RESIGNATION NOTICE OF PIZZA INN, INC.'S SENIOR VICE PRESIDENT -CORPORATE
                         DEVELOPMENT AND GENERAL COUNSEL

THE  COLONY,  TX  - Pizza Inn, Inc. (NASDAQ: PZZI) announced today that B. Keith
Clark,  the  Company's Senior Vice President - Corporate Development and General
Counsel,  notified  the Company on the 24th of June that his earlier termination
notice  should  be  considered notice of termination pursuant to Section 2.02 of
his Employment Agreement within twelve months after a Change of Control (as that
term  is  defined  in  his  Employment  Agreement).  Mr.  Clark also advised the
Company  that  his  termination should be considered to be for "good reason" (as
that  term  is  defined  in  his Employment Agreement) pursuant to Section 2.03.
Based on these assertions, Mr. Clark claims that the Company is obligated to pay
him  a  lump  sum  cash  severance payment of two and one-half times his current
annual  salary  plus  the  highest  amount  of bonus and other cash compensation
received  by him during any one of the immediately preceding three fiscal years.

The  Company  is of the opinion that no Change of Control has occurred, and that
Mr.  Clark's  termination  of  his  employment  is  not for "good reason".  As a
result,  the  Company  does  not  believe  it is obligated to make any severance
payment  to  Mr.  Clark.

Pizza  Inn,  Inc.  is  headquartered  in  The  Colony,  Texas,  along  with  its
distribution  division,  Norco  Restaurant  Distribution  Services.  Pizza  Inn
represents over 400 restaurants with annual sales of approximately $170 million.