-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 SaBsHTcCfAoUsTeDNZjiE3EUsW+2Be2MO3qZuYSTybgp5a+N/B6SWXhtAJ1gnlng
 xThYni3DghYnAdqwutJkug==

<SEC-DOCUMENT>0001010549-09-000728.txt : 20091105
<SEC-HEADER>0001010549-09-000728.hdr.sgml : 20091105
<ACCEPTANCE-DATETIME>20091105164046
ACCESSION NUMBER:		0001010549-09-000728
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20090927
FILED AS OF DATE:		20091105
DATE AS OF CHANGE:		20091105

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:		091161641

	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>pizza10q092709.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>

        <p 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>September 27</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="2">(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="2">(Registrant's telephone number,</font></strong></p>
                </td>
            </tr>

            <tr>
                <td width="100%" colspan="3">
                    <p align="center"><strong><font size="2">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>&nbsp;<b>November</b> <b>4</b><b>, 200</b><b>9</b><b>,</b> <b>8</b><b>,</b><b>010,919</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>

        <p align="center"></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&nbsp;&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 September 27, 2009 and September 28, 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 September 27, 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 28, 2009</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&nbsp;three months&nbsp;&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 September 27, 2009 and September 28, 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&nbsp;three 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; September 27, 2009 and September 28, 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">12</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">18</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">18</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">19</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">19</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">19</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">19</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">19</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">19</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">20</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">21</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 style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <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"><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"><strong><em>(Unaudited)</em></strong></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>
                <td align="left" width="610">
                </td>

                <td align="left" width="15">
                </td>

                <td align="left" width="2%">
                </td>

                <td align="right" width="1%">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><b>Three Months Ended</b></p>
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="610">
                </td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td width="115">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>September 27,</strong></font></p>
                </td>

                <td align="left" width="4%"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

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

                <td width="115">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>September 28,</strong></font></p>
                </td>

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

            <tr valign="bottom">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2"><strong>REVENUES:</strong></font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" width="115">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>2009</strong></font></p>
                </td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" width="115">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>2008</strong></font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" 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="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Food and supply sales</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">8,395</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">10,134</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise revenue</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">1,062</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">1,064</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant sales</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">543</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">190</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">10,000</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">11,388</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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" bgcolor="#ffffff">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2"><strong>COSTS AND EXPENSES:</strong></font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td>
                </td>

                <td width="115">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="115">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of sales</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">8,116</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">9,655</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise expenses</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">467</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">479</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3" height="11">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">777</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">687</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">--</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">37</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">15</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">15</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">14</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">12</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">9,389</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">10,885</font></td>

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

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2"><strong>INCOME FROM CONTINUING OPERATIONS BEFORE TAXES</strong></font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">611</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">503</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">206</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">161</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2"><strong>INCOME FROM CONTINUING OPERATIONS</strong></font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">405</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">342</font></td>

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

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations, net of taxes</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">(39</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">(49</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2"><strong>NET INCOME</strong></font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">366</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">293</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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" bgcolor="#ffffff">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2"><strong>EARNINGS PER SHARE OF COMMON STOCK - BASIC:</strong></font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td>
                </td>

                <td width="115">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="115">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">0.05</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">0.04</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">(0.00</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">(0.01</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">0.05</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">0.03</font></td>

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

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2"><strong>EARNINGS PER SHARE OF COMMON STOCK - DILUTED:</strong></font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td>
                </td>

                <td width="115">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="115">
                </td>

                <td>
                </td>
            </tr>

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">0.05</font></td>

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

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

                <td align="right" width="115"><font face="Times New Roman, Times, serif" size="2">0.04</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">(0.00</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">(0.01</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">0.05</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">0.03</font></td>

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

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2"><strong>Weighted average common shares outstanding - basic</strong></font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">8,011</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">8,946</font></td>

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

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2"><strong>Weighted average common and</strong></font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td>
                </td>

                <td width="115">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="115">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="610"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>potential dilutive common shares outstanding</strong></font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">8,011</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="115"><font face="Times New Roman, Times, serif" size="2">8,970</font></td>

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

        <p align="center"><i>See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.</i></p>

        <p></p>

        <p></p>

        <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
            &nbsp;
        </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>

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

        <p></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, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td width="13%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>September 27,</strong></font></p>
                </td>

                <td align="left" width="3%"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

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

                <td width="13%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>June 28,</strong></font></p>
                </td>

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

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>ASSETS</strong></font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>2009 (unaudited)</strong></font></p>
                </td>

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

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

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

                <td align="left"><font face="Times New Roman, Times, serif" 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, Times, serif" size="2">CURRENT ASSETS</font></td>

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

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

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">91</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">274</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, less allowance for bad debts&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of $92 and $203, respectively</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">2,746</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">2,559</font></td>

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

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable</font></td>

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

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

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

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

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

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

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

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

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

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,359</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,371</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property held for sale</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">17</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">17</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax assets</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">618</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">618</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">480</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">233</font></td>

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

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

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">5,311</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">5,152</font></td>

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

            <tr bgcolor="#ffffff">
                <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, Times, serif" size="2">LONG-TERM ASSETS</font></td>

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

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

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">2,210</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,743</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax assets</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">86</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">86</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits and other</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">102</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">81</font></td>

