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<SEC-DOCUMENT>0001010549-09-000657.txt : 20090924
<SEC-HEADER>0001010549-09-000657.hdr.sgml : 20090924
<ACCEPTANCE-DATETIME>20090924103459
ACCESSION NUMBER:		0001010549-09-000657
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20090923
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090924
DATE AS OF CHANGE:		20090924

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-12919
		FILM NUMBER:		091083949

	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>8-K
<SEQUENCE>1
<FILENAME>pizza8k092409.htm
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body style="FONT-SIZE: 12pt; FONT-FAMILY: 'TIMES NEW ROMAN'">
        <p title="EE+ Page Footer" 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"><br>
        </p>

        <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt" align="center">
        </div>

        <p title="EE+ Page Footer" style="MARGIN-TOP: 0pt; FONT-SIZE: 14pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 14pt">UNITED STATES<br>
        SECURITIES AND EXCHANGE COMMISSION</font></b></p>

        <p title="EE+ Page Footer" style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 12pt; TEXT-TRANSFORM: uppercase">W</font></b><b><font style="FONT-SIZE: 11pt">ashington</font></b><b><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase">, D.C. 20549</font></b></p>

        <p title="EE+ Page Footer" align="center"></p>

        <p title="EE+ Page Footer" style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 18pt">FORM 8-K</font></b></p>

        <p title="EE+ Page Footer" align="center"></p>

        <p title="EE+ Page Footer" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 12pt; TEXT-TRANSFORM: uppercase">CURRENT REPORT</font></b></p>

        <p title="EE+ Page Footer" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 12pt">Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934</font></b></p>

        <p title="EE+ Page Footer" align="center"></p>

        <p title="EE+ Page Footer" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Date of Report (Date of earliest event reported) September 23, 2009</font></p>

        <p title="EE+ Page Footer" align="center"></p>

        <div title="EE+ Page Footer" align="center">
            <b><font style="FONT-SIZE: 24pt">Pizza Inn, Inc.</font></b>
        </div>

        <div title="EE+ Page Footer" align="center">
            <font style="FONT-SIZE: 10pt">(Exact name of registrant as specified in its charter)</font>
        </div>

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

        <p title="EE+ Page Footer" style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"></p>

        <div title="EE+ Page Footer" align="center">
            <table cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td width="31%">
                        <p align="center"><strong><font size="2">Missouri&nbsp;&nbsp;</font></strong></p>
                    </td>

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

                    <td width="31%">
                        <p align="center"><strong><font size="2">0-12919</font></strong></p>
                    </td>

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

                    <td width="31%" colspan="2">
                        <p align="center"><strong><font size="2">47-0654575</font></strong></p>
                    </td>

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

                <tr>
                    <td width="31%">
                        <p align="center"><font size="2">(State or other jurisdiction <font style="FONT-SIZE: 10pt">of incorporation)</font></font></p>
                    </td>

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

                    <td width="31%">
                        <p align="center"><font size="2">(Commission File Number)</font></p>
                    </td>

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

                    <td width="31%" colspan="2">
                        <p align="center"><font size="2">(IRS Employer Identification No.)</font></p>
                    </td>

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

                <tr>
                    <td width="31%">&nbsp;</td>

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

                    <td width="31%">
                    </td>

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

                    <td width="31%" colspan="2">
                    </td>

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

                <tr>
                    <td colspan="2">
                        <p align="center"><strong><font size="2">3551 Plano Parkway, The Colony, Texas&nbsp;</font></strong></p>
                    </td>

                    <td width="31%">
                    </td>

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

                    <td width="15%">
                        <p align="center"><strong><font size="2">&nbsp;&nbsp; 75056</font></strong></p>
                    </td>

                    <td width="15%">
                    </td>

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

                <tr>
                    <td width="31%">
                        <p align="center"><font size="2">(Address of principal executive offices)&nbsp;&nbsp;</font></p>
                    </td>

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

                    <td width="31%">
                    </td>

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

                    <td width="15%">
                        <p align="center"><font size="2">&nbsp;(Zip Code)</font></p>
                    </td>

                    <td width="15%">
                    </td>

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

                <tr>
                    <td width="31%">&nbsp;</td>

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

                    <td width="31%">&nbsp;</td>

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

                    <td width="31%" colspan="2">
                    </td>

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

                <tr>
                    <td colspan="6">
                        <p align="center"><font size="2">Registrant's telephone number, including area code </font><b><font style="FONT-SIZE: 10pt">(469) 384-5000</font></b></p>
                    </td>

