Strong Sales and Increased Store Count Fueled Papa Murphy's Record Year

Consumer-Voted Best Pizza Chain in America Sets Sights on
Expansion in 2008; Seeking Additional Franchise Owners for Nearly
Twenty Markets
VANCOUVER, Wash.--(Business Wire)--Papa Murphy's International today announced that it closed 2007
with over $500 million in total U.S. systemwide sales, a nearly 13
percent increase from 2006. New store sales volumes rose 46% over the
last year. Now the fifth largest pizza company in the U.S.(1), Papa
Murphy's ended the year with 1,067 locations, opening 119 in 2007. The
company continues to be widely acknowledged for its excellence in
value, quality, variety, service and convenience. In fact, consumers
named the company "Best Pizza Chain in America" for the fifth time in
2007.

Last year was also marked by new leadership, new international
territory, numerous operational advancements and many company
achievements. First, Clarice Turner was appointed to the position of
president and chief operating officer in May. Turner spent 16 years in
a variety of executive management positions with Taco Bell
Corporation, a subsidiary of Yum! Brands, before joining Papa
Murphy's. Second, the take 'n' bake pioneer blazed its trail outside
of U.S. borders in 2007, opening ten stores in Canada. Additionally,
Papa Murphy's found success in the following:

-- Launching three new products - Taco Grande Pizza, 5-Meat
Stuffed Pizza, and the Jack-O-Lantern Pizza. In fact, the
Jack-O-Lantern Pizza propelled Papa Murphy's to an all-time
weekly sales high.

-- Eliminating all added trans fat from the company's entire
pizza line. Today all Papa Murphy's pizzas contain zero grams
of trans fat per serving.

-- Securing a spot on the first-ever Inc. 5,000 list of the
fastest-growing private companies in the country. Papa
Murphy's also took a place on the magazine's list of the Top
100 Food & Beverage Companies.

-- Introducing the "We Can Do That!" campaign, which emphasizes
the company's menu customization capabilities. With an aim to
please the palate of every pizza-lover, this campaign
demonstrates that customers have endless options at Papa
Murphy's.

-- Adding 33 new franchise entity groups throughout the country.
Today there are 560 franchise owners in 30 states and two
Canadian provinces.

With its sights set on opening over 300 new stores over the next
two years, Papa Murphy's is aggressively seeking even more franchise
owners in 2008 for these metropolitan areas:

-- Amarillo, TX

-- Dallas/Fort Worth, TX

-- Denver, CO

-- Fresno, CA

-- Indianapolis, IN

-- Kansas City, MO

-- Milwaukee, WI

-- Minneapolis, MN

-- Oklahoma City, OK

-- Phoenix, AZ

-- Reno, NV

-- Sacramento, CA

-- Salt Lake City, UT

-- Springfield, MO

-- Tyler/Longview, TX

-- Waco, TX

-- Wichita, KS

"Experience the Freedom of Owning Your Own Franchise," is an
informational forum currently touring the U.S. Kevin King, senior vice
president of development, says that new franchise owners in the above
metropolitan areas will have a leg up. "The markets we're targeting
have already been exposed to Papa Murphy's; they're educated on the
take 'n' bake concept, familiar with the Papa Murphy's brand, and have
fallen in love with our product."

About Papa Murphy's

Papa Murphy's is the fifth-largest pizza chain in the country and
the pioneer of the take 'n' bake pizza concept. Papa Murphy's operates
over 1,000 locations in 30 states and Canada. The Vancouver,
Wash.-based company offers custom-made pizzas featuring high-quality
fresh toppings generously layered on pizza dough that is made fresh
each morning in each store. Containing zero grams of trans fat per
serving, Papa Murphy's pizzas are baked at home in customers' ovens
for a piping hot, delicious meal whenever they want it. In addition to
handmade pizzas, the company offers a growing menu of take 'n' bake
items, including Cheesy Bread, Cinnamon Wheels, chocolate chip cookie
dough and freshly-made salads. Papa Murphy's has been voted "Best
Pizza Chain in America" for five consecutive years by consumers
nationwide in the Restaurants and Institutions "Consumers' Choice in
Chains" survey. For more information, visit www.papamurphys.com.

(1)Based on U.S. store count

Papa Murphy's International
Lindsi Miller, 360-449-4017
lindsim@papamurphys.com

Copyright Business Wire 2008