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

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

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

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">7,709</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">7,062</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">LIABILITIES AND SHAREHOLDERS' EQUITY</font></td>

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

                <td align="left"><font face="Times New Roman, Times, serif" 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" colspan="9"><font face="Times New Roman, Times, serif" size="2">CURRENT LIABILITIES&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,742</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1,806</font></td>

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

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

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">325</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">132</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">1,129</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">1,009</font></td>

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

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

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">3,196</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">2,947</font></td>

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

            <tr bgcolor="#ffffff">
                <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, Times, serif" size="2">LONG-TERM LIABILITIES</font></td>

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

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

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred gain on sale of property</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">153</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">159</font></td>

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

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

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">236</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">246</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank debt</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">645</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">621</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">24</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">37</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">4,254</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">4,010</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">COMMITMENTS AND CONTINGENCIES (See Note 3)</font></td>

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

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

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

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

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

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">SHAREHOLDERS' EQUITY&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.01 par value; authorized 26,000,000&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares; issued 15,130,319 and 15,130,319 shares, respectively;&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding 8,010,919 and 8,010,919 shares, respectively</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">151</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">151</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">8,778</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">8,741</font></td>

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

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

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">19,162</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">18,796</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock at cost&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares in treasury: 7,119,400 and 7,119,400, respectively</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(24,636</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(24,636</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">3,455</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">3,052</font></td>

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

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

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

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">7,709</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">7,062</font></td>

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

        <p align="center"><em>See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.</em></p>

        <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></p>

        <p></p>

        <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
            <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 STATEMENT OF CASH FLOW</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; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><strong><em>(Unaudited)</em></strong></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>
                    <td align="left" width="63%">
                    </td>

                    <td align="left" width="1%">
                    </td>

                    <td align="left" width="2%">
                    </td>

                    <td align="right" width="1%">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><b>Three Months Ended</b></p>
                    </td>

                    <td align="left" width="2%">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="63%">
                    </td>

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

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

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

                    <td width="13%">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>September 27,</strong></font></p>
                    </td>

                    <td align="left" width="4%"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

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

                    <td width="13%">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>September 28,</strong></font></p>
                    </td>

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

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

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

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

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

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

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

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

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

                    <td align="left"><font face="Times New Roman, Times, serif" 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, Times, serif" size="2"><strong>CASH FLOWS FROM OPERATING ACTIVITIES:</strong></font></td>

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

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

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr bgcolor="#ffffff">
                    <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, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">366</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">293</font></td>

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to</font></td>

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

                    <td align="left"><font face="Times New Roman, Times, serif" 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, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash used for operating activities:</font></td>

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

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">72</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">83</font></td>

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

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">37</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">55</font></td>

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

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

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

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

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

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

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

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

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities:</font></td>

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

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">(122</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">209</font></td>

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</font></td>

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

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

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

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">(20</font></td>

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

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">(64</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">(866</font></td>

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">(43</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">(327</font></td>

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

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

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">177</font></td>

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

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

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

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

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(281</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(120</font></td>

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

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Cash provided (used) for operating activities</strong></font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">169</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(666</font></td>

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

                <tr bgcolor="#ffffff">
                    <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, Times, serif" size="2"><strong>CASH FLOWS FROM INVESTING ACTIVITIES:</strong></font></td>

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

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

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr bgcolor="#ffffff">
                    <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, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures</font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(539</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(407</font></td>

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Cash used for investing activities</strong></font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(539</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(407</font></td>

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

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

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

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2"><strong>CASH FLOWS FROM FINANCING ACTIVITIES:</strong></font></td>

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

                    <td align="left"><font face="Times New Roman, Times, serif" 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, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in line of credit, net</font></td>

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

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

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

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">301</font></td>

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash overdraft</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">163</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">582</font></td>

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

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock</font></td>

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

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

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

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(814</font></td>

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Cash provided by financing activities</strong></font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">187</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">69</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" 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" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Net decrease in cash and cash equivalents</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">(183</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">(1,004</font></td>

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

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Cash and cash equivalents, beginning of period</font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">274</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">1,157</font></td>

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Cash and cash equivalents, end of period</font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">91</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">153</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" 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 Unaudited 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">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" noshade size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center">&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 DISCLOSURE 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; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><strong><em>(Unaudited)</em></strong></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td align="left" width="551">
                </td>

                <td align="left" width="15">
                </td>

                <td align="left" width="46">
                </td>

                <td align="right" width="24">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="3">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><b>Three Months Ended</b></p>
                </td>

                <td align="left" width="9">
                </td>

                <td align="left" width="1%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="551">
                </td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="46"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="123">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>September 27,</strong></font></p>
                </td>

                <td align="left" width="49"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

                <td width="124">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>September 28,</strong></font></p>
                </td>

                <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

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

            <tr valign="bottom">
                <td align="left" width="551">
                </td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="left" width="46"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

                <td align="right" width="24"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="123">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>2009</strong></font></p>
                </td>

                <td align="left" width="49"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="124">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>2008</strong></font></p>
                </td>

                <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

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

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

            <tr valign="bottom">
                <td align="left" width="551"><font face="Times New Roman, Times, serif" size="2"><strong>CASH PAYMENTS FOR:</strong></font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="46"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="24">
                </td>

