Prime Restaurants Royalty Income Fund Annual General Meeting June 25, 2003

Business of Meeting Presentation of consolidated financial statements Appoint three Trustees Appoint Auditors Other business

Presentation Agenda Prime Restaurants Royalty Income Fund: Profile Fund Operating Results: 2002 Prime Restaurants of Canada PRC Operating Results: Fiscal 2003 Strategic Outlook Question Period

Prime Restaurants Royalty Income Fund TSX Symbol EAT.UN IPO Date July 22, 2002 Units Issued 6,110,000 Distributions Currently monthly, even Monthly Distributions $0.094 for balance of 2003 Annual Yield 11.25%

Prime Restaurants Royalty Income Fund Unitholders PRC Trade Marks Inc. Prime Restaurants of Canada Inc Prime Restaurant Royalty Income Fund Royalty Pooled Restaurants 3.25% of Gross Revenue (Food and Beverage)

Operating Highlights: Delivering as Promised July 22 to December 31, 2002  Gross Revenue (Prime)$127,667,974  Royalties (125 pooled restaurants)$4,149,209  Cash available for distribution$2,966,433

Monthly Distributions: Delivering as Promised * For the period July 22 – August 31, 2002 August*$0.126 September$0.093 October$0.095 November$0.093 December$0.095 Distributions declared 2002$0.502 per unit

Distributions for 2003: Delivering as Promised Monthly distributions to Unitholders: $0.094  Consistent income  Not affected by length of period  Independent of seasonal fluctuations in revenue

Prime Restaurants Royalty Income Fund

Commitment to delivering on promises:  From a strong underlying business  Consistent attractive distributions  Meeting investor expectations  Communicating with the market

Management of Fund Three independent Trustees  As defined by corporate governance guidelines Transition to new Board  Reviewing candidate Trustees  Orderly change over coming months

John Rothschild Prime Restaurants of Canada Inc

PRC: Management Team John A. Rothschild * Director, Chairman and Chief Executive Officer Nicholas M. Perpick Director, President and Chief Operating Officer H. Ross R. Bain Director, Vice President of Administration, Secretary and Legal Counsel Peter C. Park Chief Financial Officer Richard D. Stark Senior Vice President Corporate Development Sidney M. Horn * Assistant Secretary * Also Director of PRC Trademarks Inc.

Prime Restaurants of Canada Operates and franchises a portfolio of diversified restaurant brands in the casual dining market.

The Industry: Full Service Dining Casual Dining Family Dining Fine Dining

The Industry: Full Service Dining Continued Growth Demographic Lifestyle Drivers

Quick Service (64% share) Family/Midscale (14% share) Other (9% share) Casual (12% share) Annual Traffic Trends Across Segments: Rate of Change vs. previous year Full Service Dining: Sector Growth

Factors affecting the industry in FY ‘03 Economic Uncertainty Weather Tension in Middle East Tourism Decline “No Smoking” Bylaws

Brand Positioning Premium Affordable Adults Families

“Just Right Pricing” Average Cheque Prime Brands Pub Division $22.50 Casey’s $15.50 East Side Mario’s $14.25 East Side Mario’s Too $10.00 QUICK SERVICE CASUAL FAST CASUAL FINE DINING POTENTIAL # OF GUESTS PRICE

Contribution to PRC Revenue By Concept

East Side Mario’s Total system FY’03:  88 locations  $186.4 million sales  63% of revenue 63%

Casey’s Bar & Grill Total system FY’03:  34 locations  $74.7 million sales  25.3% of revenue 25%

Prime Pubs Total system FY’03:  11 Irish Pubs  Esplanade Bier Markt  $24 million sales  8.1% of revenue 8.1%

Other Concepts Pat & Mario’s and RD’s/Red Devil  4 locations (total)  $10.7 million sales  3.6% of revenue 3.6%

Operating Highlights: Portfolio Advantage Gross System Revenue $295,791,000  For fiscal year ended February 23, 2003  For 130 pooled restaurants and eight not included in the pool

Operating Highlights: Portfolio Advantage Gross System Revenue Growth = 3.1%  2.6% growth from new restaurant openings .5% growth from same restaurant sales

Revenue Growth by Concept

Realignment of Corporate Owned Restaurant Division Discontinued Red Devil operation $1,843,000 Sale of corporate- owned restaurants to franchisees $840,000 Writedown on corporate restaurant operations $4,832,000 $7,515,000 No Impact on FUND

Objectives for FY’04 10 – 15 new restaurant location Positive same restaurant growth

Increasing Same Restaurant Growth

Same Restaurant Growth Casey’s Lunch Program Diversify Pub appeal through added focus on culinary offering. East Side Take out opportunity  Aggressive television Marketing program

New Restaurant Growth per year East Side Mario’s  Small Box  East Side Mario’s Too

Strategy and Execution Right menu. Right place. Right time.