Play it Again Parent Sees Flat Profits in Q3

Winmark Corporation, parent company of Play it Again Sports, reported net income for the third quarter ended September 27, 2003 of $1,104,100, or $.17 per share diluted, compared to net income of $1,058,700, or $.17 per share diluted, in the third quarter of 2002.

For the nine months ended September 27, 2003, net income was $2,982,700, or $.48 per share diluted, compared to net income of $2,858,600, or $.47 per share diluted, for the same period last year.

John L. Morgan, Chairman and Chief Executive Officer, stated, “We are continuing to make progress in advancing our long-term strategy of providing solutions for our franchisees and other small businesses. As previously announced, we acquired a 20% stake in eFrame, LLC during the third quarter. This investment will be accounted for using the equity method, and therefore we recorded our pro rata share of eFrame's net loss for the period.”

                            
                             WINMARK CORPORATION
                      CONDENSED STATEMENTS OF OPERATIONS
                                 (Unaudited)

                              Quarter Ended            Nine Months Ended
                        Sept. 27,      Sept. 28,    Sept. 27,     Sept. 28,
                            2003         2002          2003         2002
    REVENUE:
      Royalties         $3,946,200    $3,950,900  $12,116,800   $12,422,000
      Merchandise sales  3,570,400     3,689,200   10,601,700    12,106,800
      Franchise fees       300,300       337,500      570,300       595,000
      Other                170,900       207,700      493,700       607,500
        Total revenue    7,987,800     8,185,300   23,782,500    25,731,300

    COST OF MERCHANDISE
     SOLD                2,799,000     2,859,300    8,447,800     9,776,100

    SELLING, GENERAL AND
     ADMINISTRATIVE
     EXPENSES            3,402,800     3,617,700   10,756,100    11,366,100

      Income from
       operations        1,786,000     1,708,300    4,578,600     4,589,100

    LOSS FROM EQUITY
     INVESTMENT            (64,100)            -      (64,100)            -

    INTEREST AND OTHER
     INCOME                 88,100        69,900      339,100       202,700

    INTEREST EXPENSE             -       (13,700)           -       (40,600)

      Income before
      income taxes       1,810,000     1,764,500    4,853,600     4,751,200

    PROVISION FOR INCOME
     TAXES                (705,900)     (705,800)  (1,870,900)   (1,892,600)

    NET INCOME          $1,104,100    $1,058,700   $2,982,700    $2,858,600

    NET INCOME PER COMMON
     SHARE - BASIC            $.20          $.19         $.53          $.52