Play it Again Parent Q1 Net Income Up 21.2%

Winmark Corporation, the parent company of Play it Again Sports, reported that net income for the quarter ended March 27, 2004 of $1,360,300, or $.21 per diluted share, compared to net income of $1,122,200. or $.18 per diluted share, in the first quarter of 2003. Merchandise sales declined 31.5% to $2.6 million while franchise fees increased 42.7% to $192,600.

John L. Morgan, Chairman and Chief Executive Officer, stated, “The increase in earnings is partly due to higher revenue from royalties. This increase is the result of the hard work of our franchisees coming out of a difficult retail environment.” Mr. Morgan continued, “Starting in the second quarter of 2004, we will offer equipment leasing options to our franchise systems and other small businesses. We are excited about this new way to help our franchisees.”

                           WINMARK CORPORATION
                    CONDENSED STATEMENTS OF OPERATIONS
                               (unaudited)

                                          Three Months Ended
                                  March 27, 2004        March 29, 2003
  REVENUE:
    Royalties                       $4,629,900           $4,291,500
    Merchandise sales                2,604,000            3,800,500
    Franchise fees                     192,600              135,000
    Other                              137,200              153,200
      Total revenue                  7,563,700            8,380,200

  COST OF MERCHANDISE SOLD           2,152,400            3,121,600

  SELLING, GENERAL AND
   ADMINISTRATIVE EXPENSES           3,318,300            3,458,000

      Income from operations         2,093,000            1,800,600
  LOSS FROM EQUITY INVESTMENT          (24,300)                   -
  GAIN ON SALE OF INVESTMENTS          189,200                2,900
  INTEREST AND OTHER INCOME             76,500               66,900

      Income before income taxes     2,334,400            1,870,400

  PROVISION FOR INCOME TAXES          (974,100)            (748,200)

  NET INCOME                        $1,360,300           $1,122,200

  EARNINGS PER SHARE - BASIC              $.24                 $.20

  WEIGHTED AVERAGE SHARES
   OUTSTANDING - BASIC               5,706,471            5,724,697

  EARNINGS PER SHARE - DILUTED            $.21                 $.18