Play It Again Parent Sees Q2 Revenues Decline 11%

Winmark Corporation announced $756,400, or $.12 per share diluted, compared to net income of $724,000, or $.12 per share diluted, in 2002.

For the six months ended June 28, 2003, net income was $1,878,600, or $.30 per share diluted, compared to net income of $1,799,900, or $.30 per share diluted, for the same period last year.

Chairman and Chief Executive Officer John Morgan commented, “While financial results compared to last year were flat, Winmark has made significant progress. Our new business unit, Winmark Business Solutions, continues to build infrastructure that will help our Franchisees and other small business owners reduce costs and operate more efficiently. We also made two strategic investments in July that give us expanded capabilities to provide business services. An Omaha, Nebraska based company, eFrame, LLC, provides out-sourced information technology services to customers that lower their costs and increase their operating efficiencies. The other recent investment was in a Minneapolis, Minnesota based public company, Analysts International Corporation. Analysts International provides IT services to both large and small businesses nationwide. These two strategic investments create relationships that allow us to participate in delivering high value business services to a wide variety of customers throughout the country. We will continue to position Winmark as a Company that provides superior services to our Franchisees and other business customers.”

                            
                             Winmark Corporation
                      CONDENSED STATEMENTS OF OPERATIONS
                                 (Unaudited)

                              Quarter Ended            Six Months Ended
                          June 28,      June 29,      June 28,    June 29,
                            2003          2002          2003        2002
    REVENUE:
      Royalties         $3,879,100    $4,055,400   $8,170,600    $8,471,100
      Merchandise sales  3,230,800     3,987,700    7,031,300     8,417,600
      Franchise fees       135,000        92,500      270,000       257,500
      Other                169,600       199,200      322,800       399,800
        Total revenue    7,414,500     8,334,800   15,794,700    17,546,000

    COST OF MERCHANDISE
     SOLD                2,527,200     3,238,600    5,648,800     6,916,800

    SELLING, GENERAL AND
     ADMINISTRATIVE
     EXPENSES            3,895,300     3,966,800    7,353,300     7,748,400

        Income from
         operations        992,000     1,129,400    2,792,600     2,880,800

    INTEREST INCOME        181,200        79,200      251,000       132,800

    INTEREST EXPENSE             -       (13,300)           -       (26,900)

        Income before
         income taxes    1,173,200     1,195,300    3,043,600     2,986,700

    PROVISION FOR
     INCOME TAXES         (416,800)     (471,300)  (1,165,000)   (1,186,800)

    NET INCOME            $756,400      $724,000   $1,878,600    $1,799,900