<PAGE>
                  BOWL AMERICA INCORPORATED AND SUBSIDIARIES

                               PRESIDENT'S LETTER

September 16, 1999

Dear Fellow Owner:

We continue to adapt successfully to our customers' changing entertainment
tastes.

Profits grew again while our core league business continued to decline.
Earnings per share increased 13% over fiscal 1998 and 39% over 1997 despite
the fall off in adult league bowling.  The upswing in open play and special
events was even more pronounced this summer.  Our June-August gross revenues
were up 9% with one fewer center.  In both July and August, we operated
profitably.  In the last 15 years, only once was even one of those two months
profitable (August 1992).

Part of what is happening has historic roots.  When a bowling center is filled
with leagues, potential open play customers become discouraged and may not
even try to bowl.  This provides a shrinking pool of replacement bowlers for
existing leagues.  It is only when league play has contracted enough that
people feel they can drop into a bowling center on a weeknight and get a lane
that we can begin to build back our customer base.  During World War II, our
center was triple shifted with leagues.  A five person team that bowled at
5:00 p.m. was followed by a 7:00 p.m. league and a third group at 9:00 p.m.
Some of the later bowlers would even stay on into the wee hours to test their
skills.  It was, in fact, impossible to get together a group for a spur of the
moment bowling party.  The end of gas rationing and the coming of TV changed
all that, so a new generation was able to "get a lane".  The next wave of new
people came with the automatic pinsetter which led to new centers, more
capacity and more bowlers.

Now it is again possible most nights and in most cities to get together a group
of friends and just go bowling.  Our challenge is to make sure that those
customers enjoy themselves enough to participate regularly and to talk about
the fun they had to their friends, neighbors and fellow workers.

However, our historic emphasis on leagues will stand us well even in this new
environment.  In a new article last week, a financial analyst was quoted as
saying that another recreation company, currently in bankruptcy, needed only
to get customers to come back a SECOND time to survive.  The Bowl America
staff has been trained to get customers to come back 35 times a year.  They
should find it easy to persuade the casual bowler to return because they have
learned that recreation is an experience, not a product.  It is superior
customer service that has made Bowl America the bowling centers for people
who love to bowl.

While we will make some changes in our physical plant, most of our assets are
of equal appeal to both groups.  Our locations are well positioned for both
after work and neighborhood use.  Electronic scoring makes this game easy for
beginners and keeps statistics for our league players.  We have menus tailored
for active customers.  Our experience the last few years has convinced us that
we can continue to invest in carefully selected new locations.  Also, the
greater the number of recreation events a person tries, the greater the
bargain bowling seems.  Therefore, we should get the advantage of better pricing
to support all of our locations.

One of the problems with regard to this year, however, is that this mix of
business will cause our results to be less predictable because of the lower
number of pre-contracted every week league players.  Further, we have been
fortunate the last two years to have had mild winters which enabled bowlers
to get to our centers almost without interruption.  On a more positive note,
we have the exceptional start this summer and this is a 53-week year.
Additionally, our stock purchases, while reducing total earnings, should
serve to increase our cash flow and per share results.

One of the best things we have going for us is the number of people on our
staff who have dealt with swings in entertainment tastes and kept Bowl America
profitable over the years.  They are being challenged by this changing
environment, but I am confident they can handle it.


Leslie H. Goldberg
Leslie H. Goldberg, President

<PAGE>

                   BOWL AMERICA INCORPORATED AND SUBSIDIARIES
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

Cash flow provided by operating activities in fiscal 1999 was $5,335,000 which
was sufficient to meet day-to-day cash needs.  Short-term investments consist-
ing mainly of U.S. Treasury Bills and Notes, and cash totaled $9,248,000 at the
end of fiscal 1999 compared to $9,986,000 at the end of fiscal 1998.

The Company purchased 401,610 shares of its previously outstanding common stock
in fiscal year 1999 for a cost of $2,850,000.  An additional 75,820 shares have
been purchased for approximately $509,000 since year end.

Approximately $971,000 was expended to acquire property and equipment during
fiscal 1999.  The purchases included amusement game machines and upgraded
bowling equipment.  In last year's report it was mentioned that Bowl America
had made offers to purchase two sites.  Currently the Company has a signed
contract with contingencies for approval of permits on one of those sites.
There is no other contract; however, the Company is actively seeking land for
an additional location.  Cash and cash flows are sufficient to finance the
estimated $8 million costs of land, building and equipment should two contracts
reach fruition.  The Company's position in telecommunication stocks is an
additional source of expansion capital.

