Poore Brothers Reports Third-Quarter Loss of $0.02 Per Share

Poore Brothers, Inc. (Nasdaq: SNAK) today reported
financial results for the third quarter (fourteen weeks) and nine
months ended October 1, 2005.
   Net revenues for the third quarter of fiscal 2005 were $18.5
million, 8% above last year's third quarter net revenues of $17.2
million. The net loss of $(0.4) million, or $(0.02) per share, this
year compared to net income of $1.0 million, or $0.05 per basic and
diluted share last year. The reduced profitability was the result of
$2.5 million in trade spending programs initiated to aggressively
drive revenue growth in T.G.I. Friday's(R), Boulder Canyon Natural
Foods(TM) and Cinnabon(R) brands. The Company's third-quarter gross
revenue shipments, before deductions for trade spending, grew 24%
versus last year.
   Mr. Thomas W. Freeze, President and Chief Executive Officer,
commented, "We are encouraged by our shipment growth, but not
satisfied with our financial performance this past quarter. We
invested significantly in the Cinnabon(R) brand market test and in a
big promotional event for the re-launch of the Boulder Canyon Natural
Foods(TM) brand potato chips. We simultaneously experienced lower than
expected results from our trade spending programs for the T.G.I.
Friday's(R) brand across several channels. While the programs
generated higher revenue, the additional volume was not sufficient to
offset their costs. Despite recent financial performance, we remain
excited about the future for all of our licensed brands. In addition,
we separately have announced the signing of a nonbinding letter of
intent to acquire the Mrs. Fields(R) brand licenses from Shadewell
Grove to produce and sell ready-to-eat cookies, baking chips, brownies
and toppings into many of the same distribution channels we presently
sell."
   In the third quarter T.G.I. Friday's(R) brand salted snacks net
revenue grew 1% to $12.4 million as the previously mentioned higher
trade spending programs in grocery, convenience store and mass
merchandiser channels offset the 12% gross revenue growth, but did not
generate sufficient volume to offset their costs. Overall, the T.G.I.
Friday's(R) brand represented 67% of total net revenue in the third
quarter. The Cinnabon(R) brand cookie market test continued in the
third quarter and generated $1.3 million in gross revenue from a
variety of new customers in the grocery and convenience store
channels. The Company overestimated sell through consumption in
connection with the large initial promotional order from a mass
merchandiser which resulted in a charge of $0.7 million to mark-down
and dispose of estimated excess inventory. The Company remains
committed to the Cinnabon(R) brand's success and to developing and
testing new products and promotional strategies. The Company's potato
chip brands' net revenues grew 13% due to strong promotional activity,
particularly on the Boulder Canyon Natural Foods(TM) brand.
Distributed products net revenue also grew 73% over the prior year due
to increased product lines.
   Continuing with third quarter results, gross profit in this
quarter was $2.6 million, or 13.8% of net revenue, compared to $4.3
million, or 25.1% of net revenue, in the same quarter of 2004. The
decline in this year's gross profit dollars and percentage was
attributable to the higher trade spending previously described and
significantly higher freight costs, partially offset by modest
improvement in manufacturing efficiencies.
   Selling, General and Administrative expenses increased to $3.3
million in the third quarter of 2005 as compared to $2.7 million in
2004, or 17.6% versus 15.7% of net revenue, respectively. The higher
level of spending in 2005 was due to increases in marketing costs for
new products, consumer testing programs, as well as commission
expenses associated with higher revenues.
   The operating loss for the third quarter of 2005 was $(0.7)
million compared to an operating income of $1.6 million in 2004 as a
result of the variances described above.
   For the nine months ended October 1, 2005, net revenue increased
12% to a record $58.4 million, compared with revenue of $52.3 million
in the first nine months of last year. Net income was $1.3 million, or
$0.07 per basic and diluted share, in the first nine months of 2005 as
compared to $1.5 million, or $0.08 per basic and diluted share, in the
same period last year.
   As of October 1, 2005, the Company remained in a strong financial
position with cash of $11.0 million, working capital of $11.7 million
and a debt-to-equity ratio of 0.11.
   Mr. Richard M. Finkbeiner, Senior Vice President and Chief
Financial Officer, added, "As a result of our third quarter
performance, we believe that we will be nearer the lower end of our
previously provided guidance for the full year of $75-$85 million in
net revenue, but we will not meet our earnings per share target of
$0.18-$0.23 per share. We now feel that our earnings per share for the
full year will be between $0.08-$0.10 per share."
   Mr. Freeze concluded, "While we are disappointed about our
short-term financial performance, we are optimistic that our broad
array of growth initiatives, including (i) Cinnabon(R) cookies and
other items, (ii) Boulder Canyon Natural Foods(TM) new products, such
as organic tortilla chips, soy crisps, and soy tortilla chips, (iii)
acquisitions, (iv) Panda Express(R) snack concepts, and (v) other
licensing opportunities, provides a broad platform upon which to reach
our long-term goal of building a $200 million profitable food company.
Our innovation capability with brands and products, while not always
successful in the marketplace, remains the cornerstone to our future
success."

