Second Cup Royalty Income Fund announces completion of the reorganization of the Fund's structure

    MISSISSAUGA, ON, April 3 /CNW/ - Second Cup Royalty Income Fund ("the
Fund") is pleased to announce that it has completed the previously announced
reorganization of the Fund's structure which will permit the Fund to maximize
the cash available for distribution to unitholders.
    Since the creation of the Fund in December 2004, the Fund owned the
Second Cup trade-marks through intermediary corporate subsidiaries. This
structure subjected these subsidiaries to income tax which, in turn, reduced
the cash available for distribution to the Fund's unitholders. Under the new
structure, implemented on April 2, 2007, the subsidiary corporations have been
replaced with a limited partnership which provides the Fund with a
"flow-through" structure. This structure will maximize the cash available for
distribution by eliminating income taxes payable by the Fund and its
subsidiaries until the proposed income tax legislation on income funds becomes
applicable in 2011.
    The Fund is an open-ended trust established under the laws of the
Province of Ontario. It holds, through an indirect wholly-owned subsidiary,
the Canadian trade-marks and other intellectual property and associated rights
used by Second Cup in connection with the operation of Second Cup cafés in
Canada. The Fund is listed on the Toronto Stock Exchange under the symbol
SCU.UN. For more information on the Second Cup Royalty Income Fund please

    Second Cup is Canada's largest specialty coffee café franchisor and
second largest retailer of specialty coffee, as measured by number of cafés.
For the ultimate on-line coffee experience, visit
    %SEDAR: 00021352E

For further information:

For further information: Stephen Devito, Chief Financial Officer, (905)

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