These marketable securities are carried at their fair value on the last day
of the quarter.  During the year ended June 27, 1999,  the value of the
Company's holdings increased approximately $3 million with a net after
tax unrealized gain of $1,951,000.  There were no transactions in these stocks.

Dividends per share increased for the twenty-seventh consecutive year.  Cash
dividends paid to shareholders during fiscal 1999 exceeded $2.2 million.
While no factors requiring a change in the dividend rate are apparent, the Board
of Directors decides the amount and timing of any dividend at its quarterly
meeting based on its appraisal of the state of the business and its estimate
of future opportunities.

During the fourth quarter of fiscal 1999, the Company closed a location
operating with a negative cash flow.  In the fourth quarter of fiscal 1997 two
centers were closed at the expiration of their leases.  These centers were
producing negative cash flow as well.

RESULTS OF CONSOLIDATED OPERATIONS

The current year comparisons reflect the same number of centers in operation
for the peak periods of fiscal 1999 and 1998.  The prior period comparisions
are significantly influenced by the change in operating locations from 25 to 23.

Total consolidated operating revenues increased 2% in fiscal 1999 and less
than 1% in fiscal 1998.  Bowling and related services revenue was up 2% in
both the current and prior years.  In the current year increases in the
average game rate and rental shoe revenue offset the decline in linage.
In the prior year the increase in amusement game revenue as a result of
more Company owned machines in service was primarily responsible.


<PAGE>


Total food, beverage and merchandise sales were up 1% in the current year
versus a decrease of 2% in the prior year.  The total cost of food, beverage
and merchandise sales decreased slightly in fiscal 1999 and 2% in the prior
year.

Bowling lane maintenance including the resurfacing of the majority of our
wooden lanes was mainly responsible for a 12% increase in maintenance costs
in the current year versus a decrease in maintenance costs last year.

Advertising and supplies costs decreased in both years.  The prior year
included costs related to the equipment and advertising of additional glow-in-
the-dark locations.

Utility expense decreased 2% in the current year and 8% in the prior year.
The prior year decrease was a result of mild winter weather and fewer locations
in operation.

Rent expense decreased 20% in the current year.  Last year's rent expense
included a one-time termination payment under an expired lease. Insurance
costs increased 6% versus a  decrease of 15% in the prior period.

Depreciation expense decreased 2% in fiscal 1999 and increased 10% in fiscal
1998.  The increase in the number of owned amusement game machines and the
Dranesville expansion were the primary reasons for the increase last year.

The Company's effective income tax rates were 36.3% in 1999, 35.9% in 1998,
and 38.4% in 1997, the difference from statutory rates being primarily for
the partial exclusion of dividends received on investments and the state
income tax exemption for interest on U.S. Government obligations.

Year 2000

Preparing for Year 2000 has been a priority for Bowl America.  The Company
has reviewed its computerized operations including the hardware and
software of its main computer system as well as bowling center autoscoring
systems.  Because Bowl America does not rely heavily on date sensitive
calculations for its internal operations, the cost of remediation has not
been material, less than $100,000.

As of September 1, 1999, the operating system and all significant software
of the corporate computer were year 2000 ready.  All autoscore systems in the
bowling centers have been upgraded to be compliant.

We are continuing to receive compliance information from our material vendors
on their progress.  Many are currently Year 2000 ready while others continue
to state that they will be ready on a timely basis.

                                      -2-

<PAGE>

                   BOWL AMERICA INCORPORATED AND SUBSIDIARIES

                       CONSOLIDATED SUMMARY OF OPERATIONS

Selected Financial Data
<TABLE>
<CAPTION>
                                      For the Years Ended
                       June 27,    June 28,    June 29,    June 30,     July 2,
                         1999        1998        1997        1996        1995
                     __________________________________________________________
<S>                  <C>         <C>         <C>         <C>         <C>
Operating Revenues   $27,547,490 $27,086,822 $26,995,056 $27,326,958 $29,493,578
Operating Expenses    22,995,118  22,984,246  23,585,519  23,829,561  24,967,878
Interest and dividend
 Income                  684,781     675,302     632,927     663,550     593,207
                      __________  __________  __________  __________  __________
Earnings before pro-
 vision for income
 taxes                 5,237,153   4,777,878   4,042,464   4,160,947   5,118,907
Provision for income
 taxes                 1,902,000   1,716,000   1,552,000   1,567,000   1,849,000
                      __________  __________  __________  __________  __________
Net Earnings         $ 3,335,153 $ 3,061,878 $ 2,490,464 $ 2,593,947 $ 3,269,907

