BXXX Brooke Corp (MM)

OVERLAND PARK, Kan., Oct. 29 /PRNewswire/ -- Brooke Franchise Corporation, a subsidiary of Brooke Corporation (NASDAQ:BXXX), announced selected September 2007 results. During September, Brooke Franchise Corporation added eight startup franchise locations and five conversion franchise locations, and received approximately $2,666,000 in fees, consisting of $2,310,000 in initial franchise fees for basic services and $356,000 in other associated fees. During the three months ended Sept. 30, 2007, Brooke Franchise Corporation added 27 startup franchise locations, six conversion franchise locations and two company developed locations, and received approximately $6,377,000 in fees, consisting of $5,940,000 in initial franchise fees for basic services and $437,000 in other associated fees. On Sept. 28, 2007, Brooke Franchise Corporation acquired approximately 60 insurance agency locations from entities associated with Chicago-based J and P Holdings Inc. The company intends to convert the acquired agency locations into Brooke franchises, and then sell the locations to local franchise owners. Since the acquisition occurred near the quarter's end, none of the acquired locations were sold to franchisees in the third quarter. Because initial franchise fees are not recorded until the locations are sold, no franchise fees will be recorded in the third quarter as a result of the J and P Holdings acquisition. Including the J and P Holdings' locations acquired last month, during the nine months ended Sept. 30, 2007, Brooke Franchise Corporation added a total of 225 franchise and company-owned locations as compared to a total of 170 locations added during the comparable period in 2006. Brooke Franchise Corporation received profit-sharing commissions from insurance companies totaling approximately $116,000 during September and approximately $407,000 during the three months ended Sept. 30, 2007. Combined same-store sales for seasoned converted franchises and startup franchises decreased approximately 2.4 percent for the 12 months ending Sept. 30, 2007, and the corresponding median growth rate was 2.5 percent. Brooke Franchise Corporation has also engaged a consultant to assist in the expansion of Brooke's existing non-standard auto insurance company and the acquisition of additional non-standard auto insurance companies. As such, the number of Brooke Franchise Corporation's company-owned stores will likely increase in the future as part of a marketing strategy to sell non-standard auto insurance policies through these insurance companies. About our company . . . Brooke Franchise Corporation is a subsidiary of Brooke Corporation (NASDAQ:BXXX) that distributes insurance and banking services through a network of more than 900 franchise and company owned locations. Brooke Franchise was named the country's No. 37 top franchise by Entrepreneur magazine (2007). For more information, visit http://www.brookeagent.com/. E-mail Distribution ... To receive electronic press alerts, visit the Brooke Corporation Media Room at http://brookecorp.mediaroom.com/ and subscribe to our e-mail alerts online through the Get the News link. This press release contains forward-looking statements. All forward-looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those in the forward-looking statements. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: the uncertainty that Brooke Franchise and its affiliates will successfully attract franchisees; the availability of franchise purchase funding sources; the exposure to market risks; and risks and factors described from time to time in reports and registration statements filed with the Securities and Exchange Commission by Brooke Corporation, Brooke Credit Corporation and Brook Capital Corporation, each an affiliate of Brooke Franchise Corporation. A more complete description of Brooke's business is provided in Brooke Corporation's most recent annual, quarterly and current reports, which are available from Brooke Corporation without charge or at http://www.sec.gov/. DATASOURCE: Brooke Franchise Corporation CONTACT: Kyle Garst of Brooke Franchise Corporation, +1-913-661-0123, Web site: http://www.brookecorp.com/ http://brookecorp.mediaroom.com/ http://www.brookeagent.com/

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