Noble Roman's, Inc. Announces First Quarter Earnings

Noble Roman's, Inc. (BULLETIN BOARD: NROM) , the Indianapolis based franchisor of Noble Roman's Pizza and Tuscano's Italian Style Subs, today announced earnings for the quarter ended March 31, 2008.

For the quarter the company reported net income of $321,431, or $.02 per share, on 19.2 million weighted shares outstanding. This compares to a net income of $703,003, or $.04 per share, on 16.7 million weighted shares outstanding for the quarter ended March 31, 2007. Total revenues for the quarter ended March 31, 2008 were $2.4 million compared to $2.9 million for the corresponding period in 2007.

Slower growth for the company's traditional co-brand franchise concept during the first quarter more than accounted for the decrease in first quarter revenue, royalty and fee income from existing franchises apart from new franchise and development related fees actually increased from $1,551,997 during the first quarter of 2007 to $1,702,178 for the first quarter of 2008. Program enhancements previously announced in November 2007 were in full implementation during the first quarter of 2008. These enhancements include: more rigorous franchisee selection criteria, a longer, more robust training period for new franchisees, more direct franchisee involvement in the construction and marketing process, and intensified monitoring and enforcement of operating standards and unit performance. As previously forecast, these enhancements have initially resulted in slower growth in the company's traditional concept, but the company believes they ultimately will provide for a stronger base of future growth.

The company is also continuing its focus on awarding franchise agreements for both Noble Roman's Pizza and Tuscano's Italian Style Subs in non- traditional venues such as hospitals, military bases, universities, convenience stores, attractions, entertainment facilities, casinos, airports, travel plazas, office complexes and hotels. The non-traditional franchising program has been the company's predominant growth vehicle for the last several years, and it has recently increased its sales staff to facilitate faster growth. Recent economic conditions, such as record oil prices and difficult credit markets, have hampered the pace of growth in certain non-traditional venues, but the company remains positive on the longer-term outlook for these venues as the economic disruptions begin to stabilize and resolve.

                   Noble Roman's, Inc. and Subsidiaries

                  Condensed Consolidated Balance Sheets

                               (Unaudited)





                  Assets                           December 31,   March 31,

                                                       2007        2008

  Current assets:

     Cash                                            $832,207   $2,990,315

     Accounts and notes receivable (net of

      allowances of $106,712 as of

      December 31, 2007 and March 31, 2008)         1,770,994    2,058,725

     Inventories                                      310,362      329,733

     Assets held for resale                           643,915    1,182,509

     Prepaid expenses                                 175,022      230,115

     Current portion of long-term notes receivable    133,736       84,373

     Deferred tax asset - current portion           1,971,875    1,588,000

             Total current assets                   5,838,111    8,463,770



  Property and equipment:

     Equipment                                      1,289,795    1,291,901

     Leasehold improvements                           107,729      107,729

                                                    1,397,524    1,399,630

     Less accumulated depreciation and amortization   755,987      782,733

            Net property and equipment                641,537      616,897

  Deferred tax asset (net of current portion)       9,106,008    9,324,298

  Other assets including long-term portion

   of notes receivable less allowances

   of $550,000 as of December 31, 2007

   and March 31, 2008                               1,883,644    1,936,308

                        Total assets              $17,469,300  $20,311,273





          Liabilities and Stockholders' Equity



  Current liabilities:

     Accounts payable and accrued expenses            $532,264     455,283

     Current portion of long-term note payable       1,500,000   1,500,000

                  Total current liabilities          2,032,264   1,955,283



  Long-term obligations:

     Note payable to bank (net of current portion)   4,125,000   6,750,000

                  Total long-term liabilities        4,125,000   6,750,000



  Stockholders' equity:

     Common stock - no par value (25,000,000 shares

      authorized, 19,187,499 issued and outstanding

      as of December 31, 2007 and  19,197,499

      issued and outstanding as of March 31, 2008)  22,905,617  22,924,775

     Preferred stock (5,000,000 shares authorized

      and 20,625 issued and outstanding as of

      December 31, 2007 and March 31, 2008)            800,250     800,250

     Accumulated deficit                           (12,393,830)(12,089,035)

                  Total stockholders' equity        11,312,036  11,635,990



                     Total liabilities and

                      stockholders' equity         $17,469,300 $20,341,273







                   Noble Roman's, Inc. and Subsidiaries

             Condensed Consolidated Statements of Operations

                               (Unaudited)



                                                      Three Months Ended

                                                           March 31,

                                                      2007         2008



  Royalties and fees                               $2,585,407   $1,948,153

  Administrative fees and other                        18,347       13,441

  Restaurant revenue                                  251,585      388,841

                  Total revenue                     2,855,339    2,350,435



  Operating expenses:

       Salaries and wages                             377,544      381,092

       Trade show expense                             137,786      123,473

       Travel expense                                  79,239      113,581

       Sales commissions                              114,988       31,688

       Other operating expenses                       226,020      237,474

       Restaurant expenses                            234,407      374,427

  Depreciation and amortization                        21,347       25,318

  General and administrative                          425,032      422,302

                Operating income                    1,238,976      641,080



  Interest and other expense                          173,819      154,063

                Income before income taxes          1,065,157      487,016



  Income tax expense                                  362,154      165,586

                Net income                            703,003      321,431



                Cumulative preferred dividends         41,135       16,636



                Net income available to common

                     stockholders                    $661,868     $304,795





  Earnings per share - basic:

       Net income                                        $.04         $.02

       Net income available to common stockholders        .04          .02

  Weighted average number of common shares

   outstanding                                     16,668,018   19,196,395





  Diluted earnings per share:

       Net income                                        $.04         $.02

  Weighted average number of common shares

   outstanding                                     20,046,737   20,297,994

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