ORIGINAL ALERT INFO :

ALERT DATE & PRICE: SEP 21, 2007 / $.69 ALERT EMAIL: CLICK HERE CURRENT PRICE: $1.11 CURRENT % ROI: +60%

COMPANY CONTACT INFO:

Spicy Pickle Franchising Inc. B90 Madison St., Suite 700 Denver, CO 80206 Phone: (800) 711-1902 Fax: (303) 297-1903 Email: This email address is being protected from spam bots, you need Javascript enabled to view it Web: www.spicypickle.com

INVESTOR RELATIONS INFO:

Spicy Pickle Phone: (800) 711-1902

When the dust settled on Friday, the stock closed down -10.48% to $1.11 on 391,134 shares trading hands. It was an ugly close resulting in the worst single day % loss for the stock since we profiled it.

We are still up 60% from our original alert price and have been up as high as 192% a few months back.

What is great about the recent sell-off, is that it now creates an incredible buying opportunity for the long-term shareholders.

Why?

Because right after the close, the company put out two strong press releases which were very positive for Spicy Pickle shareholders. For the shareholders that sold their positions on Friday, they will now have to rethink their decisions and we most likely will see a surge in buying on Monday.

The first announcement was the closing of a $6 million financing. These funds will be used for rapid expansion of company owned stores, which is extremely positive for current shareholders.

Here's how the money was raised:

* SPKL sold 705 shares of preferred stock, which can be converted into 7.05 million shares of common stock with a fixed price of $.85 per share. This is a reasonable discount to the market at a fixed price, which makes it non toxic. The higher the stock goes, the more money the investors make.

* The shares are convertible into unregistered stock at this time, so it will be a while before any of those shares find their way into the open market. (Six months is a likely time frame for the shares to become free trading.)

* As part of the financing, SPKL issued an additional 5.3 million warrants, which convert into common stock at $1.60 - a substantial premium to the current market, and an opportunity to raise another $8.48 million when the stock is much higher. The stock needs to be at least $2 for these warrants to really be worth anything to the holders.

* The common stock represents a possible 15% dilution of stock in return for the $6 million SPKL now has to invest in growth.

So what kind of value does this bring to current shareholders?

At the present time, SPKL should be delivering about $3.5 million in annual revenue. They should have the company store opened shortly and about 35 stores contributing regular residual revenues.

They can use this capital to open anywhere from 12 to 15 more company owned stores. This will translate into about $10 million and $13 million in top line revenues, and about $1.5 to $2.5 million in positive cash flow. In short, by giving up 15% of the company, SPKL is now positioned to more than quadruple its top line.

What is really interesting about this particular financing, is the people who wrote some of the checks. According to the press release, two of the investors that invested $1.3 million of the $6 million are independent members of the board of directors of Spicy Pickle. This is a tremendous amount of assurance from the insiders that the company is in-fact one heck of a company.

If the board members are willing to risk $1.3 million, what does that say about the future of the company?

With this money, the company is now positioned to expand even more rapidly in '08 than it did in '07.

The second press release was the announcement of two more new stores that have opened in the last two weeks. One in Phoenix, AZ, and a second store in Reno, NV.

This brings us to 35 stores open and operating in 15 different states. We'll probably finish the year at the 37 or 38 store mark.

Remember that they still have about 60 more stores to open up in '08 and '09.

So the growth that we are witnessing for Spicy is very real and the $6 million financing proves it.

It is a very favorable financing for the company and its shareholders. By the end of ’08, I believe the stock price could be $2 and by the end of ’09, I believe the stock price could hit $3. That would represent a possible 170% ROI from the current stock price in just 2 short years.

So now you can see why I see this current sell-off as a great buying opportunity. The investors who just sold this past week are most likely rethinking their investment strategy for Spicy and are having a little sellers remorse.

Next week should prove to be very exciting for everyone who is a shareholder!

For the 2,000 new Stockwire members who just signed up this week, I urge you to view the Spicy Pickle Stockumentary by click the chart to the right.