SIR Royalty Income Fund announces SIR Corp. fiscal 2007 year end results

SIR has advised the Fund that revenue for the fourth quarter of fiscal2007 increased 13.6% to $53.7 million compared to $47.2 million in revenue forthe same period a year ago and increased 9.2% to $167.2 million for fiscal2007 compared to $153.1 million for fiscal 2006. Increased revenue in thefourth quarter and fiscal 2007 resulted from same store sales growth(1)("SSSG") and the increase in number of restaurants to 40 at the end of fiscal2007 from 37 at the end of fiscal 2006.

As at August 26, 2007, the Concept Restaurants (Jack Astor's(R), AliceFazooli's!(R) and Canyon Creek Chop House(R)) accounted for approximately88.0% of Pooled Revenue and the Signature Restaurants (reds(R), FarNiente(R)/Soul of the Vine(R), Brasserie Frisco(R), Armadillo TexasGrill(R)/the Loose Moose Tap & Grill(R)) accounted for approximately 12.0%.

SIR's loss from continuing operations decreased 30.2% to $1.0 million inthe fourth quarter of fiscal 2007, compared to $1.4 million in the comparableperiod in 2006. SIR's loss from continuing operations decreased 10.4% to$4.4 million for fiscal 2007 compared to $4.9 million for fiscal 2006.

SIR's cash provided by continuing operations increased by $1.5 millionfor the 16-week period ended August 26, 2007 as compared to the 16-week periodended August 27, 2006. Cash provided by continuing operations was $7.6 millionfor fiscal 2007, an increase of $1.6 million as compared to fiscal 2006. SIRused cash in continuing investing activities of $3.2 million and $11.1 millionfor the fourth quarter and fiscal 2007, respectively, primarily for thepurchase of property and equipment related to new and renovated restaurants.

On August 9, 2007, SIR entered into a Credit Agreement with a CanadianSchedule 1 bank. The Credit Agreement is a seven-year facility for a maximumamount of $16.0 million and is intended primarily to facilitate constructionof new restaurants by SIR. These new restaurants are expected to become partof the Royalty Pooled Restaurants over the next few years as they arecompleted. This is expected to benefit the Fund both as a result of geographicdiversification and increased scale and because new restaurant growth isdesigned to be accretive to Fund unitholders. Copies of the Credit Agreementand the Interlender Agreement have been filed on SEDAR. With this financing inplace, SIR believes that it has sufficient cash resources to fund its currentworking capital requirements and current commitments for estimatedconstruction costs for new restaurants.

SIR has advised the Fund that same store sales(1) ("SSS") for the fourthquarter of 2007 increased 5.3% to $47.2 million compared to $44.9 million forthe comparable period a year ago. For fiscal 2007, SSS(1) increased by 3.9% to$151.9 million compared to $146.3 million for fiscal 2006. SSSG(1) for the 16and 52-week periods ended August 26, 2007 was primarily attributable to thestrong performance of SIR's Concept Restaurants (Jack Astor's, AliceFazooli's! and Canyon Creek).

                                                      16-week       52-week    SSSG(1)                                        period ended  period ended                                                    August 26,    August 26,                                                       2007          2007                                                    (unaudited)   (unaudited)    -------------------------------------------------------------------------    Jack Astor's                                          5.1%          3.0%    Alice Fazooli's!                                      7.1%          5.9%    Canyon Creek Chop House                               5.5%          6.3%    Signature Restaurants                                 4.0%          4.1%    -------------------------------------------------------------------------    Overall SSSG                                          5.3%          3.9%    

The closed Jack Astor's Burlington location and Brasserie Frisco willboth be treated as 2007 Closed Restaurants and are expected to be removed fromthe Royalty Pool effective January 1, 2008. SIR is required to pay aMake-Whole Payment for these closed restaurants from their date of closure toDecember 31, 2007.

SIR's fourth quarter and fiscal 2007 year-end filings, which include itsconsolidated financial statements and management's discussion & analysis, canbe accessed via the Fund's profile on the SEDAR web site at under "Other".

About SIR Corp.

SIR is a privately held Canadian corporation that owns and operates aportfolio of more than 40 restaurants in Canada. SIR's concept brands include:Jack Astor's Bar and Grill(R), with 24 locations; Alice Fazooli's!(R), withfive locations; and Canyon Creek Chop House(R), with seven locations. SIR alsooperates one-of-a-kind "signature" brands in downtown Toronto, which comprisethe upscale reds(R), Far Niente(R)/Soul of the Vine(R) & Petit Four(TM),Brasserie Frisco(R) and the Loose Moose Tap & Grill(R). All trademarks relatedto the concept and signature brands noted above are used by SIR under alicense agreement with SIR Royalty Limited Partnership in consideration for aRoyalty, payable by SIR to the Partnership, equal to six percent of therevenue of the 38 restaurants currently included in the Royalty pool. For moreinformation on SIR Corp. or the SIR Royalty Income Fund, please visit.

About SIR Royalty Income Fund

The Fund is a trust governed by the laws of the province of Ontario thatreceives distribution income from its investment in the SIR Royalty LimitedPartnership and interest income from the SIR Loan. The Fund intends to paydistributions to unitholders on a monthly basis.

Caution concerning forward-looking statements

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Certain statements in this news release may constitute "forward-looking"statements which involve known and unknown risks, uncertainties and otherfactors which may cause the actual results, performance or achievements of theFund to be materially different from any future results, performance orachievements expressed or implied by such forward-looking statements. Whenused in this document, such statements are such words as "may", "will","expect", "believe", "plan", "anticipate", "intend", "estimate" and othersimilar terminology. These statements reflect SIR Management's currentexpectations regarding future events and operating performance and speak onlyas of the date of this document. The Fund and SIR expressly disclaim anyobligation or undertaking to publicly release any updates or revisions to anyforward-looking statements contained herein to reflect any change inexpectations with regard thereto or any changes in events, conditions orcircumstances on which any statement is based.

In formulating the forward-looking statements contained herein,management has assumed, among other things, that business and economicconditions affecting SIR's restaurants and the Fund will continuesubstantially in the ordinary course, including without limitation withrespect to industry conditions, general levels of economic activity (includingin downtown Toronto), regulations (including regarding employees, food safety,tobacco and alcohol), weather, taxes, foreign exchange rates and interestrates, that there will be no pandemics or other outbreaks of disease or safetyissues affecting humans or animals or food products, and that there will be nounplanned material changes in its facilities, equipment, customer and employeerelations, or credit arrangements. For more information concerning the Fund'srisks and uncertainties, please refer to the Fund's periodic interim filingsand/or its March 30, 2007 Annual Information Form.

    (1) Same store sales and same store sales growth exclude revenue from        restaurants which are not included in the Royalty pool, and exclude        revenue from restaurants opened or closed during the current or prior        fiscal year and therefore not open for the full period in both years.        Same store sales growth is the percentage increase in SSS over the        prior comparable period. SSS and SSSG are non-GAAP measures that do        not have standardized meanings prescribed by GAAP. However, SIR        believes that SSS and SSSG are useful measures and provide investors        with an indication of the change in year-over-year sales. SIR's        method of calculating SSS and SSSG may differ from those of other        issuers and, accordingly, SSS and SSSG may not be comparable to        measures used by other issuers.    

For further information

Jeff Good, Chief Financial Officer, SIR Corp.,Tel: (905) 681-2997
Bruce Wigle, Investor Relations, Tel: (416) 815-0700 ext.228, Email: