How will you tell to your friend that he/she has a bad breath?  

Buy two breath fresheners and give one to your friend. Tell your friend there's a "buy one, take one" promo at the store where you bought it, that's why you're giving the free one to your friend. Your friend won't feel offended since she'll know both of you will be using breath fresheners.

Just tell him/her and make a funny face..there is no other way trust me!

I have had the same encounter. I understand where you are coming from the only thing was that this person was not just a friend it it someone that I am dating. I did not know how to tell him that his breath stink. I really did not want to hurt his feelings. I was trying to get advise from my friend and she told me to just tell him. She is one of those outspoken person and I am not. I almost broke up with him because of it. Which is bad to want to do that, especially when he was a nice guy. Anyway, the day I got the guts to tell him, his breath smelt great. Like he actually bushed, flossed and use mouth wash. I assume that possibly one of his friends told him.

My thing is this is your friend. Would if you both started talking to people you like and instead of you being a friend and telling him/her the truth someone else did. Don't you think that could hurt your friendship. Because that person is going to be like "why didn't you tell me your suppose to be my friend".