Prime Restaurants Royalty Income Fund (the "Fund")(TSX: EAT.UN) announced today that Mr. Peter C. Park will be stepping down as Chief Financial Officer of the Fund and of Prime Restaurants of Canada Inc. ("PRC"), the operating company. Mr. Park will become a multi-unit franchisee within PRC's highly successful casual dining brands. In mid October, companies owned by Mr. Park and his wife will purchase an East Side Mario's restaurant located in London and a Casey's restaurant located in Guelph, both of which have been corporately-operated by PRC for several years. Significant renovations are planned for each following the purchase.

Mr. Brian A. Elliot will assume Mr. Park's financial and reporting responsibilities for PRC, while Mr. Gus P. Pergantis will become Chief Financial Officer for the Fund.

Brian Elliot has been with PRC since 1994 holding positions of increasing responsibility in finance and accounting. Prior to joining PRC he had an extensive financial career in the retail and food service industry. He received his Chartered Management Account designation in 1992. Brian Elliot will also become a member of the Disclosure Committee of PRC Trademarks Inc.

Gus Pergantis is Manager, Financial Analysis and Reporting for PRC with responsibility for the Fund's financial reporting, and is also a member of the Disclosure Committee of PRC Trademarks Inc. He has been with PRC for over three years, bringing more than thirteen years of experience in the retail and food service industries. He has been a member of the Certified General Accountants Association since 1999.

"We are very pleased with Peter's entrepreneurial decision to become a multi-brand franchisee with an East Side Mario's and Casey's restaurant. This is clearly a strong endorsement of the exciting future we see for our two principal leading restaurant brands," commented John Rothschild, PRC's Chairman and Chief Executive Officer. "We are also pleased that Brian and Gus will be assuming Peter's roles going forward, and we are confident in their ability to maintain our high standards of financial reporting and governance."

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.

Certain information included in this news release is forward looking and based on current expectations and entails various risks and uncertainties. These risks and uncertainties could cause or contribute to actual results that are materially different from those expressed or implied. The forward-looking information contained in this document is current only as of the date of the document. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.