Press Release

Announces Semi-Annual Results
(For Release 4 p.m. EDT, August 31, 2000)

Toronto, August 31, 2000: First Premium Income Trust announces results for the six months ended June 30, 2000. Net income before distributions amounted to $22.7 million or $3.40 per unit. Net assets increased from $168.8 million to $176.8 million. Distributions to Unitholders amounted to $13.3 million or $2.00 per unit, which included a $1.00 special distribution in June 2000.

First Premium Income Trust was launched in June 1996 to provide investors with a stable stream of quarterly distributions of at least $0.50 per unit. The Trust intends to achieve its investment objectives by investing in a diversified portfolio consisting primarily of common shares issued by major Canadian issuers selected from the TSE 200 Index. In order to generate additional returns above the dividend income received, the Trust writes covered call options in respect of all or part of the securities in the portfolio. In addition, the Trust may write cash covered put options in respect of securities in which the Trust is permitted to invest.

First Premium Income Trust offers investors the opportunity to conveniently acquire additional units of the Trust by re-investing their cash distributions through the Trust's Distribution Reinvestment Plan. Unitholders may enroll in the Plan by contacting their investment advisor.

The Trustıs investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. Trust Units are listed on The Toronto Stock Exchange under the symbol FPI.UN.

Selected Financial Information:
($ millions)

Statement of Operations (Unaudited):
For the six months ended June 30, 2000

Revenue $ 2.8
Net Realized Gains 21.2

Less: Expenses

Net Income Before Distributions $ 22.7

For more information, please contact:
John Mulvihill, Chairman & CEO, Mulvihill Capital Management
Donald Biggs, Vice President Structured Finance, Mulvihill Capital Management

First Premium Income Trust
121 King Street West, Suite 2600
Toronto, Ontario M5H 3T9
(416) 681-3966   (800) 725-7172