news releases

Pizza Inn, Inc. Reports 3rd Quarter Earnings
PRNewswire-FirstCall
THE COLONY, Texas

PIZZA INN, INC. today reported earnings per share for its third quarter ended March 30, 2003 of $.04 versus $.05 for the same quarter last year. Net income was $376,000 versus $478,000, on revenues of $14.2 million versus $15.3 million in the previous year. Lower chainwide retail sales and lower cheese prices contributed to decreased revenues and net income. For the nine-month period, earnings per share were $.26 versus $.16 last year. Net income was $2,571,000 compared to $1,635,000 on revenues of $44.7 million versus $48.6 million last year. The nine-month period includes the reversal of a previously recorded pre-tax charge of approximately $1.9 million. The charge was previously recorded in the fourth quarter of fiscal 2002 to fully 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. Year-to-date comparable chainwide same-store sales were 5.2% lower than the same period last year.

Excluding the above-described reversal of approximately $1,286,000 (after- tax) or $.13 per share, net income of $2,571,000 or $.26 per share for the nine-month period ended March 30 was $1,285,000 or $.13 per share. This is compared to net income of $1,635,000 or $.16 per share for the same period last year.

Ronnie Parker, the Company's Chief Executive Officer, commented, "In spite of weaker economic conditions, we are not pleased with the results of the past quarter. However, we are excited about and focused on a number of new initiatives designed to improve Pizza Inn's growth."

  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)

                  3rd Quarter

                                              March 30,         March 24,
                                                2003              2002
  Revenue                                     $14,198           $15,286

  Income before taxes                            $569              $724

  Net Income                                     $376              $478

  Diluted earnings per share                    $0.04             $0.05

  Basic earnings per share                      $0.04             $0.05

  Weighted average shares outstanding:
     Diluted                               10,063,572        10,057,890
     Basic                                 10,058,547        10,057,890


                 Nine Months

                                              March 30,        March 24,
                                                2003              2002
  Revenue                                     $44,723           $48,580

  Income before taxes                          $3,896            $2,477

  Net Income                                   $2,571            $1,635

  Diluted earnings per share                    $0.26             $0.16

  Basic earnings per share                      $0.26             $0.16

  Weighted average shares outstanding:
     Diluted                               10,060,795        10,108,364
     Basic                                 10,058,408        10,103,922

SOURCE: Pizza Inn, Inc.

CONTACT: Ronald W. Parker, President and Chief Executive Officer of
Pizza Inn, Inc., +1-469-384-5000