Noble Roman's Announces First Quarter 2009 Net Income Up 30%

This was a 29.7% increase in net income over the quarterly period ended March 31, 2008 of $304,795, or $.02 per share basic and diluted, on weighted average number of common shares outstanding of 19.2 million, and diluted weighted average shares of 20.3 million. Total revenues for the quarterly period ending March 31, 2009 were $1.9 million compared to total revenues of $2.4 million for the comparable period in 2008. The net income for the three-month period ended March 31, 2009 was slightly better than anticipated in the 2009 Business Plan announced in the Form 10-Q for the period ended September 30, 2008.

The increase in earnings was primarily the result of implementing the strategy announced during the third quarter of 2008: intensifying the company's focus on non-traditional franchising and discontinuing company operation of restaurants except for the two locations used for training and demonstration purposes. This strategy has allowed the company to narrow its focus and decrease its overhead and operating expenses during this period of weakened consumer activity and severe dislocations in lending markets. The company continues to believe that during such troubled economic times as these it has a unique opportunity for increasing unit growth and revenue within its non-traditional venues such as hospitals, military bases, universities, convenience stores, attractions, entertainment facilities, casinos, airports, travel plazas, office complexes and hotels, while at the same time operating with reduced overhead and operating costs. Total overhead and operating costs for the three-month period ended March 31, 2009 were $1,081,000 compared to $1,709,000 for the corresponding period in 2008.

The decrease in total revenue was largely the result of selling fewer franchise agreements in the three-month period ended March 31, 2009 compared to the comparable period in 2008. Royalty and fee income from franchising decreased from $1.9 million in the quarterly period ended March 31, 2008 to $1.8 million for the comparable period in 2009. Royalty and fee income, less initial franchise fees and equipment commissions, was approximately $1.7 million in both the three-month periods ended March 31, 2008 and 2009.

To augment the company's sales opportunities within non-traditional venues, in October 2008 the company introduced the new Noble Roman's Bistro service system. The Bistro incorporates all of the ingredient qualities for which Noble Roman's Pizza is known, and retains simplicity by using largely ready-to-use ingredients that require only final assembly and baking on site. It features the SuperSlice pizza, one-fourth of a large pizza, along with hot entrees such as chicken parmesan, baked pastas, hot sub sandwiches, breadsticks and calzones plus fresh salads and snacks. The Bistro is also available with an optional breakfast expansion menu featuring a wide variety of standard breakfast favorites. Customers move along the food display counter and are served to order as they go.

Updating the previously announced lawsuit styled Kari Heyser, et al (Plaintiffs), vs. Noble Roman's, Inc., et al (Defendants), no substantive discovery has been completed. The company believes it has strong and meritorious legal and factual defenses to these claims and will vigorously defend its interest in the case. The company filed a Counter-Claim for Damages against all of the Plaintiffs and a Preliminary Injunction and Permanent Injunction against a majority of the Plaintiffs to remedy the Plaintiff's continuing breaches of the franchise agreements. The company's Motion for Preliminary Injunction was granted on October 7, 2008. None of the Plaintiffs fully complied with the Court's Order and the company believes several only minimally complied. The company filed a Motion to Require Full Compliance, To Show Cause why the Plaintiffs should not be held in contempt and for attorney's fees as sanctions.

The company subsequently filed a Motion to Revoke the Temporary Admission Pro Hac Vice of David M. Duree, Plaintiff's counsel, for filing fraudulent affidavits with the Court. The Court granted this motion on March 31, 2009. In the same ruling the Court: continued the Motion to Show Cause to allow parties time to conduct discovery, including depositions on the preliminarily enjoined Plaintiffs, on that issue, granted preliminary injunctions against Plaintiffs Gomes and Villasenor, dismissed claims against CIT Small Business Lending Corporation and PNC Bank with prejudice, and struck the fraudulent affidavits. The Court has granted Plaintiff's Motion for Continuance until May 14, 2009 to allow time for Plaintiffs to engage new counsel.

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