BAB, Inc. Reports Profit for 3rd Quarter FY 2009

BAB, Inc. (OTCBB: BABB), announced its financial results for its third quarter ended August 31, 2009.

For the quarter ended August 31, 2009, BAB had revenues of $824,000 and net income of $115,000, or $0.02 per share, versus revenues of $932,000 and net income of $162,000, or $0.02 per share, for the same quarter last year.

For the nine months ended August 31, 2009, BAB had revenues of $2,399,000 and a net loss of $2,168,000, or $0.30 per share, versus revenues of $2,849,000 and net income of $483,000, or $0.07 per share for the same period in 2008. Excluding the first quarter 2009 noncash impairment charge for goodwill and other intangibles of $2,399,000, the nine months ended August 31, 2009 net income would have been $231,000. There was no impairment charge in 2008.

Total operating expenses for the quarter ended August 31, 2009, were $709,000 versus $773,000 in 2008. For the nine months ended August 31, 2009, total operating expenses, excluding the $2,399,000 impairment charge, were $2,171,000 versus $2,383,000 in 2008.

BAB, Inc. operates, franchises, and licenses Big Apple Bagels ®, My Favorite Muffin ® Jacobs Bros. Bagels ® and Brewster’s ® Coffee. The Company’s stock is traded on the OTCBB under the symbol BABB and its web site can be visited at www.babcorp.com.

Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “estimate,” “project,” “intend,” “expect,” “should,” “would,” “believe” and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the company’s actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the company’s SEC filings.

(TABLE FOLLOWS)