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Boston Pizza Royalties Income Fund and Boston Pizza International Announce Victory at Federal Court of Appeal

March 10, 2003

For Immediate Release                                                                           Toronto Stock Exchange: BPF.UN

Boston Pizza Royalties Income Fund and Boston Pizza International Announce Victory At Federal Court of Appeal

VANCOUVER, BC, March 10, 2003 – Boston Pizza International Inc. (“BPI”) and Boston Pizza Royalties Income Fund (TSX:  BPF.UN) (the “Fund”) announced today that the Federal Court of Appeal, in a unanimous decision rendered Friday, March 7, 2003 in favour of BPI, has ordered the expungement of the trade-mark registration for “Boston Chicken” which is owned by Global Restaurant Operations of Ireland Limited.

This appeal was part of the ongoing litigation with Global Restaurant Operations of Ireland Limited and McDonald’s Restaurants of Canada Limited (the “McDonald’s Group”) over their use and attempt to register the “Boston Chicken” and “Boston Market” trade-marks in connection with Canadian restaurant operations.  BPI and the Boston Pizza Royalties Limited Partnership, owner of the Boston Pizza trade-marks, will continue to oppose their application to register “Boston Market” as a trade-mark in Canada.  In a related proceeding, as previously announced, the McDonald’s Group is attempting to challenge the validity of the registration of the “Boston Pizza” and related trade-marks in Canada, including a trade-mark that has been used by BPI and predecessor entities for over 30 years and was registered under the Trade-Marks Act (Canada) in 1970.  BPI management remains confident that this counterclaim by the McDonald’s Group will not succeed.

Mike Cordoba, President and COO of BPI and a director of the general partner of BP Royalties Limited Partnership, stated:  “We are very pleased with this result in the Federal Court.  The expungement of the “Boston Chicken” trade-mark is a significant step in our ongoing efforts to protect the “Boston Pizza” and related trade-marks and to defend against any infringement of the Boston Pizza Royalties Limited Partnership’s trade-marks by others, including the attempt by the McDonald’s Group to register the “Boston Market” trade-mark in Canada.”

The Fund is a limited purpose, open-ended trust established under the laws of British Columbia to acquire indirectly certain trade-marks and trade names used by BPI in its Boston Pizza restaurants in Canada.  The trade-marks are licensed by the Boston Pizza Royalties Limited Partnership to BPI for 99 years for which BPI pays the Fund 4% of franchise revenues from its 162 Boston Pizza restaurants in Canada as at November 1, 2002.  

BPI continues to operate the Boston Pizza franchise system, develop new Boston Pizza restaurants in Canada, and has emerged as one of Canada’s leading restaurant companies.  The organization continues to grow based on its “Three Pillars of Success”: a commitment to franchisee profitability, a commitment to the growth and development of the Boston Pizza brand, and a commitment to the constant improvement of the guest experience.   Since November 1, 2002, two new restaurants have been opened bringing the total number of restaurants open in Canada as of March 10, 2003 to 164.

Robert Groom
Director, Investor Relations
Tel:  604-270-1108


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

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