NPC International, Inc. Announces Agreement to Acquire 39 Pizza Hut Units from Pizza Hut, Inc.; Acquisition Represents a 5% Increase in NPC-Operated Pizza Hut Units

Business Wire, August 25, 2006

OVERLAND PARK, Kan. -- Consistent with NPC International, Inc.'s goal to continue its growth in the Pizza Hut system, the Company announced today that it had signed an asset purchase agreement with Pizza Hut, Inc. (PHI), a subsidiary of YUM! Brands, Inc., to acquire 39 Pizza Hut units located primarily in and around Nashville, Tenn., for $29.5 million including development fees of $620,000. According to information provided to NPC, the 22 restaurants and 17 delivery/carryout units generated $34 million in sales during the 52 weeks ended June 2006. The purchase price includes 13 fee-owned sites with an estimated value of $11.4 million. The Company has entered into a non-binding Letter of Intent with Realty Income Corporation (NYSE:O) whereby the Company will assign its rights to acquire 11 of the fee properties for $10.4 million, subject to their completion of satisfactory due diligence, and lease them back pursuant to a lease agreement containing a 10-year primary term and four five-year renewal options.

NPC expects the acquisition from PHI to close in early October. Consummation of the transaction is subject to approval of YUM! Brands, Inc. and other customary approvals.

NPC International, Inc. is the world's largest Pizza Hut franchisee and operates 790 Pizza Hut restaurants and delivery/carryout units in 26 states.

For more information, contact Troy D. Cook, Senior Vice President Finance and Chief Financial Officer, NPC International, Inc., 7300 West 129th Street, Overland Park, Kansas, 66213, Telephone Number: 913-327-3109.