Pizza Pizza Opens 37 Restaurants, Increases Fund Ownership to 24.4% and Increases Market Share to 50%

About this update from Pizza Pizza Royalty Corp.

[{"type":"text","content":"\n\n\n\nTORONTO, Jan. 22 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund") and\nPizza Pizza Limited ("PPL") today announced that effective January 1, 2009,\nthe pool of restaurants (the "Royalty Pool"), on which royalties are paid to\nthe Fund by PPL, has been increased to include 18 new Pizza Pizza restaurants\nand 19 new Pizza 73 restaurants. Of the 18 new Pizza Pizza restaurants opened\nbetween January 1, 2008 and December 31, 2008, six are traditional restaurants\nand 12 are non-traditional locations. The 19 Pizza 73 restaurants are\ncomprised of 13 traditional restaurants and six non-traditional locations\nopened between September 2, 2007 and September 1, 2008. The Royalty Pool will\ndecrease by nine Pizza Pizza restaurants which were closed during the year, of\nwhich four were traditional and five non-traditional. With the addition of the\n28 net, new restaurants, royalties are now paid to the Fund on 637 restaurants\nin the Royalty Pool.\n\n\n"All of our indicators reveal a market share that is consistently\ngrowing," said Curt Feltner, Chief Financial Officer for PPL. "The latest\navailable market research for the three-month period from June to August 2008,\nshowed Pizza Pizza's market share in Ontario's pizza segment to be 50% from a\ndollar standpoint while our share of total traffic exceeded 52%, well ahead of\nall of the U.S.-based companies and other competitors combined."\n\n\nThe Fund indirectly owns the Pizza Pizza and Pizza 73 trademarks and\ntrade names used by PPL in its restaurants. In 2005, the Pizza Pizza\ntrademarks and trade names were licensed to PPL for 99 years, and in return\nPPL pays the Fund a 6% royalty on the Pizza Pizza Royalty Pool system sales.\nIn 2007, the Fund licensed the Pizza 73 trademarks and trade names to PPL for\n99 years, and in return PPL pays the Fund a 9% royalty on the Pizza 73 Royalty\nPool system sales.\n\n\nAnnually, on January 1 (the "Adjustment Date"), the Royalty Pool is\nadjusted to include the forecasted system sales from new Pizza Pizza\nrestaurants opened on or before December 31 of the prior year, less system\nsales from any Pizza Pizza restaurants that have been permanently closed\nduring the year. Similarly, on the Adjustment Date, the Royalty Pool is\nadjusted to include the forecasted system sales from...

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