition liabilities.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Operating income increased $4,345,000 or 14% to $35,192,000 in fiscal 2004 as a result of the aforementioned items.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Interest expense and other was $113,000 in both 2004 and 2003.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">12</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p13"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The effective income tax rate was 36% in fiscal years 2004 and 2003.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Net earnings increased $2,808,000 or 14% in fiscal 2004 to $22,710,000 or $2.48 per fully diluted share as a result of the aforementioned items.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">There are many factors which can impact our net earnings from year to year and in the long run, among which are the supply and cost of raw materials and labor, insurance costs, factors impacting sales as noted above, the continuing consolidation of our customers, our
ability to manage our manufacturing, marketing and distribution activities, our ability to make and integrate acquisitions and changes in tax laws and interest rates.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>RESULTS OF OPERATIONS</b></font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><b>Fiscal 2003 (52 weeks) Compared to Fiscal 2002 (52 weeks)</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Net sales increased $11,380,000 or 3% to $364,567,000 in fiscal 2003 from $353,187,000 in fiscal 2002.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We have four reportable segments, as disclosed in the notes to the consolidated financial statements: Food Service, Retail Supermarkets, The Restaurant Group and Frozen Beverages.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Chief Operating Decision Maker for Food Service, Retail Supermarkets and The Restaurant Group and the Chief Operating Decision Maker for Frozen Beverages monthly review and evaluate operating income and sales in order to assess performance and allocate
resources to each individual segment. In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Food Service</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Sales to food service customers increased $15,309,000 or 8% to $200,528,000 in fiscal 2003. Soft pretzel sales to the food service market increased $10,160,000, or 15%, to $76,062,000 for the 2003 year due primarily to increased sales of PRETZEL FILLERS and
GOURMET TWISTS, two of our newer products in our pretzel line. Increased sales of PRETZEL FILLERS to two customers accounted for approximately 64% of the soft pretzel sales&#146; increase. Sales of bakery products increased $3,661,000 or 6% to $67,432,000 in fiscal
2003; approximately 44% of this increase was from sales to one customer resulting primarily from increased sales of existing products to its customers. Approximately $900,000 of the bakery products increase in sales was of our branded products sold primarily to school food
service accounts and approximately $1,000,000 of the increase was of sales of private label products with increases and decreases among many customers. Churro sales increased 3% to $12,923,000 resulting primarily from sales of new products to a warehouse club store
customer. Frozen juice bar and ices sales increased $1,322,000, or 4%, to $38,120,000. This increase was mainly attributable to higher sales to warehouse club stores of about $1,800,000 and to school food service customers of about $600,000, which were partially offset by a
decline to $0 of sales to one quick serve restaurant customer from $1,325,000 in 2002, which customer discontinued sales of the product after a trial period in 2002. All of the increases in sales throughout the Food Service segment were from a combination of increased unit
volume and price increases.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Retail Supermarkets</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Sales of products to retail supermarkets decreased $1,664,000 or 4% to $39,702,000 in fiscal 2003. Total soft pretzel sales to retail supermarkets were $17,195,000, an increase of 2% from fiscal 2002. Sales of frozen juice bars and ices decreased $1,207,000 or 5% to
$24,251,000 in 2003 from $25,458,000 in 2002. Case sales of frozen juices and ices products introduced in 2002 which were unsuccessful were down 60% for the year. Even though overall case sales of frozen juices and ices were down 12%, sales were down only 5% because
of reduced trade spending in 2003 compared to 2002. We believe that sales of our frozen juices and ices were negatively impacted by unseasonably cool and rainy weather in parts of the United States during the spring and summer of 2003.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">13</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p14"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>The Restaurant Group</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Sales of our Restaurant Group, which operates BAVARIAN PRETZEL BAKERY and PRETZEL GOURMET retail stores in the Mid-Atlantic region, declined by 9%, primarily due to reduced mall traffic and closings of 5 unprofitable stores. At September&nbsp;27, 2003, we
had 48 stores open with plans to close 10 to 15 unprofitable stores in our 2004 fiscal year in hopes of improving the operating results of this business.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Frozen Beverages</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Frozen beverage and related product sales decreased $1,296,000 or 1% to $114,582,000 in fiscal 2003. Beverage sales alone decreased 2% to $89,387,000 for the year. Lower beverage sales to two customers accounted for more than the entire decrease in beverage sales.
Excluding these two customers, beverage sales alone would have increased approximately $1,450,000, or 2%, for the year. Sales to one of these customers may decline further in 2004. We do not believe the impact on consolidated operating income would be material. We
believe that beverage sales were negatively impacted by unseasonably cool and rainy weather in parts of the United States during the spring and summer of 2003. Service revenue increased $829,000, or 6% to $15,272,000 for the year as we continue to emphasize this part of
our business.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Consolidated</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Other than as commented upon above by segment, there are no material specific reasons for the reported sales increases or decreases. Sales levels can be impacted by the appeal of our products to our customers and consumers and their changing tastes, competitive and
pricing pressures, sales execution, marketing programs, seasonal weather, customer stability and general economic conditions.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Gross profit was 34% of sales in both 2003 and 2002. Gross profit benefited from a decrease of approximately $6,000,000 in depreciation expense which was largely offset by increases in the unit costs of raw materials and packaging of about $4,000,000 and increases in
insurance costs of about $1,300,000. The decrease in depreciation expense related primarily to frozen carbonated beverage dispensers acquired in an acquisition in 1998 and which became fully depreciated in the first quarter of 2003.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Total operating expenses increased $2,807,000 to $93,998,000 in fiscal 2003 but as a percentage of sales were 26% in 2003 and 2002. Marketing expenses decreased less than  <font size="1"><sup>1</sup></font>/<font size="1">2</font>&nbsp; of 1 percent to 14% of sales in fiscal 2003 from 15% in 2002. The decrease in marketing
expense as a percent of sales was caused primarily by a higher level of sales in our food service segment which did not incur marketing expenses and by a lower level of employee compensation in our frozen beverages segment. Distribution expenses increased less than  <font size="1"><sup>1</sup></font>/<font size="1">4</font>&nbsp;of 1 percent of sales to 8% from 7% last year primarily because of increased freight costs as a percent of food service sales and slightly higher frozen beverages distribution costs even though sales declined. Administrative expenses were 4% in both years. Other general
income increased to $384,000 in 2003 from $19,000 because of the positive resolution of prior acquisition liabilities.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Operating income increased $2,581,000 or 9% to $30,847,000 in fiscal 2003 as a result of the aforementioned items.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Interest expense decreased $408,000 to $113,000 in fiscal 2003 because we had no long-term debt in 2003.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The effective income tax rate increased to 36% in fiscal 2003 from 35% in fiscal 2002 primarily because of changes in state tax laws.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Net earnings increased $1,789,000 or 10% in fiscal 2003 to $19,902,000 or $2.20 per fully diluted share as a result of the aforementioned items.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">There are many factors which can impact our net earnings from year to year and in the long run, among which are the supply and cost of raw materials and labor, insurance costs, factors impacting sales as noted above, the continuing consolidation of our customers, our
ability to manage our manufacturing, marketing and distribution activities, our ability to make and integrate acquisitions and changes in tax laws and interest rates.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">14</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p15"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font face="serif" size="2"><b>ACQUISITIONS, LIQUIDITY AND CAPITAL RESOURCES</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In January 2004, we acquired the assets of Country Home Bakers, Inc. Country Home Bakers, Inc., with its manufacturing facility in Atlanta, GA, manufactures and distributes bakery products to the food service and supermarket industries. Its product line includes
cookies, biscuits, and frozen doughs sold under the names READI-BAKE, COUNTRY HOME and private labels sold through supermarket in-store bakeries. This acquisition was accounted for under the purchase method of accounting, and its operations are included in the
consolidated financial statements from the acquisition date.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Although there are many factors that could impact our operating cash flow, most notably net earnings, we believe that our future operating cash flow, along with our borrowing capacity, is sufficient to fund future growth and expansion. Based on our past levels of
operating cash flow, which has averaged $48,197,000 per year over the past three years, and the strength of our consolidated balance sheet, we believe that we have the capability to borrow in excess of $200,000,000. This is management&#146;s current opinion, which could change
over time depending on future events.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Fluctuations in the value of the Mexican peso and the resulting translation of the net assets of our Mexican frozen beverage subsidiary caused decreases of $104,000, $165,000 and $151,000 in accumulated other comprehensive loss in the 2004, 2003 and 2002 fiscal
years, respectively. In 2004, sales of the Mexican subsidiary were $4,308,000 as compared to $4,354,000 in 2003.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In fiscal year 2003, we purchased and retired 297,000 shares of our common stock at a cost of $8,565,000. In fiscal years 2004 and 2002, we did not purchase or retire any of our common stock. Under a buyback authorization approved by the Board of Directors in April
2003, 478,000 shares remain to be purchased at September&nbsp;25, 2004.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Our general-purpose bank credit line provides for up to a $50,000,000 revolving credit facility. The agreement contains restrictive covenants and requires commitment fees in accordance with standard banking practice. There were no outstanding balances under this
facility at September&nbsp;25, 2004. The significant financial covenants are:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">Earnings before interest expense and income taxes divided by interest expense shall not be less than 1.5 to 1.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">Tangible net worth must be more than $90 million.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">Total funded indebtedness divided by earnings before interest expense, income taxes, depreciation and amortization shall not be greater than 2.25 to 1.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&#149;</font></td>
    <td><div align="left"><font face="serif" size="2">Total liabilities divided by tangible net worth shall not be more than 2.0 to 1.</font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We were in compliance with all of the restrictive covenants at September&nbsp;25, 2004. There were no outstanding balances under this facility at September&nbsp;25, 2004.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We self-insure, up to loss limits, certain insurable risks such as worker&#146;s compensation and automobile liability claims. Accruals for claims under our self-insurance program are recorded on a claims-incurred basis. Under this program, the estimated liability for claims
incurred but unpaid in fiscal year 2004 and 2003 was $2,400,000 and $1,700,000, respectively. In connection with certain self-insurance agreements, we customarily enter into letters of credit arrangements with our insurers. At September&nbsp;25, 2004 and September&nbsp;27, 2003, we
had outstanding letters of credit totaling approximately $6,900,000 and $5,900,000, respectively.</font></p>
</div>
<p align="center"><font face="serif" size="2">15</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p16"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The following table presents our contractual cash flow commitments on long-term debt and operating leases. See Notes to the consolidated financial statements for additional information on our long-term debt and operating leases.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr align="center" valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="14"><font face="serif" size="1"><b>Payments Due by Period<br>
(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr align="center" valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="1"><b>Less<br>
    </b></font><font face="serif" size="1"><b>Than<br>
    </b></font><font face="serif" size="1"><b>1 Year</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1"><b>1-3<br>
    </b></font><font face="serif" size="1"><b>Years</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1"><b>4-5<br>
    </b></font><font face="serif" size="1"><b>Years</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1"><b>After<br>
    </b></font><font face="serif" size="1"><b>5 Years</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Long-term debt, including current maturities</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">&#151;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">&#151;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">&#151;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">&#151;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">&#151;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating leases</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">39,906</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,024</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,072</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,883</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,927</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">39,906</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,024</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,072</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,883</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,927</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">As of September&nbsp;25, 2004, we were committed to purchasing approximately $20,000,000 of ingredients and packaging in fiscal year 2005. These commitments do not exceed our projected requirements over the related terms and are in the normal course of business.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Effective December&nbsp;30, 2001, we adopted the provisions of Emerging Issues Task Force (EITF) Issue No. 01-9, &#147;Accounting for Consideration Given by a Vendor to a Customer or a Reseller of the Vendor&#146;s Products.&#148; EITF 01-9 addressed various issues related to the
income statement classification of certain promotional payments, including consideration from a vendor to a reseller or another party that purchases the vendor&#146;s products.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">As a result of the adoption, we reduced both net sales and marketing expenses by approximately $23,212,000, $25,344,000 and $27,175,000 for the years ended 2004, 2003 and 2002, respectively. These reclassifications have no impact on reported operating income or
net earnings or earnings per share.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Fiscal 2004 Compared to Fiscal 2003</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Cash and cash equivalents increased $18,406,000, or 49%, to $56,100,000 from a year ago because net cash provided by operating activities of $47,144,000 and provided by financing activities of $3,810,000 exceeded the amounts of net cash used in investing activities.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Trade receivables increased $10,108,000 or 27% to $47,753,000 and inventories increased $6,385,000 or 28% to $29,587,000 in 2004. The increases were due primarily to increased levels of business and higher unit costs of inventories. Including Country Home Bakers,
sales for the last month of the year were approximately 21% higher than a year ago. Additionally, the amount of some finished goods inventory was intentionally increased to allow for improved manufacturing efficiencies and distribution savings. Parts inventory increased in
our frozen beverages business in response to higher levels of managed service business.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Property, plant and equipment increased $2,359,000 to $89,474,000 primarily because of the acquisition of $5,240,000 of property, plant and equipment in the Country Home Bakers acquisition, which was offset somewhat by higher depreciation than purchases in our
existing business.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Other intangible assets, less accumulated amortization increased $573,000 to $1,804,000 because of the acquisition of intangible assets of $1,016,000 in the Country Home Bakers acquisition, net of amortization of $443,000.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Accounts payable and accrued liabilities increased $7,588,000, or 19% from 2003 to 2004 primarily because of increased levels of business during our fourth quarter and especially September.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Deferred income tax liabilities increased by $2,984,000 to $19,153,000 which related primarily to depreciation of property, plant and equipment.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Common stock increased $4,926,000 to $33,069,000 in 2004 because of the exercise of incentive stock options and stock issued under our stock purchase plan for employees.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Net cash provided by operating activities increased $779,000 to $47,144,000 in 2004 primarily because of an increase to net earnings of $2,808,000 which was partially offset by a reduction in depreciation and amortization of fixed assets of $1,064,000 and an increase
in working capital of $1,316,000. The decrease in</font></p>
</div>
<p align="center"><font face="serif" size="2">16</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p17"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font face="serif" size="2">depreciation and amortization expense related primarily to frozen carbonated beverage dispensers acquired in an acquisition in 1998, which became fully depreciated in the first quarter of 2003.</font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Net cash used in investing activities increased $16,107,000 to $32,444,000 in 2004 from $16,337,000 in 2003 primarily because of the acquisition of Country Home Bakers and higher spending of $3,191,000 for purchases of dispensing and other equipment in our frozen
beverage business.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Net cash provided by financing activities of $3,810,000 in 2004 compared to a use of $6,327,000 in 2003. The change of $10,137,000 was because in 2003 we spent $8,565,000 to repurchase common stock and did not repurchase any common stock in 2004.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In 2004, the major variables in determining our net increase in cash and cash equivalents were our net earnings, depreciation and amortization of fixed assets, purchases of property, plant and equipment and payments for the purchase of companies. Other variables which
in the past have had a significant impact on our change in cash and cash equivalents are payments for the repurchase of common stock, proceeds from borrowings and payments of long-term debt. As discussed in results of operations, our net earnings may be influenced by
many factors. Depreciation and amortization of fixed assets is primarily determined by past purchases of property plant and equipment although it could be impacted by a significant acquisition in the current year. Purchases of property, plant and equipment is primarily
determined by our ongoing normal manufacturing and marketing requirements but could be increased significantly for manufacturing expansion requirements or large frozen beverage customer needs. From time to time, we have repurchased common stock and we anticipate
that we will again in the future. We are actively seeking acquisitions that could be a significant use of cash. Although the balance of our long-term debt is $0 at September&nbsp;25, 2004, we may borrow in the future depending on our needs.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Fiscal 2003 Compared to Fiscal 2002</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Cash increased $23,536,000, or 166%, to $37,694,000 from a year ago because net cash provided by operating activities of $46,365,000 exceeded the amounts of net cash used in investing activities of $16,502,000 and financing activities of $6,227,000.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Trade receivables increased $723,000 or 2% to $37,645,000 and inventories increased $1,003,000 or 5% to $23,202,000 in 2003 due to increased levels of business and higher unit costs of inventories.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Property, plant and equipment decreased $7,295,000 to $87,115,000 primarily because expenditures for dispensers required for the expansion of our frozen beverage business, for ovens and portable merchandisers required for the expansion of our food service business
and for the expansion and upgrading of production capability at our manufacturing facilities was approximately $5,000,000 less than depreciation of existing assets.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Other intangible assets, less accumulated amortization decreased $308,000 to $1,231,000 because they were amortized by $308,000 in the year.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Accounts payable and accrued liabilities was essentially unchanged from 2002 to 2003, having decreased $186,000 in 2003 from $40,244,000 in 2002.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Deferred income taxes increased by $2,568,000 to $13,374,000 which related primarily to depreciation of property, plant and equipment.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Common stock decreased $5,882,000 to $28,143,000 in 2003 because of the repurchase of $8,565,000 of our common stock which was partially offset by the exercise of incentive stock options and stock issued under our stock purchase plan for employees.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Net cash provided by operating activities decreased $4,718,000 to $46,365,000 in 2003 primarily because depreciation and amortization of fixed assets decreased by $6,023,000 which was partially offset by increased net earnings of $1,789,000. The decrease in
depreciation and amortization expense related primarily to frozen carbonated beverage dispensers acquired in an acquisition in 1998 and which became fully depreciated in the first quarter of 2003.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">17</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p18"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Net cash used in investing activities decreased $3,000,000 to $16,337,000 in 2003 from $19,337,000 in 2002 because of an increase in proceeds from disposal of property and equipment related to sales of equipment in our frozen beverage business and a lower level of
purchases of property plant and equipment.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Net cash used in financing activities decreased $18,547,000 in 2003 to $6,327,000 from $24,874,000 in 2002. The decrease was because we paid down $28,069,000 of long-term debt in 2002 and we had no long-term debt in 2003.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In 2003, the major variables in determining our net increase in cash and cash equivalents were our net earnings, depreciation and amortization of fixed assets, purchases of property, plant and equipment and payments to repurchase common stock. Other variables which
in the past have had a significant impact on our change in cash and cash equivalents are payments for the purchase of companies, net of cash acquired and debt assumed, proceeds from borrowings and payments of long-term debt. As discussed in results of operations, our net
earnings may be influenced by many factors. Depreciation and amortization of fixed assets is primarily determined by past purchases of property plant and equipment although it could be impacted by a significant acquisition in the current year. Purchases of property, plant and
equipment is primarily determined by our ongoing normal manufacturing and marketing requirements but could be increased significantly for manufacturing expansion requirements or large frozen beverage customer needs. From time to time, we have repurchased common
stock and we anticipate that we will again in the future. We are actively seeking acquisitions that could be a significant use of cash. Although the balance of our long-term debt is $0 at September&nbsp;27, 2003, we may borrow in the future depending on our needs.</font></p>
</div>

<a name="p18a"></a>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 7a.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Quantitative And Qualitative Disclosures About Market Risk</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2"><b>The following is the Company&#146;s quantitative and qualitative analysis of its financial market risk:</b></font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Interest Rate Sensitivity</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company has in the past entered into interest rate swaps to limit its exposure to interest rate risk and may continue to do so in the future if the Board of Directors feels that such non-trading purpose is in the best interest of the Company and its shareholders. As of
September&nbsp;25, 2004, the Company had no interest rate swap contracts.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Interest Rate Risk</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">At September&nbsp;25, 2004, the Company had no long-term debt obligations.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company&#146;s most significant raw material requirements include flour, shortening, corn syrup, chocolate, and macadamia nuts. The Company attempts to minimize the effect of future price fluctuations related to the purchase of raw materials primarily through forward
purchasing to cover future manufacturing requirements, generally for periods from 1 to 24 months. Futures contracts are not used in combination with forward purchasing of these raw materials. The Company&#146;s procurement practices are intended to reduce the risk of future
price increases, but also may potentially limit the ability to benefit from possible price decreases.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Foreign Exchange Rate Risk</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company has not entered into any forward exchange contracts to hedge its foreign currency rate risk as of September&nbsp;25, 2004 because it does not believe its foreign exchange exposure is significant.</font></p>
</div>
<a name="p18b"></a>

<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 8.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Financial Statements And Supplementary Data</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The financial statements of the Company are filed under this Item 8, beginning on page F-1 of this report.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</div>
<a name="p18c"></a>

<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 9.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Changes In And Disagreements With Accountants on Accounting And Financial Disclosure</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">None.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">18</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p19"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>

<a name="p19a"></a>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 9a.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Controls and Procedures</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2"><b>Quarterly evaluation of the Company&#146;s Disclosure and Internal Controls.</b> The Company evaluated (i) the effectiveness of the design and operation of its disclosure controls and procedures (the &#147;Disclosure Controls&#148;) as of the end of the period covered by this Form
10-K and (ii) any changes in internal controls over financial reporting that occurred during the last quarter of its fiscal year. This evaluation (&#147;Controls Evaluation&#148;) was done under the supervision and with the participation of management, including the Chief Executive
Officer (&#147;CEO&#148;) and Chief Financial Officer (&#147;CFO&#148;).</font></p>
</div>


<div style="text-indent: 3%"><font face="serif" size="2"><b>Limitations on the Effectiveness of Controls. </b>A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.
Because of the inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and not be detected. The Company conducts periodic evaluations of its internal controls to enhance, where necessary, its procedures and controls.</font>
</div>

<div style="text-indent:3%">
<p align="left"><font face="serif" size="2"><b>Conclusions. </b>Based upon the Controls Evaluation, the CEO and CFO have concluded that the Disclosure Controls are effective in reaching a reasonable level of assurance that information required to be disclosed by the Company in the reports that it files or submits is
recorded, processed, summarized and reported within the time period specified in the SEC&#146;s rules and forms and that management is timely alerted to material information relating to the Company during the period when its periodic reports are being prepared. However, the
CEO and CFO did become aware of significant deficiencies in our internal controls in the areas of account reconciliations and segregation of duties in some of our disbursements, inventory and purchasing functions. We believe that these deficiencies did not affect the accuracy
of our financial statements included in this report. In order to correct these deficiencies, the Company is continuing to enforce existing policies and improving segregation of duties where applicable. Additionally, in accord with the U.S. Securities and Exchange Commission&#146;s
requirements, the CEO and CFO conducted an evaluation of the Company&#146;s internal control over financial reporting (the &#147;Internal Controls&#148;) to determine whether there have been any changes in Internal Controls that occurred during the quarter which have materially affected
or which are reasonably likely to materially affect Internal Controls. Based on this evaluation, there have been no such changes in Internal Controls during the quarter covered by this report.</font></p>
</div>