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

                <tr>
                    <td colspan="6">&nbsp;</td>

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

                <tr>
                    <td colspan="6">
                        <p align="center"><strong><font size="2">Not Applicable</font></strong></p>
                    </td>

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

                <tr>
                    <td colspan="6">
                        <p align="center"><font size="2">(Former name or former address, if changed since last report)</font></p>
                    </td>

                    <td width="2%">
                    </td>
                </tr>
            </table>
        </div>

        <p title="EE+ Page Footer" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</p>

        <p title="EE+ Page Footer" align="justify"></p>

        <div title="EE+ Page Footer" align="center">
            <table cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr valign="bottom">
                    <td align="left" width="2%"><font face="Times New Roman" size="2"><font face="Wingdings">o</font></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" width="94%"><font face="Times New Roman" size="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</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 colspan="3">
                    </td>

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

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2"><font face="Wingdings">o</font></font></td>

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

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

                    <td align="left"><font face="Times New Roman" size="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></td>

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

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

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

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

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2"><font face="Wingdings">o</font></font></td>

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

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

                    <td align="left"><font face="Times New Roman" size="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-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>
                </tr>

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

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

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2"><font face="Wingdings">o</font></font></td>

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

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

                    <td align="left"><font face="Times New Roman" size="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(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>
                </tr>
            </table>
        </div>

        <div title="EE+ Page Footer" align="center">
            <br>
            <br>
        </div>

        <p title="EE+ Page Footer" 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>

        <div title="EE+ Page Footer" align="center">
            <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>

        <div title="EE+ Page Footer" style="MARGIN-TOP: 10pt">
            &nbsp;
        </div>

        <div title="EE+ Page Footer" style="MARGIN-TOP: 10pt">
            <font size="2"><b>ITEM</b> <b>2.02 Results of Operations and Financial Condition</b></font>
        </div>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">On September 23, 2009, Pizza Inn, Inc. issued a press release discussing financial results of its fiscal year 2009.&nbsp;</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"><b>Item 9.01 Financial Statements and Exhibits</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">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits</p>
        </blockquote>

        <p dir="ltr" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="10%"><font face="Times New Roman" size="2"><strong>Exhibit</strong></font></td>

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

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

                <td align="left" width="84%"><font face="Times New Roman" size="2"><strong>Description</strong></font></td>

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

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

            <tr valign="bottom">
                <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman" size="2"><strong>Number</strong></font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman" size="2">&nbsp; </font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="left"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

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

            <tr valign="bottom">
                <td>
                    <p align="left"><font face="Times New Roman" size="2">99.1</font></p>
                </td>

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

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

                <td align="left"><font face="Times New Roman" size="2">Pizza Inn, Inc. press release dated September 23, 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>
            </tr>
        </table>
        <strong><br>
        </strong><br>

        <p></p>

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

        <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
        </div>
        <!-- PAGE BREAK  -->

        <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="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">SIGNATURES</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 hereunto duly authorized.</p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="30%">
                </td>

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

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

                <td align="left" colspan="6"><font face="Times New Roman" size="2">Pizza Inn, Inc.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
            </tr>

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

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

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

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="2">Date: September 23, 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="left" width="23"><font face="Times New Roman" size="2">By:</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="left" width="220"><font face="Times New Roman" size="2">/s/ Charles R. Morrison</font></td>

                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

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

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

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

                <td align="left" width="23">
                </td>

                <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="left" colspan="3"><font face="Times New Roman" size="2">Charles R. Morrison, President&nbsp;&nbsp;</font></td>
            </tr>

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

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

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

                <td align="left" width="23">
                </td>

                <td align="left" width="16"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="left" colspan="3"><font face="Times New Roman" size="2">and Chief Executive Officer&nbsp;&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
    </body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>pizza8kex991092409.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body style="FONT-SIZE: 12pt; FONT-FAMILY: 'TIMES NEW ROMAN'">
        <p></p>

