A&W Revenue Royalties Income Fund Announces December 2010 Cash Distribution

VANCOUVER, Dec. 6 /CNW/ - A&W Revenue Royalties Income Fund (the Fund) (TSX symbol AW.UN) today declared a cash distribution of 10.6 cents per trust unit for the period November 1 to November 30, 2010. The distribution will be paid to unitholders of record at the close of business on December 15, 2010, and will be payable on December 31, 2010. For tax purposes 8.958 cents per unit of this distribution will be other taxable income and 1.642 cents per unit will be non-eligible dividends.  A&W Food Services of Canada Inc. (Food Services) will also receive 10.6 cents per share from A&W Trade Marks Inc. (Trade Marks) on its investment in shares of Trade Marks.

On November 10, 2010, the Fund announced a substantial issuer bid (the Offer) to purchase for cancellation 2,500,000 of its units, at a price of $20.00 per unit.  The Offer is made to all of the Fund's unitholders, including Food Services who has agreed to deposit to the Offer shares of Trade Marks exchangeable for a total of 2,500,000 units.  If more than 2,500,000 units are tendered, the Fund will purchase the units on a pro rata basis.  The Offer will remain open for acceptance until December 17, 2010 unless withdrawn or extended by the Fund.

As the completion of purchase of units under the Offer is expected to take place on or after December 20, 2010, unitholders who tender units under the Offer will receive the cash distribution for the period November 1 to November 30, 2010 announced above.  Additional information relating to the Offer and the Fund is on SEDAR at www.sedar.com and on the Fund's website at www.awincomefund.ca.

Launched on February 15, 2002, the Fund, through its investment in Trade Marks, is entitled to receive royalties from Food Services in the amount of 3% of the sales of the 700 A&W restaurants in the Royalty Pool. Cash distributions are paid monthly. A&W is the second largest quick-service hamburger restaurant chain in Canada. Operating coast-to-coast, A&W restaurants feature famous trade-marked menu items such as The Burger Family, Chubby Chicken and A&W Root Beer.

A&W Food Services of Canada Inc. today declared a dividend of $6 million on its common shares payable to its shareholders on December 8, 2010.

For further information:

Don Leslie
Chief Financial Officer
604-988-2141
Email: [email protected]
www.awincomefund.ca