Pizza Pizza Limited Announces 4.1% Same Store Sales Growth for Second Quarter

TORONTO, Aug. 19 /CNW/ - Ontario's leading pizza operation continued to
outpace the industry with a 4.1% increase in same store sales growth in the
second quarter. Pizza Pizza Royalty Income Fund announced financial results
today for the period ended June 30, 2005.
Management discussion and analysis of the financial results and a copy of
the Q2 2005, report is available at www.sedar.com and
www.pizzapizzaroyaltyincomefund.com.
Pizza Pizza total system sales for the quarter were $83.4 million, or an
increase of 4.7% compared to the equivalent period in 2004. Each Pizza Pizza
reporting quarter contains 13 weekly periods. This is in marked contrast to
the second straight quarter of decline in industry segment sales across
Ontario, as reported by the Canadian Restaurant and Foodservices Association
(CFRA).
For the four week reporting period ended July 31, 2005, system sales were
$25.9 million and SSSG increased by 7.5% over July, 2004.
The Fund's nominal reporting is for the period June 27 to June 30, 2005.
The Fund completed its initial public offering on July 6, 2005, proceeds of
which were used to acquire the intellectual property, systems and operating
procedures of Pizza Pizza restaurants in Canada. These rights are licensed to
Pizza Pizza in consideration for a royalty equal to 6% of system sales.
At June 30, 2005, the Pizza Pizza restaurant chain included
341 traditional restaurants, the majority of which are in Ontario, and      
160 non-traditional restaurants located across Canada.

Pizza Pizza operates within the limited service segment of the commercial
foodservice industry. For the first quarter of 2005, the CRFA reported that
the sales at limited service restaurants in Ontario fell for the second
quarter in a row with a 1% decline. The association cited the NHL lockout,
sluggish recovery in international travel and the high Canadian dollar as
possible reasons for the decrease.
The Fund's units trade on the Toronto Stock Exchange under the symbol
"PZA.UN".

%SEDAR: 00022262EF