TORONTO, ONTARIO -- (Marketwire) -- 08/06/09 -- Attention Business Editors:

Pizza Pizza Royalty Income Fund (TSX: PZA.UN)(the "Fund") and Pizza Pizza Limited (the "Company") today announced results for the second quarter ended June 30, 2009.

Second Quarter Summary:

- 11 new locations opened

- Royalty Pool system sales decreased 4.5%

- Same store sales decreased 7.8%

- The Fund's pre-tax earnings decreased 10.9%

SALES

System sales of the 637 restaurants in the Royalty Pool decreased 4.5% to $109.1 million for the quarter compared to $114.3 million generated by the 609 restaurants in the Royalty Pool during the 2008 comparable quarter. For the six months ended June 30, 2009, Royalty Pool system sales decreased 4.1% to $218.5 million from $227.8 million in the comparable period in 2008, which had 609 restaurants in the Royalty Pool.

Same store sales (SSS) decreased 7.8% for the quarter and decreased 6.1% for the six months ended June 30, 2009, compared to the same periods last year. SSS is the key driver of yield growth for Fund unitholders.

During the quarter, poor economic conditions and rising unemployment negatively impacted Canada's foodservice industry, particularly in the Company's southwestern Ontario and Alberta markets. Although the Company does not expect significant near-term improvement in the economy, our 2009 strategies will continue to focus on reinforcing value-oriented menu offerings, launching new relevant products, and reinvesting in activities which drive sales growth.

EARNINGS

For the second quarter of 2009, net earnings before taxes decreased 10.9% to $4.7 million, or $0.216 per unit, compared to pre-tax net earnings of $5.3 million, or $0.242 per unit, for the second quarter in 2008. For the six months ended June 30, 2009, net earnings before taxes decreased 9.7% to $9.5 million, or $0.437 per unit, compared to pre-tax net earnings of $10.6 million, or $0.483 per unit, for the same period in 2008.

DISTRIBUTIONS

During the quarter, the Fund declared distributions of $5.1 million or $0.233 per unit, equating to a 108% payout ratio; for the 2008, comparable quarter, the Fund declared distributions of $5.0 million or $0.230 per unit for a payout ratio of 95%. For the six month period, the Fund declared distributions of $10.1 million or $0.465 per unit, equating to a 106% payout ratio; for the 2008, comparable period, the Fund declared distributions of $10 million or $0.458 per unit for a payout ratio of 95%.

Pizza Pizza Royalty Limited Partnership (the "Partnership") used $497,000 of its working capital reserve balance to supplement the second quarter unitholder distributions, while $350,000 was used during the first quarter. The Fund's historically, conservative distribution policy has produced a net $2.4 million working capital reserve at June 30, 2009, which will continue to be available for use at the Trustees' discretion in the event of future, short- to medium-term reductions in system sales and, thus, the Fund's royalty income. As a royalty income fund, the Fund does not have any capital expenditure requirements or significant cash commitments other than interest expense.

FINANCIAL HIGHLIGHTS

The following table sets out selected financial highlights of the Fund and the Partnership:

                                       3 months ended        6 months ended
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                                   June 30,   June 30,   June 30,   June 30,
                                      2009       2008       2009       2008
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(in thousands of dollars, except number of restaurants, days in the quarter
                           and per unit amounts)

Restaurants in Royalty Pool            637        609        637        609
Same store sales                      -7.8%       1.3%      -6.1%       2.7%
Days in the Quarter                     91         91        181        182
System sales reported by Pizza
 Pizza restaurants in
 the Royalty Pool                 $ 89,342   $ 94,190   $177,375   $188,160
System sales reported by Pizza
 73 restaurants in the
 Royalty Pool                       19,760     20,087     41,112     39,637
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                                   109,102    114,277    218,487    227,797
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Royalty - 6% on Pizza Pizza
 system sales                     $  5,361   $  5,651   $ 10,643   $ 11,289
Royalty - 9% on Pizza 73
 system sales                        1,778      1,808      3,700      3,568
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Total Royalty on System Sales        7,139      7,459     14,343     14,857
Partnership expenses                  (882)      (854)    (1,670)    (1,679)
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Earnings available for
 distribution to the Fund and
 Pizza Pizza Limited                 6,257      6,605     12,673     13,178
Pizza Pizza Limited's interest      (2,003)    (1,776)    (4,046)    (3,545)
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Equity income                        4,254      4,829      8,627      9,633
Interest income                        450        450        900        900
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Net earnings before non-cash
 future income tax expense        $  4,704   $  5,279   $  9,527   $ 10,553
Recovery of future income taxes          -      3,091        293      2,235
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Net earnings                      $  4,704   $  8,370   $  9,820   $ 12,768
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Basic earnings per Fund unit
 excluding the impact of
 non-cash future income
 tax expense                      $  0.216   $  0.242   $  0.437   $  0.483
Basic earnings per Fund unit      $  0.216   $  0.384   $  0.450   $  0.585
Diluted earnings per Fund unit    $  0.216   $  0.349   $  0.447   $  0.554

