News Releases

Pizza Inn, Inc. Reports 1st Quarter Earnings

Pizza Inn, Inc. today reported earnings per share for its first quarter ended September 23, 2001 of 6 cents versus 6 cents for the same quarter last year. Net income was $590,000 versus $646,000, on revenues of $16.8 million in each year. Comparable chainwide same-store sales for the quarter were slightly positive by 0.5%.

Completion of the Company's new headquarters, which will also consolidate its expanded training center and upgraded distribution facility, remains on schedule for November occupancy. The Company has finished its initial funding of $3.4 million for the project, generated from operating cash flow, and has utilized approximately half of the $8.125 million financing being provided by Wells Fargo, its existing lender.

Pizza Inn, Inc. is the franchisor and food distributor for 442 Pizza Inn locations operating in the U.S. and other countries.

   For more information contact:
   Ronald W. Parker
   (972) 701-9955

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

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

                                                       Quarter Ended
                                               September 23,   September 24,
                                                   2001             2000
  Revenue                                        $16,840          $16,816

  Income before taxes                               $894           $1,032

  Net Income                                        $590             $646

  Diluted earnings per share                       $0.06            $0.06

  Basic earnings per share                         $0.06            $0.06

  Weighted average shares outstanding:
     Diluted                                  10,199,460       10,743,122
     Basic                                    10,186,624       10,733,152


SOURCE: Pizza Inn, Inc.

Contact: Ronald W. Parker, President of Pizza Inn, Inc.,