Prime Restaurants Royalty Income Fund

Prime Restaurants Royalty Income Fund

December 12, 2007 09:25 ET

Prime Restaurants Royalty Income Fund Announces Management Change

MISSISSAUGA, ONTARIO--(Marketwire - Dec. 12, 2007) - Prime Restaurants Royalty Income Fund ("the Fund")(TSX:EAT.UN) today announced that Mr. Gus Pergantis will be resigning as Chief Financial Officer of the Fund effective January 4, 2008. The Fund has initiated a search for a suitable candidate to replace Mr. Pergantis. In the interim, his responsibilities will be assumed by certain executives within Prime Restaurants of Canada Inc., the Fund's underlying operating entity.

Gus will become Corporate Controller of Route 1, a Toronto high-technology company.

"Gus has provided solid leadership in the Fund's reporting and regulatory filings, and we wish him every success in the future," commented John Rothschild, Chairman and CEO of Prime Restaurants of Canada Inc.

Prime Restaurants Royalty Income Fund (the Fund) is a limited purpose trust with an unlimited number of Trust Units (Units) established to invest in PRC Trademarks Inc. (TradeMarkCo). The source of revenue for the Fund is through its ownership in TradeMarkCo. The Fund receives interest income on the TradeMarkCo Note from TradeMarkCo based on 11.25% per annum which it distributes to its Unitholders. TradeMarkCo owns the Prime Restaurants of Canada Inc. (PRC) trademarks and licenses their use to PRC which operates the restaurant and bar business. In return, TradeMarkCo receives royalty income based on 3.25% of gross revenue from the royalty pooled restaurants operated by PRC.

Certain information included in this news release is forward looking and based on current expectations and entails various risks and uncertainties. Forward-looking statements may involve, but are not limited to, comments with respect to our objectives for 2007 and beyond, our strategies or future actions, and our targets or expectations for our financial performance and condition (including estimated revenue from royalty pooled restaurants and the prospective number of new restaurants and pubs). Although management of the Fund and PRC believe that the expectations represented in such forward looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. By their nature, forward-looking statements require us to make assumptions (such as, on the demand for the goods and services provided under the Prime Marks) and are subject to inherent risks and uncertainties, including those discussed in the current annual information form of the Fund and annual and quarter MD&A of the Fund and PRC, which are available at There is significant risk that predictions and other forward-looking statements will not prove to be accurate. We caution readers not to place undue reliance on our forward-looking statements because a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date hereof. Except as required by applicable securities laws, the Fund does not undertake to update any forward-looking statement, whether written or oral, that it may make or that may be made, from time to time, on its behalf.

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