Hostess Clarifies Mischaracterizations about Pension Fund Contributions

   Hostess Clarifies Mischaracterizations about Pension Fund Contributions

PR Newswire

IRVING, Texas, Dec. 11, 2012

IRVING, Texas, Dec. 11, 2012 /PRNewswire/ -- Hostess Brands Inc. responded
today to news reports that inaccurately suggested that the Company
inappropriately used pension money to fund its operations prior to filing
bankruptcy in January 2012.

As Hostess has repeatedly disclosed, it suspended contributions to its
multi-employer pension plans in August 2011 because it faced a severe
liquidity crisis and could no longer afford to maintain its pension
contributions.

Over the course of several decades, various labor bargaining units for Hostess
Brands' employees negotiated the right to convert portions of their future
wage increases to pension contributions.  Once the bargaining units exercised
these rights, such future amounts became permanent pension contributions that
were separate and distinct from wages.

At no time were these pension contributions paid as wages, so no funds were
ever "deducted from paychecks," as one news outlet erroneously reported. 
Hostess Brands has at all times continued to pay its union employees' current
wages in full compliance with its collective bargaining agreements.

The pension plans may assert and have asserted claims in Hostess' bankruptcy
cases for missed pre-petition and post-petition pension contributions.

SOURCE Hostess Brands Inc.

Contact: Lance Ignon or Tom Becker, +1-212-573-6100; Anita Marie Laurie,
+1-310-788-2850, Sitrick And Company