   About Poore Brothers, Inc.

   With facilities in Indiana and Arizona, Poore Brothers is a
marketer and manufacturer of Intensely Different(TM) snack foods under
a variety of owned or licensed brand names, including T.G.I.
Friday's(R), Cinnabon(R), Tato Skins(R), Poore Brothers(R), Bob's
Texas Style(R), and Boulder Canyon Natural Foods(TM). For further
information about Poore Brothers or this release, please contact
Richard M. Finkbeiner, Senior Vice President and Chief Financial
Officer, at [phone], or logon to http://www.poorebrothers.com.

   Statements contained in this press release that are not historical
facts are forward looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Because such
statements include risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that may cause actual results to differ from the
forward-looking statements contained in this press release and that
may affect the Company's prospects in general include, but are not
limited to, the potential need for additional financing,
acquisition-related risks, significant competition, customer
acceptance of new products, dependence upon major customers,
dependence upon existing and future license agreements, general risks
related to the food products industry, and such other factors as are
described in the Company's filings with the Securities and Exchange
Commission.

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POORE BROTHERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

                         Quarter Ended           Nine Months Ended
                   ------------------------- -------------------------
                    October 1,   Sept. 25,    October 1,   Sept. 25,
                       2005         2004         2005         2004
                   ------------ ------------ ------------ ------------
                    (unaudited)  (unaudited)  (unaudited)  (unaudited)
Net revenue        $18,544,985  $17,176,201  $58,433,381  $52,335,763
Cost of revenue     16,180,051   12,871,232   46,619,491   40,348,800
(Gain) on sale of
 Equipment/Brand 
 discontinuance
 costs                (194,359)         --      (194,359)   1,414,759
                   ------------ ------------ ------------ ------------
     Gross profit    2,559,293    4,304,969   12,008,249   10,572,204
Selling, general
 & administrative
 expenses            3,261,688    2,695,000    9,909,626    7,993,475
                   ------------ ------------ ------------ ------------
     Operating
      income
      (loss)          (702,395)   1,609,969    2,098,623    2,578,729
Interest income
 (expense), net         68,998      (49,758)      94,728     (145,704)
                   ------------ ------------ ------------ ------------
     Income
      (loss)
      before
      income tax
      benefit
      (provision)     (633,397)   1,560,211    2,193,351    2,433,025
Income tax
 benefit
 (provision)           246,790     (604,000)    (851,060)    (942,000)
                   ------------ ------------ ------------ ------------
     Net income
      (loss)         $(386,607)    $956,211   $1,342,291   $1,491,025
                   ============ ============ ============ ============

Earnings  (loss)
 per common
 share:
-----------------
     Basic              $(0.02)       $0.05        $0.07        $0.08
                   ============ ============ ============ ============
     Diluted            $(0.02)       $0.05        $0.07        $0.08
                   ============ ============ ============ ============
Weighted average
 number of common
 shares:
-----------------
     Basic          19,842,862   18,831,954   19,728,863   18,685,191
                   ============ ============ ============ ============
     Diluted        19,842,862   19,202,074   20,018,528   19,321,246
                   ============ ============ ============ ============
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POORE BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

                                             October 1,     Dec. 25,
                                                2005          2004
                                            ------------  ------------
                                            (unaudited)   (unaudited)
Current assets                              $21,598,650   $19,013,368
Property and equipment, net                  10,271,553    10,815,963
Other assets, net                            10,283,579    10,287,956
                                            ------------  ------------
     Total assets                           $42,153,782   $40,117,287
                                            ============  ============

Current liabilities                          $7,910,611    $7,299,274
Long-term debt                                1,693,763     1,729,134
Other long-term liabilities                   1,964,518     2,280,793
                                            ------------  ------------
     Total liabilities                       11,568,892    11,309,201
Shareholders' equity                         30,584,890    28,808,086
                                            ------------  ------------
     Total liabilities and shareholders'
      equity                                $42,153,782   $40,117,287
                                            ============  ============
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POORE BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                 Nine Months Ended
                                             -------------------------
                                              October 1,    Sept. 25,
                                                 2005         2004
                                             ------------  -----------
                                             (unaudited)   (unaudited)
Net cash flows from operating activities      $1,806,649   $6,260,899
Net cash flows from investing activities         (92,586)    (447,526)
Net cash flows from financing activities        (342,554)    (452,020)
                                             ------------  -----------
     Net increase in cash                      1,371,509    5,361,353
Cash and cash equivalents at beginning of
 period                                        9,675,490    3,239,570
                                             ------------  -----------
Cash and cash equivalents at end of period   $11,046,999   $8,600,923
                                             ============  ===========
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