BAB, Inc. (OTCBB: BABB), today announced that its Board of
Directors has declared a cash distribution of $0.01 per share, payable
on September 30, 2010, to shareholders of record as of September 16,
2010.
The Company believes that, for tax purposes a portion of the
distribution and any future distributions that the Board may declare in
2010 (collectively, the Distributions) may be treated as a return of
capital to shareholders to the extent of each shareholders basis, while
the remaining portion of the Distribution may be treated as a dividend.
The portion of the Distributions that will be treated as dividends will
not be determined until after December 31, 2010, as that portion is
dependent upon the Companys earnings and profit for tax purposes for
its fiscal year ending November 30, 2010, and the Company will not be
able to definitively calculate its earnings and profits until after the
end of the fiscal year. The final determination will be reported to
recipients of the Distributions on a tax information return in early
2011.
BAB, Inc. operates, franchises, and licenses Big Apple Bagels , My
Favorite Muffin Jacobs Bros. Bagels and Brewsters Coffee. The
Companys stock is traded on the OTCBB under the symbol BABB and its web
site can be visited at www.babcorp.com.
Certain statements in this press release constitute forward-looking
statements or statements which may be deemed or construed to be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The words forecast, estimate,
project, intend, expect, should, would, believe and similar
expressions and all statements which are not historical facts are
intended to identify forward-looking statements. These
forward-looking statements involve and are subject to known and unknown
risks, uncertainties and other factors which could cause the companys
actual results, performance (financial or operating), or achievements to
differ from the future results, performance (financial or operating), or
achievements expressed or implied by such forward-looking statements.
The above factors are more fully discussed in the companys SEC
filings.

Source: Business Wire