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<SEC-DOCUMENT>0001010549-09-000351.txt : 20090513
<SEC-HEADER>0001010549-09-000351.hdr.sgml : 20090513
<ACCEPTANCE-DATETIME>20090512174335
ACCESSION NUMBER:		0001010549-09-000351
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20090329
FILED AS OF DATE:		20090513
DATE AS OF CHANGE:		20090512

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PIZZA INN INC /MO/
		CENTRAL INDEX KEY:			0000718332
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-GROCERIES & RELATED PRODUCTS [5140]
		IRS NUMBER:				470654575
		STATE OF INCORPORATION:			MO
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-12919
		FILM NUMBER:		09819969

	BUSINESS ADDRESS:	
		STREET 1:		3551 PLANO PARKWAY
		CITY:			THE COLONY
		STATE:			TX
		ZIP:			75056
		BUSINESS PHONE:		469-384-5000

	MAIL ADDRESS:	
		STREET 1:		3551 PLANO PARKWAY
		CITY:			THE COLONY
		STATE:			TX
		ZIP:			75056

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PANTERAS CORP
		DATE OF NAME CHANGE:	19901126

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CONCEPT DEVELOPMENT INC
		DATE OF NAME CHANGE:	19870212
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>pizza10q032909.htm
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body style="FONT-SIZE: 10pt; FONT-FAMILY: 'TIMES NEW ROMAN'">
        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; BORDER-TOP-STYLE: double; BORDER-TOP-COLOR: #000000; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; EEPStyleName: Border Page Scotch Top" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 14pt">SECURITIES AND EXCHANGE COMMISSION </font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 14pt">Washington, D. C. 20549</font></b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 18pt">FORM 10-Q</font></b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td colspan="3"><strong><font size="2">(Mark One)</font></strong></td>
            </tr>

            <tr>
                <td width="84">
                </td>

                <td width="379">&nbsp;</td>

                <td width="488">
                </td>
            </tr>

            <tr>
                <td width="84">
                    <p align="center"><strong><font face="Wingdings">&thorn;</font></strong></p>
                </td>

                <td colspan="2"><strong><font size="2">Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></strong></td>
            </tr>

            <tr>
                <td width="84">
                </td>

                <td width="379"><font size="2">&nbsp; </font></td>

                <td width="488">
                </td>
            </tr>

            <tr>
                <td width="84">
                </td>

                <td colspan="2"><font size="2"><strong>For the quarterly period ended</strong> <u><b>March</b> <b>2</b><b>9</b><b>, 200</b><b>9</b></u></font></td>
            </tr>

            <tr>
                <td width="84">
                </td>

                <td width="379"><font size="2">&nbsp; </font></td>

                <td width="488">
                </td>
            </tr>

            <tr>
                <td width="84">
                    <p align="center"><strong><font size="2"><font face="Wingdings">o</font>&nbsp;</font></strong></p>
                </td>

                <td colspan="2"><strong><font size="2">Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></strong></td>
            </tr>

            <tr>
                <td width="84">
                </td>

                <td width="379"><font size="2">&nbsp; </font></td>

                <td width="488">
                </td>
            </tr>

            <tr>
                <td align="center" colspan="3"><font size="2"><strong>Commission File Number:</strong> <b>0-12919</b></font></td>
            </tr>

            <tr>
                <td width="100%" colspan="3">&nbsp;</td>
            </tr>

            <tr>
                <td width="100%" colspan="3">
                    <p align="center"><strong><font size="5">PIZZA INN, INC.</font></strong></p>
                </td>
            </tr>

            <tr>
                <td width="100%" colspan="3">
                    <p align="center"><strong><font size="1">(Exact name of registrant <font style="FONT-SIZE: 8pt">as specified in its charter)</font></font></strong></p>
                </td>
            </tr>

            <tr>
                <td width="100%" colspan="3">&nbsp;</td>
            </tr>

            <tr>
                <td colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>Missouri</b></p>
                </td>

                <td width="488">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>47-0654575</b></p>
                </td>
            </tr>

            <tr>
                <td colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>(State o</b><b>r</b> <b>other jurisdiction of</b></p>
                </td>

                <td width="488">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>(I.R.S. Employer</b></p>
                </td>
            </tr>

            <tr>
                <td colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>Incorporation or organization)</b></p>
                </td>

                <td width="488">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>Identification No.)</b></p>
                </td>
            </tr>

            <tr>
                <td width="100%" colspan="3">&nbsp;</td>
            </tr>

            <tr>
                <td width="100%" colspan="3">
                    <p align="center"><strong><font size="2">3551 Plano Parkway</font></strong></p>
                </td>
            </tr>

            <tr>
                <td width="100%" colspan="3">
                    <p align="center"><strong><font size="2">The Colony, Texas 75056</font></strong></p>
                </td>
            </tr>

            <tr>
                <td width="100%" colspan="3">
                    <p align="center"><strong><font size="1">(Address of principal executive offices<font style="FONT-SIZE: 8pt">)</font></font></strong></p>
                </td>
            </tr>

            <tr>
                <td width="100%" colspan="3">&nbsp;</td>
            </tr>

            <tr>
                <td width="100%" colspan="3">
                    <p align="center"><strong><font size="2">(469) 384-5000</font></strong></p>
                </td>
            </tr>

            <tr>
                <td width="100%" colspan="3">
                    <p align="center"><strong><font size="1">(Registrant's telephone number,</font></strong></p>
                </td>
            </tr>

            <tr>
                <td width="100%" colspan="3">
                    <p align="center"><strong><font size="1">including area code)</font></strong></p>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or</b> <b>for</b> <b>such shorter period that the registrant was required to file
        such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes</b> <strong><font face="Wingdings">&thorn; </font>No</strong> <strong><font face="Wingdings">o</font></strong></p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer</b><b>, or a smaller reporting company</b><b>. See definition of &ldquo;</b><b>large</b> <b>accelerated filer</b><b>,&rdquo;
        &ldquo;</b><b>accelerated filer&rdquo;</b> <b>and &ldquo;smaller reporting company&rdquo;</b> <b>in Rule 12b-2 of the Exchange Act. (Check One)</b></p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Large accelerated filer</b> <b><font style="FONT-FAMILY: 'WINGDINGS'">o</font></b> <b>Accelerated filer</b> <b><font style="FONT-FAMILY: 'WINGDINGS'">o</font></b> <b>Non-accelerated filer</b> <b><font style="FONT-FAMILY: 'WINGDINGS'">o</font></b> <b>Smaller reporting company</b>
            <b><font style="FONT-FAMILY: 'WINGDINGS'">&thorn;</font></b><b><font style="FONT-SIZE: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
        </blockquote>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify"><b>&nbsp;&nbsp;</b> <b>Indicate by check mark whether the registrant is a shell</b> <b>company (as defined in Rule 12</b><b>b-2 of the Exchange Act). Yes</b>&nbsp;<strong><font face="Wingdings">o </font></strong>&nbsp;<b>No</b> <strong><font face="Wingdings">&thorn;</font></strong></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify"></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p align="justify"><b>&nbsp;&nbsp;&nbsp;&nbsp; As of</b> <b>May</b> <b>4</b><b>, 200</b><b>9</b><b>,</b> <b>8</b><b>,</b><b>136</b><b>,</b><b>884</b> <b>shares of the issuer&rsquo;s common stock were outstanding.</b></p>
        </blockquote>

        <p style="FONT-SIZE: 10pt; BORDER-BOTTOM-COLOR: #000000; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; BORDER-BOTTOM-STYLE: double; EEPStyleName: Border Page Scotch Bottom" align="justify">&nbsp;</p>

        <p align="justify">&nbsp;</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>PIZZA INN, INC.</b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u>Index</u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr bgcolor="#ccdbe3">
                <td align="left" colspan="7"><strong><font size="2">PART I. FINANCIAL INFORMATION</font>&nbsp;</strong> </td>

                <td colspan="2">
                </td>
            </tr>

            <tr>
                <td align="left" colspan="7">&nbsp;</td>

                <td colspan="2">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="7"><font face="Times New Roman" size="2">Item 1.&nbsp;&nbsp;&nbsp;Financial&nbsp;Statements</font></td>

                <td colspan="2">
                    <p align="right"><font face="Times New Roman"><font size="2">&nbsp;<u>Page</u></font></font></p>
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="8"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condensed Consolidated Statements of Operations for the three months and nine months&nbsp;&nbsp;</font></td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ended March 29, 2009 and March 23, 2008 (unaudited)</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right"><font size="2">3</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="8"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condensed Consolidated Balance Sheets at March 29, 2009 (unaudited)&nbsp;&nbsp;</font></td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and June 29, 2008</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right"><font size="2">4</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="8"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condensed Consolidated Statements of Cash Flows for the nine months ended March 29,&nbsp;&nbsp;</font></td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2009 and March 23, 2008 (unaudited)</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right"><font size="2">5</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="8"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Supplemental Disclosures of Cash Flow Information for the nine months ended&nbsp;&nbsp;</font></td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 29, 2009 and March 23, 2008 (unaudited)</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right"><font size="2">6</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Notes to Condensed Consolidated Financial Statements</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right"><font size="2">7</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="8"><font face="Times New Roman" size="2">Item 2.&nbsp;&nbsp;&nbsp;Management's&nbsp;Discussion and Analysis of</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Condition and Results of Operations</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right"><font size="2">13</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="5"><font face="Times New Roman" size="2">Item 3.&nbsp;&nbsp;&nbsp;Quantitative and Qualitative Disclosures About Market Risk</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">22</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">Item 4T. Controls and Procedures</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right"><font size="2">22</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2"><strong>PART II. OTHER INFORMATION</strong></font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="5">&nbsp;</td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="5"><font face="Times New Roman" size="2">Item 1.&nbsp;&nbsp;&nbsp; Legal Proceedings</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">23</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">Item 1A. Risk Factors</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right"><font size="2">23</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="5">&nbsp;</td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="5"><font face="Times New Roman" size="2">Item 2&nbsp;&nbsp;&nbsp;&nbsp; Unregistered Sales of Equity Securities and Use of Proceeds</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">23</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" colspan="5">&nbsp;</td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="5"><font face="Times New Roman" size="2">Item 3.&nbsp;&nbsp;&nbsp; Defaults Upon Senior Securities</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">24</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" colspan="5">&nbsp;</td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="5"><font face="Times New Roman" size="2">Item 4.&nbsp;&nbsp;&nbsp; Submission of Matters to a Vote of Security Holders</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">24</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" colspan="5">&nbsp;</td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="5"><font face="Times New Roman" size="2">Item 5.&nbsp;&nbsp;&nbsp; Other Information</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">24</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" colspan="5">&nbsp;</td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="5"><font face="Times New Roman" size="2">Item 6.&nbsp;&nbsp;&nbsp; Exhibits</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">25</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signatures</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right"><font size="2">26</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit 31.1</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right">&nbsp;</p>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit 31.2</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right">&nbsp;</p>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit 32.1</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right">&nbsp;</p>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit 32.2</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                    <p align="right">&nbsp;</p>
                </td>

                <td>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p></p>

        <p></p>
        <!-- PAGE BREAK  -->

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">2</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>PART I. FINANCIAL INFORMATION</b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><u>Item 1. Financial Statements</u></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><b>PIZZA INN, INC.</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><strong>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</strong></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><i><strong>(In thousands, except per share amounts)</strong></i></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><em><strong>(Unaudited)</strong></em></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="486">
                </td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="4"><strong><font face="Times New Roman" size="2">Three Months Ended&nbsp;&nbsp;</font></strong></td>

                <td align="left" width="2%"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><strong><font face="Times New Roman" size="2">Nine Months Ended&nbsp;&nbsp;</font></strong></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486">
                </td>

                <td align="left" width="13"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td width="80">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 29,</strong></font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td width="80">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 23,</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td width="80">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 29,</strong></font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td width="80">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 23,</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2"><strong>REVENUES:</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="80">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2009</strong></font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="80">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2008</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="80">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2009</strong></font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="80">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2008</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Food and supply sales</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">9,136</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">10,316</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">28,915</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">32,269</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise revenue</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">1,056</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">1,181</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">3,164</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">3,643</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant sales</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">565</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">171</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">1,344</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">529</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">10,757</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">11,668</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">33,423</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">36,441</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2"><strong>COSTS AND EXPENSES:</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="80">
                </td>

                <td width="19">
                </td>

                <td width="10">
                </td>

                <td width="80">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="80">
                </td>

