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Boston Pizza Royalties Income Fund Announces Change to the Seasoning Period for New Restaurants Add to the Royalty Pool

May 10, 2005

For Immediate Release                                                                           Toronto Stock Exchange: BPF.UN


VANCOUVER, BC, MAY 10, 2005 - Boston Pizza Royalties Income Fund (the “Fund”) (TSX: BPF.UN) announced today amendments to its license and royalty agreement with Boston Pizza International Inc. (“BPI”) that will result in a removal of the requirement that a restaurant be open for at least 60 consecutive days (the “Seasoning Period”) before it may be included in the royalty pool for the subsequent year.  The removal of the Seasoning Period was reviewed and recommended by the Governance Committee of the Board of the general partner of Boston Pizza Royalties Limited Partnership. The Committee is comprised of the independent trustees of the Fund.  The previous Seasoning Period required that restaurants opened after November 1st of a given year would not be included in the royalty pool until January 1 of the second following year.

BPI requested elimination of the Seasoning Period in order that the store opening period and the fiscal year of BPI will both match exactly with the fiscal year of the Fund.  Within BPI, this will produce significant benefits in areas such as operational planning and management reporting. Within the Fund, existing safeguards including the true-up adjustment and the holdback arrangement described below in greater detail will continue to ensure that additional entitlements awarded to BPI upon the licensing of new stores to the Royalty Pool are precisely reconciled based on actual franchise sales one year after addition to the Royalty Pool.

This change will affect the determination of the royalty pool as at January 1, 2006 and subsequent years and the corresponding entitlements of BPI to indirectly acquire additional Fund Units.  For the determination made on January 1, 2006, new restaurants opened between November 1, 2004 and December 31, 2005 will be added to the royalty pool.  For the period November 1, 2004 to December 31, 2004, BPI opened no new restaurants and for the period January 1, 2005 to May 10, 2005, BPI has opened five new restaurants.  For each January 1 thereafter, restaurants opened between January 1 and December 31 of the prior year will be included.  As is currently the case, BPI will receive the right to indirectly acquire Fund Units (“Additional Entitlements”) in return for adding this additional royalty revenue. 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 Additional Entitlements initially represent 80% of the total number of Fund Units that BPI has the right to receive if the actual royalty revenue from the additional restaurants added to the royalty pool is equal to the estimated royalty revenue.  Once new restaurants have been in the royalty pool for a full year, an audit of the royalty revenues of these restaurants is performed and an adjustment is made to reconcile both distributions paid to BPI with respect to the Additional Entitlements and the actual number of Additional Entitlements received by BPI.

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 to BPI for 99 years for which BPI pays the Fund 4% of franchise revenues of its 195 Boston Pizza restaurants in Canada as at November 1, 2004. 

The trustees of the Fund have approved the contents of this news 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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