Humpty's Restaurants International Inc. (HMP-TSX) Today Released Financial Results for the 6-Month Period Ending June 30, 2008

CALGARY, ALBERTA--(Marketwire) - Humpty's Restaurants International Inc. (TSX VENTURE:HMP) -

For the 6- Months ended June 30
2008 2007
Consolidated Revenue: $ 3,493,165 $ 6,415,967
Net Income: 327,964 227,501
Net Income/Share: 0.022 0.015
Shares Outstanding: 14,631,785 14,691,785

We are pleased to present the Second Quarter Report for Humpty's Restaurants International Inc. (H.R.I.I.) for the six months ended June 30, 2008. Net income for the period increased significantly by 84.8% ($233,684 vs. $126,442) from the same fiscal period in 2007. With the positive results from the Second Quarter the net income for the six-month period that ended June 30, 2008 improved by 44.2% ($327,964 vs. net income $227,501 in fiscal 2007).

Year-over-year Second Quarter combined revenue (Franchise revenue and Restaurant operations) decreased 52.5% through the period from $3.44 million (Q2/07) to $1.81 million (Q2/08). Franchise revenue recorded a slight decrease of 0.7% however Restaurant operations decreased significantly by 62%. The decrease in the Restaurant operations was due to the fact that in the Fourth Quarter of fiscal 2007 the Corporation sold its high volume Gasoline, Convenience Store, Car Wash and Restaurant enterprise in Red Deer, AB. Despite the significant decrease in sales volume, the contributing profit increased by nearly 200% ($89,479 vs. $29,929 Q2/07). Much of the sales in the Red Deer enterprise consisted of low margin gasoline and convenience store products. We also had some serious management and staffing issues in Red Deer in 2007.

In spite of a slight decrease in Franchise revenue we have been able to reduce our general and administrative expenses (1.7% Q2/08 and 1.1% year to date). The reduction of our cost of sales from 63.8% to 29.5% (Q2/08) for Restaurant operations has had a huge impact on our net income results. Overall our total expenses for Restaurant operations have been reduced from 62.8% to 36.7% year-to-date.

Our industry, like many other business enterprises in Western Canada continues to experience serious staff shortages. However we are coping with this situation as more and more of our Franchise locations have recruited foreign workers.

The Third Quarter is looking quite promising therefore we can remain optimistic for the remainder of 2008. We shall continue to explore and examine every opportunity that presents itself to grow the system geographically however will remain diligent in our efforts to assist our existing Franchisees and Corporate Managers in improving sales and profitability.

For detailed financial information, audited statements can be found at

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.


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