A&W Revenue Royalties Income Fund will hold a conference call to discuss
    second quarter results on July 22, 2008 at 1:00 p.m. Pacific Time
    (4:00 p.m. Eastern Time). The call can be accessed by dialing toll-free
    1-800-732-9303 or (416) 644-3414. A replay will be available until
    August 5, 2008, by dialing toll-free 1-877-289-8525 or (416) 640-1917
    Passcode: 21278182 followed by the number sign.

    TRADING SYMBOL: The Toronto Stock Exchange - AW.UN

    VANCOUVER, July 22 /CNW/ - A&W Revenue Royalties Income Fund (the Fund)
reported today financial results for the second quarter ended June 15, 2008. A
copy of the full quarterly report will be available on www.sedar.com and
www.awincomefund.ca on or before July 25, 2008.
    Same store sales growth in A&W restaurants is the most important driver
of growth in the Fund. Same store sales growth for the quarter was 9.1%. This
marks A&W's 21st consecutive quarter of same store sales growth and the
highest since the launch of the Fund in February 2002. Royalty income
increased by 12.5% over the same quarter of the prior year and distributable
cash increased by 13.0%. These increases were driven by the strong same store
sales growth and the increase in the number of restaurants in the Royalty Pool
from 660 during 2007 to 676 during 2008.
    Year to date same store sales growth is now 7.8% and year to date sales
reported by A&W restaurants in the Royalty Pool increased by 10.5%.
    "We are pleased with the same store sales growth of 9.1%, especially
given the continuing uncertainty in the economy and the foodservice industry
in Canada" said Paul Hollands, President and Chief Executive Officer of A&W
Food Services of Canada Inc. "The strong sales momentum established by the
limited time offer of the Sirloin Burger late in the first quarter contributed
to the strong growth in the second quarter. Overall, our ongoing strategy to
build the strength of the A&W brand and its appeal to our core Baby Boomer
customers continues to generate very positive results."
    As a result of the increase in sales and corresponding increase in
royalty income, distributable cash available to pay distributions to
unitholders and dividends to A&W Food Services of Canada Inc. (Food Services)
increased by 13.0% to $4,747,000 for the quarter and by 11.1% to $8,532,000
year to date. Distributable cash per fully diluted unit and equivalents
increased to 34.1 cents for the second quarter in 2008 from 31.2 cents for the
second quarter of 2007. Year to date distributable cash per fully diluted unit
increased to 61.3 cents from 57.1 cents for the prior year to date. Monthly
distributions of 31.8 cents per unit were declared in the quarter and
53.0 cents year to date. The current monthly distribution rate of 10.6 cents
per unit translates into an annualized distribution of $1.272 per unit. In
addition, a special distribution of 10 cents per unit was paid in February
2008. Food Services earned dividends on its investment in Trade Marks at the
same rate.

    HIGHLIGHTS

    The following table sets out selected financial highlights of the Fund
and Trade Marks.-------------------------------------------------------------------------
    (dollars in                                    Period from   Period from
     thousands             12 week       12 week   Jan 1, 2008   Jan 1, 2007
     except per       period ended  period ended            to            to
     unit amounts)    Jun 15, 2008  Jun 17, 2007  Jun 15, 2008  Jun 17, 2007
    -------------------------------------------------------------------------
    Same store sales
     growth                   9.1%          4.6%          7.8%          4.1%
    Number of
     restaurants in
     the Royalty Pool          676           660           676           660
    Sales reported by
     the restaurants in
     the Royalty Pool     $163,652      $145,499      $302,191      $273,613
    Royalty income          $4,910        $4,365        $9,066        $8,208
    General and
     administrative
     expenses                  $51           $53          $291          $304
    Net third party
     interest expense         $112          $110          $218          $221
    Trade Marks' net
     earnings                 $772          $421          $828          $276
    The Fund's net
     earnings               $2,521        $2,325        $5,194        $4,298
    The Fund's basic
     and diluted
     earnings per unit
     (8,340,000 units)      $0.302        $0.279        $0.623        $0.515
    Total distributable
     cash generated for
     distributions and
     dividends(1)           $4,747        $4,202        $8,532        $7,683
    Distributable cash
     per equivalent unit
     (2008 - 13,924,371
     units; 2007 -
     13,473,911 units)      $0.341        $0.312        $0.613        $0.571
    Monthly distributions
     declared per unit
     (8,340,000 units)      $0.318        $0.300        $0.530        $0.500
    Special distribution
     declared per unit
     (8,340,000 units)           -             -        $0.100        $0.080
    -------------------------------------------------------------------------

    (1) 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 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 Food
Services to use its trade-marks, Trade Marks receives royalties equal to 3% of
the sales of A&W restaurants in the Royalty Pool. A&W is the second largest
quick-service hamburger restaurant chain in Canada. Operating coast-to-coast,
A&W restaurants feature famous trade-marked menu items such as The Burger
Family, Chubby Chicken and A&W Root Beer.
    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 was 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 40% of
the common shares of Trade Marks, and therefore owns the equivalent of 40% 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 and current income taxes 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.