Pizza Pizza Royalty Income Fund Increases Distribution in July

TORONTO, July 12 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund")
(TSX: PZA.UN) is pleased to announce an increase in its monthly cash
distributions to unitholders. This is the third distribution increase since
the Fund's initial public offering one year ago.
For the period July 1 to July 31, 2006, the monthly distribution per unit
will increase 2.16% to $0.071 from $0.0695. It will be paid on August 15, 2006
to unitholders of record at the close of business on July 31, 2006.
The monthly distribution of $0.071 is equal to $0.852 annually.
Distributions in 2006 are projected to be 47% taxable income and 53% of return
of capital.

The Fund is a limited purpose, open-ended trust established under the
laws of Ontario to indirectly acquire certain trademarks and trade names used
by Pizza Pizza in its restaurants. The trademarks are licensed to Pizza Pizza
for 99 years, for which Pizza Pizza pays the Fund a royalty equal to 6% of the
system sales of its 501 Pizza Pizza restaurants in Canada as at January 1,
2006 (the "Royalty Pool"). A key attribute of the Fund is that it is based on
top-line, system sales of the Royalty Pool restaurants and not on the
profitability of either Pizza Pizza or the restaurants in the Royalty Pool.
The success of the Fund depends primarily on the ability of Pizza Pizza to
maintain and increase system sales of the Royalty Pool and to meet its royalty
obligations.

Pizza Pizza Limited, a privately held-Canadian corporation, is one of
Canada's most successful players in the quick service restaurant industry.
Founded in 1967, Pizza Pizza is guided by a mission to provide the "best food,
made especially for you" and a focus on quality ingredients, customer service,
community contribution and continual innovation.
The Fund's trust units are listed on the Toronto Stock Exchange under the
symbol PZA.UN.

%SEDAR: 00022262EF