Noble Roman's Announces Earnings for 2007 Up 31% Over 2006

    INDIANAPOLIS, March 12 /PRNewswire-FirstCall/ -- Noble Roman's, Inc.
 (OTC Bulletin Board:   NROM), the Indianapolis based franchisor of Noble
 Roman's Pizza and Tuscano's Italian Style Subs, today announced earnings
 for the year 2007, which increased 31.3% over the year 2006.
     Net income was $2.5 million, or $.14 per share basic, on weighted
 average number of common shares outstanding of l7.7 million, or $.13 per
 share diluted, on weighted average common shares outstanding of 19.0
 million. This compares to net income for the year ended December 31, 2006
 of $1.9 million, or $.12 per share basic, on weighted average number of
 common shares outstanding of 16.4 million, or $.10 per share diluted, on
 weighted average number of common shares outstanding of 19.7 million. Total
 revenues for the year ended December 31, 2007 were $11.6 million compared
 to total revenues of $9.5 million in 2006.
     Royalty and fee income from franchising increased to $10.4 million in
 2007 compared to $8.1 million in 2006, or an increase of 28.8%. Royalty and
 fee income, less initial franchise fees and fees for area development
 agreements, increased to $7.7 million in 2007 compared to $6.4 million in
 2006, or an increase of 19.3%.
     The company also announced that it temporarily assumed the operations
 and management of six suburban Indianapolis area franchises on February 1,
 2008. The six locations had been operated by a single franchisee and were
 experiencing management and supervision difficulties. The company's intent
 is to improve the operations, increase the sales and then re-franchise the
 operations under new ownership. During the first five weeks under the
 company's management and supervision, average weekly sales for the six
 locations were improved by 33.3% over the weekly average sales of the
 preceding six weeks.
     The company is continuing its efforts to market franchises for non-
 traditional locations which began in 1997, for traditional dual-brand
 locations which began in early 2006, and for area development territories
 which began in the third quarter of 2006. Area developers pay a fee for the
 exclusive right to market the dual-branded traditional concept in their
 acquired territory, subject to company approval of each franchisee and
 location, and subject to their continuing compliance with their minimum
 development schedule. Area developers who maintain their development
 schedule share in the franchise fees of new units in their territory, and
 in the royalty income from previously developed units in its territory. If
 an area developer does not meet its required minimum development schedule,
 the developer loses the right to the development area as well as their
 share of royalty income on any of the units that were developed.
     In late November 2007, the company created and filled the new position
 of National Director of Non-Traditional Franchising and will seek to
 accelerate the company's growth of non-traditional franchise sales. Though
 there can be no assurance of accelerated growth, management's assessment of
 market conditions indicated what it considered to be substantial potential
 for new development. As previously announced on November 26, 2007, the
 company also instituted more rigorous franchisee selection criteria for
 potential franchisees of its traditional dual-brand concept, which among
 other things now includes psychological screening tests and a longer
 training process. The company also refocused its marketing efforts for
 potential franchisees of its dual branded concept to candidates with more
 business or restaurant experience.
     The statements contained in this press release concerning the company's
 future revenues, profitability, financial resources, market demand and
 product development are forward-looking statements (as such term is defined
 in the Private Securities Litigation Reform Act of 1995) relating to the
 company that are based on the beliefs of the management of the company, as
 well as assumptions and estimates made by and information currently
 available to the company's management. The company's actual results in the
 future may differ materially from those projected in the forward-looking
 statements due to risks and uncertainties that exist in the company's
 operations and business environment including, but not limited to:
 competitive factors and pricing pressures, shifts in market demand, the
 ability to successfully operate certain franchises on a temporary basis and
 to re-franchise them, general economic conditions and other factors,
 including (but not limited to) changes in demand for the company's products
 or franchises, the success or failure of individual franchisees, the
 success or failure of area developers who may or may not maintain their
 minimum development schedule, and the impact of competitors' actions.
 Should one or more of these risks or uncertainties adversely affect the
 company or should underlying assumptions or estimates prove incorrect,
 actual results may vary materially from those described herein as
 anticipated, believed, estimated, expected or intended.
Consolidated Balance Sheets Noble Roman's, Inc. and Subsidiaries December 31, Assets 2006 2007 Current assets: Cash $920,590 $832,207 Accounts and notes receivable (net of allowances of $136,462 as of December 31, 2006 and $106,712 as of December 31, 2007) 1,505,444 1,770,994 Inventories 215,557 310,362 Assets held for resale 381,768 643,915 Prepaid expenses 136,167 175,022 Current portion of long-term notes receivable 187,898 133,736 Deferred tax asset - current portion 1,971,875 1,971,875 Total current assets 5,319,299 5,838,111 Property and equipment: Equipment 1,183,655 1,289,795 Leasehold improvements 105,928 107,729 1,289,583 1,397,524 Less accumulated depreciation and amortization 653,336 755,987 Net property and equipment 636,247 641,537 Deferred tax asset (net of current portion) 8,300,244 9,106,008 Other assets including long-term portion of notes receivable less a valuation allowance of $500,000 and $550,000 at December 31, 2006 and 2007 1,882,173 1,883,644 Total assets $16,137,963 $17,469,300 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $396,046 $532,264 Current portion of long-term note payable 1,500,000 1,500,000 Total current liabilities 1,896,046 2,032,264 Long-term obligations: Note payable to bank (net of current portion) 5,625,000 4,125,000 Total long-term liabilities 5,625,000 4,125,000 Stockholders' equity: Common stock - no par value (25,000,000 shares authorized, 16,602,601 issued and outstanding at December 31, 2006 and 19,187,449 issued and outstanding as of December 31, 2007) 21,393,360 22,905,617 Preferred stock (5,000,000 shares authorized and 51,000 issued and outstanding as of December 31, 2006 and 20,625 issued and outstanding as of December 31, 2007) 1,978,800 800,250 Accumulated deficit (14,755,243) (12,393,830) Total stockholders' equity 8,616,917 11,312,036 Total liabilities and stockholders' equity $16,137,963 $17,469,300 Consolidated Statements of Operations Noble Roman's, Inc. and Subsidiaries Year Ended December 31, 2005 2006 2007 Royalties and fees $7,269,868 $8,084,175 $10,411,326 Administrative fees and other 72,177 63,072 67,467 Restaurant revenue 1,088,783 1,339,555 1,088,022 Total revenue 8,430,828 9,486,802 11,566,815 Operating expenses: Salaries and wages 1,139,502 1,278,319 1,642,529 Trade show expense 474,555 447,303 554,574 Travel expense 333,617 380,763 527,455 Sales commissions - 72,343 621,928 Other operating expenses 678,231 742,104 1,024,399 Restaurant expenses 1,059,396 1,283,702 1,011,146 Depreciation and amortization 69,964 84,353 96,682 General and administrative 1,491,243 1,550,030 1,680,284 Operating income 3,184,320 3,647,887 4,407,818 Interest and other expense 817,357 776,028 650,802 Other income 2,800,830 - - Income before income taxes from continuing operations 5,167,793 2,871,859 3,757,016 Income tax expense 1,757,051 976,432 1,268,489 Net income from continuing operations 3,410,742 1,895,427 2,488,527 Loss from discontinued operations net of tax benefit of $387,603 for 2005 (560,153) - - Net income 2,850,589 1,895,427 2,488,527 Cumulative preferred dividends 16,096 163,200 127,116 Net income available to common stockholders $2,834,493 $1,732,227 $2,361,411 Earnings per share - basic: Net income $.17 $.12 $.14 Net income available to common stockholders .17 .11 .13 Weighted average number of common shares outstanding 16,848,932 16,405,995 17,675,834 Diluted earnings per share: Net income $.16 $.10 $.13 Weighted average number of common shares outstanding 18,313,035 19,702,988 18,973,291

SOURCE Noble Roman's, Inc.

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