<a name="p19b"></a>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 9b.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Other Information</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">There was no information required on Form 8-K during the quarter that was not reported.</font></p>
</div>
<p align="center"><font face="serif" size="2">19</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>PART III</b></font></p>

<a name="p20a"></a>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 10.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Directors And Executive Officers Of The Registrant</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Portions of the information concerning directors, appearing under the captions &#147;Information Concerning Nominees For Election To Board&#148; and &#147;Information Concerning Continuing Directors And Executive Officers&#148; in the Company&#146;s Proxy Statement filed with the
Securities and Exchange Commission in connection with the Annual Meeting of Shareholders to be held on February&nbsp;10, 2005, is incorporated herein by reference.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Portions of the information concerning the Audit Committee, the requirement for an Audit Committee Financial Expert and the Nominating Committee in the Company&#146;s Proxy Statement filed with the Securities and Exchange Commission in connection with the Annual
Meeting of Shareholders to be held on February&nbsp;10, 2005, is incorporated herein by reference.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company has adopted a Code of Ethics pursuant to Section 406 of the Sarbanes-Oxley Act of 2002, which applies to the Company&#146;s principal executive officer and senior financial officer. The Company has also adopted a Code of Business Conduct and Ethics
which applies to all employees.</font></p>
</div>
<a name="p20b"></a>

<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 11.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Executive Compensation</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Information concerning executive compensation appearing in the Company&#146;s Proxy Statement under the caption &#147;Management
  Remuneration&#148; is incorporated herein by reference.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The following is a list of the executive officers of the Company and their principal past occupations or employment. All such persons serve at the pleasure of the Board of Directors and have been elected to serve until the Annual Meeting of Shareholders on
February&nbsp;10, 2005 or until their successors are duly elected.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr align="center" valign="bottom">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Name</b></font></div></td>
    <td align="center"><font face="serif" size="1"><b>Age</b></font></td>
    <td width="2%" align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><b>Position</b></font></td>
  </tr>
  <tr align="center" valign="bottom">
    <td width="25%"><hr align="center" width="30" size=1 noshade></td>
    <td width="8%"><hr align="center" width="20" size=1 noshade></td>
    <td width="2%"><font face="serif" size="1">&nbsp;</font></td>
    <td><hr align="left" width="100%" size=1 noshade></td>
  </tr>
  <tr valign="bottom" bgcolor="#eeeeee">
    <td bgcolor="#eeeeee"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Gerald B. Shreiber</font></div></td>
    <td width="8%" align="center"><font face="serif" size="2">63</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Chairman of the Board, President, Chief Executive Officer and Director</font></td>
  </tr>
  <tr valign="bottom">
    <td bgcolor="#ffffff"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Dennis G. Moore</font></div></td>
    <td align="center" bgcolor="#ffffff"><font face="serif" size="2">49</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">Senior Vice President, Chief Financial Officer, Secretary, Treasurer</font></td>
  </tr>
  <tr valign="bottom">
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td align="center" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and Director</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Robert M. Radano</font></div></td>
    <td align="center"><font face="serif" size="2">55</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Senior Vice President, Sales, Chief Operating Officer and Director</font></td>
  </tr>
  <tr valign="bottom">
    <td bgcolor="#ffffff"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Dan Fachner</font></div></td>
    <td align="center" bgcolor="#ffffff"><font face="serif" size="2">44</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">President of The ICEE Company Subsidiary</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Michael Karaban</font></div></td>
    <td align="center"><font face="serif" size="2">58</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Senior Vice President, Marketing</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Gerald B. Shreiber is the founder of the Company and has served as its Chairman of the Board, President, and Chief Executive Officer since its inception in 1971. His term as a director expires in 2005.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Dennis G. Moore joined the Company in 1984. He served in various controllership functions prior to becoming the Chief Financial Officer in June 1992. His term as a director expires in 2007.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Robert M. Radano joined the Company in 1972 and in May 1996 was named Chief Operating Officer of the Company. Prior to becoming Chief Operating Officer, he was Senior Vice President, Sales responsible for national food service sales of J &amp; J. His term as a
director expires in 2006.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Dan Fachner has been an employee of ICEE-USA Corp., which was acquired by the Company in May 1987, since 1979 He was named Senior Vice President of The ICEE Company in April 1994 and became President in May 1997.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Michael Karaban has been an employee of the Company in charge of its marketing department since 1990 and in February 2002 was elected Senior Vice President, Marketing.</font></p>
</div>

<a name="p20c"></a>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 12.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Security Ownership Of Certain Beneficial Owners And Management and Related Stockholder Matters</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Information concerning the security ownership of certain beneficial owners and management appearing in the Company&#146;s Proxy Statement under the caption &#147;Principal Shareholders&#148; is incorporated herein by reference.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">20</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p21"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The following table details information regarding the Company&#146;s existing equity compensation plans as of September&nbsp;25, 2004.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center"><font face="serif" size="1"><b>(a)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center"><font face="serif" size="1"><b>(b)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center"><font face="serif" size="1"><b>(c)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr align="center" valign="bottom">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Plan Category</b></font></div></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="1"><b>Number of securities to be issued upon exercise of outstanding options, warrants and rights</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="1"><b>Weighted-average exercise price of outstanding options, warrants and rights</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="1"><b>Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))</b></font></td>
    <td align="left"><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr align="center" valign="bottom">
    <td><font face="serif" size="1">
    <hr align="center" width="60" size="1" noshade>
    </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="1">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="1">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="1">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Equity compensation plans approved by security holders</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" width="10%"><font face="serif" size="2">768,244</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" width="10%"><font face="serif" size="2">24.95</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" width="10%"><font face="serif" size="2">590,000</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Equity compensation plans not approved by security holders</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">768,244</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">$</font></td>
    <td align="right"><font face="serif" size="2">24.95</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">590,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<a name="p21a"></a>


<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><b>Item 13.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Certain Relationships And Related Transactions</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">None to Report.</font></p>
</div>

<a name="p21b"></a>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 14.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Principal Accounting Fees and Services</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Information concerning the Principal Accounting Fees and Services in the Company&#146;s Proxy Statement for the 2004 Annual Meeting of Stockholders is incorporated herein by reference.</font></p>
</div>
<p align="center"><font face="serif" size="2">21</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p22"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>PART IV</b></font></p>

<a name="p22a"></a>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Item 15.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Exhibits, Financial Statement Schedules</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">(a) The following documents are filed as part of this Report:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">(1) Financial Statements</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">The financial statements filed as part of this report are listed on the Index to Consolidated Financial Statements and Financial Statements Schedule on page F-1.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">(2) Financial Statement Schedules&nbsp;&#151; Page S-1</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Schedule II&nbsp;&#151; Valuation and Qualifying Accounts</font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">All other schedules are omitted either because they are not applicable or because the information required is contained in the financial statements or notes thereto.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">(b) Exhibits</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><font face="serif" size="2">3.1</font></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Amended and Restated Certificate of Incorporation filed February&nbsp;28, 1990. (Incorporated by reference from the Company&#146;s Form 10-Q dated May&nbsp;4, 1990.)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><font face="serif" size="2">3.2</font></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Amended and Restated Bylaws adopted May&nbsp;15, 1990. (Incorporated by reference from the Company&#146;s Form 10-Q dated August&nbsp;3, 1990.)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><font face="serif" size="2">4.3</font></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Loan Agreement dated as of December&nbsp;4, 2001 by and among J &amp; J Snack Foods Corp. and Certain of its Subsidiaries and Citizens Bank of Pennsylvania, as Agent. (Incorporated by reference from the Company&#146;s Form 10-K dated December&nbsp;21, 2001.)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">4.4**</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Second Amendment to Loan Agreement dated as of December&nbsp;4, 2001 by and among J &amp; J Snack Foods Corp. and Certain of its Subsidiaries and Citizens Bank of Pennsylvania, as Agent.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">10.1</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Proprietary Exclusive Manufacturing Agreement dated July&nbsp;17, 1984 between J &amp; J Snack Foods Corp. and Wisco Industries, Inc. (Incorporated by reference from the Company&#146;s Form S-1 dated February&nbsp;4, 1986, file no. 33-2296).</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">10.2*</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">J &amp; J Snack Foods Corp. Stock Option Plan. (Incorporated by reference from the Company&#146;s Definitive Proxy Statement dated December&nbsp;19, 2002.)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">10.3*</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">J &amp; J Snack Foods Corp. 401(k) Profit Sharing Plan, As Amended, Effective January&nbsp;1, 1989. (Incorporated by reference from the Company&#146;s 10-K dated December&nbsp;18, 1992.)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">10.4*</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">First, Second and Third Amendments to the J &amp; J Snack Foods Corp. 401(k) Profit Sharing Plan. (Incorporated by reference from the Company&#146;s 10-K dated December&nbsp;19, 1996.)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">10.6</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Lease dated September&nbsp;24, 1991 between J &amp; J Snack Foods Corp. of New Jersey and A &amp; H Bloom Construction Co. for the 101,200 square foot building next to the Company&#146;s manufacturing facility in Pennsauken, New Jersey. (Incorporated by reference form the
Company&#146;s Form 10-K dated December&nbsp;17, 1991.)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">10.7</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Lease dated August&nbsp;29, 1995 between J &amp; J Snack Foods Corp. and 5353 Downey Associated Ltd. for the lease of the Vernon, CA facility. (Incorporated by reference from the Company&#146;s Form 10-K dated December&nbsp;21, 1995.)</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">10.8*</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">J &amp; J Snack Foods Corp. Employee Stock Purchase plan (Incorporated by reference from the Company&#146;s Form S-8 dated May&nbsp;16, 1996).</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">10.11</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Amendment No. 1 to Lease dated August&nbsp;29, 1995 between J &amp; J Snack Foods Corp. and 5353 Downey Associated Ltd. for the lease of the Vernon, CA facility. (Incorporated by reference from the Company&#146;s Form 10-K dated December&nbsp;18, 2002).</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">22</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p23"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">10.12*</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Fourth and Fifth Amendments to the J &amp; J Snack Foods Corp. 401(k) Profit Sharing Plan. (Incorporated by reference from the Company&#146;s Form 10-K dated December&nbsp;18, 2002).</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">14.0</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">Code
of Ethics Pursuant to Section 406 of the Sarbanes-Oxley Act of
2002.</font><br><font face="serif" size="2">(Incorporated by reference from
the Company&#146;s 10-Q dated July&nbsp;20, 2004).</font><div align="left"></div>
    </td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">21.1**</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Subsidiaries of J &amp; J Snack Foods Corp.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">23.1**</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Consent of Independent Registered Public Accounting Firm.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">31.1**</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">31.2**</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="7%"><div align="left"><font face="serif" size="2">32.1**</font></div></td>
    <td width="3%"><font face="serif" size="2">&nbsp;</font></td>
    <td><div align="left"><font face="serif" size="2">Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002.</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">*</font></td>
    <td><div align="left"><font face="serif" size="2">Compensatory Plan</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">**</font></td>
    <td><div align="left"><font face="serif" size="2">Filed Herewith</font></div></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">23</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p24"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>SIGNATURES</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Pursuant to the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused report to be signed on its behalf by the undersigned, thereunto duly authorized.</font></p>
</div>
<table width="100%" cellspacing="0" cellpadding="0">
  <tr>
    <td width="68%">&nbsp;</td>
    <td colspan="2"><font face="serif" size="2"><b>J &amp; J
    SNACK FOODS CORP.</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="27%">&nbsp;</td>
  </tr>
  <tr>
    <td><font face="serif" size="2">December&nbsp;1, 2004</font></td>
    <td><font face="serif" size="2">By</font></td>
    <td><font face="serif" size="2">&nbsp;<u>/s/ Gerald B. Shreiber</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">Gerald B. Shreiber,<br>
Chairman of the Board,<br>
President, Chief Executive Officer<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and Director</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>





<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.</font></p>
</div>
<table width="100%" cellspacing="0" cellpadding="0">
  <tr>
    <td width="68%"><font face="serif" size="2">December&nbsp;1, 2004</font></td>
    <td width="4%"><font face="serif" size="2">&nbsp;By</font></td>
    <td width="28%"><font face="serif" size="2"> <u>/s/ Robert M. Radano</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">Robert M. Radano<br>
Senior Vice President,<br>
Sales, Chief Operating Officer<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and Director</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font face="serif" size="2">December&nbsp;1, 2004</font></td>
    <td><font face="serif" size="2">&nbsp;By</font></td>
    <td><font face="serif" size="2"><u>/s/ Dennis G. Moore</u>&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">Dennis G. Moore<br>
Senior Vice President,<br>
Chief Financial Officer<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and Director</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font face="serif" size="2">December&nbsp;1, 2004</font></td>
    <td><font face="serif" size="2">&nbsp;By</font></td>
    <td><font face="serif" size="2"><u>/s/ Sidney R. Brown</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">Sidney R. Brown, Director</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font face="serif" size="2">December&nbsp;1, 2004</font></td>
    <td><font face="serif" size="2">&nbsp;By</font></td>
    <td><font face="serif" size="2"><u>/s/ Peter G. Stanley</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">Peter G. Stanley, Director</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font face="serif" size="2">December&nbsp;1, 2004</font></td>
    <td><font face="serif" size="2">&nbsp;By</font></td>
    <td><font face="serif" size="2"><u>/s/ Leonard M. Lodish</u>&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font face="serif" size="2">&nbsp;Leonard M. Lodish, Director</font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">24</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="index"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP.<br>
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS <br>
AND FINANCIAL STATEMENT SCHEDULE</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Financial Statements:</b></font></div></td>
    <td width="1%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#f2">Report of Independent Registered Public Accounting Firm</a></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#f2">F-2</a></font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#f3">Consolidated
            Balance Sheets as of September&nbsp;25, 2004 and September&nbsp;27,
            2003</a></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#f3">F-3</a></font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#f4">Consolidated
            Statements of Earnings for fiscal years ended September&nbsp;25, 2004, September&nbsp;27, 2003 and September&nbsp;28,
            2002</a></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#f4">F-4</a></font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#f5">Consolidated
            Statement of Changes in Stockholders&#146; Equity for the three fiscal years ended September&nbsp;25,
            2004</a></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#f5">F-5</a></font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><a href="#f6">Consolidated
            Statements of Cash Flows for fiscal years ended September&nbsp;25, 2004, September&nbsp;27, 2003 and September&nbsp;28,
            2002</a></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"><a href="#f6">F-6</a></font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#f7"><font face="serif" size="2">Notes to Consolidated Financial Statements</font></a></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><a href="#f7"><font face="serif" size="2">F-7</font></a></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Financial Statement Schedule:</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#s1"><font face="serif" size="2">Report of Independent Registered Public Accounting Firm</font></a></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><a href="#s1"><font face="serif" size="2">S-1</font></a></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#FFFFFF">
    <td><div style="margin-left:3%; text-indent:-3%"><a href="#s2"><font face="serif" size="2">Schedule
    II&nbsp;&#151; Valuation and Qualifying Accounts</font></a></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><a href="#s2"><font face="serif" size="2">S-2</font></a></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">F-1</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf2"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><a name="f2"></a><b>Report of Independent Registered Public Accounting Firm</b></font></p>
<p align="left"><font face="serif" size="2">Shareholders and Board of Directors <br>
J &amp; J Snack Foods Corp. and Subsidiaries</font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We have audited the accompanying consolidated balance sheets of J &amp; J Snack Foods Corp. and Subsidiaries as of September&nbsp;25, 2004 and September&nbsp;27, 2003, and the related consolidated statements of earnings, changes in stockholders&#146; equity and cash flows for
each of the fiscal years in the three-year period ended September&nbsp;25, 2004 (52 weeks, 52 weeks, and 52 weeks, respectively). These financial statements are the responsibility of the Company&#146;s management. Our responsibility is to express an opinion on these financial
statements based on our audits.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of J &amp; J Snack Foods Corp. and Subsidiaries as of September&nbsp;25, 2004 and September&nbsp;27, 2003, and the consolidated results of their
operations and their consolidated cash flows for each of the fiscal years in the three-year period ended September&nbsp;25, 2004 in conformity with accounting principles generally accepted in the United States of America.</font></p>
</div>
<p align="left"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>


<div style="margin-left: 60%"><p align="left"><font face="serif" size="2">/s/ GRANT THORNTON LLP</font></p>
</div>