                <td width="123">
                </td>

                <td width="49">
                </td>

                <td width="124">
                </td>

                <td width="9">
                </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" width="551"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="46"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td align="right" width="123"><font face="Times New Roman, Times, serif" size="2">14</font></td>

                <td width="49">
                    <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;$</font></p>
                </td>

                <td width="124">
                    <p align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;12</font></p>
                </td>

                <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="551"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes</font></td>

                <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="46"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="24"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="123"><font face="Times New Roman, Times, serif" size="2">50</font></td>

                <td align="left" width="49"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="124">
                    <p align="right"><font face="Times New Roman, Times, serif" size="2">--</font></p>
                </td>

                <td align="left" width="9"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

        <p><em>See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.</em></p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">6</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="center">&nbsp;</p>

        <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>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" 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 28, 2009.</p>
        </blockquote>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" 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>
        </blockquote>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Summary of</b> <b>Significant Accounting Policies</b></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Principles of Consolidation</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" 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 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Cash and Cash Equivalents</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" 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 align="justify"><b>Fiscal</b> <b>Quarters</b></p>

            <p align="justify">Fiscal first quarters ended September 27, 2009 and September 28, 2008, both contained 13 weeks.</p>

            <p></p>

            <p align="justify"><b>Revenue Recognition</b></p>

            <p 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. 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="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" 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.&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Stock-Based Compensation</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">We account for stock options using the fair value recognition provisions of the authoritative guidance on share-based payments.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The Company uses the Black-Scholes formula to estimate the value of stock-based compensation for options granted to employees and directors and expects to continue to use this acceptable option valuation model in the future. The authoritative guidance also requires the benefits of tax deductions in excess of recognized compensation cost to
            be reported as a financing cash flow.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Use of</b> <b>Management</b> <b>Estimates</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" 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>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                <a name="PAGENUM"><font face="Times New Roman" size="2">7</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><b>New Accounting Pronouncements</b></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">In June 2009, the FASB issued new authoritative guidance regarding accounting standards codification that will become the source of authoritative U.S. Generally accepted accounting principles ("GAAP") recognized by the FASB to be applied by nongovernmental entities. The Company adopted the new guidance in the first quarter of fiscal 2010.
            The new guidance did not affect the Company&rsquo;s financial position and results of operations, but did affect the way U.S. GAAP is referenced within the consolidated financial statements and accounting policies.</p>
        </blockquote>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Long-Term Debt</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" 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 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.&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" 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 $3.0 million, (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 $0.8 million to $3.0 million per fiscal year.<br>
            &nbsp;<br>
            On May 30, 2008, the Company again amended the CIT Credit Facility to permit the Company to repurchase up to $7.0 million of the Company&rsquo;s common stock. As of September 27, 2009, $0.6 million was outstanding on the CIT Credit Facility at an interest rate of 3.5% and the Company had additional borrowing availability of $1.9 million.</p>
        </blockquote>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Commitments and Contingencies</b></p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><a name="OLE_LINK3">On April 22, 2009 the Company&rsquo;s board of directors amended the</a> stock purchase plan first adopted on May 23, 2007 and previously amended on June 2, 2008, to increase the number of shares of common stock the Company may repurchase by 1,000,000 shares to a total of 3,016,000 shares. As of September 27, 2009, there
            were 848,425 shares available to be repurchased under the plan.</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" 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 unfavorably.</p>
        </blockquote>

        <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(4)&nbsp;&nbsp;&nbsp;&nbsp; <b>Stock-Based Compensation&nbsp;</b></p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">For the three months ended September 27, 2009, we recognized stock-based compensation of $37,000. As of September 27, 2009, unamortized stock-based compensation expense was $0.3 million.&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The following table summarizes the Company&rsquo;s outstanding stock options for the three months ended September 27, 2009 and September 28, 2008:</p>
        </blockquote>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">8</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 dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">&nbsp;</p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

            <table cellspacing="0" cellpadding="0" width="80%" border="0">
                <tr>
                    <td align="left" width="42%">
                    </td>

                    <td align="left" width="1%">
                    </td>

                    <td align="left" width="3%">
                    </td>

                    <td align="right" width="1%">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="4">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center">Three Months Ended</p>
                    </td>

                    <td align="left" width="2%">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="42%">
                    </td>

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

                    <td align="left" width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                    <td style="BORDER-BOTTOM: black 1px solid" width="23%">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">September 27, 2009</font></p>
                    </td>

                    <td align="left" width="4%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                    <td style="BORDER-BOTTOM: black 1px solid" width="23%">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2">September 28, 2008</font></p>
                    </td>

                    <td align="left" width="2%"><font face="Times New Roman, Times, serif" 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, Times, serif" size="2">Outstanding at beginning of year</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">485,000</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">588,358</font></td>

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

                <tr bgcolor="#ffffff">
                    <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, Times, serif" size="2">Granted</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">115,510</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">270,000</font></td>

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Exercised</font></td>

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

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

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

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">(10,000</font></td>

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

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Forfeited/Canceled/Expired</font></td>

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

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

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

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(563,358</font></td>

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

                <tr bgcolor="#ffffff">
                    <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, Times, serif" size="2">Outstanding at end of period</font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">600,510</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">285,000</font></td>