Weighted Average
 Shares Outstanding
 Basic & Diluted       5,465,789   5,659,864   5,680,425   5,728,183   5,747,746

Earnings Per Share
 Basic & Diluted            $.61        $.54        $.44        $.45        $.57

Net Cash Provided by
 Operating Activities $5,334,800  $5,261,518  $4,513,157  $5,174,075  $4,271,585
Dividends Paid        $2,249,628  $2,264,293  $2,187,567  $2,177,956  $2,069,302
Dividends Paid Per
 Share-Class A              $.41        $.40       $.385        $.38        $.36
      -Class B              $.41        $.40       $.385        $.38        $.36
Total Assets         $41,747,936 $40,435,450 $38,002,571 $37,901,254 $36,584,745
Stockholders' Equity $35,477,445 $35,291,573 $33,381,832 $32,903,833 $32,443,501
Net Book Value Per
 Share                  $6.49       $6.24       $5.90       $5.79        $5.64
Net Earnings as a %
 of Beginning Stock-
 holders' Equity         9.5%        9.2%        7.6%        8.0%        10.9%
Lanes in Operation        854         886         886         936          936
Centers in Operation       22          23          23          25           25

</TABLE>
All share and per share amounts have been adjusted to reflect the declaration
of a two-for-one stock split effective February 15, 1995.


<PAGE>

Market Information
The principal market on which the Company's Class A Common Stock is traded is
the American Stock Exchange.  The Company's Class B Common Stock is not listed
on any exchange and is not traded.  This stock can be converted to Class A
Common Stock at any time.  The table below presents the price range of the
Company's Class A stock in each quarter of fiscal 1999 and 1998.

<TABLE>
<CAPTION>
       1999        1st Qtr     2nd Qtr     3rd Qtr     4th Qtr
       _______________________________________________________
       <S>         <C>        <C>          <C>         <C>
       High         9          7 3/4        7 3/4       7 3/8
       Low          7 3/16     6 7/8        6 3/4       6 3/8
</TABLE>
<TABLE>
<CAPTION>
       1998        1st Qtr     2nd Qtr     3rd Qtr     4th Qtr
       _______________________________________________________
       <S>         <C>         <C>         <C>         <C>
       High         9 3/8       9 7/16      9 3/8       9 1/8
       Low          6 3/4       7 1/4       8 1/4       8 1/8
</TABLE>

Holders
The approximate number of holders of record of the Company's Class A Common
Stock as of June 27, 1999 is 524 and of the Company's Class B Common Stock
is 39.

Dividends
The table below presents the dividends per share of Class A and Class B stock
paid, and the quarter in which the payment was made during fiscal 1999 and 1998.

<TABLE>
<CAPTION>
                        Class A Common Stock
              Quarter            1999              1998
              ___________________________________________
              <S>              <C>              <C>
              First            10   cents       10 cents
              Second           10   cents       10 cents
              Third            10.5 cents       10 cents
              Fourth           10.5 cents       10 cents
</TABLE>
<TABLE>
<CAPTION>
                        Class B Common Stock
              Quarter            1999              1998
              ___________________________________________
              <S>              <C>              <C>
              First            10   cents       10 cents
              Second           10   cents       10 cents
              Third            10.5 cents       10 cents
              Fourth           10.5 cents       10 cents
</TABLE>

                                      -3-
<PAGE>

<PAGE>


                   BOWL AMERICA INCORPORATED AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                            June 27, 1999         June 28, 1998
                                             ____________         ____________

<S>                                           <C>                  <C>
ASSETS
Current Assets
  Cash and cash equivalents (Note 2)          $ 1,557,225          $ 1,944,462
  Short-term investments (Note 3)               7,690,576            8,041,136
  Inventories                                     618,875              697,571
  Prepaid expenses and other                      482,279              489,758
  Income taxes refundable                          89,194                 -
  Deferred income taxes (Note 8)                   15,000               21,000
                                               __________           __________
Total Current Assets                           10,453,149           11,193,927
Property, Plant and Equipment, Net (Note 4)    20,908,976           22,223,345