                <td width="19">
                </td>

                <td width="10">
                </td>

                <td width="80">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of sales</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">8,829</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">9,554</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">27,860</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">30,156</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise expenses</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">497</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">623</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">1,446</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">1,949</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">793</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">649</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">2,336</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">1,977</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">12</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">4</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">49</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">383</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for bad debts</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">15</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">100</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">60</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">158</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of assets</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">2</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">9</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (recovery of) litigation costs</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">263</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">(284</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">17</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">12</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">45</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">40</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">10,163</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">10,944</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">32,059</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">34,388</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2"><strong>INCOME FROM CONTINUING</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="80">
                </td>

                <td width="19">
                </td>

                <td width="10">
                </td>

                <td width="80">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="80">
                </td>

                <td width="19">
                </td>

                <td width="10">
                </td>

                <td width="80">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2"><strong>OPERATIONS BEFORE TAXES</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">594</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">724</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">1,364</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">2,053</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit)</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">203</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(216</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">438</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(216</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2"><strong>INCOME FROM CONTINUING OPERATIONS</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">391</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">940</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">926</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">2,269</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations, net of taxes</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(30</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(42</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(136</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(173</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2"><strong>NET INCOME</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">361</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">898</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">790</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">2,096</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2"><strong>EARNINGS PER SHARE OF COMMON STOCK - BASIC:</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="80">
                </td>

                <td width="19">
                </td>

                <td width="10">
                </td>

                <td width="80">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="80">
                </td>

                <td width="19">
                </td>

                <td width="10">
                </td>

                <td width="80">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">0.05</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">0.10</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">0.11</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">0.23</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(0.01</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(0.02</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(0.02</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">0.05</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">0.09</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">0.09</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">0.21</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2"><strong>EARNINGS PER SHARE OF COMMON STOCK - DILUTED:</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="80">
                </td>

                <td width="19">
                </td>

                <td width="10">
                </td>

                <td width="80">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="80">
                </td>

                <td width="19">
                </td>

                <td width="10">
                </td>

                <td width="80">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">0.05</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">0.10</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">0.11</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="80"><font face="Times New Roman" size="2">0.23</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(0.01</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(0.02</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">(0.02</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">0.05</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">0.09</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">0.09</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">0.21</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="486"><font face="Times New Roman" size="2"><strong>Weighted average common shares outstanding - basic</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">8,522</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">9,634</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">8,725</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">9,955</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2"><strong>Weighted average common</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="80">
                </td>

                <td width="19">
                </td>

                <td width="10">
                </td>

                <td width="80">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="80">
                </td>

                <td width="19">
                </td>

                <td width="10">
                </td>

                <td width="80">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="486"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>shares outstanding - diluted</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">8,522</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">9,670</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">8,725</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="80"><font face="Times New Roman" size="2">9,987</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>

        <p align="center"><br>
        </p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><i>See accompanying Notes to Condensed Consolidated Financial Statements.</i></p>

        <p></p>

        <p></p>

        <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="center">&nbsp;</p>
        </div>
        <!-- PAGE BREAK  -->

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">3</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="center"><strong>PIZZA INN, INC.</strong></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><strong>CONDENSED CONSOLIDATED BALANCE SHEETS</strong></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><i><strong>(In thousands, except share amounts)</strong></i></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="center"></p>

            <table cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr valign="bottom">
                    <td align="left" width="65%">
                    </td>

                    <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td width="13%">
                        <p align="center"><font face="Times New Roman" size="2"><strong>March 29,</strong></font></p>
                    </td>

                    <td align="left" width="3%"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                    <td align="right" width="1%"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                    <td width="13%">
                        <p align="center"><font face="Times New Roman" size="2"><strong>June 29,</strong></font></p>
                    </td>

                    <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2"><strong>ASSETS</strong></font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman" size="2"><strong>2009 (Unaudited)</strong></font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                    <td align="right"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman" size="2"><strong>2008</strong></font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ccdbe3">
                    <td colspan="3"><font size="2">CURRENT ASSETS</font></td>

                    <td colspan="3">
                    </td>

                    <td colspan="3">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Cash and cash equivalents</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right"><font face="Times New Roman" size="2">339</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right"><font face="Times New Roman" size="2">1,157</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Accounts receivable, less allowance for bad debts</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of $187 and $128, respectively</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">2,554</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">2,773</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Notes receivable, current portion</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">5</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">6</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Income tax receivable</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">--</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">272</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Inventories</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">1,267</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">1,396</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Property held for sale</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">311</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">301</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Deferred income tax assets, net</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">555</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">555</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Prepaid expenses and other assets</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">305</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">235</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">5,336</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">6,695</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ccdbe3">
                    <td colspan="3">&nbsp;</td>

                    <td colspan="3">
                    </td>

                    <td colspan="3">
                    </td>
                </tr>

                <tr>
                    <td colspan="3"><font size="2">LONG-TERM ASSETS</font></td>

                    <td colspan="3">
                    </td>

                    <td colspan="3">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Property, plant and equipment, net</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">1,489</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">635</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Notes receivable</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">1</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">7</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Deferred income tax assets</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">237</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">237</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Re-acquired development territory, net</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">--</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">46</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Deposits and other assets</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">66</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">215</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">7,129</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">7,835</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ccdbe3">
                    <td colspan="3"><font size="2"><strong>LIABILITIES AND SHAREHOLDERS' EQUITY</strong></font></td>

                    <td colspan="3">
                    </td>

                    <td colspan="3">
                    </td>
                </tr>

                <tr>
                    <td colspan="3"><font size="2">CURRENT LIABILITIES</font></td>

                    <td colspan="3">
                    </td>

                    <td colspan="3">
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Accounts payable - trade</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right"><font face="Times New Roman" size="2">1,679</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td align="right"><font face="Times New Roman" size="2">2,380</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Accrued expenses</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">1,341</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">1,316</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">3,020</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">3,696</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr>
                    <td colspan="3">&nbsp;</td>

                    <td colspan="3">
                    </td>

                    <td colspan="3">
                    </td>
                </tr>

                <tr bgcolor="#ccdbe3">
                    <td colspan="3"><font size="2">LONG-TERM LIABILITIES</font></td>

                    <td colspan="3">
                    </td>

                    <td colspan="3">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Deferred gain on sale of property</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">165</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">184</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Deferred revenues</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">256</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">283</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Other long-term liabilities</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">33</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">18</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Debt</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">527</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">--</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">4,001</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">4,181</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr bgcolor="#ccdbe3">
                    <td colspan="3">&nbsp;</td>

                    <td colspan="3">
                    </td>

                    <td colspan="3">
                    </td>
                </tr>

                <tr>
                    <td colspan="3"><font size="2">COMMITMENTS AND CONTINGENCIES</font></td>

                    <td colspan="3">
                    </td>

                    <td colspan="3">
                    </td>
                </tr>

                <tr bgcolor="#ccdbe3" height="24">
                    <td valign="bottom" colspan="3"><font size="2">SHAREHOLDERS' EQUITY</font></td>

                    <td colspan="3">
                    </td>

                    <td colspan="3">
                    </td>
                </tr>

                <tr valign="bottom" height="4">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Common stock, $.01 par value; authorized 26,000,000</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares; issued 15,130,319 and 15,130,319 shares, respectively;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; outstanding 8,392,700 and 9,104,361 shares, respectively</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">151</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">151</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Additional paid-in capital</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">8,693</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">8,543</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Retained earnings</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">18,414</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">17,624</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp; Treasury stock, at cost</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares in treasury: 6,737,619 and 6,025,958, respectively</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">(24,130</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">(22,664</font></td>

                    <td align="left"><font face="Times New Roman" size="2">)</font></td>
                </tr>

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">3,128</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">3,654</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">7,129</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                    <td align="right"><font face="Times New Roman" size="2">$</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">7,835</font></td>

                    <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="center"><em>See accompanying Notes to Condensed Consolidated Financial Statements.</em></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="center">&nbsp;</p>
        </div>
        <!-- PAGE BREAK  -->

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">4</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><b>PIZZA INN, INC.</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><strong>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</strong></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><i><strong>(In thousands)</strong></i></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><em><strong>(Unaudited)</strong></em></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="57%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="4"><strong><font face="Times New Roman" size="2">Nine&nbsp;Months Ended</font></strong></td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="123">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 29,</strong></font></p>
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td width="126">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 23,</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="123">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2009</strong></font></p>
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="126">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2008</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2"><strong>CASH FLOWS FROM OPERATING ACTIVITIES:</strong></font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="12">
                </td>

                <td width="123">
                </td>

                <td width="29">
                </td>

                <td width="10">
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">790</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">2,096</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="12">
                </td>

                <td width="123">
                </td>

                <td width="29">
                </td>

                <td width="10">
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash (used) provided by operating activities:</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="12">
                </td>

                <td width="123">
                </td>

                <td width="29">
                </td>

                <td width="10">
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">222</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">275</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">(647</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">150</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">14</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (recovery of) litigation costs</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">263</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">(284</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of assets</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">9</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for bad debts</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">60</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">158</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities:</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="12">
                </td>

                <td width="123">
                </td>

                <td width="29">
                </td>

                <td width="10">
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes and accounts receivable</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">438</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">(504</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">129</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">133</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">(701</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">(405</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">(238</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">296</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="123"><font face="Times New Roman" size="2">(8</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="2">(84</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash provided by operating activities</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="123"><font face="Times New Roman" size="2">1,105</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="2">1,057</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2"><strong>CASH FLOWS FROM INVESTING ACTIVITIES:</strong></font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="12">
                </td>

                <td width="123">
                </td>

                <td width="29">
                </td>

                <td width="10">
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of assets</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">108</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="123"><font face="Times New Roman" size="2">(984</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="2">(96</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Cash (used) provided by investing activities</strong></font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="123"><font face="Times New Roman" size="2">(984</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="2">12</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2"><strong>CASH FLOWS FROM FINANCING ACTIVITIES:</strong></font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="12">
                </td>

                <td width="123">
                </td>

                <td width="29">
                </td>

                <td width="10">
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in line of credit, net</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">527</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="123"><font face="Times New Roman" size="2">(1,466</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="2">(1,935</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Cash used for financing activities</strong></font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="123"><font face="Times New Roman" size="2">(939</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="2">(1,935</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">Net decrease in cash and cash equivalents</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">(818</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="2">(866</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">Cash and cash equivalents, beginning of period</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="123"><font face="Times New Roman" size="2">1,157</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="2">1,879</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">Cash and cash equivalents, end of period</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="123"><font face="Times New Roman" size="2">339</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="10"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="126"><font face="Times New Roman" size="2">1,013</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><em><font size="2">See accompanying Notes to Condensed Consolidated Financial Statements.</font></em></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">5</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><b>PIZZA INN, INC.</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><strong>SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION</strong></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><i><strong>(In thousands)</strong></i></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><em><strong>(Unaudited)</strong></em></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="36%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="282"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="3">
                    <p align="center"><font face="Times New Roman" size="2"><strong>Nine Months Ended</strong>&nbsp;</font></p>
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="282"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="123">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 29,</strong></font></p>
                </td>

                <td align="left" width="39"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td width="125">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 23,</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="left" width="282"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="123">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2009</strong></font></p>
                </td>

                <td align="left" width="39"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="125">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2008</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2"><strong>CASH PAYMENTS FOR:</strong></font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="282"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="12">
                </td>

                <td width="123">
                </td>

                <td width="39">
                </td>

                <td width="125">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="282"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">41</font></td>

                <td width="39">
                    <p align="right"><font face="Times New Roman" size="2">&nbsp;$</font></p>
                </td>

                <td width="125">
                    <p align="right"><font face="Times New Roman" size="2">--</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="282"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman" size="2">220</font></td>

                <td align="left" width="39"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="125">
                    <p align="right"><font face="Times New Roman" size="2">195</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><em><font size="2">See accompanying Notes to Condensed Consolidated Financial Statements.</font></em></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p></p>