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

                <tr bgcolor="#ffffff">
                    <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, Times, serif" size="2">Exercisable at end of year</font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">247,000</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">30,000</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
                </tr>
            </table>
            <br>
            <br>
        </blockquote>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Earnings per Share</b> <b>(EPS)</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">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="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

            <table cellspacing="0" cellpadding="0" width="95%" border="0">
                <tr>
                    <td align="left" width="55%">
                    </td>

                    <td align="left" width="1%">
                    </td>

                    <td align="left" width="2%">
                    </td>

                    <td align="right" width="1%">
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="10">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><strong>Three Months Ended</strong></p>
                    </td>

                    <td align="left" width="2%">
                    </td>
                </tr>

                <tr>
                    <td align="left" width="55%">
                    </td>

                    <td align="left" width="1%">
                    </td>

                    <td align="left" width="2%">
                    </td>

                    <td align="right" width="1%">
                    </td>

                    <td align="right" colspan="4">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>September 27, 2009</strong></font></p>
                    </td>

                    <td align="left" width="4%">
                    </td>

                    <td align="right" width="1%">
                    </td>

                    <td align="right" colspan="4">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>September 28, 2008</strong></font></p>
                    </td>

                    <td align="left" width="2%">
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="55%">
                    </td>

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" width="6%">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>Diluted</strong></font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="4%"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="1%"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;&nbsp;</strong> </font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="6%">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>Basic</strong></font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="4%"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="1%"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;&nbsp;</strong> </font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="6%">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>Diluted</strong></font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="4%"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right" width="1%"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;&nbsp;</strong> </font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" width="6%">
                        <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>Basic</strong></font></p>
                    </td>

                    <td align="left" width="2%"><font face="Times New Roman, Times, serif" 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"><font face="Times New Roman, Times, serif" size="2">Income from continuing operations</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">405</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">405</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">342</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">342</font></td>

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Discontinued operations</font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(39</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(39</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(49</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">(49</font></td>

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

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Net income available to common stockholders</font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">366</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp; </font></td>

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">366</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">293</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">293</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" 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"><font face="Times New Roman, Times, serif" size="2">Weighted average common shares</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">8,011</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">8,011</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">8,946</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">8,946</font></td>

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Dilutive stock options</font></td>

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

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp; </font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">24</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>

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

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

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Average common shares outstanding</font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">8,011</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp; </font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">8,011</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp; </font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">8,970</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">8,946</font></td>

                    <td align="left"><font face="Times New Roman, Times, serif" 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"><font face="Times New Roman, Times, serif" size="2">Income from continuing operations per share</font></td>

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

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

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

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

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

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

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

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">0.04</font></td>

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

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

                    <td align="right"><font face="Times New Roman, Times, serif" size="2">0.04</font></td>

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Discontinued operations loss per common share</font></td>

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

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp; </font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp; </font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="left"><font face="Times New Roman, Times, serif" size="2">) </font></td>

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

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

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

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman, Times, serif" size="2">Net income per common share</font></td>

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

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

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp; </font></td>

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp; </font></td>

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">0.03</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp; </font></td>

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">0.03</font></td>

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

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><a name="OLE_LINK1"></a><a name="OLE_LINK6">For the</a> three months ended September 27, 2009, options to purchase 600,510 shares of common stock at exercise prices ranging from $1.90 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 three months ended September 28, 2008, options to purchase 275,000 shares of common stock at exercise prices ranging from $2.51 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>
        </blockquote>

        <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;<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>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The authoritative guidance on &ldquo;<i>Accounting for the Impairment or Disposal of Long-Lived Assets</i><i>,&rdquo;</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. This guidance also requires that the operations of the
            closed restaurants, including any impairment charges, be reclassified to discontinued operations for all periods presented.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">The authoritative guidance on &ldquo;<i>Accounting for Costs Associated with Exit or Disposal Activities</i><i>,</i><i>&rdquo;</i> requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred. This authoritative guidance also establishes that fair value is the objective for
            initial measurement of the liability.</p>
        </blockquote>

        <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>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" 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. The net realizable value remains unchanged. The two properties are on the market for sub-lease. 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>
        </blockquote>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Income Tax</b><b>es</b></p>

        <p></p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" 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 $0.7 million 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 months ended September 27, 2009, the Company provided $0.2 million in net tax expense. In determining this amount, the Company made its best estimate of the effective tax rate expected to be applicable for the full fiscal year. The rate so determined was used to provide for income taxes on a current year to date basis.</p>
        </blockquote>

        <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(8)&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 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 September 27, 2009, the Company had approximately $17,000 of assets classified as held for sale, representing miscellaneous trailers and other transportation equipment. </font></p>

        <p align="justify">(9)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Segment Reporting</strong></p>

        <p></p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">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 periods ended September 27, 2009 and September 28, 2008 (in thousands). Operating income reported below excludes income tax provision and discontinued
            operations.</p>
        </blockquote>

        <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 dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="578">
                </td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td width="120">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>September 27,</strong></font></p>
                </td>

                <td align="left" width="5%"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

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

                <td width="120">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>September 28,</strong></font></p>
                </td>