Other Assets
  Marketable equity securities (Note 3)         9,506,955            6,360,356
  Cash surrender value-officers'life insurance    384,925              383,343
  Other                                           493,931              274,479
                                               __________           __________
TOTAL ASSETS                                  $41,747,936          $40,435,450
</TABLE>

<PAGE>

                   BOWL AMERICA INCORPORATED AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                            June 27, 1999         June 28, 1998
                                            _____________         ____________

LIABILITIES AND STOCKHOLDERS' EQUITY
<S>                                           <C>                  <C>
Current Liabilities
  Accounts payable                            $   738,040          $   848,330
  Accrued expenses                                977,400              776,051
  Other current liabilities                       349,051              343,496
                                               __________           __________
Total Current Liabilities                       2,064,491            1,967,877
Noncurrent Deferred Income Taxes (Note 8)       4,206,000            3,176,000
                                               __________           __________
TOTAL LIABILITIES                               6,270,491            5,143,877



Commitments and Contingencies (Note 5)

Stockholders' Equity (Note 6)
  Preferred stock,
   par value $10 a share: Authorized
   and unissued 2,000,000 shares
  Common stock,
   par value $.10 per share
   Authorized 10,000,000 shares
    Class A issued
     3,746,171 and 4,120,351 shares               374,617              412,035
    Class B issued
     1,508,716 and 1,536,146 shares               150,871              153,614
  Additional paid-in capital                    4,265,443            4,893,504
  Accumulated other comprehensive earnings-
    Unrealized gain on securities
   available-for-sale, net of tax               5,285,930            3,335,331
  Retained earnings                            25,400,584           26,497,089
                                               __________           __________

TOTAL STOCKHOLDERS' EQUITY                    $35,477,445          $35,291,573

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $41,747,936          $40,435,450
<FN>
See notes to consolidated financial information.
</TABLE>

                                      -4-

<PAGE>

                   BOWL AMERICA INCORPORATED AND SUBSIDIARIES

           CONSOLIDATED STATEMENTS OF EARNINGS & COMPREHENSIVE EARNINGS

<TABLE>
<CAPTION>
                                                   For the Years Ended
                                 June 27, 1999   June 28, 1998     June 29, 1997
                                 ______________________________________________
<S>                               <C>              <C>              <C>
Operating Revenues
 Bowling and other                $19,696,199      $19,327,793      $19,037,964
 Food, beverage and
   merchandise sales                7,851,291        7,759,029        7,957,092
                                   __________       __________       __________
                                   27,547,490       27,086,822       26,995,056

Operating Expenses
 Compensation and benefits         11,820,526       11,608,348       11,944,536
 Cost of bowling and other          5,654,989        5,762,553        6,192,194
 Cost of food, beverage and
   merchandise sales                2,414,579        2,434,639        2,496,024
 Depreciation and amortization      2,268,267        2,322,999        2,110,570
 General and administrative           836,757          855,707          842,195
                                   __________       __________       __________
                                   22,995,118       22,984,246       23,585,519

Operating Income                    4,552,372        4,102,576        3,409,537
 Interest and dividend income         684,781          675,302          632,927
                                   __________       __________       __________
Earnings before provision
 for income taxes                   5,237,153        4,777,878        4,042,464
Provision for income taxes(Note 8)
 Current                            2,062,000        1,801,000        1,596,000
 Deferred                            (160,000)         (85,000)         (44,000)
                                    _________       __________       __________
                                    1,902,000        1,716,000        1,552,000

Net Earnings                      $ 3,335,153      $ 3,061,878      $ 2,490,464

Other Comprehensive Earnings Net
 of Tax-unrealized gain on
 available-for-sale securities      1,950,599        1,162,298          314,821

Comprehensive Earnings              5,285,752        4,224,176        2,805,285

Earnings Per Share-Basic &
 Diluted                               $.61             $.54             $.44
<FN>
See notes to consolidated financial statements.
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                                     BOWL AMERICA INCORPORATED AND SUBSIDIARIES