        <p></p>

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        </div>
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        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>PIZZA INN, INC.<br>
        <br>
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">The accompanying condensed consolidated financial statements of Pizza Inn, Inc. (the "Company") have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (&ldquo;SEC&rdquo;). Certain information and footnote disclosures normally included in the financial statements have been omitted pursuant to such rules and regulations. The
        unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 29, 2008.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to fairly present the Company's financial position and results of operations for the interim periods reflected. Except as noted, all adjustments contained herein are of a normal recurring nature. Results of operations for the fiscal periods presented
        herein are not necessarily indicative of fiscal year-end results.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Summary of</b> <b>Significant Accounting Policies</b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Principles of Consolidation</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All appropriate intercompany balances and transactions have been eliminated.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Cash and Cash Equivalents</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><b>Fiscal Year</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">Fiscal third quarters ended March 29, 2009 and March 23, 2008 both contained 13 weeks and fiscal years to date ended March 29, 2009 and March 23, 2008 both contained 39 weeks.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><b>Revenue Recognition</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">The Company recognizes revenue when products are delivered and the customer takes ownership and assumes risk of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. The Company's Norco division sells food and supplies to franchisees on trade accounts under terms common in the industry. Food and
        supply revenue are recognized upon delivery of the product. Equipment that is sold requires acceptance prior to installation. Recognition of revenue for equipment sales occurs upon acceptance of such equipment. Other than for large remodel projects, delivery date and acceptance date are the same. Norco sales are reflected under the caption "Food and supply sales." Shipping and handling costs billed to customers are recognized as revenue.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">Franchise revenue consists of income from license fees, royalties, and area development and foreign master license fees. License fees are recognized as income when there has been substantial performance under the agreement by both the franchisee and the Company. Domestic license fees are generally recognized at the time the restaurant is opened. Foreign master license fees are generally
        recognized upon execution of the agreement as all material services relating to the sale have been substantially performed by the Company and the fee has been collected. Royalties are recognized as income when earned.<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><b>Stock-Based Compensation</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">The Company adopted Statement of Financial Accounting Standards No. 123R, &ldquo;Share Based Payment&rdquo; (&ldquo;SFAS No. 123R&rdquo;), as of June 27, 2005, using the modified prospective method for all stock options granted prior to June 26, 2005 that were outstanding as of that date. Under this transition method, compensation cost is recognized for the unvested portion of stock
        option grants outstanding at June 26, 2005 over the remaining requisite service period using the fair value for these options as estimated at the date of grant using the Black-Scholes option-pricing model under the original provisions of SFAS No. 123 for pro-forma disclosure purposes. The Company recognizes stock-based compensation for all stock options granted after the adoption of SFAS No. 123R over the requisite service period using the fair value for the options as estimated at the
        date of grant using the Black-Scholes option-pricing model.</p>

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        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">&nbsp;</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><b>Use of</b> <b>Management</b> <b>Estimates</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company&rsquo;s management to make estimates and assumptions that affect its reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience
        and other various assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically and actual results could differ materially from estimates.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><b>Reclassification</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">The Company currently recognizes ongoing loan fees and the amortization of initial loan fees as interest expense. These costs were recorded as general and administrative expenses in the prior fiscal year and have been reclassified as interest.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><b>New Accounting Pronouncements</b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><font style="COLOR: #000000">In February&nbsp;2007, the Financial Accounting Standards Board (&ldquo;FASB&rdquo;)</font> <font style="COLOR: #000000">issued Statement of Financial Accounting Standards (&ldquo;SFAS&rdquo;)</font> <font style="COLOR: #000000">No.&nbsp;159, </font><i><font style="COLOR: #000000">Fair Value Option for Financial Assets and Financial
        Liabilities</font></i><font style="COLOR: #000000">. SFAS No.&nbsp;159 permits entities to choose to measure many financial instruments, including employee stock option plans and operating leases accounted for in accordance with SFAS No.&nbsp;13, </font><i><font style="COLOR: #000000">Accounting for Leases</font></i><font style="COLOR: #000000">, at their fair value. This Statement is effective as of the beginning of an entity&rsquo;s first fiscal year that begins after November 15,
        2007. The Company has chosen not to change the valuation method of any of it&rsquo;s financial assets or liabilities.</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">In December 2007, the FASB issued SFAS No. 141 (Revised), <i>Business</i> <i>Combinations</i>. SFAS No. 141(R) improves the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial reports about a business combination and requires an acquirer to recognize the assets acquired, the liabilities assumed, and any
        noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date. This Statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The adoption of this Statement is not expected to have a material impact on the Company&rsquo;s financial position or results of operations.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">In December 2007, the FASB issued SFAS No. 160, <i>Noncontrolling Interests in Consolidated Finan</i><i>cial</i> <i>Statements</i>. SFAS No. 160 amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary and clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the
        consolidated entity that should be reported as equity in the consolidated financial statements. This Statement is effective for fiscal years beginning on or after December 15, 2008. The adoption of this Statement is not expected to have a material impact on the Company&rsquo;s financial position or results of operations.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">In March 2008, the FASB issued SFAS No. 161, <i>Disclosures about Derivative Instruments and Hedging</i> <i>Activities</i>, <i>an Amendment of FASB Statement</i> <i>No.</i> <i>133</i>. SFAS No. 161 amends SFAS No. 133 and requires entities to enhance their disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are
        accounted for under SFAS No. 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entity&rsquo;s financial position, financial performance, and cash flows. SFAS No. 161 is effective for fiscal years beginning on or after November 15, 2008. The adoption of SFAS No. 161 is not expected to have a material impact on the Company&rsquo;s financial position or results of operations.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Long-Term Debt</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">On January 23, 2007, the Company and The CIT Group / Commercial Services, Inc. (&ldquo;CIT&rdquo;) entered into an agreement for a revolving credit facility of up to $3.5 million (the &ldquo;CIT Credit Facility&rdquo;). CIT may terminate the CIT Credit Facility only as of January 23, 2012 or the same date any year thereafter, and then only by giving the Company at least 90 days prior
        written notice of such termination. The actual availability on the CIT Credit Facility is determined by advance rates on eligible inventory and accounts receivable. Interest on borrowings outstanding on the CIT Credit Facility is at a rate equal to the prime rate plus an interest rate margin of 0.0% to 0.5% or, at the Company&rsquo;s option, at the LIBOR rate plus an interest rate margin of 2.0% to 3.0%. The specific interest rate margin is based on the Company&rsquo;s performance under
        certain</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">&nbsp;</p>

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        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">financial ratio tests. An annual commitment fee is payable on any unused portion of the CIT Credit Facility at a rate of 0.375%. All of the Company&rsquo;s (and its subsidiaries&rsquo;) personal property assets (including, but not limited to, accounts receivable, inventory, equipment, and intellectual property) have been pledged to secure payment and performance of the CIT Credit
        Facility, which is subject to customary covenants for asset-based loans.<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">On June 27, 2007, the Company and CIT entered into an agreement to amend the CIT Credit Facility to (i) allow the Company to repurchase Company stock in an amount up to $3,000,000, (ii) allow the Company to make permitted cash distributions or cash dividend payments to the Company&rsquo;s shareholders in the ordinary course of business and (iii) increase the aggregate capital expenditure
        limit from $750,000 to $3,000,000 per fiscal year. On May 30, 2008, the Company again amended the CIT Credit Facility to permit the Company to repurchase up to $7,000,000 of the Company&rsquo;s common stock. As of March 29, 2009, $527,000 was outstanding on the CIT Credit Facility at an interest rate of 3.5% and one letter of credit for approximately $230,000 was outstanding to reinsurers to secure loss reserves.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Commitments and Contingencies</b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><a name="OLE_LINK3">On May 23, 2007, the board of directors of the Company approved a stock purchase plan authorizing the purchase</a> of up to 1,016,000 shares of the Company&rsquo;s common stock in the open market or in privately negotiated transactions. On June&nbsp;2, 2008, the board of directors amended the stock repurchase plan by increasing the number of shares the Company may
        repurchase by 1,000,000 shares to a total of 2,016,000 shares. As of March 29, 2009, there are 230,206 shares available to be repurchased under the plan. (See note 9.)</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">The Company is also subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters arising out of the normal course of business. Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company's annual
        results of operations or financial condition if decided in a manner that is unfavorable to us.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp; (4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Stock-Based Compensation&nbsp;</b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">For the three and nine months ended March 29, 2009, we recognized stock-based compensation of $48,000 and $150,000, respectively. As of March 29, 2009, unamortized stock-based compensation expense was $280,000.<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">The following table summarizes the Company&rsquo;s outstanding stock options for the nine months ended March 29, 2009 and March 23, 2008:</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="90%" border="0">
            <tr valign="bottom" height="15">
                <td align="left" width="523"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Nine Months Ended&nbsp;</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="523"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="120">
                    <p align="center"><font face="Times New Roman" size="2">March 29, 2009</font></p>
                </td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="120">
                    <p align="center"><font face="Times New Roman" size="2">March 23, 2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="523"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; Outstanding at beginning of year</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="120"><font face="Times New Roman" size="2">275,000</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="120"><font face="Times New Roman" size="2">588,358</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="523"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; Granted</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="120"><font face="Times New Roman" size="2">305,000</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="120"><font face="Times New Roman" size="2">270,000</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="523"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; Exercised</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="120"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="120"><font face="Times New Roman" size="2">(10,000</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="523"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; Forfeited/Canceled/Expired</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman" size="2">(95,000</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman" size="2">(563,358</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="523"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; Outstanding at end of period</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman" size="2">485,000</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman" size="2">285,000</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="523"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; Exercisable at end of year</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman" size="2">86,000</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman" size="2">30,000</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">9</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Earnings per Share</b> <b>(EPS)</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts).</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="90%" border="0">
            <tr valign="bottom">
                <td align="left" width="298">
                </td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="10">
                    <p align="center"><strong><font face="Times New Roman" size="2">Three&nbsp;Months&nbsp;Ended</font></strong><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="298">
                </td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><strong><font face="Times New Roman" size="2">March&nbsp;29, 2009</font></strong></p>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2"><strong>&nbsp;&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><strong><font face="Times New Roman" size="2">&nbsp;&nbsp;March 23, 2008</font></strong></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="298">
                </td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="70">
                    <p align="center"><font face="Times New Roman" size="2"><strong>Diluted</strong></font></p>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2"><strong>&nbsp;&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="70">
                    <p align="center"><font face="Times New Roman" size="2"><strong>Basic</strong></font></p>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2"><strong>&nbsp;&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="70">
                    <p align="center"><font face="Times New Roman" size="2"><strong>Diluted</strong></font></p>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2"><strong>&nbsp;&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="70">
                    <p align="center"><font face="Times New Roman" size="2"><strong>Basic</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2">Income from continuing operations</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">391</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">391</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">940</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">940</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="298"><font face="Times New Roman" size="2">Loss from discontinued operations</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(30</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">) </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(30</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(42</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">)</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(42</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2">Net income available for common shareholders</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">361</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">361</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">898</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">898</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2"><strong>Weighted average equivalent shares</strong></font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="298"><font face="Times New Roman" size="2">Shares of common stock outstanding</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">8,522</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">8,522</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">9,634</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">9,634</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2">Dilutive effect of stock options</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">--</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">36</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="298"><font face="Times New Roman" size="2">Total weighted average equivalent shares</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="70"><font face="Times New Roman" size="2">8,522</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="70"><font face="Times New Roman" size="2">8,522</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="70"><font face="Times New Roman" size="2">9,670</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="70"><font face="Times New Roman" size="2">9,634</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="298"><font face="Times New Roman" size="2"><strong>Per-share amounts</strong></font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2">Income from continuing operations</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">0.05</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">0.05</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">0.10</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">0.10</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="298"><font face="Times New Roman" size="2">Loss from discontinued operations</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">--</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(0.01</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">) </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(0.01</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2">Net income</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">0.05</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">0.05</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">0.09</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">0.09</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="298">
                </td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="10">
                    <p align="center"><strong><font face="Times New Roman" size="2">Nine&nbsp;Months&nbsp;Ended&nbsp;&nbsp;</font></strong></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="298">
                </td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="4"><strong><font face="Times New Roman" size="2">March&nbsp;29, 2009</font></strong></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">&nbsp;&nbsp;<strong>March 23, 2008</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="298">
                </td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="70">
                    <p align="center"><font face="Times New Roman" size="2"><strong>Diluted</strong></font></p>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2"><strong>&nbsp;&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="70">
                    <p align="center"><font face="Times New Roman" size="2"><strong>Basic</strong></font></p>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2"><strong>&nbsp;&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="70">
                    <p align="center"><font face="Times New Roman" size="2"><strong>Diluted</strong></font></p>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2"><strong>&nbsp;&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="70">
                    <p align="center"><font face="Times New Roman" size="2"><strong>Basic</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2">Income from continuing operations</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">926</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">926</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">2,269</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">2,269</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="298"><font face="Times New Roman" size="2">Loss from discontinued operations</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(136</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">)</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(136</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(173</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">)</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(173</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2">Net income available for common shareholders</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">790</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">790</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">2,096</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">2,096</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2"><strong>Weighted average equivalent shares</strong></font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="298"><font face="Times New Roman" size="2">Shares of common stock outstanding</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">8,725</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">8,725</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">9,955</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">9,955</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2">Dilutive effect of stock options</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">--</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">32</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="298"><font face="Times New Roman" size="2">Total weighted average equivalent shares</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="70"><font face="Times New Roman" size="2">8,725</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="70"><font face="Times New Roman" size="2">8,725</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="70"><font face="Times New Roman" size="2">9,987</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="70"><font face="Times New Roman" size="2">9,955</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="298"><font face="Times New Roman" size="2"><strong>Per-share amounts</strong></font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="70">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2">Income from continuing operations</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">0.11</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">0.11</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">0.23</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">0.23</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="298"><font face="Times New Roman" size="2">Loss from discontinued operations</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(0.02</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">) </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(0.02</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(0.02</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">) </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">(0.02</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="298"><font face="Times New Roman" size="2">Net income</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">0.09</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">0.09</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">0.21</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="70"><font face="Times New Roman" size="2">0.21</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><a name="OLE_LINK1"></a><a name="OLE_LINK6">For the quarter and</a> nine months ended March 29, 2009, options to purchase 485,000 shares of common stock at exercise prices ranging from $2.00 to $3.17 per share were not included in the computation of diluted EPS because the options&rsquo; exercise prices were greater than the average market price of the common shares for the period. For
        the quarter and nine months ended March 23, 2008, options to purchase 115,000 shares of common stock at exercise prices ranging from $2.85 to $3.17 were not included in the computation of diluted EPS because the options&rsquo; exercise prices were greater than the average market price of the common shares for the period.</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><font style="COLOR: #000000; FONT-FAMILY: TIMESNEWROMAN,BOLD">Closed</font></b> <b><font style="FONT-FAMILY: TIMESNEWROMAN,BOLD">restaurants and discontinued operations</font></b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">SFAS No. 144, <i>Accounting for the Impairment or Disposal of Long-Lived Assets</i>, requires that discontinued operations that meet certain criteria be reflected in the statement of operations after results of continuing operations as a net amount. SFAS No. 144 also requires that the operations of the closed restaurants, including any impairment charges, be reclassified to discontinued
        operations for all periods presented.</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">10</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
        SFAS No. 146, <i>Accounting for Costs Associated with Exit or Disposal Activities</i>, requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred. This Statement also establishes that fair value is the objective for initial measurement of the liability.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">The Company closed two of its restaurants in Houston, Texas during the quarter ended September 23, 2007. The results of operations for these two restaurants are reported as discontinued operations in the accompanying Condensed Consolidated Statement of Operations. No provision for impairment was required to be taken at that time because the impairment taken in the fiscal year ended June 24, 2007, reduced
        the carrying value of the properties to their estimated net realizable value. That net realizable value remains unchanged. The two properties are on the market for sub-lease and have received a number of site visits. Because we believe that the properties will sub-lease at or above the current lease rates, we have not reserved any additional costs related to our obligations under these non-cancelable leases.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><font style="FONT-FAMILY: 'TIMESNEWROMAN'">A summary of discontinued operations is as follows</font> <font style="FONT-FAMILY: 'TIMESNEWROMAN'">(in thousands):</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="90%" border="0">
            <tr valign="bottom">
                <td align="left" width="608"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Three Months Ended&nbsp;</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="608"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="608"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="608"><font face="Times New Roman" size="2">Sales</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="608"><font face="Times New Roman" size="2">Cost of Sales</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="608"><font face="Times New Roman" size="2">General and Administrative</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">30</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">42</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="608"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total loss from discontinued operations</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">(30</font></td>

