Prime Restaurants Royalty Income Fund

Prime Restaurants Royalty Income Fund

January 23, 2006 09:00 ET

Prime Restaurants Royalty Income Fund Reports Solid Fourth Quarter 2005 Same Store Sales Growth

MISSISSAUGA, ONTARIO--(CCNMatthews - Jan. 23, 2006) - Prime Restaurants Royalty Income Fund (TSX:EAT.UN) announced today that same store sales growth ("SSSG") for the royalty pooled restaurants was positive 2.1% for the three months ended December 31, 2005. All three months in the fourth quarter demonstrated positive SSSG. For the year ended December 31, 2005, SSSG was negative 0.79% compared to negative 1.6% in 2004.

"We are very pleased and encouraged by our solid performance in the fourth quarter, a strong indication that our growth strategies are beginning to have a positive impact," commented John Rothschild, President and CEO. "Looking ahead, we will be implementing a number of innovative new programs through 2006, and we remain cautiously optimistic that as these initiatives are rolled out we will see continued improvement in year-over-year same store sales growth going forward."

Audited financial results for the three months and year ended December 31, 2005 for Prime Restaurants Royalty Income Fund and Prime Restaurants of Canada Inc. will be issued by press release by March 30, 2006.

About the Royalty Income Fund

Prime Restaurants Royalty Income Fund, through its subsidiary 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 well recognized East Side Mario's, Casey's, and Fionn MacCool's brands.

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