PIZZA INN ANNOUNCES 1ST QUARTER FINANCIAL RESULTS

THE  COLONY,  TEXAS  -OCTOBER  22,  2004-  PIZZA  INN,  INC. (NASDAQ:PZZI) today
reported  earnings per share for its first quarter ended September 26, 2004 of 3
cents  versus  5  cents for the same quarter last year.  Net income was $285,000
versus  $504,000,  on  revenues  of  $14.4  million  versus $15.4 million in the
previous  year.  The  same  quarter  last  year  included  higher  international
royalties  resulting from the collection of approximately $173,000 of previously
unrecorded  past due royalties. Comparable same-store sales finished up 0.1% for
the  quarter.

Certain statements in this press release, other than historical information, may
be  considered  forward-looking  statements,  within  the  meeting  of the "safe
harbor"  provisions of the Private Securities Litigation Reform Act of 1995, and
are subject to various risks, uncertainties and assumptions.  Should one or more
of  these  risks  or uncertainties materialize, or should underlying assumptions
prove  incorrect, actual results may differ from those anticipated, estimated or
expected.  Among  the  key factors that may have a direct bearing on Pizza Inn's
operating  results,  performance  or  financial  condition  are  its  ability to
implement  its  growth  strategies,  national,  regional  and  local  economic
conditions  affecting  the  restaurant  industry, competition within each of the
restaurant  industries,  store  sales  cannibalization, success of its franchise
operations, negative publicity, fluctuations in quarterly results of operations,
including seasonality, government regulations, weather, commodity, insurance and
labor  costs.

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.






PIZZA INN, INC.
(In thousands, except share and per share amounts)





                                                           
                                                       Sept. 26,    Sept. 28,
                                                           2004         2003
                                                    -----------  -----------
Revenue. . . . . . . . . . . . . . . . . . . . . .  $    14,421  $    15,376

Income before taxes. . . . . . . . . . . . . . . .  $       441  $       764

Net Income . . . . . . . . . . . . . . . . . . . .  $       285  $       504

Diluted earnings per share . . . . . . . . . . . .  $      0.03  $      0.05

Basic earnings per share . . . . . . . . . . . . .  $      0.03  $      0.05

Weighted average shares outstanding:
   Diluted . . . . . . . . . . . . . . . . . . . .   10,168,621   10,086,059
   Basic . . . . . . . . . . . . . . . . . . . . .   10,133,674   10,059,223