BAB, Inc. Reports Profit for Year-Ended 11/30/07

DEERFIELD, IL--(Marketwire - February 1, 2008) - BAB, Inc. (OTCBB: BABB) today announced the financial results for its fiscal year-ended November 30, 2007, reporting net income of $1,243,700, or $0.17 per share.

For the year-ended November 30, 2007, BAB had revenues of $3,994,900 and net income of $1,243,700, or $0.17 per share, versus revenues of $3,917,400 and net income of $716,600, or $0.10 per share for fiscal year 2006. Included in 2007 net income was a $500,000 deferred tax benefit recognized for a reduction in the valuation reserve associated with the tax benefit of net operating loss carryforwards for income tax purposes. There was no such benefit recorded in 2006.

BAB, Inc. operates, franchises, and licenses Big Apple Bagels ®, My Favorite Muffin ®, Jacobs Bros. Bagels ® and Brewster's ® Coffee. 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.


BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


Fiscal Year Ended
2007 2006 % Change
--------- --------- ---------
REVENUES

Royalty fees from franchised stores 2,217,820 2,275,483 -2.5%
Franchise and area development fee revenue 235,000 272,219 -13.7%
Net sales by company-owned stores 484,399 500,689 -3.3%
Licensing fees and other income 1,057,680 869,000 21.7%
--------- --------- ---------
3,994,899 3,917,391 2.0%

OPERATING COSTS AND EXPENSES

Food, beverage and paper costs 155,800 159,615 -2.4%
Store payroll and other operating expenses 437,024 472,029 -7.4%
Selling, general and administrative 2,665,556 2,526,593 5.5%
Depreciation and amortization 44,812 69,653 -35.7%
--------- --------- ---------
3,303,192 3,227,890 2.3%

Income before interest and other 691,707 689,501 0.3%

Interest expense (15,606) (29,684) -47.4%
Interest and other income 67,612 56,790 19.1%
Deferred income tax benefit 500,000 0 N/M

--------- --------- ---------
Net Income 1,243,713 716,607 73.6%
========= ========= =========

Earnings per share - basic 0.17 0.10 N/M
Average number of shares outstanding 7,261,651 7,222,560 N/M

Earnings per share - diluted 0.17 0.10 N/M
Average number of shares outstanding 7,278,066 7,259,149 N/M


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