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After Steven Howard had headed a Dyer cross straight at the keeper, Blackpool went close when a Ben Burgess drive from 12 yards struck a post with Chris Weale recovering quickly to block Jason Euell's follow up shot.
Howard then failed to hit the target with a close-range header from a Matty Oakley cross as chances continued to arrive at both ends.
Leicester were in front in 25 minutes when a quick free-kick from Richie Wellens allowed Fryatt to spring the offside trap and slide the ball home under the advancing keeper from 14 yards.
Blackpool were level on 31 minutes when Charlie Adam seized on Wayne Brown's weak back pass and rounded the keeper before side-footing the ball into an empty net.
City almost recaptured their lead on 40 minutes when a Oakley free-kick from 22 yards hit a post with the keeper well beaten.
The Foxes were back in front on 58 minutes when a mistake by Rob Edwards allowed Fryatt to side step the keeper and hammer a left-foot shot into the far corner from 12 yards.
With Blackpool running out of steam, Fryatt almost notched a hat-trick five minutes from the end when a long clearance by the keeper was allowed to run to the prolific striker whose fierce angled shot was beaten away by Rachubka.
Moments later, Fryatt left the field to rapturous applause when he was replaced by Paul Gallagher.