Exhibit 99.1
                                   NEWS FROM:
                             ESKIMO PIE CORPORATION

901 Moorefield Park Drive                        Contact:  William T. Berry, Jr.
Richmond, Virginia  23236                             Telephone:  (804)-560-8490

                     FOR IMMEDIATE RELEASE: August 25, 1999

      ESKIMO PIE CORPORATION TO SELL ITS FLAVORS DIVISION FOR $9.5 MILLION

         Richmond, Virginia (NASDAQ NNM: EPIE) - Eskimo Pie announced today that
it has signed a  non-binding  letter of intent to sell the assets of its Flavors
Division  to  Guernsey  Bel,   Incorporated  for  $9.5  million.   Assuming  the
satisfaction of standard closing requirements,  the Company expects to close the
sale  within  the next 30 days.  Today's  announcement  comes as a result  of an
extensive  effort begun in April 1999 to identify  potential  purchasers  of the
Company's non-core manufacturing assets.

         In  connection  with the  sale,  the  Company  will also  enter  into a
long-term  supply  agreement under which the Company will purchase from Guernsey
Bel the chocolate coatings,  dairy powders and other flavoring  ingredients used
in the production of the Company's  branded ice cream novelties.  These products
will  continue to be produced in the Flavors  Division's  New Berlin,  Wisconsin
plant which is being transferred to Guernsey Bel as part of the sale.

         David B. Kewer,  the Company's  President and Chief Executive  Officer,
said  "The  Flavors  Division  had  been  identified  as  one  of  the  non-core
manufacturing operations which was to be considered for potential sale under the
Company's  recently announced Growth and Restructuring  Plan.  Proceeds received
from the sale of the Flavors  Division will  strengthen  the  Company's  balance
sheet in support of planned  efforts to  increase  investments  in  advertising,
promotion and product development for the core Eskimo Pie brand."

         Kewer  continued,   "The  Company's  objective  under  the  Growth  and
Restructuring  Plan is to focus on the rejuvenation of the core Eskimo Pie brand
within the licensing and foodservice  businesses.  This  transaction  represents
another  demonstrable  step  in  management's   execution  of  the  Plan.  Other
previously announced steps include the engagement of a new advertising agency to
aid in the rejuvenation of the Eskimo Pie brand, the elimination of unprofitable
Packaging  operations and the continued reduction in corporate overhead expense.
These efforts are already driving improved financial results as reflected in the
recently announced second quarter results."

          Guernsey  Bel,  headquartered  in  Chicago,  Illinois,  is  one of the
country's  largest producers of "inclusions".  Inclusions  include food products
such as chocolate covered nuts, candy crunches and miniaturized  bakery products
which are used in the production of ice cream and candy.  The Company's  Flavors
Division is a natural extension of the Guernsey Bel product line.

         Eskimo Pie Corporation,  headquartered in Richmond,  Virginia,  created
the frozen  novelty  industry in 1921 with the  invention  of the Eskimo Pie ice
cream bar.  Today,  the Company markets a broad range of frozen  novelties,  ice
cream and sorbet  products  under the Eskimo Pie,  Real Fruit,  Welch's,  Weight
Watchers Smart Ones,  SnackWell's and OREO brand names. These nationally branded
products are generally  manufactured  by a select group of licensed  dairies who
purchase the  necessary  flavors  ingredients  and  packaging  directly from the
Company.  Eskimo Pie Corporation also manufactures soft serve yogurt and premium
ice cream products for sale to the commercial foodservice industry.