PDM Royalties Income Trust's proposed amalgamation with Imvescor receives positive recommendations from two leading independent proxy advisory firms



    MONCTON, NB, Aug. 26 /CNW Telbec/ - PDM Royalties Income Fund's ("PDM" or
the "Fund") (TSX: PDM.UN, PDM.DB) Board of trustees (the "Trustees") is
pleased to announce that two leading independent proxy advisory firms have
joined them in recommending that PDM's unitholders (the "Unitholders") vote in
favour of the proposed conversion of the Fund to corporate status and its
subsequent amalgamation with Imvescor Inc. ("Imvescor") to form a new,
publicly traded company to be named Imvescor Restaurant Group Inc. ("IRG")
(the "Arrangement"). The proposed Arrangement is the key matter for
consideration at the annual and special meeting of Unitholders to be held in
Halifax, Nova Scotia, on September 4, 2009.
    One of the two leading independent proxy advisory firms, RiskMetrics
Group, states in its report that the Arrangement "enables the conversion of
the Fund into a publicly traded corporation in a tax efficient manner and the
consolidation of the overall restaurants business into a single entity."(1) It
recommends Unitholders vote for the Arrangement.
    Glass Lewis and Co, the other leading independent proxy advisory firm,
writes in its report that "there are adequate reasons to justify the proposed
conversion, including the imminent implementation of the new tax regime and
the Fund's prospects for future expansion."(2) Accordingly, it recommends
Unitholders vote for the Arrangement.
    The Trustees' unanimous recommendation that Unitholders vote in favour of
the Arrangement, based on the fairness opinion received from RSM Richter, an
independent financial advisor to the Trustees, is supported by the positive
recommendations of two leading independent proxy advisory firms. The Trustees
believe that the main benefits of the Arrangement for Unitholders are:

    
    - Defined Capital Structure: With the 2011 income trust deadline fast
      approaching, the Arrangement will put to rest the uncertainty regarding
      the Fund's capital structure, and will not only provide investors with
      enhanced trading liquidity, but will also facilitate access to capital
      for future financings.

    - Elimination of "vend-in" formula: In addition, following the
      Arrangement, the current highly dilutive "vend-in" formula, by which
      Imvescor receives units of the Fund as payment for royalty streams from
      restaurants vended into PDM will be eliminated. Consequent the "vend-
      in" formula will not be applicable to the new entity, IRG.

    - Corporate Synergies: The newly created company, IRG, will benefit from
      cost reductions resulting from synergies generated by the new
      simplified corporate structure, which will include PDM's current as
      well as IRG future brands and related intellectual property together
      with Imvescor's franchising and distribution business.

    - Improved Transparency: Investors will benefit from increased
      transparency through a Board of Directors that will answer directly to
      all shareholders. More importantly, all shareholders will be treated
      equally.

    - Stronger Leadership Team: The new company, IRG, will benefit from the
      bench strength of a leading executive and operational management team
      with over 150 years of combined experience in the restaurant industry,
      as well as proven track records in expansion and profitable growth in
      sales and EBITDA.

    - Regular Dividends: PDM has already stated publicly that following the
      completion of the Arrangement, IRG is expected to adopt a cash
      management policy that will enable the company to pay regular dividends
      in order to provide a significant level of current income to
      shareholders, while providing the new company with flexibility to repay
      debt (part coming due in August 2010) and/or repurchase convertible
      debentures and shares in the market in a manner that will maximize long
      term shareholder value.

    Voting Instructions
    -------------------
    
    With the annual and special meeting of Unitholders fast approaching on
September 4, 2009, unitholders are encouraged to submit their form of proxy in
favour of the Arrangement before September 2, 2009 at 5:00 pm (Atlantic Time).
Unitholders should vote using one of the quicker options available as noted on
the management form of proxy, preferably by telephone, internet or fax, where
applicable.
    For more information on how to vote your proxy or to request a free copy
of the Management Circular and related materials, please contact the Fund's
Solicitation Agent, Kingsdale Shareholder Services, at 1-800-775-4067.

    About PDM Royalties Income Fund

    The Fund is a limited purpose open-ended trust established under the laws
of Ontario. The Fund indirectly owns the trademarks and intellectual property
for the Pizza Delight(R), Mikes(R), Scores(R), and Baton Rouge(R) brands and
has licensed them to Imvescor in consideration for a royalty equal to 4% of
system sales for Pizza Delight(R) and Mikes(R) restaurants, and a royalty rate
of 6% for Scores(R) and Baton Rouge(R) restaurants.

    About Imvescor

    Imvescor is a privately owned corporation, headquartered in Moncton, New
Brunswick. Pizza Delight(R) operates primarily in Atlantic Canada, where it
dominates the family/mid-scale segment. Mikes(R) and Scores(R) restaurants
operate primarily in Quebec in the family and casual dining segments and the
take-out and delivery segments. Baton Rouge(R) operates in the Province of
Quebec and Ontario in the casual dining segment.

    Forward-Looking Statements

    Certain information regarding the Fund contained herein may constitute
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements may include estimates, plans, expectations,
opinions, forecasts, projections, guidance or other statements that are not
statements of fact. Although the Fund believes that the expectations reflected
in such forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to have been correct. The Fund cautions that
actual performance will be affected by a number of factors, many of which are
beyond the Fund's control, and that future events and results may vary
substantially from what the Fund currently foresees. Discussion of the various
factors that may affect future results is contained in the annual information
form of the Fund and the information circular in respect of the upcoming
annual and special meeting, which are available at www.sedar.com. The Fund
assumes no obligation to update such forward-looking statements, except as
required by applicable securities laws. The Fund's forward-looking statements
are expressly qualified in their entirety by this cautionary statement.

    
    (1) (*)Permission to quote from the Glass Lewis and RiskMetrics reports
        were neither sought nor obtained
    (2) Idem
    
    %SEDAR: 00018600EF




For further information:

For further information: Mélanie Joly, Cohn & Wolfe Public Relations,
(514) 845-2257 ext 247; William R. Lane, CMA, Executive Vice-President and
Chief Financial Officer, Imvescor Inc., (506) 853-8412; Kingsdale Shareholder
Services, 1-800-775-4067; Visit our web sites: www.pdmfund.ca,
www.imvescor.ca, www.pizzadelight.ca, www.mikes.ca, www.scores.ca,
www.batonrougerestaurants.com

Organization Profile

PDM ROYALTIES INCOME FUND

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