<p align="left"><font face="serif" size="2">Philadelphia, Pennsylvania<br>
November&nbsp;3, 2004</font></p>
<p align="center"><font face="serif" size="2">F-2</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf3"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"><a name="f3"></a><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES <br>
CONSOLIDATED BALANCE SHEETS</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>25,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands, except share amounts)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Assets</b></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current Assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Cash and cash equivalents</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">56,100</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">37,694</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Receivables</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:6%"><font face="serif" size="2">Trade, less allowances of $1,104 and $991, respectively</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">47,753</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">37,645</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:6%"><font face="serif" size="2">Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">233</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">516</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Inventories</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">29,587</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">23,202</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Prepaid expenses and other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,354</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,348</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Deferred Income Taxes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,385</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,795</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:9%"><font face="serif" size="2">Total current assets</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">138,412</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">103,200</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Property, Plant and Equipment, at cost</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">314,880</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">298,609</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Less accumulated depreciation and amortization</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">225,406</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">211,494</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">89,474</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">87,115</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Other Assets</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Goodwill</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">46,477</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">45,850</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Other intangible assets, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,804</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,231</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Long-term investment securities held to maturity</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">275</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,257</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,807</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">49,538</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">49,163</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">277,424</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">239,478</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Liabilities and Stockholders&#146; Equity</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current Liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Accounts payable</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">34,497</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">27,252</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Accrued liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,149</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">12,806</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:9%"><font face="serif" size="2">Total current liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">47,646</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">40,058</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Deferred Income Taxes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">19,153</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16,169</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other long-term liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">529</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">687</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Stockholders&#146; Equity</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Preferred stock, $1 par value; authorized, 5,000,000 shares; none issued</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Common stock, no par value; authorized, 25,000,000 shares; issued and outstanding, 9,006,000 and 8,757,000 respectively</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">33,069</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28,143</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Accumulated other comprehensive loss</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(2,061</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(1,957</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retained earnings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">179,088</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">156,378</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">210,096</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">182,564</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">277,424</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">239,478</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">The accompanying notes are an integral part of these statements.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">F-3</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf4"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><a name="f4"></a><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES <br>
CONSOLIDATED STATEMENTS OF EARNINGS</b></font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal year ended</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>25,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>28,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>(52 weeks)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>(52 weeks)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>(52 weeks)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands, except per share information)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net Sales</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">416,588</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">364,567</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">353,187</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cost of goods sold</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">276,379</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">239,722</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">233,730</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:6%"><font face="serif" size="2">Gross profit</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">140,209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">124,845</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">119,457</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating expenses</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Marketing</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">54,585</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">51,492</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">51,466</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Distribution</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">33,574</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">27,705</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">26,041</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Administrative</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16,829</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">15,185</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,703</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Other general expense (income)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">29</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(384</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(19</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">105,017</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">93,998</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">91,191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:6%"><font face="serif" size="2">Operating income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">35,192</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">30,847</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28,266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Other income (expenses)</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Investment income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">566</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">362</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">268</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Interest expense and other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(113</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(113</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(521</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">453</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">249</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(253</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:6%"><font face="serif" size="2">Earnings before income taxes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">35,645</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">31,096</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28,013</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income taxes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">12,935</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11,194</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,900</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:6%"><font face="serif" size="2">NET EARNINGS</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22,710</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">19,902</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">18,113</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings per diluted share</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1.99</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Weighted average number of diluted shares</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,143</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,051</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,093</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings per basic share</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.55</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.07</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Weighted average number of basic shares</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,909</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,800</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,770</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">The accompanying notes are an integral part of these statements.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">F-4</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf5"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><a name="f5"></a><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES<br>
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS&#146; EQUITY<br>
(in thousands)</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr align="center" valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" valign="bottom"><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1"><b>Common Stock </b><hr noshade size="1">
    </font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Accumulated<br>
    </b></font><font face="serif" size="1"><b>Other<br>
    </b></font><font face="serif" size="1"><b>Comprehensive</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="1"><b>Retained</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2"><font face="serif" size="1"><b>Comprehensive</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr align="center" valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Shares</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Amount</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Loss</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Earnings</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="1"><b>Income</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Balance at September&nbsp;30, 2001</font></div></td>
    <td width="1%" bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">8,636</font></td>
    <td width="2%" bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td width="8%" align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">29,421</font></td>
    <td width="2%" bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td width="8%" align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(1,641</font></td>
    <td width="2%" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td width="1%" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td width="8%" align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">118,363</font></td>
    <td width="2%" bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td width="8%" align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">146,143</font></td>
    <td width="2%" bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%" bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Issuance of common stock upon exercise of<br>
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock options</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">254</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">4,336</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">4,336</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Issuance of common stock for employee stock<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;purchase plan</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">13</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">268</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">268</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Foreign currency translation adjustment</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(151</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(151</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(151</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Net earnings</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">18,113</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">18,113</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">18,113</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Comprehensive income</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">17,962</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Balance at September&nbsp;28, 2002</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">8,903</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">34,025</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(1,792</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">136,476</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">168,709</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Issuance of common stock upon exercise of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock options</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">139</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">2,342</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">2,342</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Issuance of common stock for employee stock<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;purchase plan</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">12</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">341</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">341</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Foreign currency translation adjustment</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(165</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(165</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(165</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Repurchase of common stock</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(297</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(8,565</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(8,565</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Net earnings</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">19,902</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">19,902</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">19,902</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Comprehensive income</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">19,737</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Balance at September&nbsp;27, 2003</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">8,757</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">28,143</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(1,957</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">156,378</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">182,564</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Issuance of common stock upon exercise of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock options</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">236</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">4,553</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">4,553</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Issuance of common stock for employee stock <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;purchase plan</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">13</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">373</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">373</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Foreign currency translation adjustment</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(104</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(104</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(104</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Net earnings</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">22,710</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">22,710</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">22,710</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Comprehensive income</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">22,606</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">
    <hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Balance at September&nbsp;25, 2004</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">9,006</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">33,069</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(2,061</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">179,088</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">210,096</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom" bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">The accompanying notes are an integral part of this statement.</font></p>
<p align="left"><font face="serif" size="2">&nbsp;</font></p>
<p align="center"><font face="serif" size="2">F-5</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf6"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"><a name="f6"></a><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES <br>
CONSOLIDATED STATEMENTS OF CASH FLOWS<br>
(in thousands)</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal year ended</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>25,<br>
    </b></font><font face="serif" size="1"><b>2004<br>
    </b></font><font face="serif" size="1"><b>(52 weeks)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27,<br>
    </b></font><font face="serif" size="1"><b>2003<br>
    </b></font><font face="serif" size="1"><b>(52 weeks)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>28,<br>
    </b></font><font face="serif" size="1"><b>2002<br>
    </b></font><font face="serif" size="1"><b>(52 weeks)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Operating activities:</b></font></div></td>
    <td width="2%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%" bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Net earnings</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">22,710</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">19,902</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">18,113</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Adjustments to reconcile net earnings to net cash provided by operating activities:</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:6%"><font face="serif" size="2">Depreciation and amortization of fixed assets</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">23,170</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">24,234</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">30,252</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:6%"><font face="serif" size="2">Amortization of intangibles and deferred costs.</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">898</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">729</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">734</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:6%"><font face="serif" size="2">(Gains) losses from disposals and write-downs of property &nbsp;&amp; equipment</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(33</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(389</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">255</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:6%"><font face="serif" size="2">Increase in deferred income taxes</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">2,394</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">2,568</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">1,578</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:6%"><font face="serif" size="2">Changes in assets and liabilities, net of effects from purchase of companies:</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:9%"><font face="serif" size="2">Increase in accounts receivable</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(6,887</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(285</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(1,068</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:9%"><font face="serif" size="2">Increase in inventories</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(2,423</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(829</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(207</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:9%"><font face="serif" size="2">Decrease (increase) in prepaid expenses and other</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">83</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(276</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">125</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:9%"><font face="serif" size="2">Increase in accounts payable and accrued liabilities</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">7,232</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">711</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">1,301</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:6%"><font face="serif" size="2">Net cash provided by operating activities</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">47,144</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">46,365</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">51,083</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Investing activities:</b></font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Purchases of property, plant and equipment</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(21,644</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(19,127</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(20,328</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Payments for purchase of companies</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(12,668</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Proceeds from investments held to maturity</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">275</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">400</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">840</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Proceeds from disposal of property and equipment</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">1,628</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">2,534</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">167</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Other</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(35</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(144</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(16</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:6%"><font face="serif" size="2">Net cash used in investing activities</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(32,444</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(16,337</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(19,337</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Financing activities:</b></font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Proceeds from borrowings</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">24,000</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Proceeds from issuance of common stock</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">3,810</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">2,238</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">3,195</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%"><font face="serif" size="2">Payments to repurchase common stock</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(8,565</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%"><font face="serif" size="2">Payments of long-term debt</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(52,069</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:6%"><font face="serif" size="2">Net cash provided by (used in) financing activities</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">3,810</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(6,327</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">(24,874</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:6%"><font face="serif" size="2">Effect of exchange rate on cash and cash equivalents</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(104</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(165</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">(151</font></td>
    <td valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:6%"><font face="serif" size="2">Net increase in cash and cash equivalents</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">18,406</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">23,536</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">6,721</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash and cash equivalents at beginning of year</font></div></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">37,694</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">14,158</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ffffff"><font face="serif" size="2">7,437</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#eeeeee"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash and cash equivalents at end of year</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">56,100</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">37,694</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">14,158</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><hr noshade size="2"></td>
    <td bgcolor="#ffffff"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">   The accompanying notes are an integral part of these statements.</font></p>
<p align="center"><font face="serif" size="2">F-6</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><a name="f7"></a><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE A &#151; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">J &amp; J Snack Foods Corp. and Subsidiaries (the Company) manufactures, markets and distributes a variety of nutritional snack foods and beverages to the food service and retail supermarket industries. A summary of the significant accounting policies consistently applied
in the preparation of the accompanying consolidated financial statements follows.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>1.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Principles of Consolidation</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The consolidated financial statements include the accounts of J &amp; J Snack Foods Corp. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in the consolidated financial statements.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>2.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Revenue Recognition</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We recognize revenue from Food Service, Retail Supermarkets, The Restaurant Group and Frozen Beverage products at the time the products are shipped to third parties. When we perform services under service contracts for frozen beverage dispenser machines, revenue
is recognized upon the completion of the services on specified machines. We provide an allowance for doubtful receivables after taking into consideration historical experience and other factors.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Effective December&nbsp;30, 2001, we adopted the provisions of Emerging Issues Task Force (EITF) Issue No. 01-9, &#147;Accounting for Consideration Given by a Vendor to a Customer or a Reseller of the Vendor&#146;s Products.&#148; EITF 01-9 addressed various issues related to the
income statement classification of certain promotional payments, including consideration from a vendor to a reseller or another party that purchases the vendor&#146;s products.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">As a result of the adoption of this EITF, we reduced both net sales and marketing expenses by approximately $23,212,000, $25,344,000 and $27,175,000 for the years ended 2004, 2003 and 2002, respectively. These reclassifications have no impact on reported operating
income or net earnings or earnings per share.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We follow EITF Issue 00-10, &#147;Accounting for Shipping and Handling Fees and Costs&#148; (Issue 00-10). Issue 00-10 requires that all amounts billed to customers related to shipping and handling should be classified as revenues. Our product costs include amounts for
shipping and handling, therefore, we charge our customers shipping and handling fees at the time the products are shipped or when services are performed. The cost of shipping products to the customer is recognized at the time the products are shipped to the customer and our
policy is to classify them as Distribution expenses. The cost of shipping products to the customer classified as Distribution expenses was $33,574,000, $27,705,000 and $26,041,000 for the fiscal years ended 2004, 2003 and 2002, respectively.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements (SAB 101) addresses certain criteria for revenue recognition. SAB 101 outlines the criteria that must be met to recognize revenue and provides guidance for disclosures related to revenue
recognition policies. Our revenue recognition policies comply with the guidance contained in SAB 101.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We also sell service contracts covering frozen beverage machines sold. The terms of coverage range between 12 and 60 months. We record deferred income on service contracts which is amortized by the straight-line method over the term of the contracts.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">During the years ended September&nbsp;25, 2004 and September&nbsp;27, 2003, we sold $3,225,000 and $2,561,000, respectively, of service contracts related to our frozen beverage machines. At September&nbsp;25, 2004 and September&nbsp;27, 2003, deferred income on service
contracts was $1,853,000 and $1,783,000, respectively, of which $529,000 is included in other long-term liabilities as of September&nbsp;25, 2004 and the balance is reflected as short-term and included in accrued liabilities on the consolidated balance sheet. Service contract
</font></p>
</div>
<p align="center"><font face="serif" size="2">F-7</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf8"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE A &#151; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2">income of $3,156,000, $2,122,000 and $1,468,000 was recognized for the fiscal years ended 2004, 2003 and 2002, respectively.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>3.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Foreign Currency</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Assets and liabilities in foreign currencies are translated into U.S. dollars at the rate of exchange prevailing at the balance sheet date. Revenues and expenses are translated at the average rate of exchange for the period. The cumulative translation adjustment is recorded
as a separate component of stockholders&#146; equity.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>4.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Use of Estimates</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>5.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Cash Equivalents</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Cash equivalents are short-term, highly liquid investments with original maturities of three months or less.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>6.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Concentrations of Credit Risk and Accounts Receivable</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We maintain cash balances at financial institutions located in various states. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $100,000. We periodically maintain cash balances in excess of these insurance limits.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Other financial instruments that could potentially subject us to concentrations of credit risk are trade accounts receivable; however, such risks are limited due to the large number of customers comprising our customer base and their dispersion across geographic regions.
We usually have 2 to 3 customers with accounts receivable balances of between $1,500,000 to $4,000,000.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The majority of our accounts receivable are due from trade customers. Credit is extended based on evaluation of our customers&#146; financial condition and collateral is not required. Accounts receivable payment terms vary and are stated in the financial statements at
amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the payment terms are considered past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are
past due, our previous loss history, customers&#146; current ability to pay their obligations to us, and the condition of the general economy and the industry as a whole. We write off accounts receivable when they become uncollectible, and payments subsequently received on such
receivables are credited to the allowance for doubtful accounts.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>7.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Inventories</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Inventories are valued at the lower of cost (determined by the first-in, first-out method) or market.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>8.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Investment Securities</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We account for our investment securities in accordance with SFAS No. 115, &#147;Accounting for Certain Investments in Debt and Equity Securities.&#148; This standard requires investments in securities to be classified in one of three categories: held-to-maturity, trading, or
available-for-sale. Debt securities that we have the positive intent and ability to hold are classified as held-to-maturity and are reported at amortized cost. At September&nbsp;27, 2003, all of our debt securities were classified as held-to-maturity.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">F-8</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf9"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE A &#151; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES<i> &#151; (Continued)</i></b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>9.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Depreciation and Amortization</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Depreciation of equipment and buildings is provided for by the straight-line method over the assets&#146; estimated useful lives. Amortization of improvements is provided for by the straight-line method over the term of the lease or the assets&#146; estimated useful lives,
whichever is shorter. Licenses and rights arising from acquisitions are amortized by the straight-line method over periods ranging from 4 to 20 years.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We follow SFAS No. 144, &#147;Accounting for the Impairment or Disposal of Long-Lived Assets,&#148; (SFAS No. 144). SFAS No. 144 supersedes SFAS No. 121, &#147;Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of,&#148; but it
retains many of the fundamental provisions of that Statement. The adoption did not have a material effect on our financial statements.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>10.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Fair Value of Financial Instruments</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The carrying value of our short-term financial instruments, such as accounts receivables and accounts payable, approximate their fair values, based on the short-term maturities of these instruments.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>11.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Income Taxes</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We account for our income taxes under the liability method. Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates
that will be in effect when these differences reverse. Deferred tax expense is the result of changes in deferred tax assets and liabilities.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>12.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Earnings Per Common Share</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We follow SFAS No. 128, &#147;Earnings Per Share&#148; (EPS). Basic EPS excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into consideration the
potential dilution that could occur if securities (stock options) or other contracts to issue common stock were exercised and converted into common stock.</font></p>
</div>
<p align="left"><font face="serif" size="2">The Company&#146;s calculation of EPS is as follows:</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal Year Ended September</b>&nbsp;<b>25, 2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Income</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Shares</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Per Share</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>(Numerator)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>(Denominator)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Amount</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands, except per share amounts)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Earnings Per Basic Share</b></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net Income available to common stockholders</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22,710</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,909</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.55</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Effect of Dilutive Securities</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Options</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">234</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(.07</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Earnings Per Diluted Share</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net Income available to common stockholders plus assumed conversions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22,710</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,143</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">1,700 anti-dilutive shares have been excluded in the computation of 2004 diluted EPS because the options&#146; exercise price is greater than the average market price of the common stock.</font></p>
</div>
<p align="center"><font face="serif" size="2">F-9</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf10"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE A &#151; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES<i> &#151; (Continued)</i></b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal Year Ended September</b>&nbsp;<b>27, 2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Income</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Shares</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Per Share</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>(Numerator)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>(Denominator)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Amount</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands, except per share amounts)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Earnings Per Basic Share</b></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net Income available to common stockholders</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">19,902</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,800</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Effect of Dilutive Securities</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Options</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">251</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(.06</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Earnings Per Diluted Share</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net Income available to common stockholders plus assumed conversions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">19,902</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,051</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">168,394 anti-dilutive shares have been excluded in the computation of 2003 diluted EPS because the options&#146; exercise price is greater than the average market price of the common stock.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center"><font face="serif" size="1"><b>Fiscal Year Ended September</b>&nbsp;<b>28, 2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center"><font face="serif" size="1"><b>Income</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center"><font face="serif" size="1"><b>Shares</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center"><font face="serif" size="1"><b>Per Share</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center"><font face="serif" size="1"><b>(Numerator)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center"><font face="serif" size="1"><b>(Denominator)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center"><font face="serif" size="1"><b>Amount</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td colspan="8" align="center"><font face="serif" size="1"><b>(in thousands,
    except per share amounts)</b></font></td>
    <td align="center">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Earnings Per Basic Share</b></font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td bgcolor="#eeeeee"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net Income available to common stockholders</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" bgcolor="#eeeeee"><font face="serif" size="2">18,113</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#eeeeee"><font face="serif" size="2">8,770</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">$</font></td>
    <td align="right" bgcolor="#eeeeee"><font face="serif" size="2">2.07</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Effect of Dilutive Securities</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td bgcolor="#eeeeee"><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Options</font></div></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#eeeeee"><font face="serif" size="2">323</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" bgcolor="#eeeeee"><font face="serif" size="2">(.08</font></td>
    <td bgcolor="#eeeeee"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="bottom">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2"><b>Earnings Per Diluted Share</b></font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net Income available to common stockholders plus assumed conversions</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">$</font></td>
    <td align="right"><font face="serif" size="2">18,113</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right"><font face="serif" size="2">9,093</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">$</font></td>
    <td align="right"><font face="serif" size="2">1.99</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">110,000 anti-dilutive shares have been excluded in the computation of 2002 diluted EPS because the options&#146; exercise price is greater than the average market price of the common stock.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>13.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Accounting for Stock-Based Compensation</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Company accounts for stock options under SFAS No. 123, &#147;Accounting for Stock-Based Compensation,&#148; as amended by SFAS No. 148, which contains a fair value-based method for valuing stock-based compensation that entities may use, which measures
compensation cost at the grant date based on the fair value of the award. Compensation is then recognized over the service period, which is usually the vesting period. Alternatively, SFAS No. 123 permits entities to continue accounting for employee stock options and similar
equity instruments under Accounting Principles Board (APB) Opinion 25, &#147;Accounting for Stock Issued to Employees.&#148; Entities that continue to account for stock options using APB Opinion 25 are required to make pro forma disclosures of net income and earnings per share,
as if the fair value-based method of accounting defined in SFAS No. 123 had been applied.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">At September&nbsp;25, 2004, the Company has two stock-based employee compensation plans. The Company accounts for this plan under the recognition and measurement principles of APB No. 25, &#147;Accounting for Stock Issued to Employees,&#148; and related interpretations.
Stock-based employee compensation costs are not reflected in net income, as all options granted under the plans had an exercise price equal to the market value of the underlying common stock on the date of grant. The following table illustrates the effect on net income and
earnings per share if the Company had applied the fair value recognition provisions of SFAS No. 123, to stock-based employee compensation (in thousands, except per share amounts).</font></p>
</div>
<p align="center"><font face="serif" size="2">F-10</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf11"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE A &#151; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES<i> &#151; (Continued)</i></b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal year ended</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September 25</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>28,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>(52 weeks)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>(52 weeks)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>(52 weeks)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net income, as reported</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">22,710</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">19,902</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">18,113</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Less: stock-based compensation costs determined under fair value <br>
      based method for all awards</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,135</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,189</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,353</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Net income, pro forma</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">21,575</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">18,713</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16,760</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings per share of common stock&nbsp;&#151; basic:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">As reported</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.55</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.26</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.07</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Pro forma</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.42</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.13</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1.91</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Earnings per share of common stock&nbsp;&#151; diluted:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">As reported</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.48</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1.99</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Pro forma</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.07</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1.84</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The fair value of these options is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for grants in fiscal 2004, 2003 and 2002, respectively; expected volatility of 30.7% for fiscal year 2004, 43%
for year 2003 and 40% for year 2002; weighted average risk-free interest rates of 3.27%, 3.07% and 3.58%; and expected lives ranging between 5&nbsp;and 10 years for all years.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>14.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Advertising Costs</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Advertising costs are expensed as incurred. Total advertising expense was $1,772,000, $2,119,000, and $1,619,000 for the fiscal years 2004, 2003 and 2002, respectively.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>15.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Commodity Price Risk Management</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Our most significant raw material requirements include flour, shortening, corn syrup, chocolate, and macadamia nuts. We attempt to minimize the effect of future price fluctuations related to the purchase of raw materials primarily through forward purchasing to cover
future manufacturing requirements, generally for periods from 1 to 24 months. As of September&nbsp;25, 2004, we have approximately $20,000,000 of such commitments. Futures contracts are not used in combination with forward purchasing of these raw materials. Our
procurement practices are intended to reduce the risk of future price increases, but also may potentially limit the ability to benefit from possible price decreases.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="4%"><font face="serif" size="2"><b>16.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Reclassifications</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Certain prior year financial statement amounts have been reclassified to be consistent with the presentation for the current year.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>NOTE B &#151; ACQUISITIONS</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In January 2004, we acquired the assets of Country Home Bakers, Inc. Country Home Bakers, Inc., with its manufacturing facility in Atlanta, GA, manufactures and distributes bakery products to the food service and supermarket industries. Its product line includes
cookies, biscuits, and frozen doughs sold under the names READI-BAKE, COUNTRY HOME and private labels sold through supermarket in-store bakeries.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">This acquisition was accounted for under the purchase method of accounting, and its operations are included in the consolidated financial statement from the acquisition date.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">F-11</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf12"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE C &#151; INVESTMENT SECURITIES</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We had no long-term investment securities held to maturity at September&nbsp;25, 2004.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The amortized cost, gross unrealized gains and losses, and fair values of our long-term investment securities held to maturity at September&nbsp;27, 2003 are summarized as follows:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Gross</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Gross</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Amortized</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Unrealized</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Unrealized</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Fair</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Cost</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Gains</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Losses</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Value</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Municipal government securities</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">275</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;5</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">&#151;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">280</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">There were no proceeds from sales of securities in the past three years. We use the specific identification method to determine the cost of securities sold.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>NOTE D &#151; INVENTORIES</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Inventories consist of the following:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>25,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Finished goods</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">13,691</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">10,537</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Raw materials</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,556</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,775</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Packaging materials</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,984</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,975</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Equipment parts and other</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,356</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6,915</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">29,587</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">23,202</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Inventory is presented net of an allowance for obsolescence of $1,131,000 and $617,000 in fiscal years 2004 and 2003, respectively.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>NOTE E &#151; PROPERTY, PLANT AND EQUIPMENT</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Property, plant and equipment consist of the following:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>25,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Estimated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Useful Lives</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Land</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">556</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">606</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="12%" align="right" valign="bottom" bgcolor="#eeeeee"><font face="serif" size="2">&#151;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Buildings</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,497</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,106</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">15-39.5 years</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Plant machinery and equipment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">100,442</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">93,122</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5-10 years</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Marketing equipment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">182,136</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">173,360</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5 years</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Transportation equipment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,037</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">909</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5 years</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Office equipment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,411</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,394</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3-5 years</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Improvements</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">15,070</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">15,654</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5-20 years</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Construction in progress</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,731</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,458</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">314,880</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">298,609</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2"><b>NOTE F &#151; GOODWILL AND INTANGIBLE ASSETS</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Our four reporting units, which are also reportable segments, are Food Service, Retail Supermarket, The Restaurant Group and Frozen Beverages.</font></p>
</div>
<p align="center"><font face="serif" size="2">F-12</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf13"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE F &#151; GOODWILL AND INTANGIBLE ASSETS<i> &#151; (Continued)</i></b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The carrying amount of acquired intangible assets for the reportable segments are as follows:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>25, 2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27, 2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Gross</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Gross</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Carrying</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Accumulated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Carrying</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Accumulated</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Amount</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Amortization</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Amount</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Amortization</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Food Service</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Amortized intangible assets Licenses and rights</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,082</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,333</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,066</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">908</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Retail Supermarket</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Amortized intangible assets Licenses and rights</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">The Restaurant Group</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Amortized intangible assets Licenses and rights</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">20</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Frozen Beverages</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Amortized intangible assets Licenses and rights</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">201</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">146</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">201</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">128</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Licenses and rights are being amortized by the straight-line method over periods ranging from 4 to 20 years and amortization expense is reflected throughout operating expenses. In fiscal year 2004, intangible assets of $1,016,000 were acquired in the Country Home
Bakers acquisition. Additionally, we did not record any transitional intangible asset impairment loss upon adoption of SFAS 142. Aggregate amortization expense of intangible assets for the fiscal years 2004, 2003 and 2002 was $443,000, $308,000 and $309,000.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Estimated amortization expense for the next five fiscal years is approximately $440,000 in 2005, $375,000 in 2006 and 2007, $323,000 in 2008 and $149,000 in 2009. The weighted average amortization period of the intangible assets is 8.33 years.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b>Goodwill</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The carrying amounts of goodwill for the reportable segments are as follows:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Food</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Retail</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Restaurant</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Frozen</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Service</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Supermarkets</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Group</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Beverages</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="14" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Balance at September&nbsp;25, 2004</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">14,241</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">&#151;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">386</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">31,850</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">46,477</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Balance at September&nbsp;27, 2003</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">14,241</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">438</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">31,171</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">45,850</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2"><b>NOTE G &#151; ACCRUED LIABILITIES</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Included in accrued liabilities is accrued compensation of $6,934,000 and $6,133,000 as of September&nbsp;25, 2004 and September&nbsp;27, 2003, respectively.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>NOTE H &#151; LONG-TERM DEBT</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Our general-purpose bank credit line agreement provides for a $50,000,000 revolving credit facility repayable in December 2006, with the availability of repayments without penalty. The agreement contains restrictive covenants and requires commitment fees in
accordance with standard banking practice. As of September&nbsp;25, 2004 and September&nbsp;27, 2003, there were no outstanding balances under this facility.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We self-insure, up to loss limits, certain insurable risks such as worker&#146;s compensation and automobile liability claims. Accruals for claims under our self-insurance program are recorded on a claims-incurred basis.</font></p>
</div>
<p align="center"><font face="serif" size="2">F-13</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf14"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE H &#151; LONG-TERM DEBT<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2">Under this program, the estimated liability for claims incurred but unpaid in fiscal year 2004 and 2003 was $2,400,000 and $1,700,000, respectively. In connection with certain self-insurance
agreements, we customarily enter into letters of credit arrangements with our insurers. At September&nbsp;25, 2004 and September&nbsp;27, 2003, we had outstanding letters of credit totaling
approximately $6,900,000 and $5,900,000, respectively.</font></p>
<p align="left"><font face="serif" size="2"><b>NOTE I &#151; INCOME TAXES</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Income tax expense is as follows:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal year ended</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>25,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>28,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Current</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">U.S. Federal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,441</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,790</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,510</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Foreign</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">140</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">66</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">43</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">State</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">960</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">770</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">769</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,541</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,626</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,322</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Deferred</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">U.S. Federal</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,200</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,360</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,450</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">State</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">194</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">208</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">128</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,394</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,568</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,578</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">12,935</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11,194</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,900</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The provisions for income taxes differ from the amounts computed by applying the statutory federal income tax rate of approximately 35% to earnings before income taxes for the following reasons:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal year ended</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>25,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>28,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Income taxes at statutory rates</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">12,283</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">10,649</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">9,753</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Increase (decrease) in taxes resulting from:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">State income taxes, net of federal income tax benefit</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">725</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">636</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">552</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Other, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(73</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(91</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(405</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">12,935</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11,194</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,900</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">F-14</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf15"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE I &#151; INCOME TAXES<i> &#151; (Continued)</i></b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Deferred tax assets and liabilities consist of the following:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>25,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Deferred tax assets</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Vacation accrual</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">651</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">601</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Insurance accrual</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,254</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,099</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Deferred income</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">349</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">409</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Allowances</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">801</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">873</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Other, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">574</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">434</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,629</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,416</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Deferred tax liabilities</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Depreciation of property and equipment</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">19,340</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16,682</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Other, net</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">57</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">108</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">19,397</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16,790</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">15,768</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,374</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2"><b>NOTE J &#151; COMMITMENTS</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2"><b>1.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Lease Commitments</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The following is a summary of approximate future minimum rental commitments for non-cancelable operating leases with terms of more than one year as of September&nbsp;25, 2004:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Plants and Offices</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Equipment</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Total</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2005</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">4,882</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">3,142</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">8,024</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2006</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,248</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,021</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,269</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2007</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,615</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,188</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">5,803</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2008</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,261</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,149</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4,410</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2009 and thereafter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,858</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">542</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">14,400</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">29,864</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,042</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">39,906</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Total rent expense was $11,220,000, $9,991,000 and $10,017,000 for fiscal years 2004, 2003 and 2002, respectively.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2"><b>2.</b></font></td>
    <td><div align="left"><font face="serif" size="2"><b>Other Commitments</b></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We are a party to litigation which management currently believes will not have a material adverse effect on our financial condition or results of operations.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We self-insure, up to loss limits, certain insurable risks such as worker&#146;s compensation and automobile liability claims. Accruals for claims under our self-insurance program are recorded on a claim-incurred basis. Under this program, the estimated liability for claims
incurred but unpaid in fiscal year 2004 and 2003 was $2,400,000 and $1,700,000, respectively. In connection with certain self-insurance agreements, we customarily enter into letters of credit arrangements with our insurers. At September&nbsp;25, 2004 and September&nbsp;27, 2003, we
had outstanding letters of credit totaling approximately $6,900,000 and $5,900,000, respectively.</font></p>
</div>
<p>&nbsp;</p>
<p align="center"><font face="serif" size="2">F-15</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf16"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE K &#151; CAPITAL STOCK</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">Under our current share repurchase program authorized by the Board of Directors, 478,000 shares remain to be repurchased as of September&nbsp;25, 2004. In fiscal year 2003, we purchased and retired 297,000 shares of our common stock at a cost of $8,565,000.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>NOTE L &#151; STOCK OPTIONS</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We have a Stock Option Plan (the &#147;Plan&#148;). Pursuant to the Plan, stock options may be granted to officers and our key employees which qualify as incentive stock options as well as stock options which are nonqualified. The exercise price of incentive stock options is at
least the fair market value of the common stock on the date of grant. The exercise price for nonqualified options is determined by a committee of the Board of Directors. The options are generally exercisable after three years and expire no later than ten years from date of
grant. There were 400,000 shares reserved under the Plan; options for 211,000 shares remain unissued as of September&nbsp;25, 2004. There are options that were issued under an option plan that has since expired that are still outstanding.</font></p>
</div>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">A summary of the status of our option plans as of fiscal years 2004, 2003 and 2002 and the changes during the years ended on those dates is represented below:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>Incentive Stock Options</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>Nonqualified Stock Options</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Weighted-</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Weighted-</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Stock</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Average</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Stock</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Average</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Options</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Exercise</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Options</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Exercise</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Outstanding</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Outstanding</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Balance, September&nbsp;30, 2001</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">880,827</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">17.08</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">356,000</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">14.75</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Granted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">81,333</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">38.21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">34,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">39.53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Exercised</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(239,583</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">14.19</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(34,000</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10.75</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Cancelled</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(25,386</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">19.96</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Balance, September&nbsp;28, 2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">697,191</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">20.40</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">356,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">17.55</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Granted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">80,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">33.83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Exercised</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(118,456</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16.86</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(37,000</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13.63</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Cancelled</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(53,106</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">24.05</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Balance, September&nbsp;27, 2003</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">605,629</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22.55</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">319,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">18.00</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Granted</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">103,700</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">40.08</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">40.85</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Exercised</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(218,527</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">18.37</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(37,000</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11.00</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Cancelled</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(20,249</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">24.47</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Balance, September&nbsp;25, 2004</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">470,553</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28.12</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">292,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">19.67</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Exercisable Options, September&nbsp;25, 2004</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">242,458</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">282,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The weighted-average fair value of incentive options granted during fiscal years ended September&nbsp;25, 2004, September&nbsp;27, 2003 and September&nbsp;28, 2002 was $12.94, $14.15 and $15.39, respectively. The weighted-average fair value of nonqualified stock options
granted during the fiscal year ended September&nbsp;28, 2002 was $23.93.</font></p>
</div>
<p align="center"><font face="serif" size="2">F-16</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf17"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE L &#151; STOCK OPTIONS<i> &#151; (Continued)</i></b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The following table summarizes information about incentive stock options outstanding at September&nbsp;25, 2004:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>Options Outstanding</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>Options Exercisable</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Number</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Weighted-</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Number</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Outstanding</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Average</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Weighted-</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Exercisable</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Weighted-</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>at</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Remaining</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Average</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>at</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Average</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Range of</b></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Contractual</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Exercise</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Exercise</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Exercise Prices</b></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>25, 2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Life</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>25, 2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">$12.75&nbsp;&#151; $19.00</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">77,844</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">6.0 years</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">12.90</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">77,844</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">12.90</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">$19.38&nbsp;&#151; $22.88</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">155,614</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">6.9 years</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">21.21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">155,614</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">21.21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">$30.40&nbsp;&#151; $44.70</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">237,095</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4.1 years</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">37.65</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">34.16</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">470,553</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">242,458</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The following table summarizes information about nonqualified stock options outstanding at September&nbsp;25, 2004:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>Options Outstanding</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" align="center" valign="bottom"><font face="serif" size="1"><b>Options Exercisable</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="5" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Number</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Weighted-</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Number</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Outstanding</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Average</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Weighted-</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Exercisable</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Weighted-</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>at</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Remaining</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Average</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>at</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Average</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Range of</b></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Contractual</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Exercise</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Exercise</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Exercise Prices</b></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>25, 2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Life</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>25, 2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Price</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">$11.00&nbsp;&#151; $15.94</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">146,000</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">2.49 years</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">13.00</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">146,000</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">13.00</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">$19.25&nbsp;&#151; $21.75</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">102,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">4.93 years</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">20.53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">102,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">20.53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">$39.53&nbsp;&#151; $40.85</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">44,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8.14 years</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">39.83</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">34,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">39.53</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">292,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">282,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2"><b>NOTE M &#151; 401(k) PROFIT-SHARING PLAN</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We maintain a 401(k) profit-sharing plan for our employees. Under this plan, we may make discretionary profit-sharing and matching 401(k) contributions. Contributions of $1,141,000, $1,071,000 and $1,051,000 were made in fiscal years 2004, 2003 and 2002,
respectively.</font></p>
</div>
<p align="left"><font face="serif" size="2"><b>NOTE N &#151; CASH FLOW INFORMATION</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The following is supplemental cash flow information:</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal Year Ended</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>25,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>28,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Cash paid for:</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Interest</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">0</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">24</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,068</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Income taxes</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11,350</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,321</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,429</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2"><b>NOTE O &#151; SEGMENT REPORTING</b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We principally sell our products to the food service and retail supermarket industries. We also distribute our products directly to the consumer through our chain of retail stores referred to as The Restaurant Group. Sales and results of our frozen beverages business are
monitored separately from the balance of our food service business and restaurant group because of different distribution and capital requirements. We maintain separate and discrete financial information for the four operating segments mentioned above which is</font></p>
</div>
<p align="center"><font face="serif" size="2">F-17</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf18"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE O &#151; SEGMENT REPORTING<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2">available to our Chief Operating Decision Makers. We have applied no aggregate criteria to any of these operating segments in order to determine reportable segments. Our four reportable
segments are Food Service, Retail Supermarkets, The Restaurant Group and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and
operating income (loss). These segments are described below.</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td><div align="left"><font face="serif" size="2"><i>Food Service</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The primary products sold to the food service group are soft pretzels, frozen juice treats and desserts, churros and baked goods. Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and shopping
centers; fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. Within the food service industry, our products are purchased by the consumer primarily for
consumption at the point-of-sale.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Retail Supermarkets</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The primary products sold to the retail supermarket industry are soft pretzel products&nbsp;&#151; including SUPERPRETZEL, frozen juice treats and desserts including LUIGI&#146;S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, BARQ&#146;S FLOATZ and
ICEE Squeeze Up Tubes and TIO PEPE&#146;S Churros. Within the retail supermarket industry, our frozen and prepackaged products are purchased by the consumer for consumption at home.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>The Restaurant Group</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We sell direct to the consumer through our Restaurant Group, which operates BAVARIAN PRETZEL BAKERY and PRETZEL GOURMET, our chain of specialty snack food retail outlets.</font></p>
</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><i>Frozen Beverages</i></font></div></td>
  </tr>
</table>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">We sell frozen beverages to the food service industry, including our restaurant group, primarily under the names ICEE and ARCTIC BLAST in the United States, Mexico and Canada.</font></p>
</div>
<p align="center"><font face="serif" size="2">F-18</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf19"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE O &#151; SEGMENT REPORTING<i> &#151; (Continued)</i></b></font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">The Chief Operating Decision Maker for Food Service, Retail Supermarkets and The Restaurant Group and the Chief Operating Decision Maker for Frozen Beverages monthly review and evaluate operating income and sales in order to assess performance and allocate
resources to each individual segment. In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the
operations in these four reportable segments is as follows:</font></p>
</div>

