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January sales up 1.8% at Papa John's

February 4, 2003

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LOUISVILLE, Ky. -- Papa John's International, Inc. (Nasdaq: PZZA) announced domestic systemwide comparable sales for the four weeks ended Jan. 26, 2003 increased 1.8 percent (composed of a 0.9 percent increase at company-owned stores and a 2.1 percent increase at franchise stores).

According to a release, sales for the period were favorably impacted by the timing of the Super Bowl and the national rollout of dessert addition called Papa's Cinnapie.

However, the company believes the timing of both the Super Bowl and the Cinnapie intro will negatively impact February comparable-store sales.

Ongoing political unrest in Venezuela extended the closure of Papa John's 21 stores there and dragged total systemwide international sales down 3.1 percent (on a constant U.S. dollar basis) compared to the year prior. Excluding losses in Venezuela, systemwide international same-store sales increased 6.3 percent.

Papa John's expects fourth quarter 2002 earnings per share to be near the lower end of the previously announced range of 58 cents to 61 cents.

Though the release said the combination of share repurchases and low commodity costs helped the company in January, those gains are expected to be offset by a $1.7 million loss related to a terminated relationship with an unidentified vendor.

The company announced that full-year earnings per share should be near the lower end of the previously announced range of $2.30 to $2.33.

The company also announced the completion of a $175 million revolving line of credit expiring in January 2006, replacing the previous, $200 million line that was due to expire in March 2003. The new credit facility includes an accordion feature that provides for an expansion up to $225 million, subject to the receipt of additional commitments from the lenders.

At Jan. 26, there were 2,787 Papa John's stores (591 company-owned and 2,196 franchised) operating in 49 states and nine international markets. Five stores (three company-owned, two franchised) were closed during the period.

Papa John's also franchises 144 Perfect Pizza stores in the United Kingdom.

See related story:

* Papa John's U.S. same-stores sales drop in 4Q