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

            <tr valign="bottom">
                <td align="left" width="578">
                </td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2"><strong>&nbsp;</strong> </font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" width="120">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>2009</strong></font></p>
                </td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" width="120">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2"><strong>2008</strong></font></p>
                </td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2"><strong>Net sales and operating revenues:</strong></font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td>
                </td>

                <td width="120">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="120">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Food and equipment distribution</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">8,395</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">10,134</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Franchise and other (2)</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">1,605</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">1,254</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Intersegment revenues</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">199</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">65</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">10,199</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">11,453</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Less intersegment revenues</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">(199</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">(65</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated revenues</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">10,000</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">11,388</font></td>

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

            <tr bgcolor="#ffffff">
                <td colspan="3">
                </td>

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2"><strong>Depreciation and amortization:</strong></font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td>
                </td>

                <td width="120">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="120">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Food and equipment distribution</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">--</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">--</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Franchise and other (2)</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">46</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">66</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">46</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">66</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Corporate administration and other</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">26</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">17</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">72</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">83</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2"><strong>Interest expense:</strong></font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td>
                </td>

                <td width="120">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="120">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Food and equipment distribution</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">--</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">--</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Franchise and other (2)</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">--</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">--</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">--</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">--</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Corporate administration and other</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">14</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">12</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">14</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">12</font></td>

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

            <tr bgcolor="#ffffff">
                <td colspan="3">
                </td>

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2"><strong>Operating income:</strong></font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td>
                </td>

                <td width="120">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="120">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Food and equipment distribution (1)</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">434</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">288</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Franchise and other (1) (2)</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">534</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">524</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Intersegment profit</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">53</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">15</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combined</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">1,021</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">827</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Less intersegment profit</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">(53</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">(15</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Corporate administration and other</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">(343</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">(297</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">625</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">515</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2"><strong>Geographic information (revenues):</strong></font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td>
                </td>

                <td width="120">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="120">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">United States</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">9,820</font></td>

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

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

                <td align="right" width="120"><font face="Times New Roman, Times, serif" size="2">11,050</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">Foreign countries</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">180</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">338</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="578"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated total</font></td>

                <td align="left" width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">10,000</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="120"><font face="Times New Roman, Times, serif" size="2">11,388</font></td>

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

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

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">(1</font></td>

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

                <td align="left" width="94%"><font face="Times New Roman, Times, serif" size="2">Does not include full allocation of corporate administration.</font></td>

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

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

            <tr valign="bottom">
                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(2</font></td>

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

                <td align="left"><font face="Times New Roman, Times, serif" size="2">Company stores that were closed are included in discontinued operations in the accompanying condensed consolidated statements of operations.</font></td>

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

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

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">(10)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Subsequent Events</b></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">We have evaluated events or transactions occurring after September 27, 2009, the balance sheet date, through November 5, 2009, the date the financial statements were issued, and determined there have been no such events or transactions which would impact our financial statements for the quarter ended September 27, 2009.</p>
        </blockquote>

        <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">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" noshade size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>The following discussion should be read in conjunction with the c</i><i>onsolidated financial statements and</i> <i>accompanying notes 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>2</i><i>8</i><i>, 200</i><i>9</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 busines</i><i>s objectives, our customers and</i> <i>franchisees, our liquidity and capital resources,</i> <i>and</i> <i>the impact of our historical and potential business strategies on our business, financial condition, and operating results</i><i>.</i> <i>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>8</i><i>, 200</i><i>9</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="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">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 September 27, 2009, there were 310 domestic and international Pizza Inn restaurants,
        consisting of three Company-owned domestic restaurants, 237 franchised domestic restaurants, and 70 franchised international restaurants. The 240 domestic restaurants consisted of: (i) 154 restaurants that offer dine-in, carry-out, and in many cases, delivery services (&ldquo;Buffet Units&rdquo;); (ii) 38 restaurants that offer delivery and carry-out services only (&ldquo;Delco Units&rdquo;); and (iii) 48 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 240 domestic restaurants were located in 17 states predominately situated in the southern half of the United States. The 70 international restaurants were located in 11 foreign countries.</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"><a name="OLE_LINK2">Basic and diluted i</a>ncome per common share increased to $0.05 for the three month period ended September 27, 2009 compared to $0.03 for the comparable period ended September 28, 2008.&nbsp; Net income for the three month period ended September 27, 2009 increased $73,000 to
        $366,000 from $293,000 for the comparable period in the prior fiscal year, on revenues of $10.0 million for the three month period ended September 27, 2009 and $11.4 million for the comparable period in the prior fiscal year. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The increase in net income during the three month period ended September 27, 2009, was primarily due to a non-recurring inventory adjustment in the prior year of approximately $0.2 million offset by higher income taxes.</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">Management believes that key performance indicators in evaluating financial results include domestic chain-wide retail sales and the number and type of operating restaurants. The following table summarizes these key performance indicators.</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">12</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>
                <td align="left" width="62%">
                </td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="2%">
                </td>

                <td align="right" width="1%">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="4">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center">Three Months Ended</p>
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="62%">
                </td>

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

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

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

                <td width="14%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 27,</font></p>
                </td>

                <td align="left" width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

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

                <td width="14%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 28,</font></p>
                </td>

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

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

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

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

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

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

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

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Domestic retail sales Buffet Units (in thousands)</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">26,762</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">27,762</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Domestic retail sales Delco Units (in thousands)</font></td>

