September  15,  2005

Dear  Shareholder:

This  letter  has  one purpose and that is to reshape your understanding of your
Pizza  Inn  investment.  After the bankruptcy in the early 1990s until recently,
the business model for this company revolved around the franchisee.  Some in the
industry  would describe it politely as "leveraging your earning opportunities;"
our  franchisees  on  the other hand would say we were existing off their backs.

We  found  and/or created ways to make money from them in every way imaginable -
from  commissions on media to proprietary grocery items - from kitchen equipment
to  charging them to attend their own franchise convention.  We did this because
we  were  focused  on  the short-term and as a consequence we created a business
model  for  our  franchisees  that  was  not  as  healthy as it could have been.

We geared ourselves toward "selling" franchises and ignored the possibility that
many  existing  franchisees  might  not  make  it.  Those times are gone and our
energy today is focused on creating long-term success for our current and future
operators,  which  we believe, should build a solid future for the brand and our
shareholders.

In  the  coming quarters, you may see our earnings dip as we prune our system of
poor operators and finally address fundamental business issues.  But, we believe
you  should  also  see  improving unit-level economics for our operators when we
ignore  opportunities  to  pass costs onto them.  We will work to create systems
and  processes dedicated to providing relief on all P&L pressure points and as a
result  should  expect  to  see fewer closings because of "failure".  We will be
excited  to  share  with  you  the  results of our new prototype restaurant, the
future  face  of  Pizza Inn, as the company and our franchisees develop existing
markets  toward  media  efficiency.

We  are  dedicated  to creating a new foundation for our future - a firm footing
built  on  concrete  versus  sand.  I  believe we will be successful in creating
long-term  shareholder  value  because  we  are focused on doing what's best for
Pizza Inn.  In turn, our franchisees will have the best chance for short-term as
well  as  long-term  success.

Please be assured that your management team is confident in our ability to right
this ship and we believe it begins with forthright communication.  On a personal
note, I am excited about what is possible and I'm available to meet with you any
time you find yourself in our area.  I would welcome the opportunity to show you
our  vision  of  the  future.

Be  well.

Pizza  Inn,  Inc.


/s/ Timothy P. Taft
Timothy  P.  Taft
President  &  CEO