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Imvescor Restaurant Group Inc.

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PDM Royalties Income Fund Announces increase to Royalty Pool

MONCTON, NB, Jan. 30 /CNW/ - PDM Royalties Income Fund (the "Fund")  
(TSX: PDM.UN) announced that as of January 1, 2006 nine new restaurants
comprised of three Pizza Delight restaurants and six Mikes restaurants, opened
during the period October 3, 2004 through October 2, 2005, will be added to
the royalty pool on which the Fund earns royalty revenue. The sales from these
nine new restaurants will generate an estimated $8.6 million in sales. The
pool of restaurants will increase from 248 locations to 251, reflecting the
closure of 6 underperforming restaurants with annual sales of $2.5 million.
 The net increase in sales of approximately $6.1 million will generate an
estimated additional $244,000 in annual royalties for the Fund. The Fund will
compensate Pizza Delight and Mikes for this increased revenue stream based on
a formula set out in the Licence agreement. There is a 7.5% discount applied
to the value of the revenues which provides added value to the existing
unitholders. The consideration to Pizza Delight and Mikes will represent the
equivalent of 166,287 units increasing the retained interest to 12.2%. This
amount will be adjusted at December 31, 2006 once the actual sales for the new
restaurants are determined.
In addition, the adjustment to the January 2005 addition of restaurants
to the royalty pool has now been finalized. The actual annual sales for 2005
for the nine new restaurants added on January 1, 2005 were $6.9 million
compared to the original estimate of $9.5 million. Over half of the shortfall
was from the only US restaurant operation which is a Mikes in Las Vegas driven
by the change in the US exchange rate plus the location fell short of
management's sales expectations. The Company is closely reviewing this
operation before making any further expansion efforts in the US. The sales
shortfall resulted in the estimated unit entitlement decreasing from 224,201
to 151,393.
The net impact of these changes increases the retained interest held by
PDC to approximately 965,000 units which is 12.2% of the Fund.
The Fund is a limited purpose open-ended trust established under the laws
of Ontario. The Fund will make monthly distributions of its available cash to
holders of units. The Fund indirectly owns the trade marks and intellectual
property for the Pizza Delight, Mikes, and Scores brands and has licensed them
to Pizza Delight in consideration for a royalty equal to 4% percent of system
sales, and in the case of Scores, the royalty rate is 6%.

Pizza Delight is a privately owned corporation, headquartered in Moncton,
New Brunswick. It operates franchised and corporate restaurants under the
brand names Pizza Delight(R), Mikes(R), and Scores(R) restaurants. Pizza
Delight(R) operates primarily in Atlantic Canada, where it dominates the
family/mid-scale segment. Mikes(R) and Scores(R) restaurants operate primarily
in Quebec in the family and casual dining segments and the take-out and
delivery segments.
%SEDAR: 00018600E

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