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Boston Pizza Royalties Income Fund Adds Restaurants to Royalty Pool

January 05, 2004

For Immediate Release                                                                           Toronto Stock Exchange: BPF.UN


VANCOUVER, BC, JANUARY 5, 2004  - Boston Pizza Royalties Income Fund (the “Fund”) (TSX: BPF.UN) announced today that effective January 1, 2004, the number of Boston Pizza restaurants included in the Fund’s royalty pool (the “Royalty Pool”) has been increased to include the royalties from 15 new restaurants opened across Canada between November 1, 2002 and October 31, 2003 (the “Period”).  With the addition of these 15 restaurants, royalties are now payable to the Fund from 177 Boston Pizza restaurants.

The Fund indirectly owns the Boston Pizza trade marks and trade names used by Boston Pizza International Inc. (“BPI”) in its Boston Pizza restaurants in Canada.  In 2002 the Fund licensed these trade marks to BPI for 99 years and in return BPI pays the Fund a top line royalty of 4% of franchise revenues of Royalty Pool restaurants.  Annually, the Royalty Pool of Boston Pizza restaurants is increased to include the new Boston Pizza restaurants that have opened in the prior year.  The increase is adjusted to reflect any locations that may have permanently closed during the year.  During the year no Boston Pizza restaurants were closed.

“The fact that we opened 15 new restaurants and did not close any locations in 2003 is a testament to the
strength of the Boston Pizza brand, our franchisees, and our employees,” said Mike Cordoba, President and
Chief Operating Officer for BPI and a Director of Boston Pizza GP Inc.

In return for adding these 15 new restaurants to the Royalty Pool, BPI has received 738,345 additional unit entitlements (the “Additional Unit Entitlements”).  These Additional Unit Entitlements are the equivalent of Fund Units and represent 6.82% of the Fund Units on a fully diluted basis. BPI will also receive a proportionate increase in monthly distributions based on these Additional Unit Entitlements.  The calculation for the number of Additional Unit Entitlements received by BPI is designed to be accretive to existing Fund Unitholders as the additional royalty revenues from the new restaurants are acquired at a 7.5% discount.  The estimated royalty revenue the Fund will receive in 2004 from these additional 15 restaurants is $1,017,716.  The royalty revenue for the purposes of calculating the Additional Unit Entitlements, therefore, is $941,387 or 92.5%.  Once the actual performance of these 15 restaurants for 2004 is known, the number of Additional Unit Entitlements will be adjusted in 2005 to reflect the actual royalty revenue received by the Fund in 2004.  The Additional Unit Entitlements represent 80% of the total number of Fund Units that BPI will have the right to receive in the event that the actual royalty revenue from these additional restaurants is equal to the estimated royalty revenue.

Including the Additional Unit Entitlements described above, BPI has the right to exchange its securities for 2,755,358 Fund Units, representing 25.46% of the Fund Units on a fully diluted basis. BPI has agreed to maintain at least a 20% ownership interest, direct or indirect, in the Fund until such time as there are 275 restaurants in the Royalty Pool.

BPI is located at 5500 Parkwood Way, Richmond, B.C. V6V 2M4.

The trustees of the Fund have approved the contents of this press release.

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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