The Keg Royalties Income Fund Announces Medical Leave of Absence

VANCOUVER, BRITISH COLUMBIA -- The Keg Royalties Income Fund (TSX:KEG.UN) (the "Fund") and Keg Restaurants Ltd. ("KRL") announced today that Mr. David Aisenstat, President & CEO, and sole shareholder of KRL, will be taking a medical leave of absence enabling him to recover from an accident which occurred at his home.

Mr. Aisenstat has appointed two individuals, Mr. Rob Macdonald, a successful Vancouver-based businessman and Mr. Daniel Gormley, a Toronto-based partner with the law firm of Goodmans LLP, to manage his personal and business affairs during his leave of absence.

During the absence, the Fund's Trustees will continue to serve in their role of supervising the activities and managing the affairs of the Fund, an Executive Committee of KRL consisting of four members will continue to be responsible for running the day-to-day operations of KRL and Mr. Neil Maclean, Executive Vice President & CFO, and director of KRL will continue to advise Trustees regarding the business affairs of KRL and its impact on the Fund.

"The competent and experienced senior management team and staff of KRL will continue operating great steakhouses with a 'business as usual' approach during Mr. Aisenstat's absence," said Christopher (Kip) Woodward, Chairman of the Fund, "We wish Mr. Aisenstat a speedy recovery and look forward to his return."

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 those relating to the Keg's ability to continue to realize historical same store sales growth, changes in market and existing competition, new 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
www.kegincomefund.com