Pizza Delight Corporation Ltd.

October 17, 2006 17:33 ET

Pizza Delight Corporation Ltd. Announces Intention to Acquire Up to 350,000 Units of PDM Royalties Income Fund

MONCTON, NEW BRUNSWICK--(CCNMatthews - Oct. 17, 2006) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Pizza Delight Corporation Ltd. ("PDC") announced today that, subject to regulatory approval, it intends to buy up to 350,000 units (the "Units") of PDM Royalties Income Fund (TSX:PDM.UN) (the "Fund") through an exempt issuer bid, representing approximately 5% of the issued and outstanding Units, excluding the 83,500 Units held by PDC. There are currently a total of 7,051,092 Units issued and outstanding.

Purchases will be effected through the facilities of the Toronto Stock Exchange. The price which PDC will pay for any Units will be the market price at the time of acquisition plus brokerage fees. PDC anticipates that the terms of the exempt issuer bid will be similar to those associated with a normal course issuer bid. Purchases may commence upon completion of the recently announced public offering of convertible debentures by the Fund and will terminate no later than the date which is 12 months from the date that exemptive relief is received from the securities regulatory authorities.

About the Fund

The Fund is a limited purpose open-ended trust established under the laws of Ontario. The Fund will make monthly distributions of its available cash to holders of units. The Fund indirectly owns the trade marks and intellectual property for the Pizza Delight and Mikes Restaurants brands and has licensed them to PDC in consideration for a royalty equal to 4% of system sales generated by Pizza Delight and Mikes Restaurants. The Fund also indirectly owns the trade marks and intellectual property for Scores Rotisserie and Ribs brand and has licensed it to PDC in consideration for a royalty equal to 6% of system sales generated by Scores Rotisseries and Ribs restaurants.

About PDC

PDC is a privately owned corporation, headquartered in Moncton, New Brunswick. It operates franchised and corporate restaurants under the brand names Pizza Delight®, Mikes® Restaurants and Scores® Rotisserie and Ribs. Pizza Delight® operates primarily in Atlantic Canada, where it dominates the family/mid-scale segment. Mikes® Restaurants operates primarily in Quebec in the casual dining segment and the take-out and delivery segments. Scores® Rotisserie and Ribs operates primarily in Quebec in the casual dining segment.

For additional information on our three brands visit: www.pizzadelight.com, www.mikes.ca or www.scores.ca.

Contact Information

  • PDM Royalties Income Fund
    William Lane, CMA
    Chief Financial Officer
    (506) 853-0990
    Email: blane@pizzadelight.ca