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Hostess Selects Stalking Horse Bidders for Drake's® and Additional Bread Brands



   Hostess Selects Stalking Horse Bidders for Drake's® and Additional Bread
                                    Brands

-- Combined Proposed Purchase Price Is $56.35 Million

-- Remaining Bread Brands Include Sweetheart®, Eddy's®, Standish Farms® and
Grandma Emilie's®

-- Company Requests Court Permission to Conduct Auction to Obtain Highest and
Best Offers

PR Newswire

KANSAS CITY, Mo., Jan. 28, 2013

KANSAS CITY, Mo., Jan. 28, 2013 /PRNewswire/ -- Hostess Brands Inc. today
announced that the Company has selected two stalking horse bidders for its
Drake's® snack cake brand and for its Sweetheart®, Eddy's®, Standish Farms®,
and Grandma Emilie's® bread brands.

The combined purchase price under the two stalking horse bids is approximately
$56.35 million.

Under the first stalking horse agreement, McKee Foods Corporation has agreed
to pay $27.5 million for the Drake's® brand and certain equipment. Drake's®
products include Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny
Doodles, and Drake's Coffee Cake.

Under the second stalking horse agreement, United States Bakery, Inc. has
agreed to pay $28.85 million for the Sweetheart®, Eddy's®, Standish Farms®,
and Grandma Emilie's® bread brands, four bakeries, and 14 depots, plus certain
equipment.

"These agreements once again set a strong value for our businesses and we look
forward to conducting an auction process that will further enhance the return
for Hostess's stakeholders," said Hostess Brands Chairman and Chief Executive
Officer Gregory F. Rayburn. "The contemplated purchase prices for Drake's® and
the four bread brands, together with our previous announced stalking horse bid
for the majority of our bread business, means we have agreements to sell these
assets for at least $440 million.

"We expect that figure to significantly increase once we announce a stalking
horse bidder for the majority of our snack cake business, including Twinkies."

The Hostess snack cake business and the remaining bread business are
contemplated to be sold in separate transactions.

As previously announced, Flowers Foods, Inc. was selected as the stalking
horse bidder for the majority of the assets related to Hostess's bread
business, including the Butternut®, Home Pride®, Merita®, Nature's Pride®, and
Wonder® brands.

That agreement includes, in addition to the brands, 20 bakeries, 38 depots and
other assets. The purchase price consists of $355 million in cash which will
be increased to $360 million if certain license rights are included in the
sale. 

Hostess has also selected Flowers as the stalking horse bidder for the
Company's Beefsteak® bread brand. The purchase price consists of $30 million
in cash for the brand. The transaction does not include facilities or
additional assets.

The Company will hold an auction for the majority of the bread business on
February 28, provided the Company receives additional qualified bids, at the
conclusion of which it will select the highest and best bidders.

Hostess has requested that the U.S. Bankruptcy Court for the Southern District
of New York authorize the Company to proceed with a second auction for the
Drake's® brand and the four bread brands on March 15.

All of the asset sales are subject to Court approval.

Jones Day provided legal advice to Hostess on the transaction.

About Hostess Brands

Founded in 1930, the Company's products include iconic brands such as
Hostess®, Wonder®, Nature's Pride®, Dolly Madison®, Drake's®, Butternut®, Home
Pride®, and Merita®.

SOURCE Hostess Brands Inc.

Contact: Tom Becker, +1-212-573-6100, Tom_Becker@sitrick.com, AnitaMarie
Laurie, +1-310-788-2850, AnitaMarie@sitrick.com, or Lance Ignon,
+1-212-573-6100, lance_ignon@sitrick.com, all of Sitrick And Company
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