                                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY



                                                  COMMON STOCK                               Net Unrealized
                                      _______________________________________   Additional   Gain on Avail-
                                      Class A    Class A   Class B    Class B    Paid-In     able-for-Sale    Retained
                                      Shares     Amount    Shares     Amount     Capital     Securities(1)    Earnings

<S>                                  <C>        <C>       <C>        <C>        <C>           <C>           <C>
Balance June 30, 1996                4,146,310  $414,631  1,536,146  $153,614   $4,908,819    $1,858,212    $25,568,557
 Purchase of stock                     (20,312)   (2,031)      -         -         (11,984)         -          (125,704)
 Cash dividends paid(38 1/2cents/sh)      -         -          -         -            -                      (2,187,567)
 Change in unrealized gain on
  available-for-sale securities           -         -          -         -            -          314,821           -
 Net earnings for the year                -         -          -         -            -             -         2,490,464
_________________________________________________________________________________________________________________________
Balance June 29, 1997                4,125,998  $412,600  1,536,146  $153,614   $4,896,835    $2,173,033    $25,745,750
 Purchase of stock                      (5,647)     (565)      -         -          (3,331)         -           (46,246)
 Cash dividends paid(40 cents/sh)         -         -          -         -            -             -        (2,264,293)
 Change in unrealized gain on
  available-for-sale securities           -         -          -         -            -        1,162,298           -
 Net earnings for the year                -         -          -         -            -             -         3,061,878
_______________________________________________________________________________________________________________________
Balance June 28, 1998                4,120,351  $412,035  1,536,146  $153,614   $4,893,504    $3,335,331    $26,497,089
 Purchase of stock                    (374,180)  (37,418)   (27,430)   (2,743)    (628,061)         -        (2,182,030)
 Cash dividends paid(41 cents/sh)         -         -          -         -            -             -        (2,249,628)
 Change in unrealized gain on
  available-for-sale securities           -         -          -         -            -        1,950,599           -
 Net earnings for the year                -         -          -         -            -             -         3,335,153
________________________________________________________________________________________________________________________
Balance, June 27, 1999               3,746,171  $374,617  1,508,716  $150,871   $4,265,443    $5,285,930    $25,400,584

<FN> (1)Unrealized gains and losses are shown net of tax
     See notes to consolidated financial statements.
</TABLE>

                                                      -5-

<PAGE>
                   BOWL AMERICA INCORPORATED AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
 <TABLE>
 <CAPTION>
                                              June 27,    June 28,     June 29,
                                                1999        1998         1997
<S>                                          <C>         <C>         <C>
Cash Flows From Operating Activities
 Net earnings                                $3,335,153  $3,061,878  $2,490,464
  Adjustments to reconcile net earnings to
  net cash provided by operating activities:
   Depreciation and amortization              2,268,267   2,322,999   2,110,570
   Increase in deferred income taxes           (160,000)    (85,000)    (44,000)
   Loss (gain) on disposition of assets-net      17,237      13,397     (12,588)
 Changes in assets and liabilities:
  Decrease (increase) in inventories             78,696       2,629     (14,423)
  Decrease (increase) in prepaid expenses
    and other                                     7,479     (30,106)    277,007
  (Increase) decrease in income taxes
    refundable                                  (89,194)     32,982     171,680
  (Increase) decrease in other long-term
    assets                                     (219,452)    190,600      60,084
  Decrease in accounts payable                 (110,290)   (144,066)   (454,756)
  Increase (decrease) in accrued expenses
    and payroll deductions                      201,349     (64,451)    (65,737)
  Increase (decrease) in other current
    liabilities                                   5,555     (39,344)     (5,144)
                                              _________   _________   _________
Net cash provided by operating activities    $5,334,800  $5,261,518  $4,513,157
                                              _________   _________   _________
Cash Flows from Investing Activities
  Expenditures for property,plant,equipment    (971,135) (1,105,043) (2,872,160)
  Net decrease (increase) in short-term
    investments                                 350,560  (1,666,097)    385,127
  (Increase) decrease in cash surrender
    value                                        (1,582)    (29,137)    (22,044)
                                              _________   _________   _________
Net cash used in investing activities          (622,157) (2,800,277) (2,509,077)
                                              _________   _________   _________
Cash Flows from Financing Activities
  Payment of cash dividends                  (2,249,628) (2,264,293) (2,187,567)
  Purchase of Class A Common Stock           (2,654,813)    (50,142)   (139,719)
  Purchase of Class B Common Stock             (195,439)       -           -
                                              _________   _________   _________
Net cash used in financing activities        (5,099,880) (2,314,435) (2,327,286)
                                              _________   _________   _________
Net (Decrease) Increase in Cash
  and Cash Equivalents                         (387,237)    146,806    (323,206)
Cash and Cash Equivalents, Beginning of Year  1,944,462   1,797,656   2,120,862
                                              _________   _________   _________
Cash and Cash Equivalents, End of Year       $1,557,225  $1,944,462  $1,797,656