<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal year ended</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>25,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>27,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>September</b>&nbsp;<b>28,</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>2002</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="8" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Sales to external customers:</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Food Service</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">250,523</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">200,528</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">185,219</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Retail Supermarket</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">38,843</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">39,702</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">41,366</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">The Restaurant Group</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,623</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,755</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,724</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Frozen Beverages</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">119,599</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">114,582</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">115,878</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">416,588</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">364,567</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">353,187</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Depreciation and Amortization:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Food Service</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,504</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,098</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">13,547</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Retail Supermarket</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">The Restaurant Group</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">422</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">558</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">682</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Frozen Beverages</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">10,142</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11,307</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">16,757</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">24,068</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">24,963</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">30,986</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Operating Income (Loss):</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Food Service</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">21,266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">17,804</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">17,382</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Retail Supermarket</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,701</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,144</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,936</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">The Restaurant Group</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(988</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(975</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">(915</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Frozen Beverages</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">12,213</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11,874</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,863</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">35,192</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">30,847</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28,266</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Capital Expenditures:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Food Service</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,294</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,929</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">11,418</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Retail Supermarket</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">The Restaurant Group</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">61</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">159</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Frozen Beverages</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">12,328</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">9,137</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,751</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">21,644</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">19,127</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">20,328</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Assets:</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">Food Service</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">183,740</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">153,795</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">129,702</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Retail Supermarket</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">&#151;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%"><font face="serif" size="2">The Restaurant Group</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,461</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,192</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2,921</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%"><font face="serif" size="2">Frozen Beverages</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">92,223</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">83,491</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">87,413</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">277,424</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">239,478</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">220,036</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">F-19</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="pf20"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>J &amp; J SNACK FOODS CORP. AND SUBSIDIARIES</b></font><br>
<font face="serif" size="2"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<i> &#151; (Continued)</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>NOTE P &#151; QUARTERLY FINANCIAL DATA (UNAUDITED)</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal Year Ended September</b>&nbsp;<b>25, 2004</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Net Earnings</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Per</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Gross</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Net</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Diluted</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Net Sales</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Profit</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Earnings</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Share<sup>(1)</sup></b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>

    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands, except per share information)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1st Quarter</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">79,945</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">24,638</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">1,825</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">.20</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2nd Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">95,214</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">30,746</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,342</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">.36</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">3rd Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">118,952</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">42,250</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,705</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">.95</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">4th Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">122,477</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">42,575</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">8,838</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">.96</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">416,588</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">140,209</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">22,710</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.47</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="11" align="center" valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" align="center" valign="bottom"><font face="serif" size="1"><b>Fiscal Year Ended September</b>&nbsp;<b>27, 2003</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" valign="bottom"><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Net Earnings</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Per</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Gross</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Net</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Diluted</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Net Sales</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Profit</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Earnings</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Share<sup>(1)</sup></b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="11" align="center" valign="bottom"><font face="serif" size="1"><b>(in thousands, except per share information)</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1st Quarter</font></div></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">77,244</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">22,065</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">1,201</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">.13</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2nd Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">81,408</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">26,876</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">3,001</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">.33</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">3rd Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">102,529</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">38,383</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,808</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">.87</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">4th Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">103,386</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">37,521</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">7,892</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">.88</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2"><hr noshade size="1"></font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Total</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">364,567</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">124,845</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">19,902</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">2.21</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><hr noshade size="2"></td>
    <td><hr noshade size="2"></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2">(1)</font></td>
    <td><div align="left"><font face="serif" size="2">Total of quarterly amounts do not necessarily agree to the annual report amounts due to separate quarterly calculations of weighted average shares outstanding.</font></div></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">F-20</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><a name="s1"></a><b>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</b></font></p>
<p align="left"><font face="serif" size="2">Shareholders and Board of Directors <br>
J &amp; J Snack Foods Corp. and Subsidiaries</font></p>
<div style="text-indent:3%">
<p align="left"><font face="serif" size="2">In connection with our audit of the consolidated financial statements of J &amp; J Snack Foods Corp. and Subsidiaries referred to in our report dated November&nbsp;3, 2004 which is included in the Annual Report to Shareholders and incorporated by reference in Part II of this
form, we have also audited Schedule II for each of the three fiscal years in the period ended September&nbsp;25, 2004 (52 weeks, 52 weeks and 52 weeks, respectively). In our opinion, this schedule presents fairly, in all material respects, the information required to be set forth
therein.</font></p>
</div>

<div style="margin-left: 60%"><p align="left"><font face="serif" size="2">/s/ GRANT THORNTON LLP</font></p>
</div>
<p align="left"><font face="serif" size="2">Philadelphia, Pennsylvania<br>
November&nbsp;3, 2004</font></p>
<p align="center"><font face="serif" size="2">S-1</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="ps2"></a>
<p><a href="#index"><font size="2">Back to Index</font></a></p>
<p align="center"><font face="serif" size="2"><a name="s2"></a><b>SCHEDULE II</b>&nbsp;<b>&#151; VALUATION AND QUALIFYING ACCOUNTS</b></font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Opening</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Charged to</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Closing</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="1"><b>Year</b></font></div></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Description</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Balance</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>expense</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Deductions</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td colspan="2" align="center" valign="bottom"><font face="serif" size="1"><b>Balance</b></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="serif" size="1"><hr align="left" width="20" size="1" noshade>
    </font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1"><hr noshade size="1"></font></td>
    <td><font face="serif" size="1">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2004</font></div></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td align="center" valign="bottom"><font face="serif" size="2">Allowance for doubtful accounts</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2"> 991,000</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">245,000</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="9%"><font face="serif" size="2"> 132,000(1</font></td>
    <td valign="bottom" width="2%"><font face="serif" size="2">)</font></td>
    <td valign="bottom" width="1%"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom" width="8%"><font face="serif" size="2">1,104,000</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2003</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="center" valign="bottom"><font face="serif" size="2">Allowance for doubtful accounts</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,839,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">556,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,404,000(1</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">991,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2002</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="center" valign="bottom"><font face="serif" size="2">Allowance for doubtful accounts</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,672,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">372,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">205,000(1</font></td>
    <td valign="bottom"><font face="serif" size="2">)</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">1,839,000</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
 <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="100"><hr noshade size="1" align="left" width="100%"></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2">(1) Write-off uncollectible accounts receivable.</font></div></td>
  </tr>
</table>
<p align="center"><font face="serif" size="2">S-2</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>CORPORATE INFORMATION</b><br>
</font><font face="serif" size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
<p align="left"><font face="serif" size="2"><b><i>OFFICERS </i></b></font></p>
<p align="left"><font face="serif" size="2"><b>Gerald B. Shreiber </b><br>
Chairman of the Board, President and <br>
Chief Executive Officer</font></p>
<p align="left"><font face="serif" size="2"><b>Dennis G. Moore</b><br>
Senior Vice President,<br>
Chief Financial Officer, <br>
Secretary and Treasurer</font></p>
<p align="left"><font face="serif" size="2"><b>Robert M. Radano</b><br>
Senior Vice President and<br>
Chief Operating Officer</font></p>
<p align="left"><font face="serif" size="2"><b>Michael Karaban</b><br>
Senior Vice President, Marketing</font></p>
<p align="left"><font face="serif" size="2"><b><i>DIRECTORS</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>Gerald B. Shreiber</b><br>
Chairman of the Board, <br>
President and Chief Executive Officer</font></p>
<p align="left"><font face="serif" size="2"><b>Dennis G. Moore</b><br>
Senior Vice President, Chief Financial<br>
Officer, Secretary and Treasurer</font></p>
<p align="left"><font face="serif" size="2"><b>Robert M. Radano</b><br>
Senior Vice President and <br>
Chief Operating Officer</font></p>
<p align="left"><font face="serif" size="2"><b>Sidney R. Brown</b><sup>(1)(2)(3)<br>
</sup>Chief Executive Officer,<br>
NFI Industries</font></p>
<p align="left"><font face="serif" size="2"><b>Peter G. Stanley</b><sup>(1)(2)(3)<br>
</sup>Vice President, <br>
Emerging Growth Equities, Ltd.</font></p>
<p align="left"><font face="serif" size="2"><b>Leonard M. Lodish, Ph.D.</b><sup>(1)(2)(3)<br>
</sup>Samuel R. Harrell Professor,<br>
Marketing Department of the Wharton<br>
School, University of Pennsylvania</font></p>
<p align="left"><font face="serif" size="2"><b><i>OFFICERS OF SUBSIDIARY <br>
COMPANIES</i></b></font></p>
<p align="left"><font face="serif" size="2"><b><i>J &amp; J SNACK FOODS <br>
SALES CORP.</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>Cliff Best</b><br>
Vice President, Distributor Sales</font></p>
<p align="left"><font face="serif" size="2"><b>John Duckett</b><br>
Vice President, Service &amp; Assembly</font></p>
<p align="left"><font face="serif" size="2"><b>Mark Frohlich</b><br>
Vice President, New Business<br>
Development</font></p>
<p align="left"><font face="serif" size="2"><b>Anthony Harrison, II</b><br>
Vice President, Quality Control<br>
and Research &amp; Development</font></p>
<p><hr align="left" width="10%" size="1" noshade>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2"><sup>(1)</sup></font></td>
    <td><div align="left"><font face="serif" size="2">Audit Committee Member</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2"><sup>(2)</sup></font></td>
    <td><div align="left"><font face="serif" size="2">Compensation Committee Member</font></div></td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="3%"><font face="serif" size="2"><sup>(3)</sup></font></td>
    <td><div align="left"><font face="serif" size="2">Nominating Committee Member</font></div></td>
  </tr>
</table>
<br>
<br>


<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<div align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>CORPORATE INFORMATION</b><br>
  </font><font face="serif" size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
</div>
<p align="left"><font face="serif" size="2"><b>H. Robert Long</b><br>
Vice President, Distribution</font></p>
<p align="left"><font face="serif" size="2"><b>Harry A. McLaughlin</b><br>
Vice President, Controller</font></p>
<p align="left"><font face="serif" size="2"><b>Robert J. Pape</b><br>
Vice President, Sales-Retail</font></p>
<p align="left"><font face="serif" size="2"><b>Steven J. Taylor</b><br>
Vice President, Sales-Food Service</font></p>
<p align="left"><font face="serif" size="2"><b>Thomas Weber</b><br>
Vice President, Operations</font></p>
<p align="left"><font face="serif" size="2"><b><i>MIA PRODUCTS</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>T.J. Couzens</b><br>
Vice President/General Manager</font></p>
<p align="left"><font face="serif" size="2"><b><i>THE ICEE COMPANY</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>Dan Fachner</b><br>
President</font></p>
<p align="left"><font face="serif" size="2"><b>Kent Galloway</b><br>
Vice President and<br>
Chief Financial Officer</font></p>
<p align="left"><font face="serif" size="2"><b>Rick Naylor</b><br>
Vice President/General Manager<br>
Central Zone</font></p>
<p align="left"><font face="serif" size="2"><b>Rod Sexton</b><br>
Vice President of Service Operations</font></p>
<p align="left"><font face="serif" size="2"><b>Mark Winterhalter</b><br>
Vice President/General Manager<br>
Eastern Zone</font></p>
<p align="left"><font face="serif" size="2"><b>Susan Woods</b><br>
Vice President, Marketing</font></p>
<p align="left"><font face="serif" size="2"><b><i>ICEE DE MEXICO, S.A. DE C.V.</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>Andres Gonzales</b><br>
Vice President</font></p>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b><i>PRETZELS, INC.</i></b></font></div></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2"><b>Gary Powell</b><br>
President</font></p>
<p align="left"><font face="serif" size="2"><b><i>COUNTRY HOME BAKERS, INC.</i></b></font></p>
<p align="left"><font face="serif" size="2"><b>John McGuckin</b><br>
Vice President Sales &amp; Marketing</font></p>
<p align="left"><font face="serif" size="2"><b>Joseph Talmage</b><br>
Chief Financial Officer</font></p>
<br>
<br>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<div align="center"><font face="serif" size="2"></font><font face="serif" size="2"><b>CORPORATE INFORMATION</b><br>
  </font><font face="serif" size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>

