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PIZZA INN, INC. today reported earnings per share for its first quarter ended September 29, 2002 of 3 cents versus 6 cents for the same quarter last year. Net income was $303,000 versus $590,000, on revenues of $15.4 million versus $17.3 million in the previous year. Severance-related charges of approximately $415,000, in connection with the departure of the Company's former Chief Executive Officer, Jeff Rogers, including legal and accounting fees, adversely affected earnings for the quarter. Comparable same-store sales finished down 3.6% for the quarter.

Excluding the above-described severance-related charges, net income for its first quarter ended September 29 was $577,000, or 6 cents per share, compared to net income of $590,000, or 6 cents per share for the same quarter last year.

Ronnie Parker, the Company's President and Chief Executive Officer stated, "Revenues were down approximately $1.9 million quarter over quarter primarily due to lower chainwide retail sales and an overall decrease of more than 23% in cheese prices. Although the significantly lower cheese prices negatively impact our top line revenues, they ease margin pressure on our franchisees. Our primary focus continues to be in helping our franchisees improve their sales levels. To help reach this goal we are strengthening our field training and marketing programs for both new and existing restaurants and are currently adding additional field personnel. We are encouraged by the initial success of these joint efforts with our franchisees at our recent new store openings."

   Pizza Inn, Inc.                   For more information contact:
   3551 Plano Parkway                Ronald W. Parker
   The Colony, TX  75056             President & 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)

                                                      Quarter Ended
                                                Sept. 29,         Sept. 23,
                                                   2002              2001
  Revenue                                        $15,361           $17,308

  Income before taxes                               $460              $894

  Net Income                                        $303              $590

  Diluted earnings per share                       $0.03             $0.06

  Basic earnings per share                         $0.03             $0.06

  Weighted average shares outstanding:
     Diluted                                  10,058,350        10,199,460
     Basic                                    10,058,248        10,186,624

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SOURCE: Pizza Inn, Inc.