Pizza Pizza Royalty Income Fund Announces December Distribution and 2007 Return of Capital Percentage

    TORONTO, Dec. 12 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund")
(TSX: PZA.UN) today announced a cash distribution of $0.076 per unit for the
month of December, 2007. The distribution will be payable to unitholders of
record at the close of business on December 31, 2007, and will be paid on
January 15, 2008.
    For those unitholders holding units outside a tax deferred plan, the
Trustees of the Fund have estimated that the 2007 distributions will be
treated as 65% taxable income and 35% as a return of capital. The proportion
of these figures may change when the actual results for the fiscal year are
calculated. Discretionary deductions available to the Fund that are not fully
utilized this year will remain available to the Fund in subsequent taxation
years as part of its overall tax planning strategy.

    About the Fund

    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. Since its initial public offering in 2005, the Fund has increased
distributions five times. The last distribution increase was in September 2007
when monthly distributions were increased by 4% from $0.073 per unit to $0.076
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.

    %SEDAR: 00022262EF

For further information:

For further information: Curtis Feltner, Chief Financial Officer, Pizza
Pizza Limited, Telephone: (416) 967-1010,; Christine
D'Sylva, Investor Relations, Pizza Pizza Limited, Telephone: (416) 967-1010,; Web:, and or

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