Boston Pizza Royalties Limited Partnership

January 04, 2005 07:30 ET

Boston Pizza Royalties Income Fund adds 18 Restaurants to Royalty Pool


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BOSTON PIZZA ROYALTIES LIMITED PARTNERSHIP

TSX SYMBOL: BPF.UN

JANUARY 4, 2005 - 07:30 ET

Boston Pizza Royalties Income Fund adds 18 Restaurants
to Royalty Pool

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 4, 2005) - Boston Pizza
Royalties Income Fund (the "Fund") (TSX:BPF.UN) announced today that
effective January 1, 2005, the number of Boston Pizza restaurants
included in the Fund's royalty pool (the "Royalty Pool") has been
increased to include the royalties from 18 new restaurants opened across
Canada between November 2, 2003 and November 1, 2004 (the "Period").
With the addition of these 18 restaurants, royalties are now payable to
the Fund from 195 Boston Pizza restaurants.

The Fund indirectly owns the Boston Pizza trade marks and trade names
used by Boston Pizza International Inc. ("BPI") in its Boston Pizza
restaurants in Canada. In 2002 the Fund licensed these trade marks to
BPI for 99 years and in return BPI pays the Fund a top line royalty of
4% of franchise revenues of Royalty Pool restaurants. Annually, the
Royalty Pool of Boston Pizza restaurants is increased to include the new
Boston Pizza restaurants that have opened in the prior year. The
increase is adjusted to reflect any locations that may have permanently
closed during the year. During the year no Boston Pizza restaurants were
closed.

"I am very pleased that our team was able to exceed our expected store
opening target of 15 restaurants with the opening of these 18 new
restaurants. Our employees and franchisees should be commended for all
the hard work they have done throughout the year to get these
restaurants opened." said Mike Cordoba, Chief Executive Officer for BPI
and the Fund. Cordoba further went on to say, "In addition, 2004 was
another year that we did not close any restaurants, which really speaks
to the strength and stability of the Boston Pizza brand."

In return for adding these 18 new restaurants to the Royalty Pool, BPI
has received 1,033,746 additional unit entitlements (the "Additional
Unit Entitlements"). These Additional Unit Entitlements are the
equivalent of Fund Units and represent 8.6% of the Fund Units on a fully
diluted basis. BPI will also receive a proportionate increase in monthly
distributions based on the 18 new restaurants added to the Royalty Pool.
The calculation for the number of Additional Unit Entitlements received
by BPI is designed to be accretive to existing Fund Unitholders as the
additional royalty revenues from the new restaurants are acquired at a
7.5% discount. The estimated royalty revenue the Fund will receive in
2005 from these additional 18 restaurants is $1,555,508. The royalty
revenue for the purposes of calculating the Additional Unit
Entitlements, therefore, is $1,438,845 or 92.5%. Once the actual
performance of these 18 restaurants for 2005 is known, the number of
Additional Unit Entitlements will be adjusted in 2006 to reflect the
actual royalty revenue received by the Fund in 2005. The Additional Unit
Entitlements represent 80% of the total number of Fund Units that BPI
will have the right to receive in the event that the actual royalty
revenue from these additional restaurants is equal to the estimated
royalty revenue.

Including the Additional Unit Entitlements described above, BPI has the
right to exchange its securities for 3,215,914 Fund Units, representing
26.9% of the Fund Units on a fully diluted basis. BPI has agreed to
maintain at least a 20% ownership interest, direct or indirect, in the
Fund until such time as there are 275 restaurants in the Royalty Pool.

BPI is located at 5500 Parkwood Way, Richmond, B.C. V6V 2M4.

The trustees of the Fund have approved the contents of this press
release.

® Boston Pizza Royalties Limited Partnership. All Boston Pizza
registered Canadian trade-marks and unregistered Canadian trade-marks
containing the words "Boston", "BP", and/or "Pizza" are trade-marks
owned by the Boston Pizza Royalties Limited Partnership and licensed by
the Boston Pizza Royalties Limited Partnership to Boston Pizza
International Inc.

(C) Boston Pizza International Inc. 2005

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