| TORONTO, Nov. 1, 2006 (Canada NewsWire via COMTEX News Network) -- Priszm Canadian Income Fund (TSX: QSR.UN) ("Priszm") today responded to Federal Minister of Finance Jim Flaherty's media comments regarding proposed changes to the level of taxation on cash distributions received by Unitholders. "We want to reassure our Unitholders that due to our unique nature of owning our restaurant operations, Priszm believes our cash distributions are significantly protected from these proposed changes by our tax treatment," said John I. Bitove, the Chairman and CEO of Priszm. For Canadian Unitholders of Priszm Units in 2005, 58.54 per cent of cash distributions were considered return of capital while 41.46 per cent was considered taxable income. Priszm expects a similar level of return of capital to continue for the next several years. "While the Ministry of Finance has not yet definitively advised as to the quantity or extent of the changes, we believe that our structure will continue to provide one of the highest levels of tax protection to income trust investors in Canada," said Bitove. "As the new rules are phased in by 2011, management will aggressively pursue our Unitholders' interests regarding cash distributions." As with all proposed regulatory changes, existing and prospective Unitholders should consult their tax advisors regarding the tax implications of an investment in the Fund's units. About Priszm Canadian Income Fund --------------------------------- Priszm Canadian Income Fund (TSX: QSR.UN) has a 60.2 per cent interest in KIT LP which owns and operates 484 quick service restaurants in seven provinces across Canada. The KFC, Taco Bell, Pizza Hut and Long John Silver's restaurants under Priszm generate annual revenues of approximately $485 million, serve 1.5 million customers a week and employ more than 9,000 people. Currently, 92 locations are multi-branded, combining two or more of the Fund's restaurant concepts. To find out more about Priszm Canadian Income Fund (TSX: QSR.UN), visit our website at http://www.priszm.com. Forward-Looking Statements -------------------------- Any forward-looking statements in this document are based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from projections suggested in any forward-looking statements due to factors such as the competitive nature of the quick service restaurant industry, the ability of Priszm and KIT LP to execute a growth and development strategy, the reliance of Priszm and KIT LP on key personnel, the terms and conditions of KIT LP's franchise arrangements, and risk associated with the structure of income trusts. Priszm and KIT LP assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements. Additional information identifying risks and uncertainties is contained in Priszm's filings with the Canadian securities regulators, available at www.sedar.com. %SEDAR: 00019884E SOURCE: Priszm Canadian Income Fund SOURCE: KIT Limited Partnership Jason Mercier, (416) 203-6666, jmercier@wilcoxgroup.com Copyright (C) 2006 CNW Group. All rights reserved. |