                <td valign="middle" align="left">)</td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">(42</font></td>

                <td valign="top" align="left">)</td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td align="left" width="608">
                </td>

                <td align="left" width="10">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Nine&nbsp;Months Ended&nbsp;</font></p>
                </td>

                <td align="left">
                </td>
            </tr>

            <tr>
                <td align="left" width="608">
                </td>

                <td align="left" width="10">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left">
                </td>
            </tr>

            <tr height="17">
                <td align="left" width="608">
                </td>

                <td align="left" width="10">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="608"><font face="Times New Roman" size="2">Sales</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right"><font face="Times New Roman" size="2">62</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="608"><font face="Times New Roman" size="2">Cost of Sales</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">24</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="608"><font face="Times New Roman" size="2">General and Administrative</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">136</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">211</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="608"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total loss from discontinued operations</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">(136</font></td>

                <td align="left">)</td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">(173</font></td>

                <td valign="middle" align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;&nbsp; (7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font style="COLOR: #000000">Provision for Income Tax</font></b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">Management re-evaluates the deferred tax asset each quarter and believes that it is more likely than not that the net deferred tax asset of $792,000 will be fully realized based on the Company&rsquo;s recent history of pre-tax profits and the expectation of future taxable income as well as the future reversal of existing temporary differences. During the three and nine months ended March 29, 2009, the
        Company has provided $203,000 and $438,000 in net tax expense. In determining these amounts, the Company makes its best estimate of the effective tax rate expected to be applicable for the full fiscal year. The rate so determined is used to provide for income taxes on a current year to date basis.</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Property Held for Sale</b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">Assets that are to be disposed of by sale are recognized in the condensed consolidated financial statements at the lower of carrying amount or estimated net realizable value (proceeds less cost to sell), and are not depreciated after being classified as held for sale<font style="COLOR: #000000">. In order for an asset to be classified as held for sale, the asset must be actively marketed,
        be available for immediate sale and meet certain other specified criteria. At March</font> <font style="COLOR: #000000">29, 2009, the Company had approximately $311,000 of assets classified as held for sale. As of March</font> <font style="COLOR: #000000">29, 2009, approximately $304,000 of such amount represents the carrying value of the Company&rsquo;s real estate and equipment located in Little Elm, Texas. As of March</font> <font style="COLOR: #000000">29, 2009, the remaining $7,000
        of assets held for sale represents miscellaneous trailers and other transportation equipment.</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">(9)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Subsequent Events</b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="COLOR: #000000">On April 22, 2009, the board of directors</font> <font style="COLOR: #000000">of the Company</font> <font style="COLOR: #000000">amended the stock repurchase plan first authorized on May 23, 2007, and previously amended on June 2, 2008, by increasing the aggregate
        number of shares of common stock the Company may repurchase under the plan by 1,000,000 shares to a total of 3,016,000 shares. (See note 3.)</font></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">11</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">&nbsp;</p>

        <p></p>

        <p align="justify">&nbsp;&nbsp;(10)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <strong>Segment Reporting</strong></p>

        <p></p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p align="justify">&nbsp;Summarized in the following tables are net sales and operating revenues, operating income and geographic information (revenues) for the Company&rsquo;s reportable segments for the three month and nine month periods ended March 29, 2009 and March 23, 2008 (in thousands). Operating income reported below excludes income tax provision and discontinued operations.</p>
        </blockquote>

        <p dir="ltr" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421">
                </td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><strong><font face="Times New Roman" size="2">Three Months&nbsp;&nbsp;Ended</font></strong></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><strong><font face="Times New Roman" size="2">Nine Months Ended&nbsp;&nbsp;</font></strong></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421">
                </td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 29,</strong></font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 23,</strong></font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 29,</strong></font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2"><strong>March 23,</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421">
                </td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2009</strong></font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2008</strong></font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2009</strong></font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2008</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;<strong>Net sales and operating revenues:</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Food and equipment distribution</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">9,136</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">10,316</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">28,915</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">32,269</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Franchise and other (2)</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">1,621</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">1,352</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">4,508</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">4,172</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Intersegment revenues</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">175</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">70</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">478</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">230</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">10,932</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">11,738</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">33,901</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">36,671</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Less intersegment revenues</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">(175</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">(70</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">(478</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">(230</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated revenues</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">10,757</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">11,668</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">33,423</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">36,441</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;<strong>Depreciation and amortization:</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Food and equipment distribution</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">-</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">-</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">-</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">2</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Franchise and other (2)</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">45</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">87</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">150</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">226</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">45</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">87</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">150</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">228</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Corporate administration and other</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">34</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">16</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">72</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">47</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">79</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">103</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">222</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">275</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;<strong>Interest expense:</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Food and equipment distribution</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">-</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">-</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">-</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">-</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Franchise and other (2)</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Corporate administration and other</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">17</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">12</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">45</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">40</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">17</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">12</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">45</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">40</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;<strong>Operating income:</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Food and equipment distribution (1)</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">387</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">623</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">1,073</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">1,820</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Franchise and other (1), (2)</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">588</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">529</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">1,631</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">1,574</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Intersegment profit</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">45</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">14</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">115</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">52</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">1,020</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">1,166</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">2,819</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">3,446</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Less intersegment profit</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">(45</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">(14</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">(115</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">(52</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Corporate administration and other</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">(381</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">(428</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">(1,340</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">(1,341</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">594</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">724</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">1,364</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">2,053</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;<strong>Geographic information (revenues):</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td width="19">
                </td>

                <td width="19">
                </td>

                <td width="85">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;United States</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">10,548</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">11,442</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">32,666</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">35,137</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;Foreign countries</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">209</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">226</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">757</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">1,304</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="421"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated total</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">10,757</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">11,668</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">33,423</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">36,441</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left">(1)&nbsp;&nbsp; Does not include full allocation of corporate administration.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="left">(2)&nbsp;&nbsp; Company stores that were closed are included in discontinued</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations in the accompanying Condensed Consolidated Statement of Operations.</p>

        <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="center">&nbsp;</p>
        </div>
        <!-- PAGE BREAK  -->

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">12</font></a>
        </div>

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            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p>Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i>The following discussion should be read in conjunction with the consolidated financial statements, accompanying notes and selected financial data appearing elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K</i> <i>for the year ended June</i> <i>29</i><i>, 200</i><i>8</i><i>,</i> <i>and
        may contain certain forward-looking statements that are based on current management expectations. Generally, verbs in the future tense and the words &ldquo;believe,&rdquo; &ldquo;expect,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;estimate,&rdquo; &ldquo;intends,&rdquo; &ldquo;opinion,&rdquo; &ldquo;potential&rdquo; and similar expressions identify forward-looking statements. Forward-looking statements in this report include, without limitation, statements relating to our business
        objectives, our customers and our franchisees, our liquidity and capital resources, the impact of our historical and potential business strategies on our business, financial condition, and operating results and the expected effects of potentially adverse litigation outcomes. Our actual results could differ materially from our expectations. Further information concerning our business, including additional factors</i> <i>that could cause actual results to differ materially from the
        forward-looking statements contained in this Quarterly Report on Form 10-Q,</i> <i>are</i> <i>set forth</i> <i>in our Annual Report on Form 10-K for the year ended June 2</i><i>9</i><i>, 200</i><i>8</i><i>.</i> <i>These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The forward-looking statements contained herein speak only as of the date of this Quarterly Report on Form 10-Q and, except
        as ma</i><i>y be required by applicable law</i><i>, we do not undertake, and specifically disclaim any obligation to, publicly update or revise such statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.</i></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-STYLE: italic" align="center"><b><i>Results of Operations</i></b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="justify"><b>Overview&nbsp;</b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is a franchisor and food and supply distributor to a system of restaurants operating under the trade name "Pizza Inn." Our distribution division is Norco Restaurant Services Company (&ldquo;Norco&rdquo;). At March 29, 2009, there were 316 domestic and international Pizza Inn restaurants, consisting of two Company-owned domestic
        restaurants, 246 franchised domestic restaurants, and 68 franchised international restaurants. The 248 domestic restaurants consisted of: (i) 152 restaurants that offer dine-in, carry-out, and in many cases, delivery services (&ldquo;Buffet Units&rdquo;); (ii) 40 restaurants that offer delivery and carry-out services only (&ldquo;Delco Units&rdquo;); and (iii) 56 restaurants that are typically located within a convenience store, college campus building, airport terminal, or other
        commercial facility and offer quick carry-out service from a limited menu (&ldquo;Express Units&rdquo;). The 248 domestic restaurants were located in 17 states predominately situated in the southern half of the United States. The 68 international restaurants were located in 10 foreign countries.</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="OLE_LINK2">D</a>iluted income per common share decreased to $0.05 for the three month period ended March 29, 2009 compared to $0.09 for the comparable period ended March 23, 2008.&nbsp; Net income for the three month period ended March 29, 2009 decreased $537,000 to $361,000 from $898,000 for the comparable period in the prior fiscal year, on revenues
        of $10,757,000 for the three month period ended March 29, 2009 and $11,668,000 for the comparable period in the prior fiscal year. Diluted income per common share decreased to $0.09 for the nine month period ended March 29, 2009 compared to $0.21 for the comparable period ended March 23, 2008.&nbsp; Net income for the nine month period ended March 29, 2009 decreased $1,306,000 to $790,000 from $2,096,000 for the comparable period in the prior fiscal year, on revenues of $33,423,000 for
        the nine month period ended March 29, 2009 and $36,441,000 for the comparable period in the prior fiscal year.&nbsp;&nbsp;<br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in net income during the three month period ended March 29, 2009, was primarily due to income tax expense in the current fiscal year compared to an income tax benefit in the prior year. The decrease in net income during the nine month period ended March 29, 2009, was primarily due to income tax expense and a non-recurring legal settlement of $263,000 in the current fiscal year, compared to an income tax benefit and a legal settlement recovered
        in the prior year of $284,000. In the absence of these items, net income would have been $564,000, or $.07 per share, for the three months ended March 29, 2009 compared to $682,000, or $.07 per share, for the same period in the prior year and $1,491,000, or $0.17 per share, for the nine months ended March 29, 2009 compared to $1,596,000, or $0.16 per share, for the same period in the prior year.</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">13</font></a>
        </div>

