Prime Restaurants Royalty Income Fund
TSX : EAT.UN

Prime Restaurants Royalty Income Fund

March 29, 2010 11:03 ET

Prime Restaurants Royalty Income Fund Announces March 2010 Cash Payment

MISSISSAUGA, ONTARIO--(Marketwire - March 29, 2010) - As previously disclosed, Prime Restaurants Royalty Income Fund (the "Fund") (TSX:EAT.UN) has signed a definitive agreement with Prime Restaurants of Canada Inc. ("PRC"), PRC's sole shareholder, Prime Restaurant Holdings Inc. and PRC Trademarks Inc. regarding the terms of a previously announced transaction (the "Combination Transaction") to combine and form a new, publicly-traded corporation to be named Prime Restaurants Inc. ("Amalco"). Unitholders of the Fund are scheduled to vote on the approval of the Combination Transaction at an Annual and Special Meeting of Unitholders of the Fund, to be held on March 30, 2010 (the "Meeting"). On the approval of the Combination Transaction, each holder of units and limited voting units of the Fund will receive one class A limited voting share of Amalco (the "Class A Limited Voting Shares") for every unit or limited voting unit of the Fund that they hold.

Further to such disclosure, the Fund announced today that it intends to make a cash payment on April 15, 2010 to holders of record at the close of business on April 8, 2010. Assuming that the Combination Transaction is approved at the Meeting, the cash payment shall be paid in the form of a dividend of $0.04 per Class A Limited Voting Share of Amalco. In the event that the Combination Transaction is not approved, the cash payment shall be paid in the form of a distribution of $0.04 per unit of the Fund.

About the Royalty Income Fund

Prime Restaurants Royalty Income Fund, through PRC Trademarks Inc. ("TradeMarkCo"), is entitled to receive top-line royalties of 3.25% of the gross food and beverage revenue from pooled restaurants under the terms of a 99-year licence agreement between TradeMarkCo and Prime Restaurants of Canada Inc. ("PRC"). PRC operates and franchises a diversified portfolio of casual dining restaurants and premium pubs in Canada under the East Side Mario's, Casey's, and Fionn MacCool's brands.

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