Supplemental Disclosures of Cash Flow Information
  Cash paid during the year for
   Income taxes                              $2,282,560  $1,969,113  $1,430,334
   Interest                                      $1,528      $1,528      $1,528
See notes to financial information.
</TABLE>
                                      -6-
<PAGE>

                   BOWL AMERICA INCORPORATED AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business
    Bowl America Incorporated is engaged in the operation of 22 bowling
centers, with food and beverage service in each center.  Thirteen centers are
located in metropolitan Washington D.C., two centers in metropolitan
Baltimore, Maryland, one center in metropolitan Orlando, Florida, three
centers in metropolitan Richmond, Virginia, and three centers in metropolitan
Jacksonville, Florida.  These 22 centers contain a total of 854 lanes.

Principles of Consolidation
    The consolidated financial statements include the accounts of the Company
and all of its wholly owned subsidiary corporations.  All significant inter-
company items have been eliminated in the consolidated financial statements.

Fiscal Year
    The Company's fiscal year ends on the Sunday nearest to June 30.  Fiscal
year 1999 ended June 27, 1999, fiscal year 1998 ended June 28, 1998, and fiscal
year 1997 ended June 29, 1997.  Fiscal years 1999, 1998 and 1997 each
consisted of 52 weeks.

Estimates
     The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period.  Actual results could differ from those estimates.

Depreciation and Amortization
    Depreciation and amortization for financial statement purposes are calcu-
lated by use of the straight-line method.  Amortization of leasehold improve-
ments is calculated over the estimated useful life of the asset or term of the
lease, whichever is shorter.  The categories of property, plant, and equipment
and the ranges of estimated useful lives on which depreciation and amortization
rates are based are as follows:

              Bowling lanes and equipment             3-10 years
              Building and building improvements     10-30 years
              Leasehold improvements                    10 years
              Amusement games                            3 years

    Maintenance and repairs and minor replacements are charged to expense when
incurred.  Major replacements and betterments are capitalized.  The accounts
are adjusted for the sale or other disposition of property, and the resulting
gain or loss is credited or charged to income.

Inventories
    Inventories are stated at the lower of cost (first-in, first-out method)
or market.

<PAGE>

Income Taxes
    Income taxes are accounted for in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income
Taxes".  Under this method, deferred income tax liabilities and assets
are based on the differences between the financial statement and tax bases
of assets and liabilities,using tax rates currently in effect. A valuation
allowance is provided when realization of deferred tax assets does not
appear probable.

Fair Value of Financial Instruments
    The fair value of the noncurrent marketable security portfolio is disclosed
in Note 3.  The cost of all other financial instruments approximates fair value.

Investment Securities
    The Company accounts for its investments in accordance with SFAS No. 115
entitled "Accounting for Certain Investments in Debt and Equity Securities".
All of the Company's readily marketable debt and equity securities are
classified as available-for-sale.  Accordingly these securities are recorded
at fair value with any unrealized gains and losses excluded from earnings and
reported, net of deferred taxes, within a separate component of stockholders'
equity until realized.  Realized gains and losses on the sale of debt and
equity securities are reported in earnings and determined using the adjusted
cost of the specific security sold.

Earnings Per Share
    Earnings per share basic and diluted have been calculated using the weighted
average number of shares of Class A and Class B common stock outstanding of
5,465,789,  5,659,864 and 5,680,425, respectively.

Comprehensive Earnings
    In fiscal 1999, the Company adopted the provisions of Statement of
Financial Accounting Standards No. 130 ("SFAS 130"), "Reporting Comprehensive
Income."  As such, a consolidated statements of comprehensive earnings
reflecting the aggregation of net earnings and unrealized gain on available-
for-sale securities, the Company's principal components of other comprehensive
earnings, has been presented for each of the three years in the period ended
June 27, 1999.

