Priszm reaches agreement to extend forbearance and financing agreements with senior debt lender

TORONTO, Feb. 4 /CNW/ - Priszm Income Fund (TSX: QSR.UN) ("Priszm" or the "Company") reported today that the Company has extended its forbearance and financing agreements with its senior debt lender to May 20, 2011, subject to the terms and conditions set out therein.  In addition to the maturity date extension of all of the outstanding debt, the agreements provide the Company with an additional facility of up to $2.9 million, subject to the satisfaction of the conditions contained therein.  This is in addition to the $3.7 million already drawn by the Company in respect of the January 19, 2011 agreement.  As part of the agreements, the Company is required to work with the senior debt lender on an asset sale process to explore the potential sale of locations not subject to the previously announced sale of the Ontario and BC outlets.  The asset sale process contemplates achievement of various prescribed milestones.

The Company also reported that it has reached an agreement with its franchisor, YUM! Restaurants International, to extend the franchise terms of the 70 Outlets which expired on January 15, 2011 to February 28, 2011.  The Company also understands that its senior debt lender and its franchisor have come to terms on forbearance by the franchisor with respect to unpaid continuing fees.

About Priszm Income Fund
Priszm Income Fund (TSX: QSR.UN) holds approximately a 60 per cent interest in Priszm Limited Partnership, which owns and operates more than 400 quick service restaurants in seven provinces across Canada. The KFC, Taco Bell and Pizza Hut restaurants under Priszm serve more than one million customers a week and employ approximately 7,300 people. Approximately 100 locations are multi-branded, combining two or more of the Fund's restaurant concepts.

To find out more about Priszm Income Fund (TSX: QSR.UN), visit our website at http://www.priszm.com.

Forward-Looking Statements
Certain information in this document may constitute forward-looking statements within the meaning of securities laws that involve known and unknown risks, uncertainties, future expectations and other factors with respect to industry sector performance, business plans, activities, trends and events anticipated by the Priszm Income Fund (the "Company") and which may cause the Company's future performance and results to be materially different from those implied by the forward-looking information. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue," or the negative of these terms or other comparable terminology concerning matters that are not historical facts. Forward-looking information is based on certain factors and assumptions regarding, among other things, the number of restaurants, the renewal of the franchise agreements, ability to meet capital expenditure requirements, the industry sector performance, business plans, activities, success of refinancing on commercially viable terms, trends and events anticipated by the Company. Although the Company believes that the assumptions underlying such statements are reasonable, any of the assumptions may prove to be inaccurate and, as a result, the forward-looking information may prove to be incorrect. The forward-looking information, assumptions and statements reflect the views of the Company's management with respect to future events and outcomes as of the date of this document and there should be no expectation that such information will be updated, revised and/or supplemented whether as a result of new information, changing circumstances, future events or other cause. Actual events or outcomes may be materially different and cause the performance of the Company to differ materially from any forward-looking statement.

SOURCE Priszm Income Fund

For further information:

Wilcox Group
(647) 707-9009

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Priszm Income Fund

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KIT Limited Partnership

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