Humpty's Restaurants International Inc. (HMP-TSX) today released Financial Results for the 12-Month Period Ending December 31, 2

Humpty's Restaurants International Inc.(TSX VENTURE:HMP) - 



                                       For the 12- Months ended December 31
                                                        2008           2007
----------------------------------------------------------------------------
Consolidated Revenue:                             $7,004,516    $12,681,360
Net Income:                                          503,195        507,284
Net Income/Share:                                      0.034          0.035
Shares Outstanding:                               14,629,785     14,651,785
----------------------------------------------------------------------------



We are pleased to present to you our Company's operating results for 2008. The
positive results reflect our continuing efforts to solidify our position in the
market place and strengthen our financial status. Our net income of $503,195
recorded in fiscal 2008 represents only a marginal decrease of .8% from 2007
when we recorded $507,284 net earnings.


Our Operating Results

Total revenue for fiscal 2008 was $7,004,516, which represents a 44.8% decrease
from fiscal 2007 ($12,681,360). The decrease was largely due to the sale of our
high volume Restaurant, Convenience Store and Gas location (Red Deer, AB) on
December 1, 2007. For the eleven months from January - November 2007 this
location contributed $5,902,806 to the total revenue. Royalties and Advertising
fees increased 3.1% and 2.8% respectively, which indicates overall increased
sales in our Franchise locations for 2008.


Despite the decrease in revenues in fiscal 2008 our operating expenses recorded
a very positive decrease. In fiscal 2007 operating expenses were 97.7% of
revenue. This compares to operating expenses for fiscal 2008 being 91.3% of
revenue. This significant decrease in operating expenses contributed an increase
of $321,628 to earnings (before income taxes). The expense item recording the
most positive improvement was "Lease settlements and franchise assistance". This
category was reduced by $414,096 or 67.2% in fiscal 2008. The plan for 2008 was
to reduce this category in the 25% - 30% range; therefore, we are very pleased
to have greatly exceeded that projection.


It should be noted that even though earnings for fiscal 2008 were very close to
2007 these earnings were over 90% earned whereas in 2007 over 50% of our
earnings were from the sale of property and equipment.


Normal Course Issuers Bid

Since September 2002 the Company has been repurchasing its capital stock through
a Normal Course Issuers Bid. Annually since 2002 including 2008 the Company has
continued to renew its Bid to repurchase this stock. In 2008 the Company
repurchased 22,000 shares bringing the total to date to 565,000 or 3.72% of the
original outstanding total. By repurchasing these shares for cancellation the
Company continues to enhance shareholder value.


Our Market Position

2009 marks the 32nd year of the Humpty's System in Canada. Our market share on
December 31, 2008 was forty-eight (48) locations operating, one location closed
for renovations and one new location opening (Calgary, AB) in July 2009. The
Company currently owns and operates four locations. One of these locations will
be franchised in December 2009. The new location opening in Calgary in July 2009
will also be corporately owned and operated.


Looking Forward

The current downturn in the economy has had some negative impact on our sales
particularly in northern B.C. and Alberta, although not to the extent that it
has for high-end restaurants. Consumers continue to dine out, as it is still an
"event", however they are not spending as much. Humpty's will benefit due to our
mid-scale casual restaurant classification, offering similar products at lower
prices. The Company has received more inquiries for franchise information in the
past five months then in the previous two years. When there is a downturn in the
economy there are layoffs. Many of those who receive severance packages begin
looking for business opportunities.


We believe the economy is going through a market correction and the positive
impact is that being an entrepreneur is now affordable again. Whether it's the
cost of leasing, material or skilled trades people, costs have almost reverted
to where they were a few years ago. Many of our locations will be conducting
renovations in 2009 because now it is more affordable and trades people are
available.


The extreme labour shortage experienced in Western Canada for the past three
years has improved substantially. We are now able to staff our locations with
more qualified employees thus improving our service and quality. This will
further enhance our ability to maintain our revenue stream over the next year.


Summary

If we stay focused on profitability growth we will be prepared for expansion
opportunities when they present themselves.


We are proud to be associated with a team of dedicated staff and Franchisees who
continually contribute an admirable effort to deliver services that exceed our
customers' expectations. We acknowledge those staff and Franchisees for their
continued commitment and dedication to the Humpty's System. We also appreciate
your continued support as shareholders of our Company.


For detailed financial information, audited statements can be found at
www.sedar.com.