THE KEG ROYALTIES INCOME FUND SERVES UP KEG SIZE® SALES RESULTS

Vancouver - April 18, 2006 - The Keg Royalties Income Fund (KEG.UN:TSX, the “Fund”) and Keg Restaurants Ltd. (“KRL”) today announced sales results for the 13-week period ended April 2, 2006. 

Total system sales for the 13 weeks ended April 2, 2006 were $97.0 million compared to $86.9 million for the 13 weeks ended April 3, 2005, an increase of $10.1 million or 11.7%. Royalty Pool sales for the quarter increased 15.7% to $94.0 million compared to $81.2 million for the same quarter of the prior year. These increased sales reflect the very successful new Keg restaurants which were added to the Royalty Pool on January 1, 2006, as well as very strong same store sales growth. 

The Keg’s same store sales for the comparable 13-week period increased by 9.4% in Canada and by 9.2% in the United States. Total consolidated same store sales increased by 8.1% for the 13-week period, despite the continuing negative effect of the exchange rate between the Canadian and U.S. dollars on the translation of the U.S. sales into their Canadian dollar equivalent. 

“This marks another consecutive quarter of significant same store sales growth for The Keg. We believe that the company is firing on all cylinders and is poised to continue its growth in both Canada and the United States,” said David Aisenstat, President & CEO of Keg Restaurants Ltd. “These results are a testament to the strong brand recognition The Keg benefits from in Canada, and confirms our ability to exploit the substantial growth opportunities which exist for us in the United States.” 

Vancouver-based Keg Restaurants Ltd. is the leading operator and franchisor of steakhouse restaurants in Canada and has a substantial presence in select regional markets in the United States. KRL continues to operate The Keg restaurant system and expand that system through the addition of both corporate and franchised Keg steakhouses. The Globe and Mail’s Report on Business Magazine has named Keg Restaurants Ltd. one of the “50 Best Employers in Canada” for the past four years. 

This press release may contain certain "forward looking" statements reflecting The Keg Royalties Income Fund's current expectations in the casual dining segment of the restaurant food industry. Investors are cautioned that all forward looking statements involve risks and uncertainties, including changes in market and competition, competitive developments, and potential downturns in economic conditions generally. Additional information on these and other potential factors that could affect the Fund's financial results are detailed in documents filed from time to time with the provincial securities commissions in Canada. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of the prospectus, nor shall there be any sale of the Fund units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state, province or jurisdiction. The Keg Royalties Income Fund units have not been, and will not be registered under the U.S. Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an application for exemption from the registration requirement under U.S. securities laws. 

The Trustees of the Fund have approved the contents of this press release. 

For further information: 
Karyn Byrne, Investor Relations Manager 
Tel: (416) 646-4960, karynb@kegrestaurants.com