Pizza Inn Announces 1st Quarter Financial Results

Pizza Inn, Inc. today reported earnings per share for its first quarter ended September 28, 2003 of 5 cents versus 3 cents for the same quarter last year. Net income was $504,000 versus $303,000, on revenues of $15.4 million versus $15.4 million in the previous year. The previous year's quarter included pre- tax severance related charges of approximately $415,000 (after-tax affect of approximately $274,000), in connection with the departure of the Company's former chief executive officer. Comparable same-store sales finished down 4.8% for the quarter.

The Company is the franchisor and food and supply distributor to more than 410 stores in 20 states and 10 foreign countries.

   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)

                                                       Quarter Ended
                                                 Sept. 28,         Sept. 29,
                                                   2003              2002
  Revenue                                        $15,376           $15,361

  Income before taxes                               $764              $460

  Net Income                                        $504              $303

  Diluted earnings per share                       $0.05             $0.03

  Basic earnings per share                         $0.05             $0.03

  Weighted average shares outstanding:
     Diluted                                  10,086,059        10,058,350
     Basic                                    10,059,223        10,058,248

SOURCE: Pizza Inn, Inc.