1. Prime Restaurants Royalty Income Fund Annual General Meeting June 8, 2004

2. Prime Restaurants Royalty Income Fund Douglas Black Chairman

3. Prime Restaurants Royalty Income Fund Annual General Meeting June 8, 2004

4. Prime Restaurants Royalty Income Fund Review Fund’s Performance Provide Update and Outlook for PRC

5. Delivering on the Fund’s Objective Record: –Has provided consistent monthly distributions that provide 11.25% annual yield based on issue price –Highest yield offered of the royalty pooled restaurant income funds Objective: –To provide Unitholders with consistent and growing cash distributions, payable monthly

6. Financial Highlights of the Fund 12 months ended Dec. 31, 2003 3 months ended March 31, 2004 3 months ended March 31, 2003 ($000’s, except per unit data) Gross revenue reported by Royalty Pooled Restaurants 278,80071,61668,800 Royalty income 9,1742,3402,254 Distributable cash 8,5622,2122,117 Distributable cash available for Fund Unitholders 6,8001,6981,711 Distributions declared per unit 1.128.282

7. Prime Restaurants of Canada Inc. Performance Review and Outlook John Rothschild Chairman and CEO

8. Review of 2003 Challenging year –Unusual external developments –Increase in competition in our largest market, Ontario 20% of full service restaurant market in Ontario

9. Review of 2003 for PRC PRC’s 24 th consecutive year of revenue growth Profitable Strong financially Among top 3 casual dining brands in Canada Fiscal years ended last Sunday in February $ millions

10. PRC Positioned for Growth Focused on maintaining leadership position Business plan with new and innovative initiatives Look for top line and same store sales growth (SSSG) in 2004 Celebrating 25 th year of dining excellence and business growth

11. Historic Review 1992 Opened first East Side Mario’s in Québec 1998 Opened first Prime Restaurant in Alberta 2002 Launched Royalty Income Fund 1996 Opened first Fionn MacCool’s in Ontario and first East Side Mario’s in Atlantic Canada 2000 PRC named 50 Best Managed Companies 2003 Opened first East Side Mario’s in Saskatchewan 1988 Opened first East Side Mario’s in Ontario 1980 Opened first Casey’s in Ontario 2004 Opened first East Side Mario’s in British Columbia

12. Company Founders Nick Perpick President and COO Gary Ceppetelli VP, Concept Development and Standards

13. Royalty Pooled Restaurants by Brand OTHER $8.0M 3% 4 Locations $70.2M 25% 34 Locations $177.0M 64% 80 Locations $23.6M 8% 12 Locations Sales by Brand January 1 to December 31, 2003

14. ATLANTIC $12.9M 5% 6 Locations QUEBEC $32.8M 12% 17 Locations ONTARIO $216.9M 77% 99 Locations WEST $16.2M 6% 8 Locations Sales by Region 2003 Royalty Pooled Restaurants Coast to Coast

15. Recipe for Creating Value 3 Ingredients for Stability and Growth 1.Multi-brand business strategy 2.Same store sales growth 3.New restaurant openings

16. Multi-Brand Business Strategy Premium Affordable AdultsFamilies

17. Multi-Brand Business Strategy Test market new concepts in corporate stores before introducing to franchised stores Developed prototype free-standing Fionn MacCool’s Irish Pub in 2004 –3 rd core brand driving growth of franchised restaurants

18. Same Store Sales Growth First decline in seven years –Unusual external factors and increased competition Some restaurants increased same store sales Conservative SSSG calculation –excludes relocations

19. Same Store Sales Growth Restructured management to better support franchised stores Corporate actions to regain SSSG momentum New VP, Sales and Marketing with strong branding background Advanced design prototypes to shorten renovation cycle, increase SSSG

20. Same Store Sales Growth Corporate actions to regain SSSG momentum New operating standards to enhance the guest experience We treat every customer as a guest in our home. “ “ Renewed emphasis on sales and service MISSION:

21. Same Store Sales Growth Home delivery at all East Side Mario’s Promotions to increase the bar business New East Side Mario’s menu – new pizza program targeting groups Co-branding with major retailers Local restaurant marketing through local advertising Innovative sales & marketing program

22. East Side Mario’s Home Delivery Market test exceeded expectations Will launch in Ontario June/July Will launch in the West and Atlantic Canada September and in Québec October

23. Increase Bar Business Working closely with main beer and wine suppliers Launched new wine program at East Side Mario’s May 31

24. 3.5% average price increase Pizza Bella gourmet and jumbo sized pizza for sports teams and other groups TV advertising and promotions New East Side Mario’s Menu

25. Co-branding promotions Co-branding with major consumer goods and services chains To increase guest traffic

26. Local Restaurant Marketing To increase local guest traffic Customized for each restaurant Supported by local advertising

27. New Store Openings Target 10-15 net new restaurants for the royalty pool each year 9 net new restaurants to date: –7 East Side Mario’s, 1 Casey’s, 1 Fionn MacCool’s –4 in Ontario,1 each in BC, Alberta, Saskatchewan –2 in Quebec

28. New Restaurant Openings Emphasize franchised restaurants Access to superior locations due to strong track record –Recently opened Casey’s in Montreal and Toronto International Airports Most restaurants to date in or near urban centres Developed smaller formats to achieve attractive returns in smaller centres

29. Outlook for 2004 For the Fund’s fiscal 2004 SSSG of 3% or more Upper end of the range of 10-15 net new restaurants Committed to generating gross revenue that will provide Unitholders with consistent cash distributions –Currently the highest yield offered by royalty pooled restaurant income funds

30. Prime Restaurants Royalty Income Fund Annual General Meeting June 8, 2004