        <p></p>

        <div title="EE+ Page Header" style="MARGIN-BOTTOM: 12pt">
            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; COLOR: #ff0000; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL'" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; COLOR: #ff0000; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL'" align="left"><b><font style="FONT-SIZE: 10pt">FOR IMMEDIATE RELEASE</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'ARIAL'">Conta ct:<br>
            Nancy Ellefson<br>
            VP of Finance<br>
            Pizza Inn, Inc.<br>
            469-384-5000</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #0000ff; FONT-FAMILY: 'ARIAL'"><u>nellefson@pihq.com</u></font></b>&nbsp;<b><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'ARIAL'"><br>
            &nbsp; </font></b></p>
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2"><b>PIZZA INN, INC. REPORTS RESULTS FOR<br>
        FISCAL YEAR 200</b><b><font style="FONT-FAMILY: 'ARIAL'">9</font></b></font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><i><font style="FONT-FAMILY: 'ARIAL'" size="2">CEO is encouraged by success of new Buffet prototype and its promise for the </font></i></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><i><font style="FONT-FAMILY: 'ARIAL'" size="2">future of the Pizza Inn brand</font></i></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: Arial, Helvetica, sans-serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt Arial" align="justify"><b>The Colony, Texas &ndash;</b> <b>September</b> <b>23</b><b>, 200</b><b>9</b> <b>-- PIZZA INN, INC. (NASDAQ:PZZI)</b> today reported net income of $1.2 million, or $0.14 per share, for the fiscal year ended June 28, 2009, versus net income of $2.8 million, or $0.29 per share, for the prior fiscal year. The $0.15 difference in earnings per share
        is driven primarily by two factors. Due to a change in the availability and use of its net loss carryforwards, the Company reported tax expense of $0.5 million in fiscal year 2009 compared to a tax benefit of $0.1 million in fiscal year 2008, representing $0.07 of the earnings per share difference. In addition, the Company incurred litigation settlement expenses of $0.3 million in fiscal year 2009 versus a litigation settlement benefit of $0.3 million in fiscal year 2008, representing
        another $0.06 of the earnings per share difference. In the absence of these items, earning per share would have been $0.23 for fiscal year 2009 compared to $0.25 for fiscal year 2008.</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: Arial, Helvetica, sans-serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt Arial" align="justify">Highlights for the fourth quarter and fiscal year 2009 included:</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: Arial, Helvetica, sans-serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt Arial" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="4">
                </td>

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

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

                <td valign="top" align="left" width="2%"><font face="Arial" size="2">&bull;</font></td>

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

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

                <td width="96%">
                    <p align="justify"><font face="Arial" size="2">Sales from Company-owned restaurants increased 153%, or $1.1 million, in fiscal 2009 compared to the prior year, primarily due to the opening of the buffet location in Denton, Texas in October of 2008.</font></p>
                </td>

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

                <td align="left" width="1%"><font face="Arial" size="2">&nbsp;</font></td>
            </tr>

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

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td valign="top" align="left"><font face="Arial" size="2">&bull;</font></td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Arial" size="2">Comparable domestic buffet restaurant sales decreased 1.3% for fiscal 2009 and 3.8% for the fourth quarter compared to the prior fiscal year.</font></p>
                </td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

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

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

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td valign="top" align="left"><font face="Arial" size="2">&bull;</font></td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Arial" size="2">Total comparable domestic restaurant sales decreased 2.0% for fiscal 2009 and 4.4% for the fourth quarter compared to the prior fiscal year.</font></p>
                </td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

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

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

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td valign="top" align="left"><font face="Arial" size="2">&bull;</font></td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Arial" size="2">Buffet unit and total unit closures for the fourth quarter and fiscal year 2009 were at their lowest in the last ten years.</font></p>
                </td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>