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        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-STYLE: italic" align="justify"><b><i><font style="FONT-WEIGHT: normal; FONT-STYLE: normal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management believes that key performance indicators in evaluating financial results include domestic chain-wide</font> <font style="FONT-WEIGHT: normal; FONT-STYLE: normal">retail sales and the number and type of operating restaurants. The
        following table summarizes these key performance indicators.</font></i></b></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-STYLE: italic" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-STYLE: italic" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="670">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Three Months Ended&nbsp;&nbsp;</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="670">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="670">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="670"><font face="Times New Roman" size="2">Domestic retail sales Buffet Units (in thousands)</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">28,297</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">28,982</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="670"><font face="Times New Roman" size="2">Domestic retail sales Delco Units (in thousands)</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">2,578</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">2,839</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="670"><font face="Times New Roman" size="2">Domestic retail sales Express Units (in thousands)</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">1,287</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">1,320</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="670"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total domestic retail sales (in thousands)</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">32,162</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">33,141</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td align="left" width="670">&nbsp;</td>

                <td align="left" width="15">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right" width="85">
                </td>

                <td align="left" width="19">
                </td>

                <td align="right" width="19">
                </td>

                <td align="right" width="85">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="670"><font face="Times New Roman" size="2">Average number of domestic Buffet Units</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">152</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">162</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="670"><font face="Times New Roman" size="2">Average number of domestic Delco Units</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">40</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">42</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="670"><font face="Times New Roman" size="2">Average number of domestic Express Units</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">56</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">58</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff" height="13">
                <td align="left" width="670">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="center" colspan="4"><font face="Times New Roman" size="2">Nine Months Ended&nbsp;&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="670">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="670">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="670"><font face="Times New Roman" size="2">Domestic retail sales Buffet Units (in thousands)</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">83,008</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">85,654</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="670"><font face="Times New Roman" size="2">Domestic retail sales Delco Units (in thousands)</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">7,983</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">8,705</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="670"><font face="Times New Roman" size="2">Domestic retail sales Express Units (in thousands)</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">3,826</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">4,443</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="670"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total domestic retail sales (in thousands)</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">94,817</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">98,802</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td align="left" width="670">&nbsp;</td>

                <td align="left" width="15">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right" width="85">
                </td>

                <td align="left" width="19">
                </td>

                <td align="right" width="19">
                </td>

                <td align="right" width="85">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="670"><font face="Times New Roman" size="2">Average number of domestic Buffet Units</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">153</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">162</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="670"><font face="Times New Roman" size="2">Average number of domestic Delco Units</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">40</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">42</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="670"><font face="Times New Roman" size="2">Average number of domestic Express Units</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">55</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">60</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b>Revenues</b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently our revenues are derived from restaurant operations, sales of food, paper products and supplies by Norco to franchisees, franchise royalties and franchise fees. Our financial results are dependent in large part upon the pricing and cost of these products and supplies to franchisees, and the level of chain-wide retail sales, which are driven by
        changes in same store sales and restaurant count. In prior years, our revenues also included the sale of equipment to franchisees.</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="justify"><u><a name="OLE_LINK9">Food and Supply Sales</a></u></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><a name="OLE_LINK5">Food and supply sales by Norco include food and paper products, equipment and other distribution revenues.&nbsp;</a> <a name="OLE_LINK8">Food and supply sales for the three month period ended</a> March 29, 2009 decreased 11%, or $1,180,000, to $9,136,000 from $10,316,000 compared to the same period in the prior fiscal year.&nbsp; For the three month period ended March
        29, 2009, total domestic chain-wide retail sales decreased 3%, or $979,000, compared to the same period in the prior fiscal year due to a lower store count and lower comparable sales. As a result of this decrease in retail sales and a 34% decrease in cheese prices, domestic food and paper sales decreased 11%, or $1,170,000, compared to the same period in the prior fiscal year.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">Food and supply sales for the nine month period ended March 29, 2009 decreased 10% or $3,354,000, to $28,915,000 from $32,269,000 compared to the same period in the prior fiscal year. During the nine month period ended March 29, 2009, international sales and equipment sales decreased by $830,000. For the nine month period ended March 29, 2009, total domestic chain-wide retail sales
        decreased 4%, or $3,985,000, compared to the same period in the prior fiscal year due to a lower store count and lower comparable sales. As a result of this decrease in retail sales and a 14% decrease in cheese prices, domestic food and paper sales decreased 7%, or $2,303,000, compared to the same period in the prior fiscal year.</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">14</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><u><font style="FONT-WEIGHT: normal">Franchise Revenue</font></u></b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise revenue, which includes income from royalties, license fees and area development and foreign master license sales, decreased 11%, or $125,000, to $1,056,000 for the three month period ended March 29, 2009 compared to $1,181,000 in the comparable period for the prior fiscal year. This decrease is primarily attributable to lower domestic royalties
        resulting from lower retail sales compared to the comparable period in the prior fiscal year. Franchise revenues decreased 13%, or $479,000, to $3,164,000 for the nine month period ended March 29, 2009 compared to $3,643,000 for the comparable period in the prior fiscal year. This decrease is primarily attributable to lower international franchise fees and lower domestic royalties resulting from lower retail sales compared to the comparable period in the prior fiscal year. The following
        chart summarizes the major components of franchise revenue (in thousands):</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="664">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="3%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Three Months Ended&nbsp;&nbsp;</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="664">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="664">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="664"><font face="Times New Roman" size="2">Domestic royalties</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">912</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">981</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="664"><font face="Times New Roman" size="2">International royalties</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">129</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">145</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="664"><font face="Times New Roman" size="2">Domestic franchise fees</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">15</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">55</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="664"><font face="Times New Roman" size="2">International franchise fees</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="664"><font face="Times New Roman" size="2">Franchise revenue</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">1,056</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">1,181</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="664">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Nine Months Ended&nbsp;&nbsp;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="664">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="664">
                </td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="664"><font face="Times New Roman" size="2">Domestic royalties</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">2,701</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">2,926</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="664"><font face="Times New Roman" size="2">International royalties</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">379</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">360</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="664"><font face="Times New Roman" size="2">Domestic franchise fees</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">84</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">191</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="664"><font face="Times New Roman" size="2">International franchise fees</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">166</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="664"><font face="Times New Roman" size="2">Franchise revenue</font></td>

                <td align="left" width="15"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">3,164</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">3,643</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><u>Restaurant Sales</u></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">Restaurant sales, which consist of revenue generated by Company-owned restaurants, increased 230%, or $394,000, to $565,000 for the three month period ended March 29, 2009 compared to $171,000 for the comparable period in the prior fiscal year. Restaurant sales increased 154%, or $815,000, to $1,344,000 for the nine month period ended March 29, 2009 compared to $529,000 for the comparable
        period in the prior fiscal year. The Company opened a new store in Denton, Texas on October 15, 2008 accounting for $391,000 of the increase over the same quarter in the prior year and $804,000 of the increase over the prior year to date.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-STYLE: italic" align="justify"><b><i><font style="FONT-STYLE: normal">Costs and Expenses</font></i></b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><u><font style="FONT-WEIGHT: normal">Cost of Sales</font></u></b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">Cost of sales, which includes primarily direct materials, distribution fees and labor directly related to food and supply sales and restaurant sales, decreased 8%, or $725,000, for the three month period ended March 29, 2009 compared to the comparable period for the prior fiscal year. Cost of sales decreased 8%, or $2,296,000, for the nine month period ended March 29, 2009 compared to the
        comparable period in the prior fiscal year. These decreases were primarily the result of lower food and supply sales, distribution fees and payroll costs, as well as lower commodity costs.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">15</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><u><font style="FONT-WEIGHT: normal">Franchise Expenses</font></u></b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">Franchise expenses include selling, general and administrative expenses directly related to the sale and continuing service of domestic and international franchises. These expenses decreased 20%, or $126,000 for the three month period ended March 29, 2009 compared to the comparable period in the prior fiscal year. These expenses decreased 26%, or $503,000 for the nine month period ended
        March 29, 2009 compared to the comparable period for the prior fiscal year. These savings were primarily the result of lower payroll and travel expenses due to eliminated or unfilled positions compared to the same periods in the prior fiscal year. The following chart summarizes the major components of franchise expenses (in thousands):</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="671">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Three Months Ended&nbsp;&nbsp;</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="671">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="87">
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="87">
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="671">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="87">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="87">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="671"><font face="Times New Roman" size="2">Payroll</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="87"><font face="Times New Roman" size="2">356</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="87"><font face="Times New Roman" size="2">446</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="671"><font face="Times New Roman" size="2">Travel</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="87"><font face="Times New Roman" size="2">47</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="87"><font face="Times New Roman" size="2">72</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="671"><font face="Times New Roman" size="2">Other</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="87"><font face="Times New Roman" size="2">94</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="87"><font face="Times New Roman" size="2">105</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="671"><font face="Times New Roman" size="2">Franchise expenses</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="87"><font face="Times New Roman" size="2">497</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="87"><font face="Times New Roman" size="2">623</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="671">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Nine Months Ended&nbsp;&nbsp;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="671">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="87">
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="87">
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="671">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="87">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="87">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="671"><font face="Times New Roman" size="2">Payroll</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="87"><font face="Times New Roman" size="2">927</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="87"><font face="Times New Roman" size="2">1,359</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="671"><font face="Times New Roman" size="2">Travel</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="87"><font face="Times New Roman" size="2">128</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="87"><font face="Times New Roman" size="2">242</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="671"><font face="Times New Roman" size="2">Other</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="87"><font face="Times New Roman" size="2">391</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="87"><font face="Times New Roman" size="2">348</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="671"><font face="Times New Roman" size="2">Franchise expenses</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="28"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="87"><font face="Times New Roman" size="2">1,446</font></td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="87"><font face="Times New Roman" size="2">1,949</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><u>General and Administrative Expenses</u></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">General and administrative expenses increased 22%, or $144,000, to $793,000 for the three month period ended March 29, 2009 compared to $649,000 for the comparable period for the prior fiscal year. General and administrative expenses increased 18%, or $359,000, to $2,336,000 for the nine month period ended March 29, 2009 compared to $1,977,000 for the comparable period
        for the prior fiscal year. The following chart summarizes the major components of general and administrative expenses (in thousands):</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">16</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="667">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Three Months Ended&nbsp;&nbsp;</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="667">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="88">
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="88">
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="667">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="88">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="88">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="667"><font face="Times New Roman" size="2">Payroll</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">345</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">367</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="667"><font face="Times New Roman" size="2">Legal fees</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">70</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">69</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="667"><font face="Times New Roman" size="2">Other professional fees</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">161</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">115</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="667"><font face="Times New Roman" size="2">Insurance and taxes</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">46</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">65</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="667"><font face="Times New Roman" size="2">Company stores</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">51</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">16</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="667"><font face="Times New Roman" size="2">Allocated overhead</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">(267</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">(300</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="667"><font face="Times New Roman" size="2">Occupancy</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">120</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">110</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="667"><font face="Times New Roman" size="2">Other</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">219</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">195</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="667"><font face="Times New Roman" size="2">Stock compensation expense</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="88"><font face="Times New Roman" size="2">48</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="88"><font face="Times New Roman" size="2">12</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="667"><font face="Times New Roman" size="2">General and administrative expenses</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="88"><font face="Times New Roman" size="2">793</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="88"><font face="Times New Roman" size="2">649</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="667">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Nine Months Ended&nbsp;&nbsp;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="667">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="88">
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="88">
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="667">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="88">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="88">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="667"><font face="Times New Roman" size="2">Payroll</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">1,009</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">1,181</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="667"><font face="Times New Roman" size="2">Legal fees</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">143</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">279</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="667"><font face="Times New Roman" size="2">Other professional fees</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">433</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">383</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="667"><font face="Times New Roman" size="2">Insurance and taxes</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">177</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">170</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="667"><font face="Times New Roman" size="2">Company stores</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">201</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">52</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="667"><font face="Times New Roman" size="2">Allocated overhead</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">(739</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">(931</font></td>