Cash and Cash Equivalents
    For purposes of the Consolidated Statements of Cash Flows, the Company
considers money market funds, certificates of deposits, repurchase agreements
and treasury securities with original maturities of three months or less to be
cash equivalents.


                                  -7-
<PAGE>



2.  CASH AND CASH EQUIVALENTS
    Cash and cash equivalents consisted of the following:

                                              June 27,        June 28,
                                                1999            1998
     Demand deposits and cash on hand       $  172,671      $  631,661
     Money market funds                        367,554         152,801
     Repurchase agreements                   1,017,000       1,160,000
                                              ________       _________
                                            $1,557,225      $1,944,462

3.  INVESTMENTS
    Short-term investments consist of certificates of deposits, U.S. Treasury
securities and a mutual fund which invests in mortgage backed securities
(maturities of generally three months to one year).  Non-current investments
are marketable equity securities which consist of twelve telecommunications
stocks.  The Company has classified all readily marketable debt and equity
securities as available-for-sale.  These available-for-sale securities are
carried at fair value in accordance with the provisions of SFAS No. 115.
For the U.S. Treasury securities and the mutual fund, the cost of these
investments approximates fair value.

     The following table summarizes the cost and approximate fair values of
equity securities available-for-sale as of June 27, 1999, and June 28, 1998
as follows:

<TABLE>
<CAPTION>
                                   Original      Unrealized        Fair
                                     Cost           Gain          Value
<S>                                <C>           <C>             <C>
June 27, 1999
Securities available-for-sale      $857,782      $8,649,173      $9,506,955

June 28, 1998
Securities available-for-sale      $857,782      $5,502,574      $6,360,356

</TABLE>

    There were no sales of these available-for-sale securities in the years
ended June 27, 1999, June 28, 1998 and June 29, 1997.

<PAGE>


4.  PROPERTY, PLANT, AND EQUIPMENT
    Property, plant, and equipment, as cost, consist of the following:
<TABLE>
<CAPTION>
                                              June 27,       June 28,
                                                1999           1998
<S>                                         <C>             <C>
Bowling lanes and equipment                 $17,575,699     $17,530,264
Amusement games                                 779,012         726,527
Buildings and building improvements          17,389,469      17,262,980
Leasehold improvements                          866,707         956,173
Land                                          7,698,228       7,698,228
Bowling lanes and equipment not yet in use      303,095         232,325
                                             __________      __________
                                             44,612,210      44,406,497
Less accumulated depreciation and
  amortization                               23,703,234      22,183,152
                                             __________      __________
                                            $20,908,976     $22,223,345
</TABLE>

5.  COMMITMENTS AND CONTINGENCIES
Lease Commitments
    The Company and its subsidiaries are obligated under long-term real estate
lease agreements for seven bowling centers.  Certain of the Company's real
estate leases provide for additional annual rents based upon total gross
revenues and increases in real estate taxes and insurance.  Generally, the
leases contain renewal options ranging from 5 to 10 years.
     At June 27, 1999, the minimum fixed rental commitments related to all
noncancelable leases, were as follows:

           Year Ending
           2000                                        400,000
           2001                                        300,305
           2002                                         70,880
           2003                                         15,000
           2004                                         15,000
           Thereafter                                  808,750
                                                     _________
           Total minimum lease payments             $1,609,935

    Net rental expense was as follows:
                                            For the Years Ended
                                           1999      1998      1997
Minimum rental under operating leases    $453,166  $442,400  $524,484
Excess percentage rentals                 124,587   277,785   135,786
                                          _______   _______   _______
                                         $577,753  $720,185  $660,270


6.  STOCKHOLDERS' EQUITY
    The Class A shares have one vote per share voting power.  The Class B
shares may vote ten votes per share and are convertible to Class A shares at
the option of the stockholder.


