BAB, Inc. (OTCBB: BABB), announced its tax treatment of cash distributions made in 2011.

For shareholders of BAB, Inc. common stock, Cusip 055183107, as regards to cash distributions made in 2011, 78.48% of the cash distributions paid in 2011 represent a return of capital and 21.52% represent a dividend for tax purposes. The cash disbursements totaling $0.06 per share were paid quarterly as follows: $0.03 on January 5, 2011; $0.01 on April 5, 2011; $0.01 on July 6, 2011 and $0.01 on October 4, 2011.

Shareholders are encouraged to consult their tax advisor to determine the specific effect these distributions may have on their individual tax situation. The information above relates solely to distributions made in 2011.

BAB, Inc. operates, franchises, and licenses Big Apple Bagels ®, My Favorite Muffin ® Jacobs Bros. Bagels ® and Brewster's ® Coffee. The Company's 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 company's 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 company's SEC filings.

BAB, Inc.
Michael K. Murtaugh, (847) 948-7520
Fax: (847) 405-8140
www.babcorp.com