EXHIBIT 99.1

                 IBC ANNOUNCES CHANGE IN STATUS OF SEC INQUIRY

KANSAS CITY, Mo., January 28, 2005 - Interstate Bakeries Corporation (OTC:
IBCIQ.PK) today announced that the Securities and Exchange Commission (SEC)
has issued a formal order of private investigation into issues that were the
subject of a previously announced informal inquiry by the SEC. The formal
investigation appears to concern matters related to a previously announced
investigation by the Company's audit committee into the Company's manner for
setting its workers' compensation reserves and other reserves. The Company is
cooperating fully with the SEC and will continue to do so.

The Company does not expect to comment further on developments related to this
matter and disclaims any intention or obligation to update any of the
information contained in this release, except as may be required by law.

About the Company
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Interstate Bakeries Corporation is the nation's largest wholesale baker and
distributor of fresh baked bread and sweet goods, under various brand names,
including Wonder(R), Hostess(R), Dolly Madison(R), Baker's Inn(R), Merita(R)
and Drake's(R). The Company, which is headquartered in Kansas City, Missouri,
employs approximately 32,000 people and operates 53 bakeries, more than 1,000
distribution centers and 1,100 bakery outlets throughout the U.S. Interstate
Bakeries Corporation, along with seven of its wholly owned operating
subsidiaries, filed for reorganization under Chapter 11 of the Bankruptcy Code
on September 22, 2004 to complete an operational and financial restructuring.
The Company continues to operate its business in the ordinary course as a
debtor-in-possession.

Cautionary Statement Regarding Forward-Looking Statements and Other Matters
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Some information contained in this press release may be forward-looking
statements within the meaning of the federal securities laws. These
forward-looking statements are not historical in nature and include statements
that reflect, when made, the Company's views with respect to current events and
financial performance. These forward-looking statements can be identified by
forward-looking words such as "may," "will," "expect," "intend," "anticipate,"
"believe," "estimate," "plan," "could," "should" and "continue" or similar
words. These forward-looking statements may also use different phrases. All
such forward-looking statements are and will be subject to numerous risks and
uncertainties, many of which are beyond our control, that could cause actual
results to differ materially from such statements. Factors that could cause
actual results to differ materially include, without limitation: successful
resolution of any deficiencies in the Company's newly implemented financial
reporting systems; the ability of the Company to continue as a going concern;
final determination of anticipated significant asset impairment charges; the
ability of the Company to obtain court approval with respect to


motions in the Chapter 11 proceeding filed by it from time to time; the ability
of the Company to operate pursuant to the terms of its DIP financing facility;
the ability of the Company to develop, prosecute, confirm and consummate one or
more plans of reorganization with respect to the Chapter 11 proceeding; risks
associated with third parties seeking and obtaining court approval to terminate
or shorten the exclusivity period for the Company to propose and confirm one or
more plans of reorganization, for the appointment of a Chapter 11 trustee or to
convert the Chapter 11 proceeding to a Chapter 7 proceeding; the ability of the
Company to obtain and maintain adequate terms with vendors and service
providers; the potential adverse impact of the Chapter 11 proceeding on the
Company's liquidity or results of operations; the ability of the Company to
fund and execute its business plan; the ability of the Company to attract,
motivate and/or retain key executives and employees; changes in our
relationship with employees and the unions that represent them; increased costs
and uncertainties related to periodic renegotiation of union contracts;
increased costs and uncertainties with respect to the accounting treatment of a
defined benefit pension plan to which we contribute; finalization of our review
and the independent audit of the consolidated financial statements for the year
ended May 29, 2004, or reviews of the restated condensed consolidated financial
statements as and for the periods ended November 15, 2003 and as of and for the
forty week period ended March 6, 2004; the results of an SEC investigation
concerning the Company's financial statements following the Company's
announcement that the Audit Committee of its Board of Directors had retained
independent counsel to investigate the Company's manner of setting its workers'
compensation and other reserves; the delayed filing with the SEC of our annual
report on Form 10-K for the fiscal year ended May 29, 2004; changes in general
economic and business conditions (including in the bread and sweet goods
markets); changes in consumer tastes or eating habits; future product recalls
or safety concerns; bankruptcy filings by customers; costs associated with
environmental compliance and remediation; actions of governmental entities,
including regulatory requirements; the outcome of legal proceedings to which we
are or may become a party, including the securities class actions filed after
our February 11, 2003 press release; business disruption from terrorist acts,
our nation's response to such acts and acts of war; and other factors. These
statements speak only as of the date of this press release, and we disclaim any
intention or obligation to update or revise any forward-looking statements to
reflect new information, future events or developments or otherwise, except as
required by law. We have provided additional information in our filings with
the SEC, which readers are encouraged to review, concerning other factors that
could cause actual results to differ materially from those indicated in the
forward-looking statements.

Similarly, these and other factors, including the terms of any reorganization
plan ultimately confirmed, can affect the value of the Company's various
pre-petition liabilities, common stock and/or other equity securities. No
assurance can be given as to what values, if any, will be ascribed in the
Chapter 11 proceeding to each of these liabilities and/or securities.
Accordingly, the Company urges that the appropriate caution be exercised with
respect to existing and future investments in any of these liabilities and/or
securities.


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