Seattle Chocolate prepares to melt competitor's claims.

SEATTLE--(BUSINESS WIRE)--April 13, 1995--Seattle Chocolate Co. says claims made in a suit filed by Frederick's Fine Chocolates will melt under scrutiny.

The suit, filed in Federal District Court April 7, seeks to prevent the growing Seattle-based company from making chocolate truffles and packaging

Frederick's Fine Chocolates, a corporation principally owned by Citibank of New York, owns the rights to the chocolate recipes from the now-defunct Frederick & Nelson. Frederick's Fine Chocolates does not own the Frango trademark or rights to Frango.

"We're proud of our recipes and the local flavor of both our company and our chocolates," said Steve Elliott, president and CEO, of Seattle Chocolate Co. "There is a dramatic difference between our products and those of our competitors. We challenge Frederick's to a public taste test. Let the people decide which is truly Seattle's best chocolate."

Before Frederick's commenced legal proceedings, Seattle Chocolate suggested that both sides submit their recipes to an independent expert, to document the difference between the two products. "Frederick's was obviously threatened by the superior candies we produce," said Elliott. "Why else would they demonstrate so little faith in their own chocolates by refusing to participate in a taste test?"

Seattle Chocolate and its predecessor have been making chocolate truffles and packaging them in hexagonal-shaped boxes for years. The company's senior candy-maker, Bruce Reed who previously was employed at Frederick & Nelson, contacted Seattle Chocolate when the department store was winding down operations in the face of bankruptcy proceedings.

Since joining Seattle Chocolate, the confectioner has been working continually to develop new recipes, incorporating premium-quality, salt-free ingredients and flavorings. The goal of all this confection invention, according to Elliott, has been to create new candies and enhance existing products to be unique and superior to all others.

"The proof of our recipes has been in the tasting," said Reed. "Seattle Chocolate's products won first place in their class, beating out all others at the prestigious Fancy Food Show last year in New York."

The hexagonal box, which Frederick's claims as its own, has been used for years by candy-makers throughout the world, and is offered by box suppliers as a standard item. "We are angry that Frederick's a company now owned by a multi-billion dollar New York bank, has targeted us with litigation after we've been producing quality chocolate truffles in the Northwest for over 12 years. Our differences make Seattle Chocolate products better; the consumer knows it, and I guess that upsets Frederick's," said Elliott.

Seattle Chocolate Co. develops and markets upscale quality chocolates. It distributes products under its own label, and manufacturers private label products for premier retailers throughout the nation. The company's product lines include chocolate truffles and seasonal chocolates. The company was founded in 1982 as Camelot Candy Co., and its name was changed in 1992 to Seattle Chocolate Co. Seattle Chocolate Co. is located at 1962 First Ave. South, Seattle, Wash. 98134. Phone is 800/334-3600 and 206/624-8989. Fax is 206/624-0216.

CONTACT: Young & Co.

Candy Young, 206/869-8333