Press Release

(For Immediate Release, October 8, 2003)

Toronto, October 8, 2003: First Premium Income Trust (the "Fund") announced today that its Advisory Board and the Board of Directors of its Manager, Mulvihill Fund Services Inc., has approved a proposal to extend the life of the Fund for an additional 10 years to January 1, 2014. The proposal will permit holders of Units to extend their participation in the performance of the Fund's underlying portfolio of common shares issued by major Canadian issuers that are in the top 200 of the S&P/TSX Composite by market capitalization beyond the original redemption date of January 1, 2004 while maintaining the rights originally provided to unitholders.

The proposal will involve the amendment of the Fund's declaration of trust and will be subject to receipt of all necessary unitholder and regulatory approvals.

A special meeting of unitholders has been called and will be held on November 14, 2003 to consider and vote upon the proposal. Details of the proposal will be outlined in an information circular to be prepared and delivered to unitholders in connection with the special meeting. The Fund has retained RBC Capital Markets as its advisor with respect to the proposal.

The Fund's investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. The Fund's Units are listed on the Toronto Stock Exchange under the symbol FPI.UN. The Fund operates under the registered name Mulvihill Premium Canadian Fund.

For more information, please contact:

John Mulvihill, President & CEO
David Middleton,CFO
Mulvihill Structured Products

Mulvihill Premium Canadian
121 King Street West, Suite 2600
Toronto, Ontario M5H 3T9
(416) 681-3966   (800) 725-7172
hybrid@mulvihill.com