Second Cup Royalty Income Fund announces March distribution

MISSISSAUGA, ON, April 20 /CNW/ - Second Cup Royalty Income Fund (the "Fund") (SCU.UN) has announced that its Board of Trustees has approved a cash distribution of $0.07667 per unit for the month of March 2009. The distribution for the month of March is to be paid on April 30, 2009 to unitholders of record at the close of business on April 28, 2009.

In addition, the Fund announced that same cafe sales for cafes in the royalty pool declined 3.0% for the period January 1, 2009 through March 31, 2009. Cafe sales were adversely impacted by the continued downturn in the economy and consumer discretionary spending patterns.

Having regard to the sales performance and the continued uncertainty in the retail and economic environment, as well as general market conditions, the Board of Trustees believes that it is prudent to reduce distributions at this time to an annualized rate of $0.92 per unit, a decrease of 18% or $0.21 per unit annually. Distributions by the Fund are not guaranteed and are dependent on the system sales of cafes in the royalty pool as well as other factors which the Board continues to monitor. As such, the Board recognizes that this may result in a build up of cash reserves, but is focused on providing unitholders with a sustainable level of distributions going forward. The Fund will continue to work with The Second Cup Ltd. to consider ways to improve operational performance and the long term outlook for the Second Cup business.

The Fund is an open-ended trust established under the laws of the Province of Ontario. It holds, through an indirect wholly-owned limited partnership, the Canadian trade-marks and other intellectual property and associated rights used by The Second Cup Ltd. ("Second Cup") in connection with the operation of Second Cup cafes in Canada. For more information on the Second Cup Royalty Income Fund please visit www.secondcupincomefund.com.

Second Cup is Canada's largest specialty coffee cafe franchisor and second largest retailer of specialty coffee, as measured by number of cafes. For further information on Second Cup, visit www.secondcup.com.

%SEDAR: 00021352E