Papa John's International, Inc. (Nasdaq:PZZA) today announced revenues of $248.4 million for the fourth quarter of 2005, representing an increase of 2.0% from revenues of $243.4 million for the same period in 2004. Net income for the fourth quarter of 2005 was $14.4 million, or $0.42 per share (including a net gain of $2.0 million, or $0.06 per share, from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. (BIBP), a variable interest entity), compared to last year's net income of $9.4 million, or $0.28 per share (including a net loss of $1.9 million, or $0.05 per share, from the consolidation of BIBP).

During the fourth quarter, the initial Papa John's restaurant was opened in four markets, United Arab Emirates, Pakistan, Nicaragua and South China. A total of 33 restaurants were opened in all international markets during the quarter and 96 were opened for all of 2005, of which 39 have occurred in our fastest growing markets of Korea and China. At the end of 2005, we had a total of 65 restaurants open and contractual agreements for an additional 490 Papa John's restaurants to be opened over the next nine years in these two countries. We also have a 100-unit development agreement for Northern India, the first unit of which is expected to open in the second quarter of 2006. Our total international development pipeline as of the end of 2005 included 848 restaurants to be opened over the next 11 years.

In the fourth quarter, we terminated the master franchise agreement in Mexico. In January and February, 17 franchised and subfranchised restaurants in Mexico closed. We expect that a substantial majority of the 22 remaining franchised and subfranchised restaurants in Mexico will close by the end of the first quarter. The royalty income earned from the restaurants closed or expected to close was not material to our 2005 operating results. We are committed to the development of Mexico as an important international market and are currently evaluating our alternatives, including potential direct investment via a joint venture or other methods.

In the United Kingdom, the company manages both the Papa John's brand (89 units as of the end of 2005) and the Perfect Pizza brand (112 units at the end of 2005). The United Kingdom subsidiary has reported deteriorating operating results for the past three years primarily due to lower sales by Perfect Pizza restaurants and a decrease in net franchise units due primarily to Perfect Pizza restaurant closings. During the fourth quarter, the company developed a plan to sell its Perfect Pizza operations, consisting of the franchised units and related distribution operations. The company believes the sale of the Perfect Pizza operations will be completed within the next 12 months. In accordance with U.S. accounting principles, we have classified the Perfect Pizza operating results, including directly associated G&A expenses, as "discontinued operations" and the associated assets as "held for sale" in the 2005 financial statements

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