Exhibit 99.2

 Friendly Ice Cream Corporation To Explore Strategic Alternatives for Enhancing
                               Shareholder Value

    WILBRAHAM, Mass.--(BUSINESS WIRE)--March 7, 2007--Friendly Ice
Cream Corporation (AMEX: FRN) today announced that it has retained
Goldman Sachs & Co., as financial advisor, and Weil, Gotshal & Manges
LLP, as legal advisor, to assist the Board of Directors in exploring
strategic alternatives to enhance shareholder value, including a
possible sale of the company. The company said that while it will
review a wide range of options in consultation with its advisors,
there can be no assurance of any particular outcome. The company does
not expect to disclose further developments regarding the process
until the review of strategic alternatives has been completed.

    About Friendly's

    Friendly Ice Cream Corporation is a vertically integrated
restaurant company serving signature sandwiches, entrees and ice cream
desserts in a friendly, family environment in 514 company and
franchised restaurants throughout the Northeast. The Company also
manufactures ice cream, which is distributed through more than 4,000
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. Additional information on Friendly Ice Cream
Corporation can be found on the Company's website (www.friendlys.com).

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