Pizza Inn, Inc. Reports 2nd Quarter Earnings

PIZZA INN, INC. today reported earnings per share for its second quarter ended December 29, 2002 of 19 cents, versus 6 cents for the same quarter last year. Net income was $1,892,000 versus $567,000, on revenues of $15.2 million versus $16.0 million in the previous year. For the six-month period, earnings per share were 22 cents versus 11 cents last year. Net income was $2,196,000 compared to $1,157,000 on revenues of $30.5 million versus $33.3 million last year. The current quarter includes the reversal of a previously recorded pre-tax charge of approximately $1.9 million. The reserve 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 finished down 5.3%.

Excluding the above-described reversal, net income for its second quarter ended December 29 was $606,000 or 6 cents per share, compared to net income of $567,000 or 6 cents per share for the same quarter last year.

   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)


           2nd Quarter

                                              December 29,      December 23,
                                                   2002              2001

  Revenue                                        $15,164           $15,987

  Income before taxes                             $2,867              $859

  Net Income                                      $1,892              $567

  Diluted earnings per share                       $0.19             $0.06

  Basic earnings per share                         $0.19             $0.06

  Weighted average shares outstanding:
     Diluted                                  10,060,465        10,067,741
     Basic                                    10,058,431        10,067,252


           Six Months

                                              December 29,      December 23,
                                                  2002              2001

  Revenue                                        $30,525           $33,294

  Income before taxes                             $3,327            $1,753

  Net Income                                      $2,196            $1,157

  Diluted earnings per share                       $0.22             $0.11

  Basic earnings per share                         $0.22             $0.11

  Weighted average shares outstanding:
     Diluted                                  10,059,407        10,133,601
     Basic                                    10,058,339        10,126,938

SOURCE: Pizza Inn, Inc.