Exhibit 99.1

            Friendly Ice Cream Corporation to Increase Size of Board;
              Offers Shareholder Group Representation on the Board



    WILBRAHAM, Mass.--(BUSINESS WIRE)--Dec. 6, 2006--Friendly Ice
Cream Corporation (AMEX: FRN) today announced that it intends to
increase the size of its Board of Directors from five to seven
members. The Board is considering a number of highly qualified
individuals with experience in the hospitality industry who they
believe can bring substantial value to the Company.

    The Board of Directors decided to offer one of the two additional
seats on the Board to a designee of the group of shareholders led by
Sardar Biglari ("Mr. Biglari"). The board seat would provide Mr.
Biglari with representation approximately proportional to the group's
ownership in the Company. The Board determined that while it desires
to add members with business expertise in areas in which the Company
operates, it is in the best interests of the shareholders to make Mr.
Biglari this offer to avoid a potentially contentious and expensive
proxy fight at a time when the Company is actively pursuing key
initiatives to improve shareholder value. In the event that Mr.
Biglari rejects the offer, the Board intends to fill both seats with
highly qualified candidates selected by the Board.

    "Friendly's is firmly committed to serving the interests of all
our shareholders," said Donald N. Smith, Chairman of the Board, "and
further distractions to our management team and employees will not
serve those interests." Smith added that "we believe adding highly
qualified individuals to our Board of Directors with experience in the
hospitality industry will assist us in further pursuing and developing
our key strategic initiatives and is in the best interests of the
Company. We also believe that it is important to listen to our
shareholders. Mr. Biglari, together with his group, control
approximately 14.9% of the Company's outstanding shares, and we are
open to their participation on our Board proportional to their
ownership."

    About Friendly Ice Cream Corporation

    Friendly Ice Cream Corporation is a vertically integrated
restaurant company serving signature sandwiches, entrees and ice cream
desserts in a friendly, family environment in over 520 company and
franchised restaurants throughout the Northeast. The Company also
manufactures ice cream, which is distributed through more than 4,500
supermarkets and other retail locations. With a 71-year operating
history, Friendly's enjoys strong brand recognition and is currently
remodeling its restaurants and introducing new products to grow its
customer base.

    Forward Looking Statements

    Statements contained in this release that are not historical facts
constitute "forward looking statements" as that term is defined in the
Private Securities Litigation Reform Act of 1995. These statements
include statements relating to the anticipated contributions of any
new members of the Board of Directors and the impact of the Company's
key strategic initiatives. All forward looking statements are subject
to risks and uncertainties which could cause results to differ
materially from those anticipated. These factors include risks and
uncertainties arising from accounting adjustments, the Company's
highly competitive business environment, exposure to fluctuating
commodity prices, risks associated with the foodservice industry, the
ability to retain and attract new employees and directors, including a
replacement chief executive officer, new or changing government
regulations, the Company's high geographic concentration in the
Northeast and its attendant weather patterns, conditions needed to
meet restaurant re-imaging and new opening targets, the Company's
ability to continue to develop and implement its franchising program,
the Company's ability to service its debt and other obligations, the
Company's ability to meet ongoing financial covenants contained in the
Company's debt instruments, loan agreements, leases and other
long-term commitments, unforeseen costs and expenses associated with
litigation, and costs associated with improved service and other
similar initiatives. Other factors that may cause actual results to
differ from the forward looking statements contained herein and that
may affect the Company's prospects in general are included in the
Company's other filings with the Securities and Exchange Commission.
As a result the Company can provide no assurance that its future
results will not be materially different from those projected. The
Company expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any such forward looking
statement to reflect any change in its expectations or any change in
events, conditions or circumstances on which any such statement is
based.



    CONTACT: Friendly Ice Cream Corporation
             Deborah Burns, 413-731-4124
             Senior Director Investor Relations