                <td align="left"><font face="Arial" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: Arial, Helvetica, sans-serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt Arial" align="justify">Charlie Morrison, President and CEO, commented, "Despite the tough economic conditions, we are seeing positive results from the changes we have made to the Pizza Inn concept. Comparable buffet restaurant sales have trended ahead of pizza segment averages, which is encouraging for the continued momentum of the brand. Our successful new buffet
        prototype, combined with a great incentive program for franchise development, has delivered 13 new buffet franchise agreements for the coming fiscal year. These new franchise agreements include both new and existing franchisees. We also opened our third company-owned restaurant in Ft. Worth, Texas last week and have plans to continue expanding our company-owned store base in the future.&rdquo;</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="FONT-SIZE: 10pt; FONT-FAMILY: Arial, Helvetica, sans-serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt Arial" align="justify">Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve
        numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve judgments with respect to, among other things, future economic, competitive and market conditions, regulatory framework and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Pizza Inn&rsquo;s control. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of
        the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that Pizza Inn&rsquo;s objectives and plans will be achieved.</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: Arial, Helvetica, sans-serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt Arial" align="justify">Pizza Inn, Inc. (<font color="#0000ff"><u>www.pizzainn.com</u>)</font> is an owner, franchisor and supplier of a system of restaurants operating domestically and internationally under the trademark &ldquo;Pizza Inn.&rdquo; The Company and its distribution division, Norco Restaurant Services Company, are headquartered in The Colony, Texas. The
        Company&rsquo;s common stock is listed on the Nasdaq Capital Market under the symbol &ldquo;PZZI.&rdquo;</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="FONT-SIZE: 10pt; FONT-FAMILY: Arial, Helvetica, sans-serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt Arial" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td colspan="8">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><b>PIZZA INN, INC.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr style="HEIGHT: 12.4pt">
                <td colspan="8">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><strong><font face="Times New Roman, Times, serif" size="2">CONSOLIDATED STATEMENTS OF OPERATIONS</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.1pt">
                <td colspan="8">
                    <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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <div title="EE+ Page Footer" style="MARGIN-TOP: 12pt">
            <p align="left"></p>

            <table cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr valign="bottom">
                    <td align="left" width="69%">
                    </td>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                <tr>
                    <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;Food and supply sales</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman" size="2">37,793</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">43,807</font></td>

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

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

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

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

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

                    <td align="right"><font face="Times New Roman" size="2">4,180</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">4,970</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;Restaurant sales</font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">1,873</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">741</font></td>

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

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

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">43,846</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">49,518</font></td>

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

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

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

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman" size="2"><strong>COSTS AND EXPENSES:</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 valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of sales</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman" size="2">36,355</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">40,819</font></td>

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

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

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

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

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

                    <td align="right"><font face="Times New Roman" size="2">1,929</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">2,538</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;General and administrative expenses</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman" size="2">3,217</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">2,911</font></td>

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

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

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

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

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

                    <td align="right"><font face="Times New Roman" size="2">68</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">391</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;Provision for bad debts</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman" size="2">75</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">146</font></td>

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

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

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

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

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

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

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

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

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

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

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (recovery of) litigation costs</font></td>

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

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

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

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

                    <td align="left"><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">(284</font></td>

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

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

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">57</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">46</font></td>

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

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

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">41,964</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">46,576</font></td>

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

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

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

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

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

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

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

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

                    <td align="right"><font face="Times New Roman" size="2">1,882</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">2,942</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;Income tax expense (benefit)</font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">531</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">(99</font></td>

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

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

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

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

                    <td align="right"><font face="Times New Roman" size="2">1,351</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">3,041</font></td>

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

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

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

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

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations, net of income tax benefit</font></td>

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

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

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

                    <td align="right"><font face="Times New Roman" size="2">(179</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">(216</font></td>

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

                <tr bgcolor="#ccdbe3">
                    <td align="left">&nbsp;</td>

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right">
                    </td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right">
                    </td>

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

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

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

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">1,172</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="2">2,825</font></td>

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

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

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

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

                <tr valign="bottom" bgcolor="#ffffff">
                    <td align="left"><font face="Times New Roman" size="2"><strong>EARNINGS (LOSS) PER SHARE OF COMMON</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 valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2"><strong>STOCK - BASIC:</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 valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing 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">$</font></td>

                    <td align="right"><font face="Times New Roman" size="2">0.16</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">0.31</font></td>

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

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

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

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

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

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

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

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

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

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">0.14</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">0.29</font></td>

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

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

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

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

                <tr valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2"><strong>EARNINGS (LOSS) PER SHARE OF COMMON</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 valign="bottom" bgcolor="#ccdbe3">
                    <td align="left"><font face="Times New Roman" size="2"><strong>STOCK - DILUTED:</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 valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing 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">$</font></td>

                    <td align="right"><font face="Times New Roman" size="2">0.16</font></td>

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

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

                    <td align="right"><font face="Times New Roman" size="2">0.31</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;Loss from discontinued 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">$</font></td>

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

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

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

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

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

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

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

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">0.14</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">0.29</font></td>