</div>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td><div align="left"><font face="serif" size="2"><b><i>Quarterly Common Stock Data</i></b></font></div></td>
  </tr>
 <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" align="center" border="0" cellpadding="0" cellspacing="0">
  <tr valign="top" bgcolor="#ffffff">
    <td><font size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td colspan="4" align="center" valign="bottom"><font face="serif" size="2">Market Price</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="2%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="1%"><font face="serif" size="2">&nbsp;</font></td>
    <td width="8%"><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td colspan="7"><font face="serif" size="2"><hr noshade size="1"></font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">Fiscal 2004</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">High</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">Low</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td colspan="7"><font face="serif" size="2"><hr noshade size="1"></font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1st Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">39.50</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">33.09</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2nd Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">48.76</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">35.90</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">3rd Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">45.47</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">36.10</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">4th Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">44.98</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2"> 36.30 </font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td colspan="7"><font face="serif" size="2">Fiscal 2003</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td colspan="7"><font face="serif" size="2"><hr noshade size="1"></font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">1st Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">40.25</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td valign="bottom"><font face="serif" size="2">$</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">30.27</font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">2nd Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">37.85</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">25.31</font></td>
  </tr>
  <tr valign="top" bgcolor="#eeeeee">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">3rd Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">34.00</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">28.65 </font></td>
  </tr>
  <tr valign="top" bgcolor="#ffffff">
    <td><div style="margin-left:3%; text-indent:-3%"><font face="serif" size="2">4th Quarter</font></div></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">37.67</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td><font face="serif" size="2">&nbsp;</font></td>
    <td align="right" valign="bottom"><font face="serif" size="2">29.33</font></td>
  </tr>
</table>
<p align="left"><font face="serif" size="2"><b><i>Stock Listing</i></b></font></p>
<p align="left"><font face="serif" size="2">The common stock of J &amp; J Snack <br>
Foods Corp. is traded on the<br>
NASDAQ National Market System <br>
with the symbol JJSF.</font></p>
<p align="left"><font face="serif" size="2"><b><i>Transfer Agent and Registrar</i></b></font></p>
<p align="left"><font face="serif" size="2">American Stock Transfer<br>
&amp; Trust Company<br>
New York, NY</font></p>
<p align="left"><font face="serif" size="2"><b><i>Independent Registered Public</i></b><br>
<b><i>Accounting Firm</i></b></font></p>
<p align="left"><font face="serif" size="2">Grant Thornton LLP<br>
Philadelphia, PA</font></p>
<p align="left"><font face="serif" size="2"><b><i>Counsel</i></b></font></p>
<p align="left"><font face="serif" size="2">Blank Rome LLP<br>
Cherry Hill, NJ</font></p>
<p align="left"><font face="serif" size="2"><b><i>Annual Meeting</i></b></font></p>
<p align="left"><font face="serif" size="2">The Annual Meeting of Shareholders<br>
is scheduled for Thursday, February <br>
10, 2005 at 10:00 a.m. at the Hilton <br>
at Cherry Hill, 2349 W. Marlton Pike, <br>
Cherry Hill, NJ.</font></p>
<p align="left"><font face="serif" size="2"><b><i>Form 10-K</i></b></font></p>
<p align="left"><font face="serif" size="2">Copies of the Company&#146;s Annual <br>
  Report to the Securities and Exchange <br>
  Commission on Form 10-K may be <br>
  obtained without charge by writing to:<br>
J &amp; J Snack Foods Corp.<br>
6000 Central Highway<br>
Pennsauken, NJ 08109<br>
Attention: Dennis G. Moore, or by <br>
accessing our website <u><br>
www.jjsnack.com</u>, on which our SEC <br>
filings are made available on the same <br>
day as filed or by going to the SEC&#146;s <br>
Public Reference Room to read and <br>
copy filings or by accessing the <br>
SEC&#146;s website, <u>www.sec.gov</u>.</font></p>
<hr noshade align="center" width="100%" size="2">






































</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>emptybox.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 emptybox.gif
M1TE&.#EA#``,`/?^``````$!`0("`@,#`P0$!`4%!08&!@<'!P@("`D)"0H*
M"@L+"PP,#`T-#0X.#@\/#Q`0$!$1$1(2$A,3$Q04%!45%186%A<7%Q@8&!D9
M&1H:&AL;&QP<'!T='1X>'A\?'R`@("$A(2(B(B,C(R0D)"4E)28F)B<G)R@H
M*"DI*2HJ*BLK*RPL+"TM+2XN+B\O+S`P,#$Q,3(R,C,S,S0T-#4U-38V-C<W
M-S@X.#DY.3HZ.CL[.SP\/#T]/3X^/C\_/T!`0$%!04)"0D-#0T1$1$5%149&
M1D='1TA(2$E)24I*2DM+2TQ,3$U-34Y.3D]/3U!04%%145)24E-34U145%55
M55965E=75UA86%E965I:6EM;6UQ<7%U=75Y>7E]?7V!@8&%A86)B8F-C8V1D
M9&5E969F9F=G9VAH:&EI:6IJ:FMK:VQL;&UM;6YN;F]O;W!P<'%Q<7)R<G-S
M<W1T='5U=79V=G=W=WAX>'EY>7IZ>GM[>WQ\?'U]?7Y^?G]_?X"`@(&!@8*"
M@H.#@X2$A(6%A8:&AH>'AXB(B(F)B8J*BHN+BXR,C(V-C8Z.CH^/CY"0D)&1
MD9*2DI.3DY24E)65E9:6EI>7EYB8F)F9F9J:FIN;FYR<G)V=G9Z>GI^?GZ"@
MH*&AH:*BHJ.CHZ2DI*6EI::FIJ>GIZBHJ*FIJ:JJJJNKJZRLK*VMK:ZNKJ^O
MK["PL+&QL;*RLK.SL[2TM+6UM;:VMK>WM[BXN+FYN;JZNKN[N[R\O+V]O;Z^
MOK^_O\#`P,'!P<+"PL/#P\3$Q,7%Q<;&QL?'Q\C(R,G)R<K*RLO+R\S,S,W-
MS<[.SL_/S]#0T-'1T=+2TM/3T]34U-75U=;6UM?7U]C8V-G9V=K:VMO;V]S<
MW-W=W=[>WM_?W^#@X.'AX>+BXN/CX^3DY.7EY>;FYN?GY^CHZ.GIZ>KJZNOK
MZ^SL[.WM[>[N[N_O[_#P\/'Q\?+R\O/S\_3T]/7U]?;V]O?W]_CX^/GY^?KZ
M^OO[^_S\_/W]_?[^_O___R'Y!`$``/X`+``````,``P`!P@Z`/\)'$APX)L?
M"!,J_/<#F;B'$!\:8"BNX,`#%"T*Q/BCHD:.'BV"U/AOY,>,)SN2Y&C@@,N7
&+@$$!``[
`
end

