The Keg Royalties Income Fund announces May 2007 cash distribution

VANCOUVER, May 10 - The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) today announced that its May 2007 distribution of $0.0980 cents per unit has been declared and is payable to unitholders of record as at May 21, 2007. The May 2007 distribution will be paid on May 31, 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: 
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