Papa John's Announces Sale of Perfect Pizza Chain in the United Kingdom

The purchase price was approximately $13.0 million, with $8.0million paid in cash at closing, approximately $900,000 to be paid toPapa John's within 12 months, and the balance covered byinterest-bearing notes to be retired by the purchaser over the nextfive years. The company's previously issued earnings guidance of $1.38to $1.46 per share for 2006 included the projected impact of thetransaction.

The company will continue to franchise and operate the Papa John'sbrand in the United Kingdom. There are currently 89 Papa John'srestaurants in the UK (86 franchised and three company-owned units),with plans to open as many as an additional 20 Papa John's restaurantsin 2006. Papa John's UK has also recently invested in point-of-saletechnology and its online ordering capabilities, both intended toenhance the customer ordering experience.

Known for "Better Ingredients. Better Pizza.", Papa John's hasbeen named Delivery Operator of the Year among pizza chains in theUnited Kingdom by the Pizza and Pasta Association in each of the lasttwo years. This honor is consistent with recognition received by PapaJohn's in the United States, where Papa John's has been rated no. 1 incustomer satisfaction among all QSR chains in the American CustomerSatisfaction Index (ACSI) for six years running (1999 - 2005).

"Perfect Pizza provided us a good platform for launching anddeveloping the Papa John's brand in the UK, but we now believe the twobrands are best managed separately," commented Papa John's chiefoperations officer Bill Van Epps. "This sale allows our franchiseesand management team to focus exclusively on Papa John's, which hasexcellent momentum and growth potential in the UK and other regionsthroughout the world."

As of February 19, 2006, there were 2,917 Papa John's restaurants(508 company-owned and 2,409 franchised, including 317 internationalunits) in 49 states and 22 countries. For more information about thecompany, visit Papa John's at http://www.papajohns.com.