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.