PIZZA INN REDUCES STAFF AND EXPENSES BY MORE
THAN $1 MILLION TO BENEFIT FRANCHISEES



THE COLONY, TEXAS -MAY 24, 2004- PIZZA INN, INC. (NASDAQ:PZZI) announced today a
reduction in its headquarters and distribution facility personnel of about 15%
as well as several variable expenses. These reductions will total more than $1
million annually and are being passed along to its franchisees through price
reductions in several major items sold through the Company's distribution
division, Norco Restaurant Services.

Ronnie Parker, Chief Executive Officer of the Company, said, "This was a very
difficult decision to reduce any of our personnel because our team has worked
very hard for Pizza Inn's and its franchisees' success. However, with the
financial pressures of so many of our expenses, including cheese and other
commodities, increasing significantly, we must remain focused on and committed
to the success of our franchisees through their sales and profitability. We
began a number of initiatives more than a year ago to rebuild a healthier
Company and chain of franchisees. Our sales trends have improved and these
expense savings will help to improve their profitability."

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