Pizza Inn, Inc. (Nasdaq: PZZI – News) today reported net income of $0.03 per share in its first fiscal quarter ended September 23, 2007 versus a net loss of $0.10 per share in the same quarter in the prior fiscal year. The quarter resulted in net income of $345,000 versus a net loss of $1,061,000 for the same quarter in the prior fiscal year on revenues of $12.1 million and $11.8 million respectively. Operating performance for the first quarter of fiscal year 2008 included the following:

* Comparable buffet restaurant sales increased 3.4 percent for the first quarter.

* Total domestic chain-wide comparable restaurant sales increased 1.4 percent
for the first quarter.

* The Company recorded a charge of $300,000 or ($0.03) per share, in the
quarter related to the departure of the company’s previous CEO. After
adjusting for this expense, the Company would have posted diluted
earnings per share of $0.06.

* General and administrative expenses for the first quarter were lower by
approximately 59 percent, or $914,000, due primarily to lower legal fees
related to various litigation issues settled during fiscal 2007.

* Interest expense decreased 100 percent, or $200,000, compared to the same
quarter in the prior fiscal year due to the Company eliminating all
outstanding debt in December 2006.

Operating results for the first quarter mark the fourth consecutive profitable quarter for Pizza Inn, further strengthening the Company’s financial and cash positions. It also marks seven consecutive months of comparable buffet sales growth.

Charlie Morrison, Interim CEO and Chief Financial Officer, comments, “Our momentum in same store sales through remodeling and operational execution demonstrates our progress in revitalizing the Pizza Inn brand. Working with our franchisee leadership, we are closing in on modifications to our buffet restaurant, taking the best elements of our existing prototype and combining these with a service and hospitality platform that deliver an exceptional customer experience in a more efficient restaurant. This new prototype will be introduced in 2008 as a company-owned restaurant and will be offered through our domestic and international franchise sales channels.”