A&W Revenue Royalties Income Fund Announces Internal Reorganization



    VANCOUVER, Feb. 5 /CNW/ - A&W Revenue Royalties Income Fund (TSX - AW.UN)
(the Fund) announced today that it has recently completed an internal
reorganization of the Fund and its subsidiary A&W Trade Marks Inc. (Trade
Marks). The reorganization involves the creation of a limited partnership (A&W
Trade Marks Limited Partnership (TMLP)) in which Trade Marks is the general
partner with a 99.9% interest and A&W Food Services of Canada Inc, (Food
Services) is the limited partner with a 0.1% interest. The A&W trade-marks
owned by Trade Marks were transferred to TMLP in exchange for the general
partnership interest held by Trade Marks.
    As a result of the reorganization the taxable income of Trade Marks for
its fiscal years ending December 31, 2009 and 2010 will be reduced. TMLP has a
fiscal year end on or about January 25 each year.
    The existing Licence and Royalty Agreement between Food Services and
Trade Marks was assumed by TMLP with the result that the royalty of 3% of
sales paid by Food Services for the use of the A&W trade-marks will be paid to
TMLP. The Royalty Pool for which Food Services pays the royalty to TMLP will
continue to be adjusted annually to reflect sales from new A&W restaurants,
net of the sales of any A&W restaurants that have permanently closed. The
limited partnership interest of Food Services will be increased each year to
reflect the annual adjustment in the Royalty Pool. Food Services' limited
partnership interest may be exchanged for additional preferred and non voting
common shares of Trade Marks. These shares are exchangeable, through a share
redemption and exchange procedure, for units of the Fund.
    The Fund currently has 8,340,000 units outstanding and Food Services
holds 5,926,381 preferred shares and common shares of Trade Marks which are
indirectly exchangeable for 5,926,381 units of the Fund, representing the
equivalent of 41.5% of the units of the Fund on a fully-diluted basis.
    The composition of the trustees of the Fund and the board of directors of
Trade Marks remains unchanged.
    To view a chart showing the structure of the Fund, both before and after
the reorganization, please visit:
http://files.newswire.ca/784/Reorganization_Chart.pdf





For further information:

For further information: Donald Leslie, Chief Financial Officer, (604)
988-2141


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