Pizza Inn Announces 4th Quarter Financial Results

PIZZA INN, INC. today reported net income for its fourth quarter ended June 29 of $522,000 or 5 cents a share, compared to a net loss of $498,000, or 5 cents a share a year ago, on revenues of $14.1 million versus $18.1 million in the previous year. The net loss for the quarter ended June 30, 2002 was primarily attributable to a pretax charge of approximately $1.9 million to reserve for the possible nonpayment for a note receivable owed to the Company from the Company's former Chief Executive Officer. The Company received payment in full for the note receivable in December 2002. The fourth quarter ended June 30, 2002 included 14 weeks versus 13 weeks for the same quarter this year.

For fiscal year 2003, earnings per share were 31 cents versus 11 cents last year. Net income was $3,093,000 compared to $1,137,000 on revenues of $58.8 million versus $66.6 million last year. Revenues consist of gross sales of Norco, the Company's food and equipment division, franchise fees, and royalties. Comparable chainwide same store sales finished down 5.7% for the year. Net income for the year ended June 29, 2003 includes a pretax gain of approximately $1.9 million for the recovery of the note receivable described above. Fiscal 2002 included 53 weeks versus 52 weeks in fiscal 2003.

   Pizza Inn, Inc.                For more information contact:
   3551 Plano Parkway             Ronald W. Parker
   The Colony, TX  75056          President and Chief Executive Officer
                                  (469) 384-5000

For more information about the company, visit Pizza Inn at www.pizzainn.com

                             PIZZA INN, INC.
            (In thousands, except share and per share amounts)

            4th Quarter

                                               June 29,          June 30,
                                                 2003              2002
  Revenue                                        $14,059           $18,061

  Income (loss) before taxes                        $747             ($755)

  Net Income (Loss)                                 $522             ($498)

  Diluted earnings (loss) per share                $0.05            ($0.05)

  Basic earnings (loss) per share                  $0.05            ($0.05)

  Weighted average shares outstanding:
    Diluted                                   10,060,528        10,058,094
    Basic                                     10,058,674        10,058,094


           Twelve Months

                                               June 29,          June 30,
                                                 2003              2002
  Revenue                                        $58,782           $66,642

  Income before taxes                             $4,643            $1,723

  Net Income                                      $3,093            $1,137

  Diluted earnings per share                       $0.31             $0.11

  Basic earnings per share                         $0.31             $0.11

  Weighted average shares outstanding:
    Diluted                                   10,060,729        10,095,085
    Basic                                     10,058,475        10,091,817

SOURCE: Pizza Inn, Inc.