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>jjsnackfoods2.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 jjsnackfoods2.jpg
M_]C_X``02D9)1@`!`@$`2`!(``#_X0_A17AI9@``34T`*@````@`!P$2``,`
M```!``$```$:``4````!````8@$;``4````!````:@$H``,````!``(```$Q
M``(````;````<@$R``(````4````C8=I``0````!````I````-````!(````
M`0```$@````!061O8F4@4&AO=&]S:&]P($-3(%=I;F1O=W,`,C`P-#HQ,CHP
M-R`Q,3HS,3HT-0```````Z`!``,````!__\``*`"``0````!```!:*`#``0`
M```!````8P`````````&`0,``P````$`!@```1H`!0````$```$>`1L`!0``
M``$```$F`2@``P````$``@```@$`!`````$```$N`@(`!`````$```ZK````
M`````$@````!````2`````'_V/_@`!!*1DE&``$"`0!(`$@``/_M``Q!9&]B
M95]#30`"_^X`#D%D;V)E`&2``````?_;`(0`#`@("`D(#`D)#!$+"@L1%0\,
M#`\5&!,3%1,3&!$,#`P,#`P1#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,
M#`$-"PL-#@T0#@X0%`X.#A04#@X.#A01#`P,#`P1$0P,#`P,#!$,#`P,#`P,
M#`P,#`P,#`P,#`P,#`P,#`P,#`P,_\``$0@`+`"@`P$B``(1`0,1`?_=``0`
M"O_$`3\```$%`0$!`0$!``````````,``0($!08'"`D*"P$``04!`0$!`0$`
M`````````0`"`P0%!@<("0H+$``!!`$#`@0"!0<&"`4###,!``(1`P0A$C$%
M05%A$R)Q@3(&%)&AL4(C)!52P6(S-'*"T4,')9)3\.'Q8W,U%J*R@R9$DU1D
M1<*C=#87TE7B9?*SA,/3=>/S1B>4I(6TE<34Y/2EM<75Y?569G:&EJ:VQM;F
M]C='5V=WAY>GM\?7Y_<1``("`0($!`,$!08'!P8%-0$``A$#(3$2!$%187$B
M$P4R@9$4H;%"(\%2T?`S)&+A<H*20U,58W,T\24&%J*R@P<F-<+21)-4HQ=D
M154V=&7B\K.$P]-UX_-&E*2%M)7$U.3TI;7%U>7U5F9VAI:FML;6YO8G-T=7
M9W>'EZ>WQ__:``P#`0`"$0,1`#\`]522224PNMJHI?=<X,JJ:7V//`:T;GN/
M]5J\HZ=TSJW^,/J.=U"_-LPL/'<!0TL]5K?4&^O'IJ>YE+/1Q_1?E/\`YVRZ
MU=3_`(T.M#IWU==B-=%O47&H@&#Z#!ZF7_VXS9B_^A*T_J5T8]$^K6-CWM%>
M58TY.:2`#ZUOZ6T6?\2W9C_]924^>?6WZD5?5CI#^HW]9-UNYK,?&^SL8;'D
M_1WLLW,:QF^Q]G_HQ6<;ZZ?7_$^K7J?LB]^/52X-ZI<'.M#3+JLMS'M_2MII
M/\Z]GI6;/4ML1*K\CZ[=8_YT]1?7A?57ZNVN=0VUN]UFPLOMWL9[]UC&4.M_
MP?\`-8]%.3^L+J>KMR<K"R\SIF8&],ZSB^KD=0S+7.HQ:14VIGV'IT5[+,FN
MQ]UF]]7Z3^>]3]'0DIY/ZO\`U!R_K'TBCK5O6[&/S=[RTU^NX;7OJ_2Y-UOJ
M6V^S]+_+]BS>N]*R/J=US"KQ.J69&4UGVJUXK%6Q@>UE3/T;W-O;D;,AEM%O
MZ/TUU?\`BARLH_5_*HL@].P\A[<+*(V%[3-M^YO[K'.]3<__`$OI?X%<1F9M
MGUB^L=N<VBS,;G9(=7BU@^H_$H/LI96X_P`X[!IML=_QB2GN:?K;]?.J,^V=
M&^K]8P':TOR+`'O;^:]N^W$^G_P;+*_^%L1.G_XT^E"JZKK5%F#U#%<YEV/6
MUUP+FG8\!S6CTGL?N]2N_9_QEBU>KOR>I=)KZIT+/R,#(:#5BUNKV5OLL>S'
M;7EX6;3O]EC=E=GL]+^<_25J=WU?Z&ZCI[0:FXWU?N-MCG03-=3]WKW>WW^M
M;5G9+W_SME?Z5)3G?^.O]4?0%V_(U=M#/1=)_E[OYK;_`-<WHV;_`(SOJEB4
MUV-R+,EUHD54UG>W^3;ZWHLJL_X)[_53?5_IP?G6=;S\)SLOKA>ZL.K:&XN%
M6UK,7'OU=LR,FKTWWL_/?^C_`.TRQA3_`,QOJ_B9N'TH]1ZKF--F7E['N90P
M-]=];GU-M?34QKO1I8STJK-EE]KTE-YO^-KZNN('V7.$\GTZS'QVY#D'(_QI
MTY8KQN@=.R,GJ%[Q72S(#&5DF3IZ-MK['?R?T5>S]+9?6Q;%.`WJF%5T[JUK
M6YF<6=2ZIA-'TF>UM6)K]''J?5C8]KO\/]F_X>Q8/U:ZP_K?6,_ZV]7=]EZ5
MT6IU6%21+*2\;LA_L_G,EN,UGJ[/^Y7HU?024SS/KE]?.E5#,ZOT3'IPFO:V
MQWJ@$[CM#&%M]_O=_P`3L5W$_P`:WU7R,AE+VY.,RPPW(MK;Z?Q<ZFVY^W^7
MZ>QG^$0L3'Z?UZW+ZJ<O*^L/2>F;K*,*YK(?FAKKGLIH%.(ZST<>RJG&KO;9
M7ZF0_P#T:OXC,KZT_5NS&^L>`WI+\NQU>%23^E:&M]2B^MEFRRO*JV7?F,_F
M?5]+T4E-?-_QJ_57%R'45G(RPSZ5M%;?3^(??91O9_PC/T:A=_C8^K-;]M=.
M9>V`=[*F@:C=M_3VTO\`;_45OI=F5TWK_P#S>Z7T3[-T/'KW7]1=N:'O+&V,
M?78YNW+=O=Z-OZ6R_P#G'OV>G^DMUTLZ%E8?3.B84U=1RKLG,<`17566E]MN
M]OLK=Z[L>O'I_P!%^C9_(2G,M_QJ_59F-5=5]HOMNF,9E4/;'[[K',Q_=_P5
MUJ+T7_&1T/JN?7TYU61A9-QVU#(:T-<[\VO?799M?9_@_4V;T_1S]6W]:ZQ^
MRMF-UC)+G5VOJT+&L;2[*PF_HV7XOVQMWVCT;/UC(99ZG^#6*QO4NO\`^,"C
MI_4[ZK&?5H?:"_&86-L?--C-S7NN=5:ZQV/ZM7JV,9]EM]/^<24__]#K/K?]
M>:/J]=3@T8YS>HY$$4@EK6M<?3JW;&6V677V>VC'JK]^RS^;6&/\9/UE)@?5
MRV28`VY/_O(H?5G&/5/\976>H97O_9C[15Y/+C@XY_ZWAXUO]NU=?];^HY/2
M_JSU'.Q&O?D54D5>F)<USXJ]?@^W&W_:+/\`@ZDE/GN+G7?7[ZX]-=?4*<7&
MJ%]U#7;VBNA^^S=ZC*]S<S,=CT6,V>RNI>C=5^L'1^G6C"S'OLONJ=9]FIJM
MO>:I],V/KQ:[755/>?28^W9[US?^*KH1P>DW=3MK+'Y[FLQMX(/V:D;:;-CV
MM=7]JM==D?\`"?H;%L?5%K<EG4.MN<'V]4S+MKXVD48KW]/PZ/[%=#[?^,OL
M24^6]"^LOUR^J6';C8_3G/Z;99ZFS-HNBHV$5[/M$8K6^I^CW_X+U/YO^<6P
M>J_XQOKGT7,QV])PLC`O>:'._FBQ]>T[L<VY;-WI6>_U/TU?J>S_`(-;?^-C
M+SG4]+Z5B566?:[G6`,#CZEM0:W$Q?;['[[KO7>RS_N.NO\`J]TAG1>BX?2V
M$.^RU!KWB8=8?TF19[O]+>ZRQ)3Q_7?M'U2_Q;4=$NN8_.R6G#]2L#:&VFR_
M+<&^QSJZ,3U:O7V[_4].Q4>D_4OZT=-HZ?USH+Z!F68WZ?%R1]#U2'MKJ.S_
M`$'HUV>^JVNRNS]-Z=WI*7UC(^M7^,/$Z*WWX73?9<=")AN5U$[F_1W,9C=/
M?_PEB[K.Z#C9V0<BS)S:G$`;,?+OI9IX4X]M=?\`T4E/(W8'^-3*R*,^TX+;
M,5SO0Q=Q%;7.::W9#JVBSU+-CG5U[\G]%OL_1H6-T;_&7@LR<:IF#?7U&YV9
ME/L=O`LLCUJ2UXK_`$5FQC/2;3:S]RQ=7_S4PO\`N;U/_P!R&7_[T)?\U,+_
M`+F]3_\`<AE_^]"2GF6=._QKU9C^HC(Q;;;QL=BNM<:&!NW:ZK&+655O?M_G
M&6/L^FJ[:/\`&0RH=!^U].N+*VDT/M:;_1!!].UNQECZ/^T]FZG])7_A/\*N
MQI^K.)1=7<W+Z@YU3FO#;,[)>PEIW;;*[+G,LK_?8]"Z-]6&]-RG9-U[<QPL
MNMI>^BIMH?D/=9=?=E;77VY/IEN)OJ=C4?9:ZZOLR2GDV87^,(=?LZ@W)Z8>
ML.QQ19BFV2W'!%K'_9=N]C/6=_.>HJC/J_\`7"ZE_P!5'973,:B^W[1DUUV-
M-\N?]L=8^EK6W6;7;/3KV,]E=57K>@NQZ-]3J>G9E67?D',?BV9%N,YU;6/]
M3*+OM.5FW,)?FY;JG?9O4_0T>A_VFWHW3OJKCX74AU-]]F3D%U]K_4)+3?D%
M@=E,K+G,ILIQ*VX%/H_]I4E/,'H/UA^K_5LC&^J'4L6RO(#;+.FY=C3<PAL>
MKLU<]O\`PWZ']'LKM];T:[%*_P"IOU]S+6=8RNL5?M?%<'85+=WHL!$6@.%;
M:J][/T;_`-3N]=GZ.^VQ=+C_`%5Q:+SGMM>_JCKWWG-LE\>J]GKLJQK7.QZ/
M4PJ:^F^K4SU68K$6WZL8=MK[79G46FQQ>6LSLEK1N.[:RME[6,9^ZQJ2GE\K
MI/\`C3ZK4:\O*PL:JN'>@PPVXM.[T[ME5SO2=_A*]_I6?0LJ4[L'_&QU&I^)
M?D86%58"'VU.+7Q'T66,9?8S=^_7L?\`\(NB_P":F%_W-ZG_`.Y#+_\`>A+_
M`)J87_<WJ?\`[D,O_P!Z$E/-T5?XUJL6OIE%/3\6FEHJJRF[1M8P;&;6S:WV
ML'_<#_K:W_JA]5*_J]BW.NN.7U+,=ZF9E.GW&2[TV;RY^QKWV/\`4L_2WW66
M76?Z.N[@]`QL'(&17DYMKF@@,OR[[J]=-:;[;*W?YJTTE/\`_]$PSW_4SZ_Y
M]_40[]F]4W/=:T3#+'_:*\K8T.?;]DO??BY%?TZZW^NO2<;*QLREN1B75Y%+
M_H6U.#V'^J]A+7+&^N'_`#9_9@_YQ;?1W?J\;O7]3_NEZ/Z?U?\`B_\`KWZ)
M>,9W_-W[4[]D?:MG_#;=\=_^3/9_VXDI]QZ[]9>C=!QS;U'(:RPB:L9D.OM/
MYK**/IOW/]G^B_TMBY+ZA?7;IY&1TOJ+J\`V95U_3VN</3V7V/R787VCVL^T
MX]UK_I;/5WU^DN.^K'_,'UV_M;[7R=^W;Z&W\[[3Z'^4O3_>_P`#_I%UGUX_
M\;STJO6G[5Z5?I_LSTH]"/U7U_5_R=Z&W9]G]3]/Z?\`1DE/HW/P7)?6_P"O
M_3>C8UV-@6LRNJQM:QA#JZ"9;ZV98W<ROTO^X_\`/W>RO9^D]1>/G]DP=GJ_
M9-VL[_\`T7^J[O\`H+O_`*A?^-]]JI]/U?VGN;]E^W;/3]3_`+I_9?U+U]W\
MWZWZ]^XDIW/\7/U7R>EXUO5>IM>.H]0'T;=;6UEWJN=D3[OM.7:[U\ACOYO]
M#5_.5+LTP3I*4DDDDI22222E))))*4DDDDI22222E))))*?_V?_M%*90:&]T
M;W-H;W`@,RXP`#A"24T$!```````!QP"```"``(`.$))300E```````01@SR
MB2:X5MJPG`&AL*>0=SA"24T#[0``````$`!(`````0`!`$@````!``$X0DE-
M!"8```````X`````````````/X```#A"24T$#0``````!````!XX0DE-!!D`
M``````0````>.$))30/S```````)```````````!`#A"24T$"@```````0``
M.$))32<0```````*``$``````````CA"24T#]0``````2``O9F8``0!L9F8`
M!@```````0`O9F8``0"AF9H`!@```````0`R`````0!:````!@```````0`U
M`````0`M````!@```````3A"24T#^```````<```____________________
M_________P/H`````/____________________________\#Z`````#_____
M________________________`^@`````____________________________
M_P/H```X0DE-!`@``````!`````!```"0````D``````.$))300>```````$
M`````#A"24T$&@`````#3P````8``````````````&,```%H````#0!J`&H`
M<P!N`&$`8P!K`&8`;P!O`&0`<P`R`````0`````````````````````````!
M``````````````%H````8P`````````````````````!````````````````
M`````````!`````!````````;G5L;`````(````&8F]U;F1S3V)J8P````$`
M``````!28W0Q````!`````!4;W`@;&]N9P``````````3&5F=&QO;F<`````
M`````$)T;VUL;VYG````8P````!29VAT;&]N9P```6@````&<VQI8V5S5FQ,
M<P````%/8FIC`````0``````!7-L:6-E````$@````=S;&EC94E$;&]N9P``
M```````'9W)O=7!)1&QO;F<`````````!F]R:6=I;F5N=6T````,15-L:6-E
M3W)I9VEN````#6%U=&]'96YE<F%T960`````5'EP965N=6T````*15-L:6-E
M5'EP90````!);6<@````!F)O=6YD<T]B:F,````!````````4F-T,0````0`
M````5&]P(&QO;F<``````````$QE9G1L;VYG``````````!"=&]M;&]N9P``
M`&,`````4F=H=&QO;F<```%H`````W5R;%1%6%0````!````````;G5L;%1%
M6%0````!````````37-G951%6%0````!```````&86QT5&%G5$585`````$`
M``````YC96QL5&5X=$ES2%1-3&)O;VP!````"&-E;&Q497AT5$585`````$`
M``````EH;W)Z06QI9VYE;G5M````#T53;&EC94AO<GI!;&EG;@````=D969A
M=6QT````"79E<G1!;&EG;F5N=6T````/15-L:6-E5F5R=$%L:6=N````!V1E
M9F%U;'0````+8F=#;VQO<E1Y<&5E;G5M````$453;&EC94)'0V]L;W)4>7!E
M`````$YO;F4````)=&]P3W5T<V5T;&]N9P`````````*;&5F=$]U='-E=&QO
M;F<`````````#&)O='1O;4]U='-E=&QO;F<`````````"W)I9VAT3W5T<V5T
M;&]N9P``````.$))300H```````,`````3_P````````.$))3001```````!
M`0`X0DE-!!0```````0````!.$))300,``````['`````0```*`````L```!
MX```4H````ZK`!@``?_8_^``$$I&248``0(!`$@`2```_^T`#$%D;V)E7T--
M``+_[@`.061O8F4`9(`````!_]L`A``,"`@("0@,"0D,$0L*"Q$5#PP,#Q48
M$Q,5$Q,8$0P,#`P,#!$,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,`0T+
M"PT.#1`.#A`4#@X.%!0.#@X.%!$,#`P,#!$1#`P,#`P,$0P,#`P,#`P,#`P,
M#`P,#`P,#`P,#`P,#`P,#`S_P``1"``L`*`#`2(``A$!`Q$!_]T`!``*_\0!
M/P```04!`0$!`0$``````````P`!`@0%!@<("0H+`0`!!0$!`0$!`0``````
M```!``(#!`4&!P@)"@L0``$$`0,"!`(%!P8(!0,,,P$``A$#!"$2,05!46$3
M(G&!,@84D:&Q0B,D%5+!8C,T<H+10P<EDE/PX?%C<S46HK*#)D235&1%PJ-T
M-A?25>)E\K.$P]-UX_-&)Y2DA;25Q-3D]*6UQ=7E]59F=H:6IK;&UN;V-T=7
M9W>'EZ>WQ]?G]Q$``@(!`@0$`P0%!@<'!@4U`0`"$0,A,1($05%A<2(3!3*!
MD12AL4(CP5+1\#,D8N%R@I)#4Q5C<S3Q)086HK*#!R8UPM)$DU2C%V1%539T
M9>+RLX3#TW7C\T:4I(6TE<34Y/2EM<75Y?569G:&EJ:VQM;F]B<W1U=G=X>7
MI[?'_]H`#`,!``(1`Q$`/P#U5))))3"ZVJBE]US@RJII?8\\!K1N>X_U6KRC
MIW3.K?XP^HYW4+\VS"P\=P%#2SU6M]0;Z\>FI[F4L]'']%^4_P#G;+K5U/\`
MC0ZT.G?5UV(UT6]1<:B`8/H,'J9?_;C-F+_Z$K3^I71CT3ZM8V/>T5Y5C3DY
MI(`/K6_I;19_Q+=F/_UE)3YY];?J15]6.D/ZC?UDW6[FLQ\;[.QAL>3]'>RS
M<QK&;['V?^C%9QOKI]?\3ZM>I^R+WX]5+@WJEP<ZT-,NJRW,>W]*VFD_SKV>
ME9L]2VQ$JOR/KMUC_G3U%]>%]5?J[:YU#;6[W6;"R^W>QGOW6,90ZW_!_P`U
MCT4Y/ZPNIZNW)RL++S.F9@;TSK.+ZN1U#,M<ZC%I%3:F?8>G17LLR:['W6;W
MU?I/Y[U/T="2GD_J_P#4'+^L?2*.M6];L8_-WO+37Z[AM>^K]+DW6^I;;[/T
MO\OV+-Z[TK(^IW7,*O$ZI9D936?:K7BL5;&![65,_1O<V]N1LR&6T6_H_375
M_P"*'*RC]7\JBR#T[#R'MPLHC87M,VW[F_NL<[U-S_\`2^E_@5Q&9FV?6+ZQ
MVYS:+,QN=DAU>+6#ZC\2@^REE;C_`#CL&FVQW_&)*>YI^MOU\ZHS[9T;ZOUC
M`=K2_(L`>]OYKV[[<3Z?_!LLK_X6Q$Z?_C3Z4*KJNM468/4,5SF78];77`N:
M=CP'-:/2>Q^[U*[]G_&6+5ZN_)ZETFOJG0L_(P,AH-6+6ZO96^RQ[,=M>7A9
MM._V6-V5V>STOYS])6IW?5_H;J.GM!J;C?5^XVV.=!,UU/W>O=[??ZUM6=DO
M?_.V5_I4E.=_XZ_U1]`7;\C5VT,]%TG^7N_FMO\`US>C9O\`C.^J6)378W(L
MR76B1536=[?Y-OK>BRJS_@GO]5-]7^G!^=9UO/PG.R^N%[JPZMH;BX5;6LQ<
M>_5VS(R:O3?>S\]_Z/\`[3+&%/\`S&^K^)FX?2CU'JN8TV9>7L>YE#`WUWUN
M?4VU]-3&N]&EC/2JLV67VO24WF_XVOJZX@?9<X3R?3K,?';D.0<C_&G3EBO&
MZ!T[(R>H7O%=+,@,9629.GHVVOL=_)_15[/TME];%L4X#>J8573NK6M;F9Q9
MU+JF$T?29[6U8FOT<>I]6-CVN_P_V;_A[%@_5KK#^M]8S_K;U=WV7I71:G58
M5)$LI+QNR'^S^<R6XS6>KL_[E>C5]!)3/,^N7U\Z54,SJ_1,>G":]K;'>J`3
MN.T,86WW^]W_`!.Q7<3_`!K?5?(R&4O;DXS+##<BVMOI_%SJ;;G[?Y?I[&?X
M1"Q,?I_7K<OJIR\KZP])Z9NLHPKFLA^:&NN>RF@4XCK/1Q[*J<:N]ME?J9#_
M`/1J_B,ROK3]6[,;ZQX#>DOR['5X5)/Z5H:WU*+ZV6;+*\JK9=^8S^9]7TO1
M24U\W_&K]5<7(=16<C+#/I6T5M]/XA]]E&]G_",_1J%W^-CZLUOVUTYE[8!W
MLJ:!J-VW]/;2_P!O]16^EV973>O_`/-[I?1/LW0\>O=?U%VYH>\L;8Q]=CF[
M<MV]WHV_I;+_`.<>_9Z?Z2W72SH65A],Z)A35U'*NR<QP!%=59:7VV[V^RMW
MKNQZ\>G_`$7Z-G\A*<RW_&K]5F8U5U7VB^VZ8QF50]L?ONL<S']W_!76HO1?
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MUUV1_P`)^AL6Q]46MR6=0ZVYP?;U3,NVOC:11BO?T_#H_L5T/M_XR^Q)3Y;T
M+ZR_7+ZI8=N-C].<_IMEGJ;,VBZ*C817L^T1BM;ZGZ/?_@O4_F_YQ;!ZK_C&
M^N?1<S';TG"R,"]YH<[^:+'U[3NQS;ELW>E9[_4_35^I[/\`@UM_XV,O.=3T
MOI6)599]KN=8`P./J6U!K<3%]OL?ONN]=[+/^XZZ_P"KW2&=%Z+A]+80[[+4
M&O>)AUA_29%GN_TM[K+$E/']=^T?5+_%M1T2ZYC\[):</U*P-H;:;+\MP;['
M.KHQ/5J]?;O]3T[%1Z3]2_K1TVCI_7.@OH&99C?I\7)'T/5(>VNH[/\`0>C7
M9[ZK:[*[/TWIW>DI?6,CZU?XP\3HK??A=-]EQT(F&Y743N;]'<QF-T]__"6+
MNL[H.-G9!R+,G-J<0!LQ\N^EFGA3CVUU_P#124\C=@?XU,K(HS[3@MLQ7.]#
M%W$5M<YIK=D.K:+/4LV.=77OR?T6^S]&A8W1O\9>"S)QJF8-]?4;G9F4^QV\
M"RR/6I+7BO\`16;&,])M-K/W+%U?_-3"_P"YO4__`'(9?_O0E_S4PO\`N;U/
M_P!R&7_[T)*>99T[_&O5F/ZB,C%MMO&QV*ZUQH8&[=KJL8M956]^W^<98^SZ
M:KMH_P`9#*AT'[7TZXLK:30^UIO]$$'T[6[&6/H_[3V;J?TE?^$_PJ[&GZLX
ME%U=S<OJ#G5.:\-LSLE["6G=MLKLN<RRO]]CT+HWU8;TW*=DW7MS'"RZVE[Z
M*FVA^0]UEU]V5M=?;D^F6XF^IV-1]EKKJ^S)*>39A?XPAU^SJ#<GIAZP['%%
MF*;9+<<$6L?]EV[V,]9W\YZBJ,^K_P!<+J7_`%4=E=,QJ+[?M&3778TWRY_V
MQUCZ6M;=9M=L].O8SV5U5>MZ"['HWU.IZ=F59=^0<Q^+9D6XSG5M8_U,HN^T
MY6;<PE^;ENJ=]F]3]#1Z'_:;>C=.^JN/A=2'4WWV9.077VO]0DM-^06!V4RL
MN<RFRG$K;@4^C_VE24\P>@_6'ZO]6R,;ZH=2Q;*\@-LLZ;EV--S"&QZNS5SV
M_P##?H?T>RNWUO1KL4K_`*F_7W,M9UC*ZQ5^U\5P=A4MW>BP$1:`X5MJKWL_
M1O\`U.[UV?H[[;%TN/\`57%HO.>VU[^J.O?><VR7QZKV>NRK&M<['H]3"IKZ
M;ZM3/59BL1;?JQAVVOM=F=1:;'%Y:S.R6M&X[MK*V7M8QG[K&I*>7RND_P"-
M/JM1KR\K"QJJX=Z###;BT[O3NV57.])W^$KW^E9]"RI3NP?\;'4:GXE^1A85
M5@(?;4XM?$?198QE]C-W[]>Q_P#PBZ+_`)J87_<WJ?\`[D,O_P!Z$O\`FIA?
M]S>I_P#N0R__`'H24\W15_C6JQ:^F44]/Q::6BJK*;M&UC!L9M;-K?:P?]P/
M^MK?^J'U4K^KV+<ZZXY?4LQWJ9F4Z?<9+O39O+G[&O?8_P!2S]+?=99=9_HZ
M[N#T#&P<@9%>3FVN:"`R_+ONKUTUIOMLK=_FK324_P#_T3#/?]3/K_GW]1#O
MV;U3<]UK1,,L?]HKRMC0Y]OV2]]^+D5_3KK?ZZ])QLK&S*6Y&)=7D4O^A;4X
M/8?ZKV$M<L;ZX?\`-G]F#_G%M]'=^KQN]?U/^Z7H_I_5_P"+_P"O?HEXQG?\
MW?M3OV1]JV?\-MWQW_Y,]G_;B2GW'KOUEZ-T''-O4<AK+")JQF0Z^T_FLHH^
MF_<_V?Z+_2V+DOJ%]=NGD9'2^HNKP#9E77]/:YP]/9?8_)=A?:/:S[3CW6O^
MEL]7?7Z2X[ZL?\P?7;^UOM?)W[=OH;?SOM/H?Y2]/][_``/^D76?7C_QO/2J
M]:?M7I5^G^S/2CT(_5?7]7_)WH;=GV?U/T_I_P!&24^C<_!<E];_`*_]-Z-C
M78V!:S*ZK&UK&$.KH)EOK9EC=S*_2_[C_P`_=[*]GZ3U%X^?V3!V>K]DW:SO
M_P#1?ZKN_P"@N_\`J%_XWWVJGT_5_:>YOV7[=L]/U/\`NG]E_4O7W?S?K?KW
M[B2G<_Q<_5?)Z7C6]5ZFUXZCU`?1MUM;67>JYV1/N^TY=KO7R&._F_T-7\Y4
MNS3!.DI22222E))))*4DDDDI22222E))))*4DDDDI__9`#A"24T$(0``````
M4P````$!````#P!!`&0`;P!B`&4`(`!0`&@`;P!T`&\`<P!H`&\`<````!(`
M00!D`&\`8@!E`"``4`!H`&\`=`!O`',`:`!O`'``(`!#`%,````!`#A"24T$
M!@``````!P`!`````0$`_^$8`FAT='`Z+R]N<RYA9&]B92YC;VTO>&%P+S$N
M,"\`/#]X<&%C:V5T(&)E9VEN/2?ON[\G(&ED/2=7-4TP37!#96AI2'IR95-Z
M3E1C>FMC.60G/SX*/'@Z>&UP;65T82!X;6QN<SIX/2=A9&]B93IN<SIM971A
M+R<@>#IX;7!T:STG6$U0('1O;VQK:70@,RXP+3(X+"!F<F%M97=O<FL@,2XV
M)SX*/')D9CI21$8@>&UL;G,Z<F1F/2=H='1P.B\O=W=W+G<S+F]R9R\Q.3DY
M+S`R+S(R+7)D9BUS>6YT87@M;G,C)R!X;6QN<SII6#TG:'1T<#HO+VYS+F%D
M;V)E+F-O;2]I6"\Q+C`O)SX*"B`\<F1F.D1E<V-R:7!T:6]N(')D9CIA8F]U
M=#TG=75I9#HW,S$T-V0T-BTT.#9D+3$Q9#DM.&(T,BUF,S9D-F(T-&,W8F0G
M"B`@>&UL;G,Z97AI9CTG:'1T<#HO+VYS+F%D;V)E+F-O;2]E>&EF+S$N,"\G
M/@H@(#QE>&EF.D-O;&]R4W!A8V4^-#(Y-#DV-S(Y-3PO97AI9CI#;VQO<E-P
M86-E/@H@(#QE>&EF.E!I>&5L6$1I;65N<VEO;CXS-C`\+V5X:68Z4&EX96Q8
M1&EM96YS:6]N/@H@(#QE>&EF.E!I>&5L641I;65N<VEO;CXY.3PO97AI9CI0
M:7AE;%E$:6UE;G-I;VX^"B`\+W)D9CI$97-C<FEP=&EO;CX*"B`\<F1F.D1E
M<V-R:7!T:6]N(')D9CIA8F]U=#TG=75I9#HW,S$T-V0T-BTT.#9D+3$Q9#DM
M.&(T,BUF,S9D-F(T-&,W8F0G"B`@>&UL;G,Z<&1F/2=H='1P.B\O;G,N861O
M8F4N8V]M+W!D9B\Q+C,O)SX*(#PO<F1F.D1E<V-R:7!T:6]N/@H*(#QR9&8Z
M1&5S8W)I<'1I;VX@<F1F.F%B;W5T/2=U=6ED.C<S,30W9#0V+30X-F0M,3%D
M.2TX8C0R+68S-F0V8C0T8S=B9"<*("!X;6QN<SIP:&]T;W-H;W`])VAT='`Z
M+R]N<RYA9&]B92YC;VTO<&AO=&]S:&]P+S$N,"\G/@H@(#QP:&]T;W-H;W`Z
M2&ES=&]R>3X\+W!H;W1O<VAO<#I(:7-T;W)Y/@H@/"]R9&8Z1&5S8W)I<'1I
M;VX^"@H@/')D9CI$97-C<FEP=&EO;B!R9&8Z86)O=70])W5U:60Z-S,Q-#=D
M-#8M-#@V9"TQ,60Y+3AB-#(M9C,V9#9B-#1C-V)D)PH@('AM;&YS.G1I9F8]
M)VAT='`Z+R]N<RYA9&]B92YC;VTO=&EF9B\Q+C`O)SX*("`\=&EF9CI/<FEE
M;G1A=&EO;CXQ/"]T:69F.D]R:65N=&%T:6]N/@H@(#QT:69F.EA297-O;'5T
M:6]N/C<R+S$\+W1I9F8Z6%)E<V]L=71I;VX^"B`@/'1I9F8Z65)E<V]L=71I
M;VX^-S(O,3PO=&EF9CI94F5S;VQU=&EO;CX*("`\=&EF9CI297-O;'5T:6]N
M56YI=#XR/"]T:69F.E)E<V]L=71I;VY5;FET/@H@/"]R9&8Z1&5S8W)I<'1I
M;VX^"@H@/')D9CI$97-C<FEP=&EO;B!R9&8Z86)O=70])W5U:60Z-S,Q-#=D
M-#8M-#@V9"TQ,60Y+3AB-#(M9C,V9#9B-#1C-V)D)PH@('AM;&YS.GAA<#TG
M:'1T<#HO+VYS+F%D;V)E+F-O;2]X87`O,2XP+R<^"B`@/'AA<#I#<F5A=&5$
M871E/C(P,#0M,3(M,#=4,3$Z,C4Z-#(M,#4Z,#`\+WAA<#I#<F5A=&5$871E
M/@H@(#QX87`Z36]D:69Y1&%T93XR,#`T+3$R+3`W5#$Q.C,Q.C0U+3`U.C`P
M/"]X87`Z36]D:69Y1&%T93X*("`\>&%P.DUE=&%D871A1&%T93XR,#`T+3$R
M+3`W5#$Q.C,Q.C0U+3`U.C`P/"]X87`Z365T861A=&%$871E/@H@(#QX87`Z
M0W)E871O<E1O;VP^061O8F4@4&AO=&]S:&]P($-3(%=I;F1O=W,\+WAA<#I#
M<F5A=&]R5&]O;#X*(#PO<F1F.D1E<V-R:7!T:6]N/@H*(#QR9&8Z1&5S8W)I
M<'1I;VX@<F1F.F%B;W5T/2=U=6ED.C<S,30W9#0V+30X-F0M,3%D.2TX8C0R
M+68S-F0V8C0T8S=B9"<*("!X;6QN<SIX87!-33TG:'1T<#HO+VYS+F%D;V)E
M+F-O;2]X87`O,2XP+VUM+R<^"B`@/'AA<$U-.D1O8W5M96YT240^861O8F4Z
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M+W)D9CI21$8^"CPO>#IX;7!M971A/@H@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`*
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@(`H@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`*("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@(`H@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`*("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@(`H@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`*("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@(`H@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`*("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@(`H@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`*("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@(`H@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`*("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M(`H@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`*/#]X<&%C:V5T(&5N9#TG=R<_/O_N
M``Y!9&]B90!D@`````'_VP"$``P("`@)"`P)"0P1"PH+$14/#`P/%1@3$Q43
M$Q@1#`P,#`P,$0P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P!#0L+#0X-
M$`X.$!0.#@X4%`X.#@X4$0P,#`P,$1$,#`P,#`P1#`P,#`P,#`P,#`P,#`P,
M#`P,#`P,#`P,#`P,#/_``!$(`&,!:`,!(@`"$0$#$0'_W0`$`!?_Q`$_```!
M!0$!`0$!`0`````````#``$"!`4&!P@)"@L!``$%`0$!`0$!``````````$`
M`@,$!08'"`D*"Q```00!`P($`@4'!@@%`PPS`0`"$0,$(1(Q!4%181,B<8$R
M!A21H;%"(R054L%B,S1R@M%#!R624_#A\6-S-1:BLH,F1)-49$7"HW0V%])5
MXF7RLX3#TW7C\T8GE*2%M)7$U.3TI;7%U>7U5F9VAI:FML;6YO8W1U=G=X>7
MI[?'U^?W$0`"`@$"!`0#!`4&!P<&!34!``(1`R$Q$@1!46%Q(A,%,H&1%*&Q
M0B/!4M'P,R1BX7*"DD-3%6-S-/$E!A:BLH,')C7"TD235*,79$55-G1EXO*S
MA,/3=>/S1I2DA;25Q-3D]*6UQ=7E]59F=H:6IK;&UN;V)S='5V=WAY>GM\?_
MV@`,`P$``A$#$0`_`/54DDDE*22224I))))3%Q`U)@#D]EY3]<OKYEYF1=B=
M.N./T^DEK[6?2L(^E[OW5V_UYZN.E]`O>TQ=D?H*AWE^CG#^JU>.=-Z8_K/7
M,+HS)#;7@WD=F#W/)24U#U*IQ+CZEDG5T$_BF_:%/[EG^:5]!8_1>D8U#,>G
M#I;4P;6CTVGCXA$_9?3/^XE'_;;/_(I*?GG]HT=VO`'YQ!"[KZA?6W-IZA3T
M[*N^T8.3I6Y_YCH]NUQ_-6I_C2ZETKI71'=/HHH;G9WM:&L9N;6#[K/H_G?1
M7D./^T,E[,?%%C[&Z,KJ!+O^C[DE/TP,W#W;?M%>[B-[>?O7G/UW^O68[,MZ
M9TJWT,>C2^]OTG._.96]<"_ZI?6^JHY;L'*`&I=#MP\X^DLVFRVVVO#R+"RN
MRUK+7.Y;+MKRZ?W4E.B[JX>\N+[+#_I()3?M-OC;]Q7O73.@]%P\"C&Q\6EU
M;&-AQ8TEVGT]SA^<K7[+Z;_W$H_[;9_Y%)3\]'J3.2+3&L[>RZSZE?6_-P,_
M&Q7W&[IV2X5FM^NTGZ+F%=G_`(Q,KIO1?JSD65XM(R,D?9Z8K9,OT<X>W\QJ
M\EZ?NQ&4.'TZW"P`\;N0DI^AK+:J1NM>VMO[SR`/Q51W7.C-=M.;0'#MO"\;
MLR/K%]9<MP)NSKB9-;"16P?NEH_1J\W_`!<_6@LWG$K$ZP;&;DE/K].5C9`W
M8]K+1V+'!W_4HH7A5V+UWZN9;-PLP<B-U1:3L=!_='M<NUZ?_C5QQ2UG4<2P
M6M;!LK((>X#7VGW-W)*?04EYX[_&TTGV=,?!X+GMX^"L4_XV.G&ESKL*YES?
MHU@@AWP<DI[M)>?4_P"-J@VQ?T][*N[@]I(6[D?7_P"K=&`S,%YL]0>VA@)M
M_M5_2:DIZ1)>;Y?^-C(WD873VAG8WNU_\#*JM_QJ];UW8>,?@7_^224^I)+R
MYO\`C6ZSNEV%CEG@"\'\7)[O\:W5W.FG#IK8=!O+B9^124^G3IJ%6=U7IC'%
MC\NEKAR#8V?RKRCJ_P#C`Z[U3#.*[T\2MVMME&X.(_<EQ5'"^J'U@ZACLRL?
M"+ZK!++'N`+AX^_W)*?8_P!K]*/_`&LH\?YQO]ZL4WT7MWT6-M9^\PAP_P"B
MO&O^8/UIB3@,C^NU`Z'UWJ/U<Z@ZRGW!CG,OQ2X[">/^BDI]Q27EA_QK=;+R
M6X>.&SHTE_'QE;G0_P#&;@YEK<?J57V*UYAMLS4?[22GMTEQ_6O\971\!YIP
MVNSKFZ$L(:P'_C'?2_LKGW?XUNL%^YF%0&3]$N<=/B"DI]027GM/^-BL8[_M
M.`X9(^@UCAL=\W>Y9[O\:W6RXQB8X'82[0>>J2GU))>8XW^-;J;;`<G"I?63
MQ47!T?R=Y6SE_P"-+HU6*Q^-3;?DO!FDC;M/\NQWM_S4E/:I+RG*_P`:/U@L
M,T4X^.WL-7'\4V-_C2Z_6Z;Z:+V]^6GY0DI]726!]5_K;B?6*E_IL-&32!ZM
M#^1/=O\`)224_P#_T/54DDDE*22224I-*=5.I9U?3^GY&;:8;0QS_F/H_P#2
M24^9_P",WK+<KK#,)CIIZ>V;`./4=J[_`,#1O\3_`$8W79GUAN;R?L^,3X?2
MN/\`Y[7#=5RLG-M?9]/)SK?:WO+S]'_I;5[K]5^D,Z+T+$Z<SFJL>H[B7GW/
M<DIU.$+)R\?$H?D9-C:J:Q+WN,`!%/"\,_QC?7')ZYU6SIN*XCIV*\UM8V?T
MCP=KGN_>]R2G)ZYFY/UI^MEKZG%_VN\58_\`)KG:S_-:O9<#HO1/J7T*W(Q\
M?U'XU1??<!NLL<T2[_I+D/J/_BNR*7XW6.K6NHN8X658C.1X>LY>GMMHNWL:
MYMFT[;&@AT$_F/`24Y/U5^L3_K%TXYSL.S"9O+6-L,[P/SVZ-7C7^,QF"SZW
MY@P0T5PSU-G'J%OZ7C^4O5>M6_6S,ZH[HO2:F=/P!6'/ZH1N(#I'IT5_Z71>
M<?7CZBXWU;Q!F7=3.5EY-L,J>WW/[OL=JY)3ZS]4LMF7]6^GVML%KA2UKG-,
MP6C;M<MB5Y;_`(D[\IS>IX[B?LK/3>P=@\[M_P#T6M7I'5,^KIW3LG.N,,QJ
MW6&>-![1_G)*?*?\:?5_VE]8Z.DU.FCIS=UP&H]1PW'_`*'L7/XF-9F95&)3
MK9>\5M^!52J^[-R,GJ-QFW,L<\^,$K3Z'U"KIO6<+.NAU=%@<X>6K2[^S*2G
MVCHW1</HV%7B8K`T-'O?'N>[N]SEF8WU^^KE^=9@/N?BW5N+`;VE@<6\[7%;
M6#U+`ZA4VW"O9>PC<-I!,?RF_2:LKZV]&Z7G=%RWY5+'65UN>RZ`'-<![7;D
ME.)E]/Q?KOU^UQM<>D]+;Z0?68]2U_NLV/\`^#VK"^O/U.PN@X]&9TY]CF6.
M]-U5AW>XCV.:[VKNOJ=T@='^K^-C.:&W/'JW_P!=^KE;ZST>GJU>/7?]#'N9
M>1X[#NV_VDE/*=._Q:]%/2J<CJ;[QD>GZEVUX:!INV_1<N/Z%]7OV_UNW$P'
M.;@UN+G7NU+:Y]GAN?8O1?K]U*W$Z*,'$DYG4G#'H:WF#]-S?ZJ72L'!^I?U
M:=9>0;@`Z]_!?:[VUU_YSO324X/UF_Q?=*Z7T.[.P[;1=C-WN#R'!T>4#:N4
M^KWU8ZEU_(+<1OITL,79+OHM_DL_?>O4_K7ZF3]5,L-'Z2^D;6^!>!HK/2>G
MXG0>B,QP/9C5;[GQJYP&ZQY_E)*<3!_Q8_5ZA@.5ZF99^<7.AOR8%5ZE]3?J
MV>K8'3L/$#'O)ORH)TI9IL=_QKGKF.J_XP.O9N6^S#R/LN*'14Q@$[?S7.=_
M*7:?4"G.R,!_7.IV.NRLX@,<[M4R=FW^MN24Y7UV^K?U>Z9TMC.GX(_:658V
MK$#"2[=](G^KL5SHO^+_`*+A],%O7*VWY1'J7O<2&L_D_P!E=.[IU&1U*OJ3
MR+'TL-=`Y#9^F_\`K_FK@/\`&-]9\JS+LZ%1-./5'VAW>PD;MG_%I*<FW$Z/
MUOZT8O3>A8PIPVOA[Q/O:T[K+=?ZJ]2ZIU;IGU?Z>V_,=Z6-7MK:&B3^ZT-:
M%QO^*OI'LR.L6-U)]"@]H'\ZX+M\QO2;QZ6;Z%@89V6EI@_U7)*>7ZG_`(S.
M@GI]PP'V69;FEM+"PCW.T"P_JW_BYR<^MN;UNQ^.RT[Q0T_I'SKZCG?X/<NA
MHZ/TCJOUH=D444C$Z2T"*VM#;+WZ^_;]/T&M1/KU]:KN@8M-6&`<W+G8]W#0
M.7?UDE-AG^+_`.J;:MGV%KC^^XG=]ZX?Z[_4ZOH.S,PW.=@6N#"UVKF/_-C^
MLMO_`!<]=Z_U3.RF9MIR<-C9]0CAY_,:Y=KU#IN+U"ME64P/KKL%H:>Y;.V4
ME/FOU9_Q=Y74F-R^IN.)B.U94W^<?/=W^C78U_XO?JG75Z9PP\Q'J/<2_P#S
MM%'Z[_6>SZOX%0Q6M.7E.+*=WT6@#W._LK"_Q??6#ZP=4ZK?5F7')PQ67/>1
MHQ\CTVL=_*]R2G/^M?U!_9UV/9TDN=C9-C:75.U-9<8W!RZ[&_Q??5>K'97;
MAMML:T!UCB9)'*Z)];+`-[0[:9$C@C\Y<=_C'^L&7TZC#PNGVNKS+[0_V?2V
MM.@_ZXY)27JW^+;H&3C.&!5]CR&@^FYA):3X.:5QOU:^I.;UC-OJRG''Q\-Y
MKN>.2\?X-B]9Q[GMP:[LKV/%8?;Y$#<]9OU5S\#J'3G9.&6GU+K76-',[W!K
MG?UF)*:^-]1_JGAL#'8==A_?N,N/_4K.^MOU8^J6#T7)S78C,>RML5/82#O.
MC`W4_G+:Z_\`5?`Z[Z3LJRZNRF?2?4\M@GO`7F'UO'5NGYYZ/G9UF=C8P%M!
ML.L$?G_RDE-O_%D+O^<[2R8&._UO#7^;W?VDEU_^+SZOU]-Z6.H6'?DY[0\G
M]UGYE:22G__1]523+FNO_7SH_1KCB@NRLOO55J&_UW)*>F27GO\`X[-<:].?
M/]?_`,Q2_P#'9K[=.?\`Y_\`YBDI]"7"?XT>K>CA4=)J=#LH^I;'^C9_YDA,
M_P`;&.2W?T][6'D[@8_!<3];NN_M7J>3U+7T(#*`>S0DIL?XONE?MGZVLN>V
M<;IC?6=YN_P7_@B]M'^Y<9_BLZ&[IGU=;E7-VY/47>L\'D-XK_Z"[./#1)33
MZU995T?.LJ_G&8]I9'B&.VKP?_%_3C9?UPP&YI]OJ%X#M=U@]S&N_K/7T!D>
MD*;#=_-;7>I/&V/?/]E?-.>6U]3R,GIVYE#+W_9W@ZB'2WW)*?I#J6/=EX&1
MC46FBVZLL9<.6D\.7,_4CZE]2^K5V39E=1^V-R@-U8:?IC_"[GESMR\]Z?\`
MXW/K3B5-JO-66&_GV-]_]IX4LW_&]]:<EA93Z.*#RYC)?_9<XI*?9\^^[&PK
M\BJHY%M3"]E(Y<0/HA?//6^L]4^L_6Q=F.VW6/%-59T;6"[:UBV*O\;'UQJK
M#/M%3]OYSZP7'^MJL3"Q^H_63K[#35NR<JX/L])NUK9.Y[]/H)*?=_JA]7*/
MJ[T:K!KAUKO?D6@?3>>3_5_-7+_XW^M&CIF/T6EQ]7/?NLC_`$3.W]I^U=]0
MSTJ*ZR9]-@:X^.T0O#/K9U8=:^MF9F!V[&Q3Z%!'&UFF])308P5L#&Z-9I^"
M](_Q>_5G"R>AW9?4:&7C.=M8UPDBMO&UWYN[<L%OU&S[_JSC]4Q&.LS+"7V4
M'DU?F[/^J65A]<^L71`<?'OOQ6L,G'L:=H/]4I*?5NA_4_HW0LNW*Z>Q[++F
M[2'.):!_):A]2ZA3U+J]7U?QB+=I%W4"/HMK:?;0[_CG+S/(^NGUHS&&I^:\
M!P@MI;M)_P`W<J>'U/K/2+K3AV78MMH'JG:Z7?G?G!)3ZA]?NN.Z1TFIE+MM
M^1:QK8[,:YK[/^I7247"ZBJX<6L:\?VAN7A>=U'K'6'L=FV6Y;JFG:'-<=K3
M]+\U6Z?KG]8\?"&#7F%M+6[&2V7M;P&[OI)*?3L7IYZCUZSK62)JQ`:.G5GB
M?\-D?]<_-1<CKGU7R\@=-R,FBZ\6;10[7](#^[^]N7EC?K?]:&5BMN=<&-&V
M-IX_S5FUG.Q[*\YM=K+-WJ5WECIW3.[="2GVWZP6UXW1[[WZ5TM#W`#\UO@K
MK33DX^D64W,^(+7!>*9/UJ^LF7CV8N3F6W4V@ML9M(W`]N%##^L/UBZ94,;&
MR[Z:F_1J(=I_G-24]O\`67ZD?5['HK;ATFK,S+6TX[0XP"X^]W_6V^]='U;*
MQ_J]]6K;&@-9BT^G4T?O1L;_`-)>36?6;ZQ79-67;EW/NQY])VTPW=[?!1S_
M`*P=?ZK2W%S<BW(I+@15M.KA]'LDI]*_Q<9[\SZMM%KB^ZFRQECCJ9)+EQW^
M,;$M_P"=6VL;GY5=9K'F26?]]6+@=9ZYT;U*<*VW%#SNLK#'?2'R4<KK/6<O
M+KS\FZVW)QX]*XM/LCW?N^:2GV'IN-C_`%>^KU=3H%>%1NL=XN`W./\`:7BV
M;G6Y^9?FVO>3DO-D28#2?T8_LL5W*^L_UBS<=^-E9M]E%NCJ]I]WEPNE^I?U
M)=F8>5E=6I-=>17Z6*UVCF_\/M24W_\`%7U''^QY/3'.`RA8;@UW+FN_=_J;
M5U_5.B=+ZNQC.HX[;VL,LW2")_JPO(NK?5OKWU>RRX-MV5G]!F429'B=OT5$
M_6_ZU/;Z0ZAD'2##3N_ZE)3ZGG]5^K_U6P@QQ9C-`_1XU8&]W]GZ3OZRROJ5
M];7=;S<^O*<*[7.#\6COZ4%<%T[ZL_6+K=^]F/8=^KLK(D-_Z7N_Z"EUCZM=
M=^K^2'NKL+6:U9M$EOW-]R2GUWJG1>F=7I;3U"AM[&&6`S+3QH6JGE9GU?\`
MJIT\B*\6INK**_IO/8`?2>O+#]<_K26>G^T+P!I.T[OOA5'X/7,UC\ZW'R<E
MK=7WO!)U[P4E/M_3LBW)PZLFYGI.N:'AG,-=[FAW\I5;/J]TNWJPZQ=5ZN6Q
MNRLO,M8/%C5Y'3];?K1CUMIKS;JV,&UK'-)@#^L$V1]9_K-G5FBW,R+&6:.8
MP&?^BU)3Z'UKK+.L]4K^K'3'[Q89ZED,.C*A].IKOWW_`$$)W^+C&QLQN1TC
M/OZ>R07U,=+3'9><U/ZWT2\9%0OPKR)%A:0"/!RU&_XQ/K2&;#E5F1](UC=_
MU22GUC.S\7I6`[*S;MM5+?<]T2XC_P`DO&.H9.5]9NO/M:PFW.L%=3#VK^BW
M_H)69'UA^L>2QK_7S["8:R"&"?\`HM:O1?J3]2OV+.=GD6=0L$`#5M;?W6)*
M>FP<5N)A48C!#::VL'R$)*RDDI__TNX^N'71T3HMN2PSD6_HL=O\IW?^RU>+
M54]0ZEU&OI^'^ES<MQ+GNUB3+[%V7^-'J#K>LT81,58M7J$=MS_=N_Z*G_B>
MZ.VU^;U^X>\N]#')'`Y>]I_Z"2FN/\3G6R`3U:H$\C8[E(_XG.M@:=7JG^H]
M>L!))3X1]:OJGU#ZJ_979&?7EV93RT4L:0=H_/\`<J6%TZWK/6\'I%6HO>TV
M^3![G3_86G]>>K-ZS];\AX<78O3F^C6[M+=7N_[<<NA_Q/\`1C;=F?6&]O)]
M#&<?ON+?N8DI],IJKHIKIJ$5U-#&#P#1M:N6^O?UJS.DC&Z7T@!_6.HNV4@B
M=C>/4VKK3H)[#\B\Z^I]9^L?UUZI]9,@;J<)WV;"#M0.=6_\7M_\$24N_P"H
MOU[R:G#(^L0!N:1=6`[;#A#F:0U93?\`$SU=C2QG5:@T\MV.A>L`)TE/@WUM
M_P`7]_U8PJLS)S:LA]U@8RAC7-)$$N=K^ZLFOI;<W-P^FXK-M^6]K9Y@'Z7^
M:NI_QF=3_:OUK;@UNW4=+9#QV]0^ZW_-5K_%/TD]0Z[D];M;-.$#503QZCA!
M_P"@DI]!Q?J9]6:<>JD].QWFMH:7NK:22![G%Q"T,'I'2^G!PP,6K&W?2])@
M:3\2T*V$B8$I*>>^O?6OV+]6<S*88NL;Z%$?OV>UKO["\?\`JUTJSJ&7B8+!
M+\JP.L_JCW/_`.BNG_QL=7^W=:Q>AU.FK$'JY`!_/=^:?ZK%H_XK.D>KD9'6
M+&^VK]!03X_G[?ZJ2GT6FIE-3*:A%=30Q@\`T;0FNP\3(_I%%=O]=H=_U06/
M]8?JGC=?MIMNS,K%]$%K1C6>F#)_.T<LC_QKL#_RWZG_`-O_`/F"2GJZ^E=,
MJ=NJQ*6.\6UM!_ZE%?BXUCMUE3'N\7-!/XKC_P#QKL#_`,M^I_\`;_\`Y@E_
MXUV!_P"6_4_^W_\`S!)3V#,;&KDUU,9(@[6@2/DJ[NC=(?9ZKL*@V?O>FV?^
MI7+_`/C78'_EOU/_`+?_`/,$O_&NP/\`RWZG_P!O_P#F"2GKA@X0XQZO\QO]
MRF['H=6*W5M=6.&%H(_S5QW_`(UV!_Y;]3_[?_\`,$O_`!KL#_RWZG_V_P#^
M8)*>L_9^`/\`M-4/[#?[ESO4?K7TL9E^+@=,LZQ=BR,EU%;2UA'YGK6>QS_Y
M+47`^J+NC8&?5TW.R;\G+JVUNRK/4V.@PYFC5B?5FKZX](Z.SHN)T>NC*:]Q
MLZA=;-1+C+KG5M;ZES_^N)*>E^KW4.D]=P!F8V&*6[BRRJVMK7M<W\TZ(/5N
MO=%Z7ELPJ<0YG4G#<W$Q:PYX;^]8^-E7]M;>+4^JAC;2QUL#U7,;M:YWYSPW
M^LN(Z9C?6;H/6NKY'[(_:=W4KM].8VP,`8/HUV;FOV,]R2G:Z+]9>G]9ZGD=
M-R.GOPNHX[18^G(:TDM/Y[7MW?O*[UW.Z7T3I5_4<JACJJ@/T8:V7..C*QHJ
M/U:^K^;BY^7UWK#VV=6SP&N97]"JH0:\=G[WT?IH'UKZ!G_6+JG3\"UNWHE1
M-^78UT.>\?S=.U)35?\`7'#Q+<0]0^KU^#7EV-KHN>RH^YWT?:S](NS<YK6E
MSB&AHU)TT'*XOI7U-OQ/KC9FO:]_2L:@-Q!=8;9M,;K6L=]!;GUOIZQD=#OQ
M>C,#LS)`JW%VW:QWMM?_`)J2G&L_QCT'#OSF=)R[NEX[W5OS!L%9#3M<]K7'
MW-72=/'3LS%HS\?&K:S(8VUA-;0Z'"1.FY8/3_\`%QT+&QL>J]]^172&EV.^
MPFDO&KG&IH;N]RV<3]J69.;B9-#,;I[6BO"LK=[BTMVN]OYFU)3J)%H(@B0>
M05QCO\6&"YY<>K=2&Z3`OX)\/:F_\:[`_P#+?J?_`&__`.8)*>M_9^!,_9J9
M\?3;_P"11PUK1M`@#0`<+B__`!KL#_RWZG_V_P#^8)?^-=@?^6_4_P#M_P#\
MP24]:_`P7NW/QZG.\7,:3^(4JL/$I.ZJBNMWBUC6G_HA<A_XUV!_Y;]3_P"W
M_P#S!+_QKL#_`,M^I_\`;_\`Y@DI[&['HO9LOK9:S]U[0X?<Y4O^;_0MV[]G
MXY/_`!3/_(KF_P#QKL#_`,M^I_\`;_\`Y@E_XUV!$?M;J9'G?W_S4E/84X^/
M0W;14RIO@QH;_P!2B0%#'I%%+*02X5M#0YVKC`CW%$24I))))3__T\__`!HN
MV?6/+(_[CU_D7>?XM<=F/]3,#:-7A[W>9+W+AO\`&=67?63(:=!9CU[3\`5U
MW^*CJ;,SZJ58T_I<%[JK!\2;&?\`1<DI[,(>2+'8]K:C%A8X,/\`*(]O_21`
MD>$E/SR>@?6-^=?TP=/O^U7W.#["T[=3SZG\W_TE[I]7.BU=#Z+B]-K@FA@#
MW#\YYUL?_:<M&?/Y*22FEUFYV/TC-O;]*JBQX/FUKBN7_P`4M+6?5,6_GWY%
MKWGX[5UN=CC*P[\8\7UNK_SAM7%_XI<MHZ3F=(?I?T_*>'#^2\^W_J')*>[[
MI&8,<I=TZ2GY^ZKT;ZR,ZUG8S\&Z[+R[G;;0TD'<3[MX]B]D^IOU?;]7^@8V
M"1%\>ID'QL=J[_,^@MOYPG"2E#S0,_-IP,*_-O<&U8['6.)_DB?^DCE>7?XU
M/K1Z[V_5G`?)+@_.>W@`>YM*2GB'95_4^H9?5+I=;F6DL'>"=K1_FKW'ZJ]*
M_9/0L7#(BP-W7?UW>YZ\T_Q?=`_:/6:K7-G$Z?%CSV<_\QB]B_(DI2=,G24I
M))))2DDDDE*22224L1Y)1]R=))2T)?!.DDIC!3PG224M"92224QB.$X3I)*4
MDDDDI22222E))))*4DDDDI22222E))))*?_4VO\`&9T*S*Q*NKX[-]F(-M[1
MR:S^?_97`?5KZPW_`%5ZL<VL&WI^4-N54/`_GQ^\U>[OK98QU;P'-<"'-/!!
M7F7UJ_Q=Y6,^S,Z,TWXSI<_&GWM\?3GZ:2GT#I/6NF]8Q6Y73[VW5N$PT^X'
M]U[%>'W2OG>JO-Z;DFS`R+<#(!U8-S""/WFG:MW'_P`8?UZQFBOUZLAK>[V-
MGYOA)3[9YJ%MU5%9LN>VNMHDN<0``/BO&K?\97UYM&UCL>KQ.QI_ZI8?4NH=
M;ZL9ZOU"RYG^@:2&_)@BM)3V_P!=?\9;;&OZ5]6[/4L>-MV:/HM!^DVH_P#?
MUQ70.KY_U7ZI7U3')OK=[<RL_GM)]W_F*U/J[]2NJ=6<T8U)Q<3\_(L:1I_P
M;7?SBZ'ZQ_XMKL;';D]&<[)V,BZAVKG$?GUS^]^XDI[GH7UBZ5U[$9D].N:\
M$>^N8>P_N/8M2%\ZC'R<#*-F+;;T[,9HYH+F._@Y;N+_`(P/KSB,#!DU9+!I
M^D8TG_.C<DI]L_UA,^QE;2Y[@QHY<XP!\RO&;/\`&9]>;!M8:*R?S@QI_*L;
MJ75_K#U8;>K=1>ZH\TL.UA^-;=K')*>^^N7^,W&QZ[.F?5]_VG-=+'Y+?YNO
MQ+'?GO7`=)Z5G=0S!CXV[(SLITV6'4@'Z5ECOS=OTE>^K_U1ZIU1P9@8YJH,
M%^38"&QXM<[Z:]9^K/U7P/J_C&NC]+D6_P`]D.^DX^`_=8DI-]7>A8W0NFUX
M5(EX@W6=WO/+EK)H3I*4DDDDI22222E))))*4DDDDI22222E))))*4DDDDI2
M2222E))))*4DDDDI22222E))))*4DDDDI22222E))))*?__5]43=_P#65\KI
M)*?=/KGZ/N]7]D\'^E^KZO\`[*KS;)]&?T7V:/\`NKZNW_V97*))*>FJV;O=
MZ7_7MT?^!KL/JI]D]5GI_L/?(^E]I]3_`,'_`$*\I224_4M/\RSZ/_6_H_V%
M-O*^5TDE/N_US]'3UOV1M[?;/5]3_P!E?>O-,ST?4=Z?V3G_`+3>K'_@ZY-)
M)3TK=N\;ML?\).W_`,#]RZCZL_9/79M_8F__`(?[3O\`EO\`T*\R224_46)_
M1F?S7'^!_F_[",U?*Z22GZJ27RJDDI^JDE\JI)*?JI)?*J22GZJ27RJDDI^J
MDE\JI)*?JI)?*J22GZJ27RJDDI^JDE\JI)*?JI)?*J22GZJ27RJDDI^JDE\J
HI)*?JI)?*J22GZJ27RJDDI^JDE\JI)*?JI)?*J22GZJ27RJDDI__V3\_
`
end