                                -8-
<PAGE>


7.  PROFIT-SHARING AND ESOP PLAN
    The Company has a profit-sharing plan which, generally, covers all individ-
uals who were employed at the end of the fiscal year and had one thousand or
more hours of service during that fiscal year.  The Plan provides for Company
contributions as determined by the Board of Directors.  For the years ended
June 27, 1999, June 28, 1998, and June 29, 1997, contributions in the amount of
$137,500, $125,000, and $110,000, respectively, were charged to operations.
    Effective March 31, 1987, the Company adopted an Employee Stock Ownership
Plan (ESOP) which generally covers all employees who on the last day of the
fiscal year or December 29 have been employed for one year with at least one
thousand hours of service.  The Plan provides for Company contributions as
determined by the Board of Directors.  Prior to fiscal year 1995, the
contributions were allocated to participants based on compensation and years
of service.  Since fiscal year 1995 contributions are allocated based on
compensation only in order to comply with Internal Revenue Service code
requirements.  The Company's contributions to the Plan for fiscal years 1999,
1998, and 1997 were $137,500, $125,000, and $110,000, respectively.

9.  INCOME TAXES
    The significant components of the Company's deferred tax assets and liabil-
ities were as follows:
                                               June 27,         June 28,
                                                 1999             1998
         Deferred tax assets:
            Accrued expenses                 $   66,000       $   64,000
            Other                                43,000           56,000
                                              _________        _________
         Total deferred tax assets              109,000          120,000
         Deferred tax liabilities:
            Property, plant and equipment       786,000          952,000
            Unrealized gain on available-
              for-sale securities             3,363,000        2,167,000
            Prepaid expenses                     94,000           99,000
            Other                                57,000           57,000
                                              _________        _________
         Total deferred tax liabilities       4,300,000        3,275,000
                                              _________        _________
         Net deferred income taxes           $4,191,000       $3,155,000

    Income tax expense differs from the amounts computed by applying the U.S.
Federal income tax rate to income before tax for the following reasons:
<TABLE>
<CAPTION>
                                 For the Years Ended
                                       1999     %          1998     %          1997    %
<S>                               <C>         <C>     <C>         <C>    <C>         <C>
Taxes computed at statutory rate  $1,781,000  34.0%   $1,624,000  34.0%   $1,374,000  34.0%
State income taxes, net of Federal
 income tax benefit                  156,000   3.0       241,000   5.0       220,000   5.4
Dividends received exclusion         (32,000) (0.6)      (91,000) (1.9)      (29,000) (0.7)
All other-net                         (3,000) (.07)      (58,000) (1.2)      (13,000) (0.3)
                                   _________  ____     _________  ____     _________  ____
                                  $1,902,000  36.3%   $1,716,000  35.9%   $1,552,000  38.4%
</TABLE>

<PAGE>


9.  SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
    The following summary represents the results of operations for each of the
quarters in fiscal years 1999 and 1998 (dollars in thousands, except for
earnings per share):
<TABLE>
<CAPTION>

                                              Earnings
                                               (Loss)
                                               Before             Earnings
                         Operating Operating  Provision   Net      (Loss)
                         Revenues   Income   for Income Earnings     Per
                                    (Loss)     Taxes     (Loss)     Share
<S>                       <C>        <C>       <C>       <C>         <C>
1999
June 27, 1999             $6,259     $  682    $  860    $  509      $.10
March 28, 1999             8,709      2,586     2,765     1,778       .32
December 27, 1998          7,172      1,397     1,560     1,010       .18
September 27, 1998         5,407       (113)       52        38       .01

1998
June 28, 1998             $5,700     $  522    $  714    $  518      $.09
March 29, 1998             8,623      2,506     2,704     1,685       .30
December 28, 1997          7,347      1,222     1,372       859       .15
September 28, 1997         5,417       (147)      (12)       -          -
</TABLE>

                                      -9-

<PAGE>

INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Stockholders
Bowl America Incorporated
Alexandria, Virginia

    We have audited the accompanying consolidated balance sheets of Bowl
America Incorporated and subsidiaries as of June 27, 1999 and June 28, 1998,
and the related consolidated statements of earnings and comprehensive earnings,
stockholders' equity and cash flows for each of the three years in the period
ended June 27, 1999. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

    We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement.  An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audits provide a reasonable
basis for our opinion.

    In our opinion, such consolidated financial statements present fairly, in
all material respects, the financial position of Bowl America Incorporated and
subsidiaries as of June 27, 1999 and June 28, 1998, and the results of their
operations and their cash flows for each of the three years in the period ended
June 27, 1999, in conformity with generally accepted accounting principles.



Deloitte and Touche LLP
Washington, DC

August 20, 1999



                                     -10-



<PAGE>