                <td align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="667"><font face="Times New Roman" size="2">Occupancy</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">336</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">312</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="667"><font face="Times New Roman" size="2">Other</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">626</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">517</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="667"><font face="Times New Roman" size="2">Stock compensation expense</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="88"><font face="Times New Roman" size="2">150</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="88"><font face="Times New Roman" size="2">14</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="667"><font face="Times New Roman" size="2">General and administrative expenses</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="30"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="88"><font face="Times New Roman" size="2">2,336</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="88"><font face="Times New Roman" size="2">1,977</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">The increase in general and administrative expenses during the three months ended March 29, 2009 was primarily due to the addition of general and administrative expenses associated with the new Company owned store in Denton, Texas, an increase in other professional fees resulting from outsourced purchasing services and the utilization of a site selection service, an increase in stock
        compensation expense related to stock option grants and a reduction in the allocation of overhead to the revenue producing units. These increases were offset by a reduction in payroll due to open and eliminated positions, and reductions in insurance and tax expenses</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">The increase in general and administrative expenses during the nine months ended March 29, 2009 was primarily due to the addition of general and administrative expenses associated with the new Company owned store in Denton, Texas (including pre opening and marketing costs of $87,000), an increase in other professional fees resulting from outsourced purchasing services and
        the utilization of a site selection service, an increase in stock compensation expense related to stock option grants and a reduction in the allocation of overhead to the revenue producing units. These increases were offset by a reduction in payroll due to open and eliminated positions, and a decrease in legal fees.</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><u><font style="FONT-WEIGHT: normal">Provision for Bad Debts</font></u></b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">Provision for bad debt expense decreased 85%, or $85,000, to $15,000 for the three month period ended March 29, 2009 compared to $100,000 for the comparable period in the prior fiscal year. Provision for bad debt expense decreased 62%, or $98,000, to $60,000 for the nine month period ended March 29, 2009 compared to $158,000 for the comparable period for the prior fiscal year. The
        decrease is primarily due to the recording of an additional allowance in the quarter ended March 23, 2008 for a receivable obtained by a default judgment that management determined to be unrealizable.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">17</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p align="justify"><b><u><font style="FONT-WEIGHT: normal">Interest Expense</font></u></b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><a name="OLE_LINK4"></a><a name="OLE_LINK10">Interest expense</a> was relatively unchanged for the three month and nine month periods ended March 29, 2009 from the comparable periods in the prior fiscal year.</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><u><font style="FONT-WEIGHT: normal">Provision for Income Tax</font></u></b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">For the three month and nine month periods ended March 29, 2009, income tax expense of $203,000 and $438,000, respectively, are calculated on an effective income tax rate that is consistent with the statutory U.S. federal income tax rate of 34% adjusted for the state income tax effects and permanent difference items. Management believes that future operations will generate sufficient
        taxable income, along with the reversal of temporary differences, to fully realize the net deferred tax asset of $792,000. The $216,000 net income tax benefit recorded during the three months ended March 23, 2008 was due to the release of a valuation allowance offset by the provision for the 2008 federal and state income tax obligations and the utilization of the Company&rsquo;s net operating loss.</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b>Discontinued Operations</b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations includes losses from two Company-owned stores closed in Houston, Texas during the quarter ended September 23, 2007. Below is a summary of discontinued operations (in thousands):</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="681">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Three Months Ended&nbsp;&nbsp;&nbsp;</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="681">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="681">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="681"><font face="Times New Roman" size="2">Sales</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="right"><font face="Times New Roman" size="2">&nbsp;$</font></p>
                </td>

                <td width="85">
                    <p align="right"><font face="Times New Roman" size="2">--</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">-</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="681"><font face="Times New Roman" size="2">Cost of Sales</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="right"><font face="Times New Roman" size="2">--</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="681"><font face="Times New Roman" size="2">General and Administrative</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="right"><font face="Times New Roman" size="2">30</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">42</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="681"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total loss from discontinued operations</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="right"><font face="Times New Roman" size="2">&nbsp;$</font></p>
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" width="85">
                    <p align="right"><font face="Times New Roman" size="2">&nbsp;(30</font></p>
                </td>

                <td valign="middle" align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">(42</font></td>

                <td valign="middle" align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <td colspan="3">&nbsp;</td>

                <td colspan="2">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="2">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="681">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="2">Nine Months Ended&nbsp;&nbsp;&nbsp;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" height="13">
                <td align="left" width="681">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 29,</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="2">March 23,</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="681">
                </td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2009</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="681"><font face="Times New Roman" size="2">Sales</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="right"><font face="Times New Roman" size="2">&nbsp;$</font></p>
                </td>

                <td width="85">
                    <p align="right"><font face="Times New Roman" size="2">--</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">62</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="681"><font face="Times New Roman" size="2">Cost of Sales</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="85">
                    <p align="right"><font face="Times New Roman" size="2">--</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">24</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="681"><font face="Times New Roman" size="2">General and Administrative</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="right"><font face="Times New Roman" size="2">136</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">211</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="681"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total loss from discontinued operations</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="right"><font face="Times New Roman" size="2">&nbsp;$</font></p>
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" width="85">
                    <p align="right"><font face="Times New Roman" size="2">&nbsp;(136</font></p>
                </td>

                <td valign="middle" align="left" width="19"><font face="Times New Roman" size="2">)</font></td>

                <td align="right" width="19"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="2">(173</font></td>

                <td valign="middle" align="left"><font face="Times New Roman" size="2">)</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b>Restaurant Openings and Closings</b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the three month period ended March 29, 2009, two new domestic Express Units and three international Units were opened by Pizza Inn franchisees. Seven domestic restaurants were closed by franchisees (four Buffet Units and three Express Units) and three international restaurants were closed, typically because of unsatisfactory standards of operation or
        poor performance. We do not believe that these closings had any material impact on the collectibility of our outstanding receivables and royalties due to us because (i) these amounts have been reserved for or are otherwise collectable and (ii) these closed restaurants were generally lower volume restaurants whose financial impact on our business as a whole was not significant. For those restaurants that are anticipated to close or are exhibiting signs of financial distress, credit terms
        are typically restricted, weekly food orders are required to be paid for on delivery and/or with certified funds and royalty and advertising fees are collected as add-ons to the delivered price of weekly food orders.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">18</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">The following charts summarize restaurant activity for the three and nine month periods ended March 29, 2009 and March 23, 2008:</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="80%" border="0">
            <tr>
                <td align="left" colspan="5"><font size="2">Three months ended March 29, 2009</font></td>

                <td align="left" width="4%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="12%">
                </td>

                <td align="left" width="4%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="12%">
                </td>

                <td align="left" width="4%">
                </td>

                <td align="right" width="1%">
                </td>

                <td width="12%">
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td align="left" width="30%">&nbsp;</td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="3%">
                </td>

                <td align="right" width="1%">
                </td>

                <td width="12%">
                </td>

                <td align="left" width="4%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="12%">
                </td>

                <td align="left" width="4%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="12%">
                </td>

                <td align="left" width="4%">
                </td>

                <td align="right" width="1%">
                </td>

                <td width="12%">
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="30%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="3%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="12%">
                    <p align="center"><font face="Times New Roman" size="2">Beginning</font></p>
                </td>

                <td align="left" width="4%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12%">
                </td>

                <td align="left" width="4%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="12%">
                </td>

                <td align="left" width="4%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="12%">
                    <p align="center"><font face="Times New Roman" size="2">End of</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">Domestic</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">of Period</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Opened</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Closed</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Period</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Buffet Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">156</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">4</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">152</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Delco Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">40</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">40</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Express Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">57</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">2</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">3</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">56</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">International Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">68</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">3</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">3</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">68</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">Total</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">321</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">5</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">10</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">316</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3"><font size="2">Three months ended March 23, 2008</font></td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="2">Beginning</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="2">End of</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">Domestic</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">of Period</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Opened</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Closed</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Period</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Buffet Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">165</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">1</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">5</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">161</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Delco Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">42</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">1</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">41</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Express Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">59</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">1</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">2</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">58</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">International Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">75</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">1</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">74</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">Total</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">341</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">2</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">9</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">334</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3"><font size="2">Nine months ended March 29, 2009</font></td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="2">Beginning</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="2">End of</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">Domestic</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">of Period</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Opened</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Closed</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Period</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Buffet Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">158</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">3</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">9</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">152</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Delco Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">41</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">1</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">2</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">40</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Express Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">56</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">6</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">6</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">56</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">International Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">68</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">4</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">4</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">68</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">Total</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">323</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">14</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">21</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">316</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3"><font size="2">Nine months ended March 23, 2008</font></td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="2">Beginning</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="2">End of</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman" size="2">Domestic</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">of Period</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Opened</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Closed</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="2">Period</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Buffet Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">166</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">6</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">11</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">161</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Delco Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">42</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">--</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">1</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">41</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Express Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">68</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">1</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">11</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">58</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">International Units</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">77</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">3</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">6</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">74</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman" size="2">Total</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">353</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">10</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">29</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">334</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><i>Liquidity and Capital Resources</i></b></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary sources of liquidity are cash flows from operating activities and use of our credit facilities from time to time.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">19</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash flows from operating activities generally reflect net income adjusted for depreciation and amortization, changes in working capital and accrued expenses. In the nine month period ended March 29, 2009, cash provided by operations was $1,105,000 as compared to cash provided by operating activities of $1,057,000 in the comparable period for the prior year. This increase in cash provided by operating activities was due to an increase in accounts receivable
        collections and less prepaid expenditures from the prior year, offset by lower adjusted net income and a decrease in the Company&rsquo;s trade payables and accrued expense balances.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">Cash flows</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">from investing activities</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">generally reflect capital expenditures for</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">the purchase of Company assets. The Company used</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">cash of
        $984,000 for the nine</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">month</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">period</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">ended </font>March 29, 2009, <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">primarily for a</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">new Company store that</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">opened in Denton, Texas</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">and for
        computer upgrades</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">to its corporate systems.</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">This compares</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">to cash provided</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">by</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">investing activities of $12,000</font> <a name="_DV_C139"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">from</font></a>
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">the proceeds of assets sold of $108,000 less expenditures of $96,000 for computer and related equipment for the same</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">period </font><a name="_DV_M143"></a><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">in the prior</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">fiscal year.&nbsp;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Cash flows from financing activities generally reflect changes in the Company's borrowings during the period</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">and</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">repurchases of outstanding shares of
        our common stock. Net</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">cash used</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">for</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">financing activities was $939,000</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">the nine</font>
        <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">month period ended </font>March 29, 2009 <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">compared to</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">cash used of</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$1,935,000 </font><a name="_DV_C142"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">for the comparable period</font></a><a name="_DV_M146"></a>
        </font><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">in the prior fiscal year.</font> This reduction in cash used by financing activities was due to borrowing $527,000 on the line of credit and a reduction in repurchases of outstanding stock outstanding.</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">Management believes that future operations will generate sufficient taxable income, along with the reversal of temporary differences, to fully realize the net deferred tax asset of $792,000 without reliance on material non-routine income.</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 23, 2007, the Company and The CIT Group / Commercial Services, Inc. (&ldquo;CIT&rdquo;) entered into an agreement for a revolving credit facility of up to $3.5 million (the &ldquo;CIT Credit Facility&rdquo;). CIT may terminate the CIT Credit Facility only as
        of January 23, 2012 or the same date any year thereafter, and then only by giving the Company at least 90 days prior written notice of such termination. The actual availability on the CIT Credit Facility is determined by advance rates on eligible inventory and accounts receivable. Interest on borrowings outstanding on the CIT Credit Facility is at a rate equal to the prime rate plus an interest rate margin of 0.0% to 0.5% or, at the Company&rsquo;s option, at the LIBOR rate plus an
        interest rate margin of 2.0% to 3.0%. The specific interest rate margin is based on the Company&rsquo;s performance under certain financial ratio tests. An annual commitment fee is payable on any unused portion of the CIT Credit Facility at a rate of 0.375%. All of the Company&rsquo;s (and its subsidiaries&rsquo;) personal property assets (including, but not limited to, accounts receivable, inventory, equipment, and intellectual property) have been pledged to secure payment and
        performance of the CIT Credit Facility, which is subject to customary covenants for asset-based loans. </font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">On June 27, 2007, the Company and CIT entered into an agreement to amend the CIT Credit Facility to (i) allow the Company to repurchase Company stock in an amount up to $3,000,000, (ii) allow the Company to make permitted cash distributions or cash dividend payments to the Company&rsquo;s shareholders in the ordinary course of
        business and (iii) increase the aggregate capital expenditure limit from $750,000 to $3,000,000 per fiscal year. On May 30, 2008, the Company again amended the CIT Credit Facility to permit the Company to repurchase up to $7,000,000 of the Company&rsquo;s common stock. As of March 29, 2009, $527,000 was outstanding on the CIT Credit Facility at an interest rate of 3.5% and one letter of credit for approximately $230,000 was outstanding to reinsurers to secure loss reserves.</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; COLOR: #000000; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management believes the cash on hand, combined with cash from operations and available credit facilities is sufficient to fund operations for the next 12 months.</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b>Contractual Obligations and Commitments</b></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">On August&nbsp;15, 2007, the Company&rsquo;s then President and CEO, Tim Taft, submitted to the Company&rsquo;s Board of Directors his written notice of resignation as a director and officer of the Company, effective immediately. In connection with Mr.&nbsp;Taft&rsquo;s separation from the Company, the Company agreed to pay severance of
        $300,000 (representing one year of salary), in twelve equal monthly installments. This amount was recorded as severance expense in the quarter ended September 23, 2007.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">20</font></a>
        </div>

