Priszm Income Fund closes $30 million convertible debenture offering



    Proceeds to finance growth

    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
    CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./

    TORONTO, June 22 /CNW/ - Priszm Income Fund (TSX: QSR.UN) ("Priszm")
today announced that it has closed its previously announced offering of
$30 million convertible unsecured subordinated debentures due June 30, 2012
(the "Debentures").
    The Debentures were offered through a syndicate of underwriters co-led by
TD Securities Inc. and RBC Capital Markets. The syndicate also included CIBC
World Markets Inc. and National Bank Financial Inc.
    The Debentures will pay interest at a rate of 6.50 per cent per annum
calculated semi-annually in arrears on December 31 and June 30, with the
initial interest payment on December 31, 2007.
    The Debentures are convertible at a conversion price of $12.28 at the
holders' option into fully paid and non-assessable Units of Priszm at any time
prior to the close of business on the earlier of June 30, 2012 and the
business day immediately preceding the date fixed for redemption. The
conversion price is equivalent to a ratio of approximately 81.4332 Units per
$1,000 principal amount of Debentures.

    About Priszm Income Fund

    Priszm Income Fund (TSX: QSR.UN) has a 60.2 per cent interest in Priszm
LP and its general partner, Priszm Inc., which owns and operates 483 quick
service restaurants in seven provinces across Canada. The KFC, Taco Bell,
Pizza Hut and Long John Silver's restaurants under Priszm, which generated
annual revenues in excess of $500 million in 2006, serve 1.5 million customers
a week and employ more than 9,000 people. Currently, 94 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

    Any forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties that are
difficult to predict. Actual results might differ materially from projections
suggested in any forward-looking statements due to factors such as the
competitive nature of the quick service restaurant industry, the ability of
Priszm and Priszm LP to execute a growth and development strategy, the
reliance of Priszm and Priszm LP on key personnel, the terms and conditions of
Priszm LP's franchise arrangements, and risk associated with the structure of
income trusts. Priszm and Priszm LP assume no obligation to update the
forward-looking statements, or to update the reasons why actual results could
differ from those reflected in the forward-looking statements. Additional
information identifying risks and uncertainties is contained in Priszm's
filings with the Canadian securities regulators, available at www.sedar.com.

    %SEDAR: 00019884E




For further information:

For further information: Investors, Trish Moran, (416) 624-5133,
trish.moran@priszm.com; Media, Wilcox Group, (416) 203-6666,
priszm@wilcoxgroup.com

Organization Profile

PRISZM INCOME FUND

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