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

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">2,253</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">2,745</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Domestic retail sales Express Units (in thousands)</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">1,037</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">1,262</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" 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; Total domestic retail sales (in thousands)</font></td>

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

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

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">30,052</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">31,769</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Average number of domestic Buffet Units</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">152</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">156</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Average number of domestic Delco Units</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">37</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">41</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Average number of domestic Express Units</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">49</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">55</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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="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">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.</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="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"><a name="OLE_LINK5">Food and supply sales by Norco include food and paper products and other distribution revenues.&nbsp;</a> <a name="OLE_LINK8">Food and supply sales for the three month period ended</a> September 27, 2009 decreased 17%, or $1.7 million, to $8.4 million from $10.1 million in the same
        period in the prior fiscal year.&nbsp; Domestic food and paper sales accounted for $1.5 million of the decrease, driven primarily by two factors: (i) a 31% decrease in cheese prices; and (ii) a decrease in total domestic chain-wide retail sales of 5%, or $1.7 million compared to the same period 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">Franchise Revenue</font></u></b></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">Franchise revenue, which includes income from royalties, license fees and area development and foreign master license sales, was flat at $1.1 million for the three month period ended September 27, 2009 compared to the comparable period for the prior fiscal year. A decrease in domestic royalties
        resulting from lower retail sales driven by unit closures in the prior fiscal year and the decrease in comparable store sales offset by increased domestic franchise fees and a one time royalty buy-out of $44,000. Due to the &ldquo;0% First Year Royalty&rdquo; incentive program the Company had in place for new buffet franchise units signed by the end of the prior fiscal year, new buffets opened during the current fiscal year will not generate increased domestic royalties. The following
        chart summarizes the major components of franchise revenue (in thousands):</p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td align="left" width="46%">
                </td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="4%">
                </td>

                <td align="right" width="1%">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center">Three Months Ended</p>
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="46%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="4%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="20%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 27,</font></p>
                </td>

                <td align="left" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="20%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 28,</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2009</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Domestic royalties</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">851</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">915</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Domestic royalties - buy-out</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">44</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">International royalties</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">121</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">140</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">International franchise fees</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">6</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">9</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Domestic franchise fees</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">40</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Franchise revenue</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">1,062</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">1,064</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">13</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 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="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">Restaurant sales, which consist of revenue generated by Company-owned restaurants, increased 186%, or $353,000, to $543,000 for the three month period ended September 27, 2009 compared to $190,000 for the comparable period in the prior fiscal year. The Company opened a new store in Denton, Texas on
        October 15, 2008 and a new store in Fort Worth, Texas on September 15, 2009. The following chart summarizes the sales by location (in thousands):</p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td align="left" width="56%">
                </td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="3%">
                </td>

                <td align="right" width="1%">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="4">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center">Three Months Ended</p>
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="56%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="16%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 27,</font></p>
                </td>

                <td align="left" width="4%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="16%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 28,</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2009</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Plano, Texas</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">160</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">190</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Denton, Texas - opened October 2008</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">311</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Fort Worth, Texas - opened September 2009</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">72</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Restaurant sales</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">543</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">190</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p align="justify">&nbsp;<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="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">Cost of sales, which includes primarily direct materials, distribution fees and labor directly related to food and supply sales and restaurant sales, decreased 16%, or $1.5 million, for the three month period ended September 27, 2009 compared to the comparable period for the prior fiscal year. This
        decrease was primarily the result of lower commodity costs combines with lower food and supply sales.</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="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">Franchise expenses include selling, general and administrative expenses directly related to the sale and continuing service of domestic and international franchises. These expenses decreased 3%, or $12,000 for the three month period ended September 27, 2009 compared to the comparable period in the prior
        fiscal year. These savings were the result of lower amortization of the re-acquired area developer territory. The following chart summarizes the major components of franchise expenses (in thousands):</p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td align="left" width="58%">
                </td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="2%">
                </td>

                <td align="right" width="1%">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="4">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center">Three Months Ended</p>
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="58%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="15%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 27,</font></p>
                </td>

                <td align="left" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="15%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 28,</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2009</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Payroll</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">508</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">477</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Travel</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">44</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">29</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Allocated overhead</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(114</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(155</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Amortize re-acquired area developer territory</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">46</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Research and development</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">8</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">23</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Other</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">21</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">59</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Franchise expenses</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">467</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">479</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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"><u>General and Administrative Expenses</u></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">General and administrative expenses increased 13%, or $0.1 million, to $0.8 million for the three month period ended September 27, 2009 compared to $0.7 million for the comparable period for the prior fiscal year. The following chart summarizes the major components of general and administrative expenses
        (in thousands):</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 align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td align="left" width="53%">
                </td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="3%">
                </td>

                <td align="right" width="1%">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="4">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center">Three Months Ended</p>
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="53%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="17%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 27,</font></p>
                </td>