Distributions declared            $  5,073   $  5,007   $ 10,145   $  9,982
Distributions per Fund unit       $  0.233   $  0.230   $  0.465   $  0.458
Payout ratio                           108%        95%       106%        95%

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                                              June 30,              June 30,
                                                 2009                  2008
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Working capital of Partnership               $  2,434              $  2,320
Total assets of Fund                         $ 226,194             $221,307
Total liabilities of Fund                    $  7,371              $  7,664
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The unaudited consolidated financial statements of the Fund, together with its Management's Discussion and Analysis, will be available at www.sedar.com and on the Fund's website at www.pizzapizzaroyaltyincomefund.com on or before August 7, 2009.

The Fund will host a conference call to discuss the results on August 7, 2009 at 9:00 a.m. EDT. The call can be accessed by dialing 416-640-3405 or 1-866-322-2356. A replay will be available until August 20, 2009 by dialing 647-436-0148 or 1-888-203-1112 and entering the reservation number: 8940726.

Forward Looking Statements

Certain statements in this report may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this report, such statements include such words as "may", "will", "expect", "believe", "plan", and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this report. These forward-looking statements involve a number of risks and uncertainties. The following are some factors that could cause actual results to differ materially from those expressed in or underlying such forward-looking statements: competition; changes in demographic trends; changing consumer preferences and discretionary spending patterns; changes in national and local business and economic conditions; legislation and governmental regulation; accounting policies and practices; and the results of operations and financial condition of Pizza Pizza Limited. The foregoing list of factors is not exhaustive and should be considered in conjunction with the other risks and uncertainties described in the Fund's Annual Information Form. The Fund assumes no obligation to update these forward looking statements, except as required by applicable securities laws.

About the Fund, a publicly-traded entity

The Fund is a limited purpose, open-ended trust established under the laws of Ontario. The Fund, indirectly through the Partnership, has acquired the trademarks and trade names used by the Company in its Pizza Pizza and Pizza 73 restaurants. The Pizza Pizza trademarks were licensed to the Company in 2005 for 99 years, for which the Company pays the Fund a royalty equal to 6% of the system sales of its Pizza Pizza restaurants in the Royalty Pool. There are 568 Pizza Pizza restaurants in the Royalty Pool for 2009. On July 24, 2007, the Partnership acquired the trademarks and other intellectual property of Pizza 73 (the "Pizza 73 Rights") and licensed them to the Company for 99 years, for which the Company pays the Fund a royalty equal to 9% of the system sales of its 69 Pizza 73 restaurants in the Royalty Pool for 2009. The 2009 Royalty Pool has 637 total restaurants.

A key attribute of the Fund is that revenues are based on top-line, system sales of the Royalty Pool restaurants and not on the profitability of either the Company or the restaurants in the Royalty Pool. Thus, the success of the Fund depends primarily on the ability of the Company to maintain and increase system sales of the Royalty Pool restaurants and to meet its royalty obligations.

The Fund's trust units are listed on the Toronto Stock Exchange under the symbol PZA.UN.

About Pizza Pizza Limited, a privately-owned, operating company

The Company, a privately-held Canadian corporation, is one of Canada's most successful operators in the quick service restaurant industry. It operates franchised, owner/operator and corporate restaurants under the brand names Pizza Pizza and Pizza 73. The Pizza Pizza brand celebrated its 40th anniversary in 2007 and dominates the Ontario pizza quick service industry and is expanding nationally. The Pizza 73 brand is celebrating its 24th anniversary in 2009 and operates largely in Alberta. The Company is guided by a mission to provide the "best food, made especially for you" and a focus on quality ingredients, customer service, community contribution and continual innovation, especially in offering health-conscious menu choices.