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

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

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

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

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

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

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

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares outstanding - basic</font></td>

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

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">8,580</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">9,761</font></td>

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

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

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

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

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="2">Weighted average common</font></td>

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

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

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

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

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

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">8,580</font></td>

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

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

                    <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="2">9,789</font></td>

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

            <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="left"></p>

            <table cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td colspan="8">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><b>PIZZA INN, INC.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>
                </tr>

                <tr style="HEIGHT: 12.4pt">
                    <td colspan="8">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><strong><font size="2">CONSOLIDATED&nbsp;BALANCE SHEETS</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 13.1pt">
                    <td colspan="8">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><i><strong>(In thousands, except&nbsp; share amounts)</strong></i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                    </td>
                </tr>
            </table>
            <br>
            <br>
        </div>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="715">
                </td>

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

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

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

                <td width="102">
                    <p align="center"><font face="Times New Roman" size="2"><strong>June 28,</strong></font></p>
                </td>

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

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

                <td width="102">
                    <p align="center"><font face="Times New Roman" size="2"><strong>June 29,</strong></font></p>
                </td>

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

            <tr valign="bottom">
                <td align="left" width="715"><font face="Times New Roman" size="2"><strong>ASSETS</strong></font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" width="102">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2009</strong></font></p>
                </td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" width="102">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2008</strong></font></p>
                </td>

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

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">CURRENT ASSETS</font></td>

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

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

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">274</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">1,157</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, less allowance for doubtful</font></td>

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

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

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounts of $203 and $128, respectively</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">2,559</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">2,773</font></td>

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

            <tr valign="bottom">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">80</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">272</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">1,371</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">1,396</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property held for sale</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">17</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">301</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax assets</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">618</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">555</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">233</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">241</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" 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" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">5,152</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">6,695</font></td>

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

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">LONG-TERM ASSETS</font></td>

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

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

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">1,743</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">635</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax assets</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">86</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">237</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re-acquired development territory, net</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">--</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">46</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits and other</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">81</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">222</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp; </font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="102"><font face="Times New Roman" size="2">7,062</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="102"><font face="Times New Roman" size="2">7,835</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2"><strong>LIABILITIES AND SHAREHOLDERS' EQUITY</strong></font></td>

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

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

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">CURRENT LIABILITIES</font></td>

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

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

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">1,806</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">2,380</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenues</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">132</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">134</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">1,009</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">1,182</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" 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" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">2,947</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">3,696</font></td>

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

            <tr 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="715"><font face="Times New Roman" size="2">LONG-TERM LIABILITIES</font></td>

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

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

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred gain on sale of property</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">159</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">184</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenues, net of current portion</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">246</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">283</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank debt</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">621</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">--</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">37</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">18</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">4,010</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">4,181</font></td>

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

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">COMMITMENTS AND CONTINGENCIES (See Notes F and I)</font></td>

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

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

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="102">
                </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="715"><font face="Times New Roman" size="2">SHAREHOLDERS' EQUITY</font></td>

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

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

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.01 par value; authorized 26,000,000</font></td>

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

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

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares; issued 15,130,319 and 15,130,319 shares, respectively;</font></td>

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

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

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding 8,010,919 and 9,104,361 shares, respectively</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">151</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">151</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">8,741</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">8,543</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</font></td>

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

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">18,796</font></td>

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

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

                <td align="right" width="102"><font face="Times New Roman" size="2">17,624</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock at cost</font></td>

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

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

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="102">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares in treasury: 7,119,400 and 6,025,958, respectively</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">(24,636</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">(22,664</font></td>

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="715"><font face="Times New Roman" 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" width="10"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">3,052</font></td>

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

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="102"><font face="Times New Roman" size="2">3,654</font></td>

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

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="715"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="102"><font face="Times New Roman" size="2">7,062</font></td>

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

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="102"><font face="Times New Roman" size="2">7,835</font></td>

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

        <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></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td colspan="8">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><b>PIZZA INN, INC.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr style="HEIGHT: 12.4pt">
                <td colspan="8">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="center"><strong><font size="2">CONSOLIDATED STATEMENTS OF&nbsp;SHAREHOLDERS' EQUITY</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.1pt">
                <td colspan="8">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'TIMES NEW ROMAN'" align="center"><i><strong>(In thousands)</strong></i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="656">
                </td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

