Prime Restaurants Royalty Income Fund Income Trust Investor Symposium January 29, 2003

John Rothschild Chairman & CEO Nick Perpick President & COO

Prime Restaurants Royalty Income Fund  Launched July 22, 2002  Distributions with annualized yield of 11.25%  Launched July 22, 2002  Distributions with annualized yield of 11.25%

LAUNCH NOW  125 Royalty Pooled Restaurants  130 Royalty Pooled Restaurants  $278 million System Revenue  $290 million System Revenue Prime Restaurants Royalty Income Fund

 Royalty of 3.25% of gross revenues  food and beverage sales  now generated by pool of 130 restaurants  Royalty of 3.25% of gross revenues  food and beverage sales  now generated by pool of 130 restaurants Prime Restaurants Royalty Income Fund

 Distributions not based on:  operating performance  earnings  capital expenditures  Distributions not based on:  operating performance  earnings  capital expenditures Prime Restaurants Royalty Income Fund

East Side Mario’s Revenues 52-week Period Ended Feb 23, %  88 locations  $193 million sales

Steady Growth Locations 47% Sales 68%

Restaurant/Bar “Hybrid”

Casey’s Bar & Grill  Since 1980  35 locations  Since 1980  35 locations  $75 million sales 25% 52-week Period Ended Feb 23, 2003 Revenues

Prime Irish Pubs

Esplanade Bier Markt

Prime Pubs  Since 1996  12 locations  $24 million sales  Since 1996  12 locations  $24 million sales 52-week Period Ended Feb 23, 2003 Revenues 8%

Prime Restaurants of Canada Geographic Distribution 139 Locations Across Canada ONTARIOONTARIO ATLANTICATLANTIC OtherOther QUEBECQUEBEC WESTWEST OtherOther

Casual Dining Pioneer

Nick Perpick President & COO

Commercial Foodservice Industry 49% Full Service 36% Quick Serve

Casual Dining Segment Family Dining Fine Dining Source: CRFA Casual Dining  $6.52 Billion  5.4% annual growth last 5 years  $6.52 Billion  5.4% annual growth last 5 years

Pub Segment 7% Pubs  $2.3 Billion  11% annual growth last 5 years  $2.3 Billion  11% annual growth last 5 years Source: CRFA

Casual Dining Segment Continued Growth Demographic Lifestyle Drivers

Growth in Sales % 5.3% 21.0% 8.2% 14.0% 5.0% 10.1% 6.3% 12.0% 5.0% Prime Restaurants Casual Dining Industry Source: CRFA % 2.9%

1. Multi-brand diversification Success Drivers

Concept Positioning Adults Family Inexpensive Expensive

1. Multi-brand diversification 2. “Just Right Pricing” Success Drivers

Average Cheque Prime Brands QUICK SERVICE CASUAL FAST CASUAL FINE DINING POTENTIAL # OF GUESTS “Just Right Pricing” Prime Pubs $18.00 Casey’s $16.50 East Side Mario’s $14.00 East Side Mario’s Too $10.00 PRICE

Success Drivers 4. Attractiveness of Franchises 5. Dedicated Concept Development 6. Management Excellence 1. Multi-brand Diversification 2. “Just Right Pricing” 3. Chain Operations Excellence

Market Share 12 Months Ended August 2002 Market share measured by Eater Occasions Source: CREST Boston Pizza Kelsey’s Moxie’s Montana’s Earl’s Casey’s Other PRC Concepts Red Lobster The Keg East Side Mario’s 12.0% 7.6% 5.1% 4.4% 2.7% 3.9% 2.4% 7.8% 3.4% 0.5% Canada Total Prime 11.7% Mandarin 3.4% Kelsey’s Red Lobster Mandarin Montana’s The Keg Boston Pizza East Side Mario’s Casey’s Other PRC Concepts 10.4% 12.1% 8.0% 5.3% 6.4% 5.0% 4.4% 0.9% Ontario Total Prime 19.4% Jack Astor’s 1.8% Outback 1.1%

Profitable Growth

Target 3 – 5 % Increase Same Restaurant Sales Growth

 Menu engineering/Bar programs  Innovative marketing programs  Branded merchandise  Training programs/People development  Take-out program  Renovations  Menu engineering/Bar programs  Innovative marketing programs  Branded merchandise  Training programs/People development  Take-out program  Renovations

Same Restaurant Sales Growth  15% of restaurants in renovations program  No cost to Fund  Increased revenue  15% of restaurants in renovations program  No cost to Fund  Increased revenue

 new restaurants per year  14 net to open next fiscal  new restaurants per year  14 net to open next fiscal New Restaurant Growth

East Side Mario’s An American Italian Eatery

Geographic Expansion

Distributable Cash Summary System revenue Royalty income Period from July 22 to September 30, 2002 (71 days of operation) Distributable cash available to public unitholders Distributable cash available to public unitholders Distributable cash per unit $58,000,000 $1,900,000 $1,400,000 $0.229

Paid Distributions  August$0.126  September $0.093  October$0.095  November$0.093  December$0.095  January$  August$0.126  September $0.093  October$0.095  November$0.093  December$0.095  January$ Annualized Yield = 11.25%

Royalty Pool  New restaurants - accretive to fund  Net five restaurants added to pool  Pool increased from 125 to 130  New restaurants - accretive to fund  Net five restaurants added to pool  Pool increased from 125 to 130

Highlights Managements interests aligned Revenue growth Compelling investment Fund has delivered as promised Exciting and recognized concepts