Humpty's Restaurants International Inc. (TSX VENTURE:HMP) today released
financial results for the 12-month period ending December 31, 2007.




                                       For the 12- Months ended December 31
                                                      2007             2006
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Consolidated Revenue:                          $12,698,125      $11,325,321
Net Income:                                        510,817          126,533
Net Income/Share:                                    0.035            0.009
Shares Outstanding:                             14,651,785       14,746,785
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We are pleased to present to you our Company's operating results for 2007. The
positive results reflect our continued efforts to solidify our position in the
market place and strengthen our financial status. Our net income of $510,817
that we recorded in fiscal 2007 was our best result since 1998.


Our Operating Results

Total revenue for fiscal 2007 was $12,698,125 which represents a 12.1% increase
from fiscal 2006 ($11,325,321). The bulk of this increase was derived from the
restaurant, gasoline and convenience store division. Franchise sales and
renewals increased by $55,000 while Royalties, Advertising fees and Rebates
increased marginally. Operating expenses increased proportionally with the
revenue increase (12.0% vs. 12.1%). The ever increasing cost of labour was the
main contributor to the huge increase in operating expenses for the restaurant,
gasoline and convenience store division. In fiscal 2007 our labour costs
increased 12.9% over 2006. Lease settlements and franchise assistance recorded a
slight increase of 1.8% from fiscal 2006 and as a result we didn't meet our
target of $296,000. Each year in this Message we identify this category because
it is the only expense dedicated to troubled locations or rectifying one-time
unusual write downs or expenses.


The following items were the write downs and expenses that were the major
contributors to this expense.


a) The lease for a Thunder Bay ON location that was closed in January/06 was set
up as a lease settlement to the end of its term (April/09). In addition to this
expense an environmental clean-up of mold that had developed in the unoccupied
premises cost $50,000. Total expense was $144,301.


b) Five locations were upgraded with new Franchise operators in 2007. In all
situations these locations had lease obligations that hadn't been paid. Total
expense was $76,926.


c) A Prince George BC lease that we had been paying for over three years finally
came to end in October /07. Expense $32,802.


d) Corporate location in Edmonton AB was sold which resulted in a write down of
assets of $42,603.


The net effect of the aforementioned unusual items was a loss of $296,632. Lease
settlements and franchise assistance will always be a cost of doing business in
our Company. It is certainly a high priority to continue to reduce this expense.
We will see a reduction in fiscal/08 with expectation that this reduction will
be in the 25%-30% range.


Despite the aforementioned expenses, the Company recorded a 16.2% increase of
Income from Operations ($291,062 vs. $250,477/06) Net income improved a very
respectable 303.7%.


Normal Course Issuers Bid

In September 2002 the Company was granted permission to commence a Normal Course
Issuers Bid which meant it could repurchase for cancellation up to 759,740
shares of its own capital stock. Annually since 2002 including 2007 the Company
continues to renew its Bid to repurchase its capital stock. In 2007 the Company
repurchased 95,000 shares bringing the total to date repurchased 543,000 or
3.57% of the original outstanding total. By repurchasing these shares for
cancellation the Company continues to enhance shareholders value.


Our Market Position

2008 marks the 31st year of the Humpty's System in Canada. Our market share on
December 31, 2007 was forty-nine (49) locations operating and one location
closed for renovations (re-opening July/08). The Company owns or manages eight
(8) locations with three of these locations being re-franchised in May/08,
September/08 and December/08 respectively. Two of these locations are in
Edmonton AB and have been a burden to the Company due to a lack of consistent
and efficient on site management. With dedicated on-hands Franchisee ownership
we anticipate increased sales at these two locations. The third location in Cold
Lake AB (December/08) continues to be one of our best operations. In December/07
we sold our Humpty's Classic Cafe and Humpty's Express and Car Wash in Red Deer
AB. Although this was a very high volume location it desperately required
on-hands management. In order to maximize the potential for profitability the
location had to be Franchised. The sales at this location continue to improve
and should exceed $7 M revenue for fiscal 2008.


Looking Forward

We will maintain our objective to continue to improve on what we have. That is
the reason we continue to upgrade our locations thus improving sales. We will
continue to replace under performing Franchise owners (five changes 2007) with
more motivated and progressive entrepreneurs.


Although we continue to focus on improvement we will look at every opportunity
to develop new locations, particularly in Ontario and the Atlantic Provinces. We
know there will be opportunities however the situation has to be right. As we
like to say "its better to be cautious than careless."


Western Canada still continues to experience an extreme labour shortage. This is
not a short term situation. We are making provisions as are our Franchisees to
bring in foreign workers. Currently we have twenty-seven (27) foreign employees
employed in our Corporate locations and have applications in place for another
fourteen (14).


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.
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