                <td align="left" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="17%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 28,</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2009</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Payroll</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">394</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">310</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Legal fees</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">13</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">41</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Other professional fees</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">105</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">105</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Insurance and taxes</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">73</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">73</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Allocated overhead</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(252</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">(232</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Occupancy costs</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">151</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">154</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">New store opening costs</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">70</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">6</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Stock compensation expense</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">38</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">55</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Other</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">185</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">175</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">General and administrative expenses</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">777</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">687</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></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">The increase in general and administrative expenses during the three months ended September 27, 2009 was primarily due to an increase in payroll associated with earned bonuses and general and administrative expenses associated with the new Company owned store in Fort Worth, Texas, which were offset by a
        reduction in legal fees and stock compensation expense.</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="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">Provision for bad debt expense remained at $15,000 for the three month period ended September 27, 2009 and for the comparable period 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">Interest Expense</font></u></b></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"><a name="OLE_LINK4"></a><a name="OLE_LINK10">Interest expense</a> was relatively unchanged for the three month period ended September 27, 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="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">For the three month period ended September 27, 2009, income tax expense of $0.2 million was calculated on an effective income tax rate that is consistent with the statutory U.S. federal income tax rate of 34% adjusted for 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 $0.7 million.</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="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">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 align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td align="left" width="58%">
                </td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="2%">
                </td>

                <td align="right" width="1%">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" colspan="4">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center">Three Months Ended</p>
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="58%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="15%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 27,</font></p>
                </td>

                <td align="left" width="5%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="15%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">September 28,</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2009</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Sales</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Cost of Sales</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">General and Administrative</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">39</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">49</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total loss from discontinued operations</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">(39</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">(49</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">)</font></td>
            </tr>
        </table>
        <br>
        <br>

        <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 align="justify"><b>Restaurant Openings and Closings</b></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">During the three month period ended September 27, 2009, one new domestic Buffet Unit, one new Delco Unit and two international Units were opened by Pizza Inn franchisees and one Buffet Unit was opened as a Company store. Four domestic restaurants were closed by franchisees (one Delco Unit and three
        Express Units) 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.&nbsp;</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">The following charts summarize restaurant activity for the three month periods ended September 27, 2009 and September 28, 2008:</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>
                <td align="left" width="46%"><font size="2">Three months ended September 27, 2009</font></td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="2%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="9%">
                </td>

                <td align="left" width="3%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="9%">
                </td>

                <td align="left" width="3%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="9%">
                </td>

                <td align="left" width="3%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="9%">
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr>
                <td align="left" width="46%">&nbsp;</td>

                <td align="left" width="1%">
                </td>

                <td align="left" width="2%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="9%">
                </td>

                <td align="left" width="3%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="9%">
                </td>

                <td align="left" width="3%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="9%">
                </td>

                <td align="left" width="3%">
                </td>

                <td align="right" width="1%">
                </td>

                <td align="right" width="9%">
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="46%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="9%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">Beginning</font></p>
                </td>

                <td align="left" width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="9%">
                </td>

                <td align="left" width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="9%">
                </td>

                <td align="left" width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="9%">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">End of</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">of Period</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">Opened</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">Closed</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">Period</font></p>
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Domestic:</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </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, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buffet Units</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">152</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">2</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">154</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delco Units</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">38</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">38</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Express Units</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">51</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">3</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">48</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">International Units</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">68</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">2</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">70</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Total</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">309</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">5</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">4</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">310</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Three months ended September 28, 2008</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </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>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">Beginning</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">End of</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr bgcolor="#ffffff">
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">of Period</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">Opened</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">Closed</font></p>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double">
                    <p align="center"><font face="Times New Roman, Times, serif" size="2">Period</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Domestic:</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </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, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buffet Units</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">158</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">3</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">155</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delco Units</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">41</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">41</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Express Units</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">56</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">1</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">2</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">55</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">International Units</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">68</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">--</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman, Times, serif" size="2">68</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left"><font face="Times New Roman, Times, serif" size="2">Total</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">323</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">1</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">5</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman, Times, serif" size="2">319</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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="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">Our primary sources of liquidity are cash flows from operating activities and use of our credit facilities from time to time.&nbsp;</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">Cash flows from operating activities generally reflect net income adjusted for depreciation and amortization, changes in working capital and accrued expenses. In the three month period ended September 27, 2009, cash provided by operations was $0.2 million as compared to cash used by operating activities
        of $0.7 million in the comparable period for the prior year. This increase in cash provided by operating activities was due to a slight increase in net income, a significantly lower reduction in trade payables, increased deferred franchise fees and lower reduction in accrued expenses due to year end bonuses paid in the first quarter of the prior year.&nbsp;&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 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">Cash flows from investing activities generally reflect capital expenditures for the purchase of Company assets. The Company used cash of $0.5 million for the three month period ended September 27, 2009, primarily for a new Company store that opened in Fort Worth, Texas. This compares to cash used by
        investing activities of $0.4 million attributed to the Denton store <a name="_DV_C139">for the</a> same period <a name="_DV_M143"></a>in the prior fiscal year.&nbsp;<font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></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">Cash flows from financing activities generally reflect changes in the Company's borrowings during the period and repurchases of outstanding shares of our common stock. Net cash provided by financing activities was $187,000 in the three month period ended September 27, 2009 compared to $69,000
        <a name="_DV_C142">for the comparable period</a><a name="_DV_M146"></a> in the prior fiscal year. This increase in cash provided by financing activities was primarily due to the absence of repurchases in the first quarter of fiscal 2010, partially offset by lower net borrowings and cash overdraft.</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">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 $0.7 million without reliance on material non-routine income.</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">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.</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">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 $3.0 million, (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 $0.8 million to $3.0 million per fiscal year.</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">On May 30, 2008, the Company again amended the CIT Credit Facility to permit the Company to repurchase up to $7.0 million of the Company&rsquo;s common stock. As of September 27, 2009, $0.6 million was outstanding on the CIT Credit Facility at an interest rate of 3.5% and the Company had additional
        borrowing availability of $1.9 million.</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">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.</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>Critical Accounting Policies and Estimates</b></font></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">&nbsp;&nbsp;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.</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">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.</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 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">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.</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">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.</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">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 the authoritative guidance on &ldquo;<i>Accounting for Income Taxes.</i>&rdquo; The
        entire valuation allowance was released in fiscal 2008. As a result, the effective tax rate for fiscal 2010 is estimated to be 34%.</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">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.</p>

