The Keg Royalties Income Fund announces October 2006 cash distribution

VANCOUVER, October 12 - The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) today announced that its October 2006 distribution of $0.0956 cents per unit has been declared and is payable to unitholders of record as at October 21, 2006. The October 2006 distribution will be paid on October 31, 2006. 

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.