Humpty's Restaurants International Inc. First Quarter 2008 Results

Humpty's Restaurants International Inc. (TSX VENTURE:HMP) today released
financial results for the 3-month period ending March 31, 2008.




                                           For the 3- Months ended March 31
                                                        2008           2007
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Consolidated Revenue:                           $  1,684,595   $  2,973,991
Net Income:                                           94,280        101,059
Net Income/Share:                                      0.006          0.007
Shares Outstanding:                               14,651,785     14,716,785
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We are pleased to present the First Quarter Report for Humpty's Restaurants
International Inc. for the three months ending March 31st, 2008.


Year-over-year First Quarter combined revenue (Franchise Revenue and Restaurant
Operations) decreased 43.3% through the period from $2,974 million (Q1/07) to
$1,685 million (Q1/08). Franchise revenue recorded a decrease of 7.9% however
Restaurant Operations decreased significantly by 56.9%. The decrease in
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, Alberta. In the First Quarter this
business would have contributed at least $500,000/month to the sales volume.
Despite the significant decrease in sales in Restaurant Operations the
contributing profit increased by 85.9%. This profit increase was largely due to
increased menu prices and our Foreign Labour Recruitment Program (FLRP) that has
assisted us to better control our labour costs.


Fiscal First Quarter 2008 operating results decreased slightly as the
Corporation recorded net income of $94,280 vs. net income of $101,059 in fiscal
2007. This represents a 6.7% decrease from fiscal 2007. Two extraordinary
expenses that caused the reduced profitability were the following: a) paid off
bank loan for a location we took back from a defaulted Franchisee three years
ago, amount $17,133 b) with the sale of the Red Deer, Alberta location we
guaranteed the assets against defects for a period of six months, amount
$12,643.


Going forward, the Corporation's strategy hasn't changed over the past two
years. That strategy has been to improve what we have and explore and examine
every opportunity to grow the system geographically. That is the reason we
continue to renovate our existing locations. Instead of reviewing our menu
pricing annually we are now doing that twice per year and making the necessary
adjustments. At the same time we are diligent with our supplier negotiations in
order that we are guaranteed the most competitive prices. Because labour costs
have overtaken food costs we will not slow down our FLRP. The critical labour
shortage still exists in Western Canada and as a result we still have some
locations that are not operating full time. However, our situation has improved
immensely since the same period in fiscal 2007.


As a Shareholder in our Corporation we must assure you that we are continuously
examining each opportunity to increase our presence in the marketplace with
additional locations. Due to the current economic conditions in Western Canada
it is our opinion that leasing rates, construction costs and materials are
generously overpriced at this time. However, as we go forward this will change
as we are already witnessing more retail spaces becoming available. We are fully
aware of what our operating costs need to be and therefore will not go into a
new location unless our Franchisee can generate a profit.


We are optimistic and looking forward to opportunities for growth in the next
twelve months. In the meantime it is very important that we be 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
www.sedar.com.