EXHIBIT 11.0 MOTO PHOTO INC. AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS ENDED ENDED ENDED ENDED 30-JUNE-98 30-JUNE-97 30-JUNE-98 30-JUNE-97 Numerator: Net income $ 395,848 $ 528,590 $ 194,210 $ 401,657 Preferred stock dividend (68,904) (70,964) (138,328) (142,434) requirement Numerator for basic earnings per share-- income available to common shareholders 326,944 457,626 55,882 259,223 Effect of dilutive securities: - - - - Numerator for diluted earnings per share-- income available to common stockholders after assumed conversions $ 326,944 $ 457,626 $ 55,882 $ 259,223 Denominator: Denominator for basic earnings per share-- weighted average shares outstanding 7,809,581 7,791,832 7,807,074 ,789,869 Effect of dilutive securities: Employee stock options Dilutive potential common shares 122,939 64,443 188,405 62,035 Denominator for diluted earnings per share-- adjusted weighted average shares and assumed conversions 7,932,520 7,856,275 7,995,479 7,851,904 Basic earnings per share $ 0.04 $ 0.06 $ 0.01 $ 0.03 Diluted earnings per share $ 0.04 $ 0.06 $ 0.01 $ 0.03