The Keg Royalties Income Fund Announces May 2008 Cash Distribution

VANCOUVER, BRITISH COLUMBIA, May 09 (MARKET WIRE) --
The Keg Royalties Income Fund (the "Fund") (TSX: KEG.UN) today announced
that its May 2008 distribution of $0.1065 cents per unit has been
declared and is payable to unitholders of record as at May 21, 2008. The
May 2008 distribution will be paid on May 30, 2008.

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.

Vancouver-based Keg Restaurants Ltd. is the leading operator and
franchisor of steakhouse restaurants in Canada and has a substantial
presence in select regional markets in the United States. Keg Restaurants
Ltd. continues to operate The Keg restaurant system and expand that
system through the addition of both corporate and franchised Keg
steakhouses. The Keg has been named one of the "50 Best Employers in
Canada" for the past six years by the Globe and Mail's Report on Business
Magazine. For more information on our brand visit www.kegsteakhouse.com.

Contacts:
The Keg Royalties Income Fund
Karyn Byrne
Investor Relations Manager
(416) 646-4960
Email: karynb@kegrestaurants.com
Website: www.kegincomefund.com

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