Pizza Pizza Royalty Income Fund Announces August Distribution



    TORONTO, Aug. 16 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund")
(TSX: PZA.UN) today announced a cash distribution of $0.073 per unit for the
month of August 2007. The distribution will be payable to unitholders of
record at the close of business on August 31, 2007, and will be paid on
September 14, 2007.

    About the Fund, a publicly-traded entity

    The Fund is a limited purpose, open-ended trust established under the
laws of Ontario to indirectly acquire the trademarks and trade names used by
Pizza Pizza Limited ("Pizza Pizza") in its Pizza Pizza and Pizza 73 branded
restaurants. The Pizza Pizza trademarks were licensed to Pizza Pizza in 2005
for 99 years, for which Pizza Pizza pays the Fund a royalty equal to 6% of the
system sales of its Pizza Pizza restaurants in the Royalty Pool. As of
January 1, 2007, there were 531 Pizza Pizza restaurants in the Royalty Pool.
Effective July 24, 2007, the Fund acquired the Pizza 73 trademarks and
licensed them to Pizza Pizza, for which Pizza Pizza pays the Fund a royalty
equal to 9% of the system sales of the 41 Pizza 73 restaurants added to the
Royalty Pool.
    Since its initial public offering in 2005, the Fund has increased
distributions four times while maintaining an average of 5% same restaurant
sales growth at its Pizza Pizza restaurants. The last distribution increase
was in January 2007 when monthly distributions were increased from $0.071 per
unit to $0.073 per unit.
    A key attribute of the Fund is that it is based on top-line, system sales
of the Royalty Pool restaurants and not on the profitability of either Pizza
Pizza or the restaurants in the Royalty Pool. The success of the Fund depends
primarily on the ability of Pizza Pizza to maintain and increase system sales
of the Royalty Pool and to meet its royalty obligations.
    The Fund's trust units are listed on the Toronto Stock Exchange under the
symbol PZA.UN.

    ABOUT PIZZA PIZZA LIMITED

    Pizza Pizza Limited, a privately-held Canadian corporation, is one of
Canada's most successful operators in the quick service restaurant industry.
It operates franchised and corporate restaurants under the brand names Pizza
Pizza and Pizza 73. The Pizza Pizza brand is celebrating its 40th anniversary
this year and dominates the Ontario pizza QSR. Founded in 1967, Pizza Pizza is
guided by a mission to provide the "best food, made especially for you" and a
focus on quality ingredients, customer service, community contribution and
continual innovation, especially in offering health-conscious menu choices.
The Pizza 73 brand, founded in 1985, operates primarily in Alberta in the
take-out and delivery pizza QSR segment.

    %SEDAR: 00022262EF




For further information:

For further information: Media: Daniel Vukovich, Chief Operating
Officer, Pizza Pizza Limited, Telephone: (416) 967-1010,
dvukovich@pizzapizza.ca; Investors: Curtis Feltner, Chief Financial Officer,
Pizza Pizza Limited, Telephone: (416) 967-1010, cfeltner@pizzapizza.ca; Web:
www.pizzapizzaroyaltyincomefund.com, www.pizzapizza.ca, and www.pizza73.com or
www.sedar.com

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PIZZA PIZZA ROYALTY INCOME FUND

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