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            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b>Critical Accounting Policies and Estimates</b></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><a name="_DV_C195">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</a> The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company&rsquo;s management to make estimates and assumptions that affect our reported amounts of assets, liabilities, revenues, expenses and related
        disclosure of contingent liabilities. The Company bases its estimates on historical experience and various other assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically. Actual results could differ materially from estimates.</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes the following critical accounting policies require estimates about the effect of matters that are inherently uncertain, are susceptible to change, and therefore require subjective judgments. Changes in the estimates and judgments could significantly impact the Company&rsquo;s results of
        operations and financial condition in future periods.</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable consist primarily of receivables generated from food and supply sales to franchisees and franchise royalties. The Company records an allowance for doubtful receivables to allow for any amounts which may be uncollectible based upon an analysis of the Company&rsquo;s prior collection experience,
        general customer creditworthiness and the franchisee&rsquo;s ability to pay, as reflected by the franchisee&rsquo;s sales and operating results, and other general and local economic trends. Actual realization of amounts receivable could differ materially from the Company&rsquo;s estimates.</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory, which consists primarily of food, paper products and supplies primarily warehoused by the Company&rsquo;s third-party distributors, is stated at lower of cost or market, with cost determined according to the weighted average cost method. The valuation of inventory requires us to estimate the amount of
        obsolete and excess inventory. The determination of obsolete and excess inventory requires us to estimate the future demand for the Company&rsquo;s products within specific time horizons, generally six months or less. If the Company&rsquo;s demand forecast for specific products is greater than actual demand and the Company fails to reduce purchasing accordingly, the Company could be required to write down additional inventory, which would have a negative impact on the Company&rsquo;s
        gross margin.</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">As of June 24, 2007 we had recorded a valuation allowance based on our assessment that the realization of a portion of our net deferred tax assets did not meet the &ldquo;more likely than not&rdquo; criterion under SFAS No. 109, &ldquo;<i>Accounting for Income Taxes.</i>&rdquo; During the third quarter of fiscal 2008, we determined that based
        upon a number of factors, including our cumulative taxable income in recent quarters and our expected profitability in future years, substantially all of our net deferred tax assets are &ldquo;more likely than not&rdquo; realizable through future earnings. The entire valuation allowance was released as a result of the determination.</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">The Company assesses its exposures to loss contingencies, including legal matters, based upon factors such as the current status of the cases and consultations with external counsel and accrues a reserve if a loss is judged to be probable and can be reasonably estimated. If the actual loss from a contingency differs from management&rsquo;s
        estimate, operating results could be impacted.</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="center"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b>Recent Accounting Pronouncements</b></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">In February 2007, the FASB issued SFAS No. 159, <i>Fair Value Option for Financial Assets and Financial</i> <i>Liabilities</i>. SFAS No. 159 permits entities to choose to measure many financial instruments, including employee stock option plans and operating leases accounted for in accordance with SFAS No. 13, <i>Accounting for
        Leases</i>, at their fair value. This Statement is effective as of the beginning of an entity&rsquo;s first fiscal year that begins after November 15, 2007. The Company has chosen not to change the valuation method of any of its financial assets or liabilities.</font></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">21</font></a>
        </div>

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            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">In December 2007, the FASB issued SFAS No. 141 (Revised), <i>Business Combinations</i>. SFAS No. 141(R) improves the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial reports about a business combination and requires an acquirer to recognize the
        assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date. This Statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The adoption of this Statement is not expected to have a material impact on the Company&rsquo;s financial position or results of
        operations.</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">In December 2007, the FASB issued SFAS No. 160<i>, Noncontrolling Interests in Consolidated Financial</i> <i>Statements</i>. SFAS No. 160 amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary and clarifies that a noncontrolling
        interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. This statement is effective for fiscal years beginning on or after December 15, 2008. The adoption of this Statement is not expected to have a material impact on the Company&rsquo;s financial position or results of operations.</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">In March 2008, the FASB issued SFAS No. 161, <i>Disclosures about Derivative Instruments and Hedging</i> <i>Activities</i>, <i>an Amendment of FASB Statement No. 133</i>. SFAS No. 161 amends SFAS No. 133 and requires entities to enhance their disclosures about (a) how and why an entity uses derivative instruments, (b) how
        derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entity&rsquo;s financial position, financial performance, and cash flows. SFAS No. 161 is effective for fiscal years beginning on or after November 15, 2008. The adoption of this Statement is not expected to have a material impact on the Company&rsquo;s financial position or results of
        operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><u>Item 3. Quantitative and Qualitative Disclosures</u> <u>About</u> <u>Market Risk</u></b></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="COLOR: #000000">Not applicable to smaller reporting company.</font></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><u>Item 4</u></b><b><u>T</u></b><b><u>. Controls and Procedures</u></b></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">The Company maintains disclosure controls and procedures designed to ensure that information it is required to disclose in the reports filed or submitted under the Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;) is recorded, processed, summarized, and reported within the time periods specified in the SEC&rsquo;s rules and
        forms. The Company&rsquo;s disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act is accumulated and communicated to the Company&rsquo;s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">The Company&rsquo;s management, including the Company&rsquo;s</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">principal executive officer and principal financial officer, or persons performing similar functions, have evaluated the Company&rsquo;s disclosure controls and procedures as of the end
        of the period covered by this report. Based on such evaluation, the Company&rsquo;s principal executive and principal financial officers, or persons</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">performing similar functions, have concluded that the Company&rsquo;s</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">disclosure controls and procedures were effective as of the end of the period covered by this report.</font> During the most recent fiscal quarter, there have been no
        changes in the Company&rsquo;s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company&rsquo;s internal control over financial reporting.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">22</font></a>
        </div>

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            <hr width="100%" color="#000000" size="2">
        </div>

        <p align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b>PART II. OTHER INFORMATION</b></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; TEXT-DECORATION: underline" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><u>Item 1. Legal Proceedings</u></b></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 18px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-SIZE: 10pt">In August 2006, a franchisee and its guarantors, who operated one franchise in Harlingen, Texas in 2003 and 2004, filed an initial action against the Company in the Eastern District Court of Texas, Marshall Division. The Company moved for, and the Eastern District granted, a transfer of the action
        to U.S. District Court, Northern District of Texas, Dallas Division.&nbsp;&nbsp; Once in the Northern District Court, the parties filed (and the Court entered) an Agreed Stipulation of Dismissal.&nbsp; On February 1, 2008, Plaintiffs re-filed their lawsuit in the 44th Judicial District County, in Dallas County, Texas. In their amended petition, Plaintiffs asserted a breach of contract claim against&nbsp;the Company, alleging that&nbsp;the Company breached its franchise agreement by not
        allowing Plaintiffs to use alternative building materials and equipment used to finish out Plaintiffs&rsquo; restaurant. Plaintiffs sought approximately $768,000 in damages from&nbsp;the Company. The Company answered, denying all claims, and filed a counterclaim against Plaintiffs for (i) breach of the franchise agreement., (ii) breach of guaranty and (iii) recovery of attorney fees.&nbsp; Effective January 12, 2009, we entered into an agreement to settle all claims, whereby&nbsp;the
        Company paid $209,834.12 to Plaintiffs, and the parties exchanged mutual releases.</font></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="COLOR: #000000">Except as reported</font> <font style="COLOR: #000000">herein, there have been no material developments</font> <font style="COLOR: #000000">in the nine</font> <font style="COLOR: #000000">month period ended March</font> <font style="COLOR: #000000">29, 2009</font> <font style="COLOR: #000000">in any
        material</font> <font style="COLOR: #000000">pending</font> <font style="COLOR: #000000">legal proceedings to which</font> <font style="COLOR: #000000">the Company</font> <font style="COLOR: #000000">or any of its subsidiaries is a party or of which any of their property is subject.</font></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><u><b><font style="COLOR: #000000">Item 1A.</font></b> <b><font style="COLOR: #000000">Risk Factors</font></b></u></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">Not applicable to smaller reporting company.</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><u><b>Item 2.</b> <b>Unregistered Sales of Equity</b></u> <b><u>Securities and the Use of Proceeds</u>&nbsp;</b> </font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="OLE_LINK7">On May 23, 2007,</a> the board of directors of the Company approved a stock purchase plan (the &ldquo;2007 Stock Purchase Plan&rdquo;) authorizing the purchase of up to 1,016,000 shares of the Company&rsquo;s common stock in the open market or in privately negotiated
        transactions. On June 2, 2008, the Company&rsquo;s board of directors amended the 2007 Stock Purchase Plan to increase the number of shares the Company may repurchase by 1,000,000 shares to a total of 2,016,000 shares. On April 22, 2009, the board of directors further amended the 2007 Stock Purchase Plan by increasing the aggregate number of shares the Company may repurchase by 1,000,000 shares to a total of 3,016,000 shares. The 2007 Stock Purchase Plan does not have an expiration
        date. The following table furnishes information for purchases made pursuant to the 2007 Stock Purchase Plan during the third quarter of fiscal 2009:</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b>ISSUER PURCHASES OF EQUITY SECURITIES</b></font></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="253">
                </td>

                <td align="left" width="50"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="145">
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="100">
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="center"><font face="Times New Roman" size="2">Cum. Number of</font></p>
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="center"><font face="Times New Roman" size="2">Maximum Number</font></p>
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="253">
                </td>

                <td align="left" width="50"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="145">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="100">
                    <p align="center"><font face="Times New Roman" size="2">Average</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="center"><font face="Times New Roman" size="2">Shares Purchased</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="center"><font face="Times New Roman" size="2">of Shares that May</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="253">
                </td>

                <td align="left" width="50"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="center"><font face="Times New Roman" size="2">Total Number Of</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="100">
                    <p align="center"><font face="Times New Roman" size="2">Price Paid</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="center"><font face="Times New Roman" size="2">as Part of Publicly</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="center"><font face="Times New Roman" size="2">Yet Be Purchased</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td style="BORDER-BOTTOM: black 1px solid" width="253">
                    <p align="center"><font face="Times New Roman" size="2">Period</font></p>
                </td>

                <td align="left" width="50"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="145">
                    <p align="center"><font face="Times New Roman" size="2">Shares Purchased</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="100">
                    <p align="center"><font face="Times New Roman" size="2">Per Share</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="145">
                    <p align="center"><font face="Times New Roman" size="2">Announced Plan</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="145">
                    <p align="center"><font face="Times New Roman" size="2">Under The Plans *</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="253"><font face="Times New Roman" size="2">12/29/2008 - 2/1/2009</font></td>

                <td align="left" width="50"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="145"><font face="Times New Roman" size="2">87,683</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="100"><font face="Times New Roman" size="2">1.66</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="right"><font face="Times New Roman" size="2">1,650,418</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="right"><font face="Times New Roman" size="2">365,582</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="253"><font face="Times New Roman" size="2">2/2/2009 - 3/1/2009</font></td>

                <td align="left" width="50"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="145"><font face="Times New Roman" size="2">5,094</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="100"><font face="Times New Roman" size="2">1.15</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="right"><font face="Times New Roman" size="2">1,655,512</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="right"><font face="Times New Roman" size="2">360,488</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="253"><font face="Times New Roman" size="2">3/2/2009 - 3/29/2009</font></td>

                <td align="left" width="50"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="145"><font face="Times New Roman" size="2">130,282</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="100"><font face="Times New Roman" size="2">1.09</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="right"><font face="Times New Roman" size="2">1,785,794</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="145">
                    <p align="right"><font face="Times New Roman" size="2">230,206</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" width="253">
                </td>

                <td align="left" width="50">
                </td>

                <td align="left" width="12">
                </td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="145">&nbsp;</td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="100">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left" width="145">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" width="145">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="253">
                </td>

                <td align="left" width="50"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="12"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="145"><font face="Times New Roman" size="2">223,059</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="100"><font face="Times New Roman" size="2">1.32</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="145"><font face="Times New Roman" size="2">Cum. Average Price</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="145">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left">* does not include shares authorized on April 22, 2009</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="left">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">23</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">The Company&rsquo;s ability to purchase shares of its common stock is subject to various laws, regulations and policies as well as the rules and regulations of the SEC. Subsequent to March 29, 2009, the Company has purchased an additional 257,100 shares at an average price of $1.20 per share.</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; TEXT-DECORATION: underline" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><u>Item 3. Defaults upon Senior Securities</u></b></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><u>Item 4. Submission of Matters to a Vote of Security Holders</u></b></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><u>Item 5. Other Information<br>
        <br>
        </u></b></font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="FONT-WEIGHT: normal">Not applicable.</font></b></font></p>

