A&W Revenue Royalties Income Fund will hold a conference call to discuss
    first quarter results on July 24, 2007 at 1:00 p.m. Pacific Time
    (4:00 p.m. Eastern Time). The call can be accessed by dialing toll-free
    1-800-731-5319 or (416) 644-3418. A replay will be available until
    August 7, 2007, by dialing toll-free 1-877-289-8525 or (416) 640-1917
    Passcode: 21240446 followed by the number sign.

    TRADING SYMBOL: The Toronto Stock Exchange - AW.UN

    VANCOUVER, July 24 /CNW/ - A&W Revenue Royalties Income Fund (the Fund)
and A&W Trade Marks Inc. (Trade Marks) each reported today financial results
for the second quarter ended June 17, 2007. A copy of the full quarterly
report will be available at www.sedar.com and www.awincomefund.ca on or before
July 27, 2007.
    The Fund and Trade Marks enjoyed a strong quarter, with same store sales
of the restaurants in the Royalty Pool increasing by 4.6%. This is the 17th
consecutive quarter of same store sales increases. Year to date same store
sales growth is now 4.1%. This in turn translated into strong revenue growth
for Trade Marks and the Fund.
    As a result of the strong performance of the Fund and the underlying A&W
restaurants, the Fund is pleased to announce that it is increasing monthly
cash distributions by 3%, from 10.0 cents per unit to 10.3 cents per unit
beginning with the July 2007 distribution. On an annualized basis this
represents a distribution rate of $1.236 per unit. Since inception of the Fund
in February 2002, monthly distributions have been increased 14.4%. The new
monthly distribution of 10.3 cents per unit will be payable to unitholders of
record at the close of business on August 15, 2007 and will be paid on
August 31, 2007.
    "As we make progress in our strategy to be the number one burger choice
of the baby boomer generation, the A&W restaurants in the Royalty Pool are
continuing to produce very strong same store sales growth," said Paul
Hollands, President and Chief Executive Officer of A&W Food Services of Canada
Inc. "We are very pleased that this success can be passed on to the Fund's
unitholders in the form of increased distributions. This is the fifth increase
in distributions over the past 18 months."
    Sales reported by A&W restaurants in the Royalty Pool increased by
$9,894,000 or 7.3% to $145,499,000 during the second quarter. The increase in
sales and corresponding increase in royalty income reflects the same store
sales growth and the increase in the number of restaurants in the Royalty Pool
from 654 during 2006 to 660 during 2007. Year to date sales increased by 6.3%
to $273,613,000.
    Cash generated to pay distributions increased by 6.9% for the quarter and
7.1% year to date. Distributable cash per fully diluted unit and equivalents
increased from 29.9 cents for the second quarter in 2006 to 31.3 cents in
2007. Year to date distributable cash per fully diluted unit increased from
54.6 cents to 57.2 cents. Distributions of 30.0 cents were declared in the
quarter and 58.0 cents year to date. A&W Food Services of Canada Inc. (Food
Services) earned dividends on its investment in Trade Marks at the same rate.HIGHLIGHTS

    -------------------------------------------------------------------------

    (dollars in                                    Period from   Period from
     thousands             12 week       12 week   Jan 1, 2007   Jan 1, 2006
     except per       period ended  period ended            to            to
     unit amounts)    Jun 17, 2007  Jun 18, 2006  Jun 17, 2007  Jun 18, 2006
    -------------------------------------------------------------------------
    Same store sales
     growth                    4.6%          6.3%          4.1%          7.6%
    Number of
     restaurants in the
     Royalty Pool              660           654           660           654
    Sales reported by
     the restaurants in
     the Royalty Pool     $145,499      $135,605      $273,613      $257,322
    Royalty income          $4,365        $4,069        $8,208        $7,720
    General and
     administrative
     expenses                   53            50           304           304
    Net third party
     interest expense          110           117           221           245
    Large corporations
     tax                         -           (28)            -             -
    Total distributable
     cash generated for
     distributions and
     dividends              $4,202        $3,930        $7,683        $7,171
    Distributable cash
     per equivalent unit
     (2007 - 13,437,868
     units; 2006 -
     13,138,455 units)      $0.313        $0.299        $0.572        $0.546
    Distributions
     declared per unit
     (8,340,000 units)      $0.300        $0.283        $0.580        $0.469
    Trade Marks' net
     earnings                 $421          $311          $276           $55
    The Fund's net
     earnings               $2,325        $2,262        $4,298        $4,186
    The Fund's basic
     and diluted
     earnings per unit
     (8,340,000 units)      $0.279        $0.271        $0.515        $0.502
    -------------------------------------------------------------------------

    Distributable cash is not an earnings measure recognized by generally
    accepted accounting principles ("GAAP") and therefore may not be
    comparable to similar measures presented by other issuers. This
    information is provided as it identifies the amount of actual cash
    available to pay distributions to unitholders and dividends to Food
    Services.The Fund is a limited purpose trust established to invest in A&W Trade
Marks Inc. (Trade Marks), which owns the A&W trade-marks used in the A&W quick
service restaurant business in Canada. The A&W trade-marks comprise some of
the best-known brand names in the Canadian foodservice industry. In return for
licensing A&W Food Services of Canada Inc. to use its trade-marks, Trade Marks
receives royalties equal to 3% of the sales of A&W restaurants in the Royalty
Pool. Same store sales growth of the A&W restaurants in the Royalty Pool is
therefore the primary driver of growth in the Fund's revenue.
    The Royalty Pool is adjusted in January of each year (except in 2006 when
the Royalty Pool was adjusted on January 5, 2006 and December 31, 2006, and
2007 in which there is no adjustment) to include the royalty stream from new
restaurants, net of the sales of any A&W restaurants that have permanently
closed. Trade Marks pays Food Services for the additional royalty stream in
the form of common shares and Class B shares of Trade Marks which are the
economic equivalent of units of the Fund. Food Services currently owns 38% of
the common shares of Trade Marks, and therefore owns the equivalent of 38% of
the units of the Fund on a fully-diluted basis.
    Trade Marks' dividends to Food Services and the Fund, and the Fund's
distributions to unitholders are based on top-line revenues of the A&W
restaurants in the Royalty Pool, less interest, general and administrative
expenses of Trade Marks, and are thereby isolated from many of the factors
that impact an operating business.

    Certain statements in this report may be forward-looking in nature. These
include references to liquidity, subordinated dividends, earnings and
anticipated earnings from growth in same store sales and new restaurant
openings. Actual results may differ materially from those expressed or implied
in these forward-looking statements. The forward-looking statements are based
on assumptions that management considered reasonable at the time they were
prepared. These forward-looking statements are subject to a number of risk
factors, including the ability of A&W Food Services of Canada Inc. to
implement its marketing strategies, the opening of new A&W restaurants,
general economic and business conditions, financial and political instability,
and other factors disclosed previously and from time to time in the Fund's
public filings.
    Additional information relating to the Fund is on SEDAR at www.sedar.com
and on the Fund's website at www.awincomefund.ca.