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Boston Pizza Royalties Income Fund Commences Trading on TSX

July 17, 2002

For Immediate Release                                                                           Toronto Stock Exchange: BPF.UN


Attention Business Editors:
July 17, 2002
For Immediate Release


Richmond, BC - Boston Pizza Royalties Income Fund (the “Fund”) is pleased to
announce that trust units (“Units”) of the Fund have commenced trading today on the Toronto Stock Exchange under the symbol “BPF.UN”. This marks the completion of an Initial Public Offering of 7,690,000 units at a price of $10.00 per unit for gross proceeds of $76.9 million. The offering was made through a syndicate of underwriters lead by Scotia Capital Inc. and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc., Canaccord Capital Corporation and Raymond James Ltd.

“This is a tremendously exciting day for Boston Pizza,” says Mike Cordoba, President and COO of Boston Pizza International Inc. (BPI). “The high degree of investor interest we have seen for our Fund reflects the quality customers experience in our franchised restaurants, and investor confidence for Boston Pizza’s corporate expertise in franchising and management.”

The Fund is a limited purpose, open-ended trust established under the laws of British Columbia. The Fund will make monthly distributions of its cash to the maximum extent possible. The first distribution date to Unitholders is expected to be on or about August 30, 2002 for the period from July 17 to July 31, 2002 and is estimated to be approximately $0.042 per Unit for this shortened period. Net proceeds of the offering, together with funds drawn under a new credit facility, will be used to purchase certain trade marks and trade names used by BPI in its Boston Pizza restaurants in Canada.

The trade marks will be licensed to BPI for 99 years for which BPI will pay the Fund 4% of franchise revenues of the 154 Boston Pizza restaurants in Canada as at April 30, 2002. BPI has retained a 20% interest in the Fund.

Commenting on how the raised money will be used, Mark Powell, Chief Financial Officer of BPI says, “Proceeds of the sale of the trade marks and trade names will be used by BPI to repay certain existing indebtedness, to capitalize U.S. affiliated operations and to pay a distribution to the shareholders and co-CEO’s of BPI, Jim Treliving and George Melville.”

BPI will continue to operate the Boston Pizza franchise system and develop new Boston Pizza restaurants in Canada. The royalty paid to the Fund will be adjusted annually to include the franchise revenues of the new Boston Pizza restaurants opened prior to November 1 of each year. At each annual adjustment, the Fund will pay BPI, in securities exchangeable for Units of the Fund, 92.5% of the amount reflecting the value of any increase in the royalty at that time.

Boston Pizza International Inc. currently has 158 restaurants in Canada. Franchise sales of $246 million and gross sales of $300 million were recorded for the 12 months to April 30, 2002. Boston Pizza has been recognized as one of Canada’s 50 Best Managed Companies for three consecutive terms, and earlier this year, Mike Cordoba was listed as one of Canada’s Top 40 Under 40 by the Globe & Mail’s Report on Business Magazine. Boston Pizza International Inc. is headquartered in Richmond, B.C. and has a regional franchise support office in Mississauga, Ontario.

Trustees of the Boston Pizza Royalties Income Fund are William C. Brown, John L. Cowperthwaite and Robert L. Phillips.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of the prospectus, nor shall there be any sale of the units in any State, Province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State, Province or jurisdiction. The units have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application for exemption from the registration requirements under U.S. Securities laws.

Media inquiries:
Diana Barkley or Bryce Matheson
Public Relations for Boston Pizza International


Boston Pizza Royalties Income Fund
Jordan Holm - Vice President of Investor Relations
Tel: 604-303-6083

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