        <p></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="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">In June 2009, the FASB issued new authoritative guidance regarding accounting standards codification that will become the source of authoritative U.S. Generally accepted accounting principles ("GAAP") recognized by the FASB to be applied by nongovernmental entities. The Company adopted the new guidance
        in the first quarter of fiscal 2010. The new guidance did not affect the Company&rsquo;s financial position and results of operations, but did affect the way U.S. GAAP is referenced within the consolidated financial statements and accounting policies.<font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&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 About 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="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">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.</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: 36px" align="justify">&nbsp;</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></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><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="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">There have been no material developments in the three month period ended September 27, 2009 in any material pending legal proceedings to which the Company or any of its subsidiaries is a party or of which any of their property is subject.</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<br>
        </u><br>
        </b></font></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"><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. There were no
        stock purchases in the three months ending September 27, 2009. As of September 27, 2009, up to an additional 848,425 shares could be purchased under the 2007 Stock Purchase Plan.</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 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">
            <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">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" 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" bgcolor="#ccdbe3">
                <td align="left" width="2">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td valign="top" align="right" width="1%"><font face="Times New Roman, Times, serif" size="2">3.1</font></td>

                <td align="left" width="2%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td width="94%">
                    <p align="justify"><font face="Times New Roman, Times, serif" 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, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <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">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">3.2</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <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">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">31.1</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer.</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <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">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">31.2</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer.</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <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">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">32.1</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">Section 1350 Certification of Principal Executive Officer.</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr bgcolor="#ffffff">
                <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">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman, Times, serif" size="2">32.2</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">Section 1350 Certification of Principal Financial Officer.</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" 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"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><u><br>
        <br>
        </u></b></font></p>

        <p></p>

        <p></p>
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><br>
        </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>
        </div>
        <!-- PAGE BREAK  -->

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">20</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-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; TEXT-DECORATION: underline" align="center"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'"><b><u>SIGNATURES</u></b></font></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">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.</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">&nbsp;</p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="31%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" colspan="6"><font face="Times New Roman, Times, serif" size="2">PIZZA INN, INC.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" colspan="6"><font face="Times New Roman, Times, serif" size="2">(Registrant)&nbsp;&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="6">&nbsp;</td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="87"><font face="Times New Roman, Times, serif" size="2">By:</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="513"><font face="Times New Roman, Times, serif" size="2">/<u>s/ Charles R. Morrison</u></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="87">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="513"><font face="Times New Roman, Times, serif" size="2">Charles R. Morrison</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="87">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="513"><font face="Times New Roman, Times, serif" size="2">President and Chief</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="87">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="513"><font face="Times New Roman, Times, serif" size="2">Executive Officer</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="87">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="513"><font face="Times New Roman, Times, serif" size="2">(Principal Executive Officer)</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="6">&nbsp;</td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="6"><font size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="87"><font face="Times New Roman, Times, serif" size="2">By:</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="513"><font face="Times New Roman, Times, serif" size="2"><u>/s/ Nancy Ellefson</u></font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="87">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="513"><font face="Times New Roman, Times, serif" size="2">Nancy Ellefson</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="87">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="513"><font face="Times New Roman, Times, serif" size="2">Vice President and Principal</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="87">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="513"><font face="Times New Roman, Times, serif" size="2">Accounting Officer</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" height="12">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="172"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="87">
                </td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left" width="513"><font face="Times New Roman, Times, serif" size="2">(Principal Financial Officer)</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="6">&nbsp;</td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="6">&nbsp;</td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="6">&nbsp;</td>
            </tr>

            <tr valign="bottom">
                <td align="left" colspan="9"><font face="Times New Roman, Times, serif" size="2">Dated: November 5, 2009&nbsp;&nbsp;</font></td>
            </tr>
        </table>
        &nbsp;<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;<br>
        <br>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font face="Times New Roman" size="2">21</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">&nbsp;</p>

            <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                &nbsp;
            </div>
        </div>
    </body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>pizza10qex311092709.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-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: November 5, 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>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>pizza10qex312092709.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-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: November 5, 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>
    </body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>pizza10qex321092709.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="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">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:</p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
                <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 September 27, 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>
            </blockquote>
        </blockquote>

        <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: November 5, 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"><u><font style="FONT-FAMILY: 'CG TIMES'">/s/</font> <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>pizza10qex322092709.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 September 27, 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: November 5, 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>
-----END PRIVACY-ENHANCED MESSAGE-----