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>tickedbox.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 tickedbox.gif
M1TE&.#EA#``,`/?^``````$!`0("`@,#`P0$!`4%!08&!@<'!P@("`D)"0H*
M"@L+"PP,#`T-#0X.#@\/#Q`0$!$1$1(2$A,3$Q04%!45%186%A<7%Q@8&!D9
M&1H:&AL;&QP<'!T='1X>'A\?'R`@("$A(2(B(B,C(R0D)"4E)28F)B<G)R@H
M*"DI*2HJ*BLK*RPL+"TM+2XN+B\O+S`P,#$Q,3(R,C,S,S0T-#4U-38V-C<W
M-S@X.#DY.3HZ.CL[.SP\/#T]/3X^/C\_/T!`0$%!04)"0D-#0T1$1$5%149&
M1D='1TA(2$E)24I*2DM+2TQ,3$U-34Y.3D]/3U!04%%145)24E-34U145%55
M55965E=75UA86%E965I:6EM;6UQ<7%U=75Y>7E]?7V!@8&%A86)B8F-C8V1D
M9&5E969F9F=G9VAH:&EI:6IJ:FMK:VQL;&UM;6YN;F]O;W!P<'%Q<7)R<G-S
M<W1T='5U=79V=G=W=WAX>'EY>7IZ>GM[>WQ\?'U]?7Y^?G]_?X"`@(&!@8*"
M@H.#@X2$A(6%A8:&AH>'AXB(B(F)B8J*BHN+BXR,C(V-C8Z.CH^/CY"0D)&1
MD9*2DI.3DY24E)65E9:6EI>7EYB8F)F9F9J:FIN;FYR<G)V=G9Z>GI^?GZ"@
MH*&AH:*BHJ.CHZ2DI*6EI::FIJ>GIZBHJ*FIJ:JJJJNKJZRLK*VMK:ZNKJ^O
MK["PL+&QL;*RLK.SL[2TM+6UM;:VMK>WM[BXN+FYN;JZNKN[N[R\O+V]O;Z^
MOK^_O\#`P,'!P<+"PL/#P\3$Q,7%Q<;&QL?'Q\C(R,G)R<K*RLO+R\S,S,W-
MS<[.SL_/S]#0T-'1T=+2TM/3T]34U-75U=;6UM?7U]C8V-G9V=K:VMO;V]S<
MW-W=W=[>WM_?W^#@X.'AX>+BXN/CX^3DY.7EY>;FYN?GY^CHZ.GIZ>KJZNOK
MZ^SL[.WM[>[N[N_O[_#P\/'Q\?+R\O/S\_3T]/7U]?;V]O?W]_CX^/GY^?KZ
M^OO[^_S\_/W]_?[^_O___R'Y!`$``/X`+``````,``P`!PA>`/]%8T:PH,%_
M&0`H7,@0(3UF_R)&C*8N`T)P"O1(1"4@F$6+UB@0^H=*P2V$*/]94\!$P$F4
J%B/^`1!%XL>('#-EC'BSY,F0(S]&<REQY:B;RR1&M`8S@].G3P4$!``[
`
end

