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The Keg Royalties Income Fund Announces January 2007 Cash Distribution

December 18th 2006

VANCOUVER, December 18 - The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) today announced that its January 2007 distribution of $0.0956 cents per unit has been declared and is payable to unitholders of record as at December 31, 2006. The January 2007 distribution will be paid on January 31, 2007. The record date for this distribution is earlier than in other months to coincide with the Fund’s year-end. 

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 please contact: 

Karyn Byrne, Investor Relations Manager 
Telephone: 416-646-4960 
E-mail: karynb@kegrestaurants.com 
www.kegincomefund.com 

For further information on our brand, please visit our website at www.kegsteakhouse.com. 

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