SIR Royalty Reports Fiscal 08 Second Quarter Results

Q2 2008 Highlights:

- Pooled Revenue increased 10.9% to $45.4 million compared to $41.0 million in Q2 2007;

- 6.8% same store sales growth ("SSSG")(1) for restaurants in the Royalty pool;

- Net earnings increased to $1.98 million or $0.37 per Fund unit compared to net earnings of $0.94 million or $0.18 per Fund Unit in Q2 2007;

- Distributable cash(2) for the period totaled $1.98 million and distributions paid to unitholders were $1.79 million, representing a payout ratio(2) of 90.6% for the quarter;

- SIR opened a new Jack Astor's and a Canyon Creek near Toronto's Pearson International Airport; and, a new Jack Astor's at the corner of Yonge and Dundas Streets in downtown Toronto;

- Fund Trustees approved a 4.5% increase to unitholder distributions in May, resulting in a current estimated annualized distribution of $1.38 per trust unit.

"We had a strong second quarter, with consolidated same store sales growth of nearly seven percent and quarterly Pooled Revenue exceeding $45 million for the first time. Our growth is being driven by both the new Royalty Pooled restaurants and our long established locations, both in our concept and signature groups. We believe this reflects the underlying strength of our diverse portfolio of restaurant brands," said Peter Fowler, Chief Executive Officer of SIR Corp. ("SIR") "Since the SIR Royalty Income Fund completed its initial public offering late in 2004, we focused on investing in our existing restaurants first, enhancing our brands through renovations, menu alterations and other initiatives, and then we expanded, building on a stronger foundation. Supported by our diverse and popular restaurant brands, we are now reaping the rewards of our measured, customer-focused approach as we grow our business."

"We continue to elevate the profile of our flagship Jack Astor's brand with new restaurant openings in high traffic downtown Toronto locations, such as the corner of Yonge and Dundas Streets and more recently, with the conversion of our former Brasserie Frisco location in Toronto's entertainment district into a Jack Astor's," added Mr. Fowler. "We expect to open a new Jack Astor's at the intersection of Yonge and Bloor streets later this year. Other future restaurant sites which have been announced include a new Jack Astor's in Don Mills, Ontario and Boisbriand, Quebec, just north of Montreal, a new Canyon Creek in Brampton, Ontario and two new locations at the corner of Yonge and Gerrard Streets in downtown Toronto." -- www.cnxmarketlink.com