CHARLESBANK CAPITAL PARTNERS RECAPITALIZES
PAPA MURPHY'S

Boston, MA, July 7, 2004 – Charlesbank Capital Partners is pleased to announce that it has recapitalized, together with partner John Barr and company management, Papa Murphy’s International, Inc., the Vancouver, WA-based take-and-bake pizza chain. Papa Murphy’s pioneered the take-and-bake concept and is the leader in this fast-growing segment of the pizza industry. As part of the transaction, Wells Fargo provided a revolving credit facility.

Papa Murphy’s was formed by Chairman and CEO Terry Collins in 1995 when he merged Petaluma, CA-based Murphy’s Pizza (54 stores) with Hillsboro, OR-based Aldo’s Pizza (86 stores). Priding itself on always using the freshest ingredients and delivering outstanding value to customers, Papa Murphy’s has experienced significant growth in recent years, as more consumers have taken to the idea of ordering a freshly made customized pizza that they can cook at home when they are ready to eat. Today the chain is the largest take-and-bake chain in the country, with over 800 stores in 24 states. The company plans rapidly to expand its business beyond its current base in the Western and Midwestern states.

Joining Chairman and CEO Terry Collins and President Mark Laramie as part of the Papa Murphy’s management team is seasoned executive John Barr. Barr was formerly President and CEO of Automotive Performance Industries, President and COO at Quaker State Corporation, and President and CEO of The
Valvoline Company, where he helped create and oversee Valvoline Instant Oil Change. The Charlesbank principals know him from their earlier investment in United Auto Group (NYSE: UAG), where Barr serves as a board member. As Vice Chairman of Papa Murphy’s, effective this month, he will focus on business development and expanding operations.

“Papa Murphy’s has grown tremendously over the past several years, and now with the involvement of John Barr and Charlesbank to support the company, its employees and its franchisees, we are poised to reach the next level of achievement. I look forward to working with John and Charlesbank to build the Papa Murphy’s system further,” says Terry Collins, Chairman and CEO of Papa Murphy’s.

For Charlesbank, the investment represents an opportunity to partner with a proven management team in a high-growth business. “We believe the take-and-bake pizza category has great potential, and Papa Murphy’s is the clear leader in its field,” says Tim Palmer, Managing Director of Charlesbank. “This market opportunity, combined with the strength of the existing franchise network and management team, and our long-standing relationship with and confidence in John, makes the investment compelling.”

Charlesbank Capital Partners, LLC, is a Boston-based private equity investment firm with more than $1 billion of capital under management. Charlesbank Equity Fund V is a $590 million private equity fund focused on mid-market management-led buyouts and growth capital financings. Charlesbank seeks to partner with strong management teams to build companies with real competitive advantages and excellent prospects for growth. For more information about the firm, visit www.charlesbank.com.

Wells Fargo & Company (NYSE: WFC) is a diversified financial services company with $388 billion in assets, providing banking, insurance, investments, mortgage and consumer finance from more than 5,900 stores and the Internet (wellsfargo.com) across North America and elsewhere internationally.