BAB, Inc. Reports Profit for Year-Ended 11/30/07

BAB, Inc. (OTCBB: BABB) today announced the financial results for its fiscal year-ended November 30, 2007, reporting net income of $1,243,700, or $0.17 per share.

For the year-ended November 30, 2007, BAB had revenues of $3,994,900 and net income of $1,243,700, or $0.17 per share, versus revenues of $3,917,400 and net income of $716,600, or $0.10 per share for fiscal year 2006. Included in 2007 net income was a $500,000 deferred tax benefit recognized for a reduction in the valuation reserve associated with the tax benefit of net operating loss carryforwards for income tax purposes. There was no such benefit recorded in 2006.

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.

BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


                                                  Fiscal Year Ended
                                             2007       2006     % Change
                                           ---------  ---------  ---------
REVENUES

Royalty fees from franchised stores        2,217,820  2,275,483       -2.5%
Franchise and area development fee revenue   235,000    272,219      -13.7%
Net sales by company-owned stores            484,399    500,689       -3.3%
Licensing fees and other income            1,057,680    869,000       21.7%
                                           ---------  ---------  ---------
                                           3,994,899  3,917,391        2.0%

OPERATING COSTS AND EXPENSES

Food, beverage and paper costs               155,800    159,615       -2.4%
Store payroll and other operating expenses   437,024    472,029       -7.4%
Selling, general and administrative        2,665,556  2,526,593        5.5%
Depreciation and amortization                 44,812     69,653      -35.7%
                                           ---------  ---------  ---------
                                           3,303,192  3,227,890        2.3%

Income before interest and other             691,707    689,501        0.3%

Interest expense                             (15,606)   (29,684)     -47.4%
Interest and other income                     67,612     56,790       19.1%
Deferred income tax benefit                  500,000          0        N/M

                                           ---------  ---------  ---------
Net Income                                 1,243,713    716,607       73.6%
                                           =========  =========  =========

Earnings per share - basic                      0.17       0.10        N/M
Average number of shares outstanding       7,261,651  7,222,560        N/M

Earnings per share - diluted                    0.17       0.10        N/M
Average number of shares outstanding       7,278,066  7,259,149        N/M

Contact: BAB, Inc. Michael K. Murtaugh 847/948-7520 Fax: 847/405-8140 www.babcorp.com