        <p></p>

        <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
            &nbsp;
        </div>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">24</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><u>Item 6. Exhibits</u></b></font></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="2">
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="right" width="1%"><font face="Times New Roman" size="2">3.1</font></td>

                <td align="left" width="2%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td width="94%">
                    <p align="justify"><font face="Times New Roman" size="2">Restated Articles of Incorporation (filed as Item 3.2 to Form 10-K for the fiscal year ended June 25, 2006 filed on November 30, 2006 and incorporated herein by reference)</font></p>
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td valign="top" align="right">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="right"><font face="Times New Roman" size="2">3.2</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">Amended and Restated Bylaws (filed as Item 3.1 to Form 10-K for the fiscal year ended June 25, 2006 and incorporated herein by reference)</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">31.1</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
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                </td>

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                <td align="left">
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                <td align="left">&nbsp;</td>

                <td align="left">
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                </td>

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                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">31.2</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
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                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

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                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">32.1</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">Section 1350 Certification of Principal Executive Officer.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
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                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

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                </td>
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                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="2">32.2</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">Section 1350 Certification of Principal Financial Officer.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><u><br>
        </u></b></font>

        <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="center">&nbsp;</p>
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            <a name="PAGENUM"><font face="Times New Roman" size="2">25</font></a>
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        <p align="center"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><u>SIGNATURES</u></b></font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</font></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="2%">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="2">&nbsp;PIZZA INN, INC.</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="2">&nbsp;(Registrant)</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="3">&nbsp;</td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="3">&nbsp;</td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="3">&nbsp;</td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="3">&nbsp;</td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="2">&nbsp;By: </font></td>

                <td align="left" width="419"><font face="Times New Roman" size="2">/<u>s/ Charles R. Morrison</u></font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="419"><font face="Times New Roman" size="2">Charles R. Morrison</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="419"><font face="Times New Roman" size="2">President and Chief</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="419"><font face="Times New Roman" size="2">Executive Officer</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="419"><font face="Times New Roman" size="2">(Principal Executive Officer)</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

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                </td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">&nbsp;</td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="2">&nbsp;By: </font></td>

                <td align="left" width="419"><font face="Times New Roman" size="2"><u>/s/ Nancy Ellefson</u></font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="419"><font face="Times New Roman" size="2">Nancy Ellefson</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="419"><font face="Times New Roman" size="2">Vice President and Principal</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="419"><font face="Times New Roman" size="2">Accounting Officer</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left" width="456"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="419"><font face="Times New Roman" size="2">(Principal Financial Officer)</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>

        <p><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="FONT-FAMILY: 'CG TIMES'">&nbsp; </font></font></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TIMES NEW'" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><font style="FONT-FAMILY: 'CG TIMES'">Dated: May</font> <font style="FONT-FAMILY: 'CG TIMES'">11, 2009</font></font></p>

        <p></p>

        <p></p>

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            &nbsp;
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>pizza10qex311032909.htm
<TEXT>
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        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b>Exhibit 31.1</b></font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b>CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER</b></font></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Pursuant to </font></b><b><a name="_DV_C256"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">Section 302</font></a></b><b><a name="_DV_M224"></a> of the Sarbanes-Oxley Act of 2002</b></font></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td align="left" colspan="7"><font size="2">I, Charles R. Morrison, Chief Executive Officer of Pizza Inn, Inc. (the &ldquo;Company&rdquo;) certify that:</font></td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="1%">
                </td>
            </tr>

            <tr>
                <td align="left" width="4">
                </td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="1%">
                </td>

                <td align="left" colspan="4">&nbsp;</td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="1%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="4"><font face="Times New Roman" size="2">1.</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" colspan="4"><font face="Times New Roman" size="2">I have reviewed this quarterly report on Form 10-Q of the Company;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" colspan="4">&nbsp;</td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td valign="top" align="left"><font face="Times New Roman" size="2">2.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="justify"><font face="Times New Roman" size="2">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;&nbsp;&nbsp;</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" colspan="4">&nbsp;</td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td valign="top" align="left"><font face="Times New Roman" size="2">3.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="justify"><font face="Times New Roman" size="2">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;&nbsp;&nbsp;</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" colspan="4">&nbsp;</td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td valign="top" align="left"><font face="Times New Roman" size="2">4.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="justify"><font face="Times New Roman" size="2">The Company&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:&nbsp;&nbsp;</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left"><font face="Times New Roman" size="2">a.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left"><font face="Times New Roman" size="2">b.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left"><font face="Times New Roman" size="2">c.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">Evaluated the effectiveness of the Company&rsquo;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left"><font face="Times New Roman" size="2">d.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">Disclosed in this report any change in the Company&rsquo;s internal control over financial reporting that occurred during the Company&rsquo;s most recent fiscal quarter (the Company&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company&rsquo;s internal control over financial reporting; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" colspan="4">&nbsp;</td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td valign="top" align="left"><font face="Times New Roman" size="2">5.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="justify"><font face="Times New Roman" size="2">The Company&rsquo;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company&rsquo;s auditors and the audit committee of the Company&rsquo;s board of directors (or persons performing the equivalent functions):&nbsp;&nbsp;</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left"><font face="Times New Roman" size="2">a.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company&rsquo;s ability to record, process, summarize and report financial information; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left"><font face="Times New Roman" size="2">b.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company&rsquo;s internal control over financial reporting.</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td valign="top" width="39%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Date: May 11, 2009</p>
                </td>

                <td valign="top" width="3%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>
                </td>

                <td valign="top" width="4%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">By:</p>
                </td>

                <td valign="top" width="54%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><u><font style="FONT-FAMILY: 'CG TIMES'">/s/ Charles R. Morrison </font></u><br>
                    Charles R. Morrison<br>
                    President and Chief Executive Officer<br>
                    (Principal Executive Officer)</p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>
        <br>
    </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>pizza10qex312032909.htm
<TEXT>
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        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
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        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b>E</b><b>xhibit 31.2<br>
        &nbsp;</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER<br>
        Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td align="left" colspan="7"><font size="2">I, Nancy Ellefson, Vice President of Finance and Principal Accounting Officer of Pizza Inn, Inc. (the &ldquo;Company&rdquo;) certify that:</font></td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="1%">
                </td>
            </tr>

            <tr>
                <td align="left" width="4">
                </td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="9">
                </td>

                <td align="left" colspan="4">&nbsp;</td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="1%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="4"><font face="Times New Roman" size="2">1.</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" colspan="4"><font face="Times New Roman" size="2">I have reviewed this quarterly report on Form 10-Q of the Company;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" width="9">
                </td>

                <td align="left" colspan="4">&nbsp;</td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td valign="top" align="left"><font face="Times New Roman" size="2">2.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="justify"><font face="Times New Roman" size="2">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;&nbsp;&nbsp;</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" width="9">
                </td>

                <td align="left" colspan="4">&nbsp;</td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td valign="top" align="left"><font face="Times New Roman" size="2">3.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="justify"><font face="Times New Roman" size="2">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;&nbsp;&nbsp;</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" width="9">
                </td>

                <td align="left" colspan="4">&nbsp;</td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td valign="top" align="left"><font face="Times New Roman" size="2">4.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="justify"><font face="Times New Roman" size="2">The Company&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:&nbsp;&nbsp;</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" width="9">
                </td>

                <td valign="top" align="left" width="11">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left" width="11"><font face="Times New Roman" size="2">a.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" width="9">
                </td>

                <td valign="top" align="left" width="11">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left" width="11"><font face="Times New Roman" size="2">b.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" width="9">
                </td>

                <td valign="top" align="left" width="11">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left" width="11"><font face="Times New Roman" size="2">c.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">Evaluated the effectiveness of the Company&rsquo;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" width="9">
                </td>

                <td valign="top" align="left" width="11">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left" width="11"><font face="Times New Roman" size="2">d.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">Disclosed in this report any change in the Company&rsquo;s internal control over financial reporting that occurred during the Company&rsquo;s most recent fiscal quarter (the Company&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company&rsquo;s internal control over financial reporting; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td valign="top" align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" width="9">
                </td>

                <td align="left" colspan="4">&nbsp;</td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td valign="top" align="left"><font face="Times New Roman" size="2">5.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td colspan="4">
                    <p align="justify"><font face="Times New Roman" size="2">The Company&rsquo;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company&rsquo;s auditors and the audit committee of the Company&rsquo;s board of directors (or persons performing the equivalent functions):&nbsp;&nbsp;</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" width="9">
                </td>

                <td valign="top" align="left" width="11">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left" width="11"><font face="Times New Roman" size="2">a.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company&rsquo;s ability to record, process, summarize and report financial information; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left" width="9">
                </td>

                <td valign="top" align="left" width="11">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="9"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td valign="top" align="left" width="11"><font face="Times New Roman" size="2">b.</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="2">Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company&rsquo;s internal control over financial reporting.</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>
        <br>
        <br>


        <p></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td valign="top" width="39%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Date: May 11, 2009</p>
                </td>

                <td valign="top" width="3%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>
                </td>

                <td valign="top" width="4%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">By:</p>
                </td>

                <td valign="top" width="54%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><u><font style="FONT-FAMILY: 'CG TIMES'">/s/</font> <font style="FONT-FAMILY: 'CG TIMES'">Nancy Ellefson</font></u></p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Nancy Ellefson</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Vice President and Principal Accounting Officer</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">(Principal Financial Officer)</p>
                </td>
            </tr>
        </table>
        <br>
        <br>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>pizza10qex321032909.htm
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; TEXT-DECORATION: underline" align="justify"><b><u>Exhibit 32.1</u></b></p>

        <p></p>

        <p style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED<br>
        Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002 </font></b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font size="2">Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Pizza Inn, Inc. (the &ldquo;Company&rdquo;), does hereby certify, to such officer&rsquo;s knowledge, that:</font></p>

        <p></p>

        <p style="MARGIN: 0pt 0.5in; TEXT-INDENT: 36px" align="justify"><font size="2">The accompanying Quarterly Report on Form 10-Q for the quarter ended March 29, 2009 (the &ldquo;Form 10-Q&rdquo;) of the Company fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of,
        and for, the periods presented in the Form 10-Q.</font></p>

        <p></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td valign="top" width="39%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Date: May 11, 2009</p>
                </td>

                <td valign="top" width="3%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>
                </td>

                <td valign="top" width="3%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">By:</p>
                </td>

                <td valign="top" width="54%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-FAMILY: 'CG TIMES'">/<u>s/</u></font> <u><font style="FONT-FAMILY: 'CG TIMES'">Charles R. Morrison</font></u></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font size="2">Charles R. Morrison</font></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font size="2">President and Chief</font></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font size="2">Executive Officer</font></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font size="2">(Principal Executive Officer)</font></p>
                </td>
            </tr>
        </table>
        <br>
        <br>


        <p></p>

        <p align="justify"><font size="2">The foregoing certification is being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of
        the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.<br>
        </font></p>
    </body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>pizza10qex322032909.htm
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <p style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt" size="3"><strong><u>Exhibit 32.2</u></strong></font></p>

        <p style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED<br>
        Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002 </font></b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font size="2">Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Pizza Inn, Inc. (the &ldquo;Company&rdquo;), does hereby certify, to such officer&rsquo;s knowledge, that:</font></p>

        <p></p>

        <p style="MARGIN: 0pt 0.5in; TEXT-INDENT: 36px" align="justify"><font size="2">The accompanying Quarterly Report on Form 10-Q for the quarter ended March 29, 2009 (the &ldquo;Form 10-Q&rdquo;) of the Company fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of,
        and for, the periods presented in the Form 10-Q.</font></p>

        <p></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td valign="top" width="39%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Date: May 11, 2009</p>
                </td>

                <td valign="top" width="3%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>
                </td>

                <td valign="top" width="4%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">By:</p>
                </td>

                <td valign="top" width="54%">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><u><font style="FONT-FAMILY: 'CG TIMES'">/s/</font> <font style="FONT-FAMILY: 'CG TIMES'">Nancy Ellefson</font></u></p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Nancy Ellefson</p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font size="2">Vice President and Principal Accounting Officer</font></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font size="2">(Principal Financial Officer)</font></p>
                </td>
            </tr>

            <tr>
                <td valign="top" width="39%">&nbsp;</td>

                <td valign="top" width="3%">&nbsp;</td>

                <td valign="top" width="4%">&nbsp;</td>

                <td valign="top" width="54%">&nbsp;</td>
            </tr>
        </table>
        <br>
        <br>


        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font size="2">The foregoing certification is being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange
        Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.</font></p>
    </body>
</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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