The Keg Royalties Income Fund Announces February 2007 Cash Distribution

VANCOUVER, BRITISH COLUMBIA (Feb. 12, 2007) - The Keg Royalties Income Fund (the "Fund") (TSX:KEG.UN) today announced that its February 2007 distribution of $0.0956 cents per unit has been declared and is payable to unitholders of record as at February 21, 2007. The February 2007 distribution will be paid on February 28, 2007. 

The Fund is a limited purpose, open-ended trust established under the laws of Ontario. The Fund indirectly owns certain trademarks and other related intellectual property used by Keg Restaurants Ltd. ("KRL") in its Keg Steakhouses & Bars. In exchange for the use of those trademarks, KRL pays the Fund a royalty equal to 4% of the sales of all Keg restaurants in the royalty pool. 

For further information on our brand, please visit our website at www.kegsteakhouse.com. 
 
For further information: 
Karyn Byrne, Investor Relations Manager 
Tel: (416) 646-4960, karynb@kegrestaurants.com 
www.kegincomefund.com 

For more information on our brand, visit www.kegsteakhouse.com