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

                <td align="left" width="18"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="656">
                </td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

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

                <td width="98">
                    <p align="center"><font face="Times New Roman" size="2"><strong>June 28,</strong></font></p>
                </td>

                <td align="left" width="36"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

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

                <td width="97">
                    <p align="center"><font face="Times New Roman" size="2"><strong>June 29,</strong></font></p>
                </td>

                <td align="left" width="18"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="656">
                </td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" width="98">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2009</strong></font></p>
                </td>

                <td align="left" width="36"><font face="Times New Roman" size="2"><strong>&nbsp;</strong> </font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" width="97">
                    <p align="center"><font face="Times New Roman" size="2"><strong>2008</strong></font></p>
                </td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2"><strong>CASH FLOWS FROM OPERATING ACTIVITIES:</strong></font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td width="98">
                </td>

                <td width="36">
                </td>

                <td width="13">
                </td>

                <td width="97">
                </td>

                <td width="18">
                </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="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">1,172</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="13"><font face="Times New Roman" size="2">$</font></td>

                <td align="right" width="97"><font face="Times New Roman" size="2">2,825</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to cash</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td width="98">
                </td>

                <td width="36">
                </td>

                <td width="13">
                </td>

                <td width="97">
                </td>

                <td width="18">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by (used for) operating activities:</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td width="98">
                </td>

                <td width="36">
                </td>

                <td width="13">
                </td>

                <td width="97">
                </td>

                <td width="18">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">290</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">342</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for bad debt</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">75</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">146</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">198</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">51</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of assets</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">9</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">88</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">(334</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities:</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td width="98">
                </td>

                <td width="36">
                </td>

                <td width="13">
                </td>

                <td width="97">
                </td>

                <td width="18">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes and accounts receivable</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">146</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">(196</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">192</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">(272</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">25</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">122</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">(574</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">)</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">298</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">(175</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">)</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">(489</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="98"><font face="Times New Roman" size="2">80</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="97"><font face="Times New Roman" size="2">(83</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Cash provided by operating activities</strong></font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="98"><font face="Times New Roman" size="2">1,517</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="97"><font face="Times New Roman" size="2">2,419</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

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

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

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

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2"><strong>CASH FLOWS FROM INVESTING ACTIVITIES:</strong></font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td width="98">
                </td>

                <td width="36">
                </td>

                <td width="13">
                </td>

                <td width="97">
                </td>

                <td width="18">
                </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="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of assets</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">108</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="98"><font face="Times New Roman" size="2">(1,049</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">)</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="97"><font face="Times New Roman" size="2">(249</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Cash used for investing activities</strong></font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="98"><font face="Times New Roman" size="2">(1,049</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">)</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="97"><font face="Times New Roman" size="2">(141</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">)</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="656"><font face="Times New Roman" size="2"><strong>CASH FLOWS FROM FINANCING ACTIVITIES:</strong></font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td width="98">
                </td>

                <td width="36">
                </td>

                <td width="13">
                </td>

                <td width="97">
                </td>

                <td width="18">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net borrowings of long-term bank debt</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">621</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of treasury stock</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">(1,972</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">)</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">(3,020</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="98"><font face="Times New Roman" size="2">--</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="97"><font face="Times New Roman" size="2">20</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Cash used for financing activities</strong></font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="98"><font face="Times New Roman" size="2">(1,351</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">)</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="97"><font face="Times New Roman" size="2">(3,000</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">)</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="656"><font face="Times New Roman" size="2">Net decrease in cash and cash equivalents</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td align="right" width="98"><font face="Times New Roman" size="2">(883</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">)</font></td>

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

                <td align="right" width="97"><font face="Times New Roman" size="2">(722</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">)</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ffffff">
                <td align="left" width="656"><font face="Times New Roman" size="2">Cash and cash equivalents, beginning of year</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="98"><font face="Times New Roman" size="2">1,157</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="97"><font face="Times New Roman" size="2">1,879</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" width="656"><font face="Times New Roman" size="2">Cash and cash equivalents, end of year</font></td>

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

                <td align="left" width="22"><font face="Times New Roman" size="2">&nbsp;</font></td>

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

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="98"><font face="Times New Roman" size="2">274</font></td>

                <td align="left" width="36"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="13"><font face="Times New Roman" size="2">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="97"><font face="Times New Roman" size="2">1,157</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>
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