BAB, Inc. Reports Profit for 1st Quarter FY 2003.

Business Editors

CHICAGO--(BUSINESS WIRE)--April 9, 2003

BAB, Inc. (OTCBB:BABB), the Chicago based operator and franchisor of Big Apple Bagels, My Favorite Muffin and Brewster's Coffee, today announced its financial results for the first quarter ended February 28, 2003, reporting net income of $40,144, or $0.01 per share, versus $12,934 for the same quarter last year.

Revenues for the quarter were $1,802,700 versus $2,147,000 for the same quarter last year, primarily due to management's decision in early 2001 to convert company-owned stores to franchised units. The Company's ongoing focus on franchised operations, as well as continued emphasis on controlling costs, has increased profitability. For the quarter, all expense categories showed a decrease over the prior year. Total costs for the quarter ended February 28, 2003, were $1,729,000, or $393,800 lower, than total expenses of $2,122,800 for the first quarter of 2002.

The company also improved its balance sheet by increasing cash by $409,800, to a total $1,201,600, reducing net accounts receivable by $91,700, or 20%, and reducing total debt by $317,800, or 15.2%, since the quarter-ended February 24, 2002.

BAB, Inc. operates, franchises, and licenses Big Apple Bagels (R), My Favorite Muffin (R), Brewster's (R) Coffee and Jacob Bros. Bagels, a Chicago based bagel bakery chain. The Company's stock is traded on the OTCBB under the symbol BABB and its web site can be visited at www.babcorp.com.

Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "estimate," "project," "intend," "expect," "should," "would," "believe" and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the company's actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the company's SEC filings.

                             TABLE FOLLOWS


BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


                                       -------------------------------
                                                Quarter Ended
                                        02/28/03   02/24/02  % Change
                                       -------------------------------

REVENUES

Net sales by company-owned stores        818,091  1,118,048     -26.8%
Royalty fees from franchised stores      612,893    660,484      -7.2%
Franchise and area development fee
 revenue                                  95,000    163,300     -41.8%
Licensing fees and other income          276,691    205,185      34.8%
                                       ---------------------
                                       1,802,675  2,147,017     -16.0%

OPERATING COSTS AND EXPENSES

Food, beverage and paper costs           270,445    363,181     -25.5%
Store payroll and other operating
 expenses                                663,904    881,365     -24.7%
Selling, general and administrative      684,512    684,588       0.0%
Depreciation and amortization            110,164    193,618     -43.1%
                                       ---------------------
                                       1,729,025  2,122,752     -18.5%

Income before interest, other and taxes   73,650     24,265     203.5%

Interest expense                          43,009     42,359       1.5%
Interest income                            8,361     31,028     -73.1%
Other income                               1,142          0       N/M
Income taxes                                                      N/M

                                       ---------------------
Net Income (Loss)                         40,144     12,934       N/M
                                       =====================

Earnings (Loss) per share - basic          0.005      0.001       N/M
Average number of shares outstanding   7,536,052  8,890,492       N/M

Earnings (Loss) per share - diluted        0.005      0.001       N/M
Average number of shares outstanding   8,190,975  8,959,644       N/M


EBITDA                                   193,317    248,911       N/M