news releases

Pizza Inn, Inc. today reported earnings per share for its first quarter ended September 24, 2000 of 6 cents versus 7 cents for the same quarter last year. Net income was $646,000 versus $747,000, on revenues of $16.8 million versus $17.4 in the previous year. Lower cheese prices, purchased and sold through Norco, the Company's distribution division, accounted for about half the revenue decline. Comparable chainwide same-store sales finished down 2.2% for the first quarter. Higher interest costs during the quarter impacted pretax earnings by $116,000.

Seven of our first fourteen delivery units slated to add in-store dining and a self-serve buffet are open and hitting sales goals with initial sales in these units up over 20%. Our goal of reducing the opening and operating costs with this smaller prototype has been met by these new units. All fourteen of these units will be converted by the end of November. We have also launched our new franchisee advertising featuring this unique self-serve buffet and delivery format, and current franchisee interest in this concept is encouraging.

Pizza Inn, Inc. is the franchisor and food distributor for 482 Pizza Inn restaurants operating in the U.S. and other countries.

   Pizza Inn, Inc.            For more information contact:
   5050 Quorum Drive          Ronald W. Parker
   Suite 500                  President
   Dallas, Texas 75240        (972) 701-9955

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

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

                                            Quarter Ended
                                 September 24,        September 26,
                                     2000                 1999
  Revenue                          $16,816              $17,394

  Income before taxes              $ 1,033              $ 1,137

  Net Income                       $   646              $   747

  Diluted earnings per share       $  0.06              $  0.07

  Basic earnings per share         $  0.06              $  0.07

  Weighted average shares
   outstanding:
     Diluted                    10,743,122           11,469,582
     Basic                      10,733,152           11,249,694

SOURCE: Pizza Inn, Inc.