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>5
<FILENAME>ex4-4.txt
<DESCRIPTION>EXHIBIT 4.4
<TEXT>
<PAGE>
EXHIBIT 4.4

                       SECOND AMENDMENT TO LOAN AGREEMENT

         Second Amendment (the "Amendment") to a certain Loan Agreement, dated
December 4, 2001, as amended by Amendment dated June 26, 2003 (collectively, the
"Loan Agreement"), among J&J SNACK FOODS CORP., a New Jersey corporation
("Parent"), J&J RESTAURANT GROUP, L.L.C., a New Jersey limited liability
company, and COUNTRY HOME BAKERS, INC. (F/K/A CH BAKERS, INC.), a Connecticut
corporation (collectively, the "New Subsidiaries"), the other subsidiaries of
the Parent that have executed the signature pages hereto (collectively with the
New Subsidiaries and Parent, the "Borrowers"), the Banks that have executed the
signature pages hereto ("Banks"), and CITIZENS BANK OF PENNSYLVANIA, a
Pennsylvania state-chartered bank, as Agent for the Banks ("Agent").

         WHEREAS, the Borrowers have requested the Banks and Agent amend certain
terms and provisions of the Loan Agreement, and the Banks and Agent are willing
to consent to such modifications upon the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the mutual promises herein
contained, and each intending to be legally bound hereby, the parties hereto
hereby agree as follows:

1. Except as expressly defined herein, all terms used herein shall have the
meanings ascribed to them in the Loan Agreement. This Amendment is intended to
amend the Loan Agreement and the Loan Agreement shall be so amended from and as
of the date hereof.

2. The Loan Agreement shall be amended so that all references to "Agreement"
contained therein shall mean the Loan Agreement, as amended herein, and as
further amended, supplemented or modified from time to time.

3. The definition of "Commitment Termination Date" found in Article 1 of the
Loan Agreement is hereby amended and restated in its entirety as follows:

                  Commitment Termination Date: December 1, 2006, subject to
                  earlier termination as provided in this Agreement.

4. Sections 5.1 and 5.2 of the Loan Agreement are hereby amended and restated in
their entirety as follows:

                  Section 5.1. Annual Financial Statements and Projections.

                  Annually, as soon as available, (i) but in any event within
                  ninety (90) days after the last day of each of its fiscal
                  years, a consolidated balance sheet of Parent and the
                  Subsidiaries as at such last day of the fiscal year, and



<PAGE>
                  consolidated statements of income and retained earnings and
                  statements of cash flow, for such fiscal year, each prepared
                  in accordance with GAAP, in reasonable detail, and audited and
                  certified without qualification by Grant Thornton, LLP, or
                  another firm of independent certified public accountants
                  satisfactory to the Agent, as fairly presenting the financial
                  position and the results of operations of Parent and the
                  Subsidiaries as at and for the year ending on its date and as
                  having been prepared in accordance with GAAP, and (ii) on or
                  before each November 15th, Projections for the then upcoming
                  fiscal year.

                  Section 5.2. Quarterly Financial Statements.

                  As soon as available, but in any event within forty-five (45)
                  days after the end of the Parent's first three fiscal
                  quarterly periods, a consolidated balance sheet of Parent and
                  the Subsidiaries as of the last day of such quarter and
                  consolidated statements of income and retained earnings and
                  statements of cash flow, for such quarter, and on a
                  comparative basis figures for the corresponding period of the
                  immediately preceding fiscal year, all in reasonable detail,
                  each such statement to be certified in a certificate of the
                  chief financial or accounting officer of Parent as accurately
                  presenting the financial position and the results of
                  operations of Parent and the Subsidiaries as at its date and
                  for such quarter and as having been prepared in accordance
                  with GAAP (subject to year-end audit adjustments).

5. Section 7.9 of the Loan Agreement is hereby amended by adding sub-section
(a)(vii) as follows:

                  (a)(vii) open market commercial paper (other than open market
                  commercial paper which satisfies the requirements set forth in
                  Section 7.9(a)(iii) hereof) bearing a credit rating of not
                  less than "A" by Standard & Poor's Corporation or by another
                  nationally recognized credit agency maturing or being due or
                  payable in full not more than 91 days after the date of the
                  Borrower's or the Subsidiary's, as applicable, acquisition
                  thereof, and provided further that the aggregate amount of


<PAGE>


                  Cash of Borrowers and Subsidiaries held in United States bank
                  deposits or similar accounts following such purchase is not,
                  at any time, less than 43% of the aggregate amount of all such
                  commercial paper then owned by Borrowers and all Subsidiaries.

6. The Borrowers jointly and severally acknowledge that the outstanding
principal amounts of the Notes are due and owing without any claim, defense or
set-off.

7. The Borrowers have requested that Banks consent to the acquisition of the
assets of Country Home Baker by Country Home Bakers, Inc. (the "Country
Acquisition"), for a purchase price of approximately $12,000,000.00,
notwithstanding that the Country Acquisition does not constitute a "Permitted
Acquisition", as defined under the terms of the Loan Agreement. The Banks hereby
consent to the Country Home Acquisition and waive their right to declare an
Event of Default under the Loan Agreement as a result of the Country Acquisition
not constituting a Permitted Acquisition. However, the waiver by the Banks under
this Paragraph 5 is specific with respect to the Country Acquisition and should
not be construed to be, or operate as, a waiver of any other right of the Banks
under the Loan Agreement, nor shall it preclude any other or future exercise of
the rights granted to the Banks under the Loan Agreement upon a failure to
comply with any term, covenant or condition contained in the Loan Agreement.

8. The Borrowers have requested that Banks waive their right to require the
Borrowers to deliver on or before November 15, 2003, the Projections for fiscal
year 2004, and the Banks hereby consent to such waiver. However, the consent by
the Banks under this Paragraph 8 is specific with respect to the Projections for
fiscal year 2004 (which were to be delivered by November 15, 2003), and should
not be construed to be, or operate as, a waiver of the Bank's rights to receive
Projections for any other fiscal year, nor shall it preclude any other or future
exercise of the rights granted to the Banks under the Loan Agreement upon a
failure to comply with any term, covenant or condition contained in the Loan
Agreement, including the failure to deliver Projections for any fiscal year,
other than fiscal year 2004.

9. All representations, warranties and covenants of the Borrowers contained in
the Loan Agreement are hereby jointly and severally ratified and confirmed by
the Borrowers, without condition, as if made anew upon the execution of this
Amendment and are hereby incorporated by reference. All representations,
warranties and covenants of the Borrowers, whether hereunder, or contained in
the Loan Agreement, shall remain in full force and effect until all amounts due
under the Loan Agreement, as amended herein, the Notes, and each other Loan
Document, are satisfied in full. The Borrowers jointly and severally represent



<PAGE>


and warrant that there has been no change or modification to the provisions of
the Certificates of Incorporation or By-Laws of the Borrowers which were
previously delivered to the Bank in connection with the Loan Agreement.

10. Except as modified by the terms hereof, all terms, provisions and conditions
of the Loan Agreement, the Notes and each other Loan Document, are in full force
and effect, and are hereby incorporated by reference as if set forth herein.
This Amendment, the Loan Agreement and the Notes shall be deemed as
complementing and not restricting the Bank's rights hereunder or thereunder. If
there is any conflict or discrepancy to the provisions of this Amendment in any
provision of the Loan Agreement or the Notes, the terms and provisions of this
Amendment shall control and prevail.

11. As a condition precedent to the effectiveness of this Amendment,
simultaneously with the execution and delivery of this Amendment, the Borrowers
shall deliver to the Bank the following:

         (a) Amended and Restated Promissory Note in form acceptable to the
Banks, executed by each of the Borrowers and payable to the order of Citizens
Bank of Pennsylvania; and

         (b) Amended and Restated Promissory Note in form acceptable to the
Bank, executed by each of the Borrowers, and payable to the order of Wachovia
Bank, National Association.

         (c) Evidence, satisfactory to the Banks, of all corporate action taken
by each Borrower to authorize the execution, delivery and performance of this
Amendment, and the transactions contemplated thereby, certified by their
respective secretaries; and

         (d) An incumbency certificate (with specimen signatures) with respect
to each Borrower;

         (e) Evidence satisfactory to the Banks of the dissolution of J&J Snack
Foods Sales Corp. of Texas;

         (f) Evidence satisfactory to the Banks of the merger of J&J Restaurant
Group, Inc. into J&J Restaurant Group, L.L.C;

         (g) Evidence satisfactory to the Banks of the merger of J&J Snack Foods
Sales Corp. of New Jersey into J&J Snack Foods Sales Corp.;

         (h) Joinder Agreement substantially in the form attached to the Loan
Agreement, executed by the Borrowers and pursuant to which. the New Subsidiaries
are added as Borrowers under the terms of the Loan Agreement; and

<PAGE>

         (i) Certificates of Good Standings for each of the New Borrowers from
their respective states of incorporation, including evidence of the change of
name of CH Bakers, Inc. to Country Home Bakers, Inc.

12. The Borrowers hereby jointly and severally represent, warrant and certify to
the Banks that no Default or Event of Default has occurred and/or is presently
existing under the Loan Documents.

13. This Amendment (a) shall be construed and enforced in accordance with the
laws of the Commonwealth of Pennsylvania; (b) shall inure to the benefit of, and
be binding upon, the parties hereto and their respective successors and assigns;
(c) may be executed in two or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same
instrument; and (d) may only be amended or modified pursuant to a writing signed
by the parties hereto.

14. The Borrowers hereby agree that they will pay, or cause to be paid or
reimburse the Bank for, all of the Bank's costs and expenses in connection with
this Amendment, including without limitation the fees of its legal counsel.

         IN WITNESS WHEREOF, the undersigned have caused this Second Amendment
to be executed and delivered by their respective officers thereunto duly
authorized, as of the 29th day of March, 2004.

                                          J&J SNACK FOODS CORP.

                                          By: /s/ Dennis G. Moore
                                              ----------------------------------
                                          Print Name: Dennis G. Moore
                                                      --------------------------
                                          Title: Vice President
                                                 -------------------------------


                                          BAKERS BEST SNACK FOODS CORP.
                                          By: /s/ Dennis G. Moore
                                              ----------------------------------
                                          Print Name: Dennis G. Moore
                                                      --------------------------
                                          Title: Vice President
                                                 -------------------------------


                                          FEDERAL PBC COMPANY

                                          By: /s/ Dennis G. Moore
                                              ----------------------------------
                                          Print Name: Dennis G. Moore
                                                      --------------------------
                                          Title: Vice President
                                                 -------------------------------


<PAGE>

                                         THE ICEE COMPANY

                                         By: /s/ Dennis G. Moore
                                             -----------------------------------
                                         Print Name: Dennis G. Moore
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------


                                         J&J RESTAURANT GROUP, L.L.C.

                                         By: /s/ Dennis G. Moore
                                             -----------------------------------
                                         Print Name: Dennis G. Moore
                                                     ---------------------------
                                         Title: Manager
                                                --------------------------------


                                         J&J SNACK FOODS SALES CORP.

                                         By: /s/ Dennis G. Moore
                                             -----------------------------------
                                         Print Name: Dennis G. Moore
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------


                                         J&J SNACK FOODS CORP. OF PENNSYLVANIA

                                         By: /s/ Dennis G. Moore
                                             -----------------------------------
                                         Print Name: Dennis G.. Moore
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------


                                         J&J SNACK FOODS TRANSPORT CORP.

                                         By: /s/ Dennis G. Moore
                                             -----------------------------------
                                         Print Name: Dennis G. Moore
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------


                                         J&J SNACK FOODS CORP. OF CALIFORNIA

                                         By: /s/ Dennis G. Moore
                                             -----------------------------------
                                         Print Name: Dennis G. Moore
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------

<PAGE>

                                         J&J SNACK FOODS INVESTMENT CORP.

                                         By: /s/ Dennis G. Moore
                                             -----------------------------------
                                         Print Name: Dennis G. Moore
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------


                                         J&J SNACK FOODS CORP./MIDWEST

                                         By: /s/ Dennis G. Moore
                                             -----------------------------------
                                         Print Name: Dennis G. Moore
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------


                                         J&J SNACK FOODS CORP./MIA

                                         By: /s/ Dennis G. Moore
                                             -----------------------------------
                                         Print Name: Dennis G. Moore
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------


                                         COUNTRY HOME BAKERS, INC.

                                         By: /s/ Dennis G. Moore
                                             -----------------------------------
                                         Print Name: Dennis G. Moore
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------


                                         PRETZELS, INC.

                                         By: /s/ Dennis G. Moore
                                             -----------------------------------
                                         Print Name: Dennis G. Moore
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------


                                         WACHOVIA BANK, National Association,
                                         as a Bank

                                         By: /s/ Ellen Dodel
                                             -----------------------------------
                                         Print Name: Ellen Dodel
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------

                                         CITIZENS BANK OF PENNSYLVANIA,
                                         as Agent and as a Bank

                                         By: /s/ Devon Starks
                                             -----------------------------------
                                         Print Name: Devon Starks
                                                     ---------------------------
                                         Title: Vice President
                                                --------------------------------

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21
<SEQUENCE>6
<FILENAME>ex21-1.txt
<DESCRIPTION>EXHIBIT 21.1
<TEXT>
<PAGE>

EXHIBIT 21.1 - SUBSIDIARIES OF J & J SNACK FOODS CORP.

                                                                   Place of
                                                                Incorporation
                                                                -------------
J & J Snack Foods Investment Corp.                                Delaware

The ICEE Company                                                  Delaware

J & J Snack Foods Corp. of California                             California

J & J Snack Foods Corp./Midwest                                   Illinois

J & J Snack Foods Corp./Mia                                       Pennsylvania

J & J Snack Foods Corp. of Pennsylvania                           Pennsylvania

J & J Snack Foods Sales Corp.                                     New Jersey

J & J Snack Foods Transport Corp.                                 New Jersey

ICEE-Canada, Inc.                                                 Canada

ICEE de Mexico, S.A. De C.V.                                      Mexico

J & J Restaurant Group, LLC

Bakers Best Snack Food Corp.                                      Pennsylvania

Pretzels, Inc.                                                    Texas

Federal PBC Company                                               Pennsylvania

Country Home Bakers, Inc.                                         Georgia

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>7
<FILENAME>ex23-1.txt
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
<PAGE>

EXHIBIT 23.1



            Consent of Independent Registered Public Accounting Firm
            --------------------------------------------------------


         We have issued our report dated November 3, 2004 accompanying the
consolidated financial statements and schedules incorporated by reference or
included in the Annual Report of J & J Snack Foods Corp. on Form 10-K for the
year ended September 25, 2004. We hereby consent to the incorporation by
reference of said report in the Registration Statement of J & J Snack Foods
Corp. on Form S-8 (File No. 333-111292, effective December 18, 2003, File No.
333-94795, effective January 18, 2000, File No. 333-03833, effective May 16,
1996, File No. 33-87532, effective December 16, 1994 and File No. 33-50036,
effective July 24, 1992).

                                               /s/ GRANT THORNTON LLP

Philadelphia, Pennsylvania
December 8, 2004


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>8
<FILENAME>ex31-1.txt
<DESCRIPTION>EXHIBIT 31.1
<TEXT>
<PAGE>
EXHIBIT 31.1

                            CERTIFICATION PURSUANT TO
                                   SECTION 302
                        OF THE SARBANES-OXLEY ACT OF 2002

I, Dennis G. Moore, certify that:

         1. I have reviewed this report on Form 10-K of J & J Snack Foods Corp.;

         2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;

         3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;

         4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls and procedures
for financial reporting (as defined in Exchange Act Rules 13a-15(f) and
15d-15(f)) for the registrant and have:

            a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

            b) evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and

            c) disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's fourth
fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.

<PAGE>


         5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation of internal control over financial
reporting, to the registrant's auditors and the audit committee of registrant's
board of directors (or persons performing the equivalent functions):

            a) all significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and

            b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls over financial reporting.

Date: December 1, 2004



                                                     /s/ Dennis G. Moore
                                                     -----------------------
                                                     Dennis G. Moore
                                                     Chief Financial Officer



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>9
<FILENAME>ex31-2.txt
<DESCRIPTION>EXHIBIT 31.2
<TEXT>
<PAGE>

EXHIBIT 31.2

                            CERTIFICATION PURSUANT TO
                                   SECTION 302
                        OF THE SARBANES-OXLEY ACT OF 2002

I, Gerald B. Shreiber, certify that:

         1. I have reviewed this report on Form 10-K of J & J Snack Foods Corp.;

         2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;

         3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;

         4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls and procedures
for financial reporting (as defined in Exchange Act Rules 13a-15(f) and
15d-15(f)) for the registrant and have:

            a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;

            b) evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and

            c) disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's fourth
fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.


<PAGE>

         5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation of internal control over financial
reporting, to the registrant's auditors and the audit committee of registrant's
board of directors (or persons performing the equivalent functions):

            a) all significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and

            b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls over financial reporting.

Date: December 1, 2004

                                                     /s/ Gerald B. Shreiber
                                                     -----------------------
                                                     Gerald B. Shreiber
                                                     Chief Executive Officer

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>10
<FILENAME>ex32-1.txt
<DESCRIPTION>EXHIBIT 32.1
<TEXT>
<PAGE>
EXHIBIT 32.1

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


         Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350
of Chapter 63 of Title 18 of the United States Code), each of the undersigned
officers of J & J Snack Foods Corp. (the "Company"), does hereby certify with
respect to the Annual Report of the Company on Form 10-K for the year ended
September 25, 2004 (the "Report") that:

         (1)  The Report fully complies with the requirements of Section 13(a)
              or 15(d) of the Securities Exchange Act of 1934; and

         (2)  The information contained in the Report fairly presents, in all
              material respects, the financial condition and results of
              operations of the Company.

Dated: December 1, 2004

                                                     /s/ Dennis G. Moore
                                                     -----------------------
                                                     Dennis G. Moore
                                                     Chief Financial Officer


Dated: December 1, 2004
                                                     /s/ Gerald B. Shreiber
                                                     -----------------------
                                                     Gerald B. Shreiber
                                                     Chief Executive Officer


         The foregoing certification is being furnished solely pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of
Title 18 of the United States Code) and is not being filed as part of the Report
or as a separate disclosure document.

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
