Press Releases

Declares Income Distribution (For Release 9 a.m. EDT December 16, 1997)

Toronto, December 16, 1997: First Premium Income Trust has declared a quarterly income distribution of C$1.50 per Unit payable December 31, 1997 to holders of record on such date. This distribution consists of the regular quarterly distribution of C$0.50 per Unit and a special distribution of C$1.00 per Unit. The special distribution will ensure that the Trust distributes sufficient of its net income and net realized capital gains for 1997 so that it will not be liable for tax. The amount of the distribution may therefore be subject to minor adjustment.

Holders of First Premium Income Trust may elect to have their distributions re-invested into additional units by enrolling in the Trust's Distribution Reinvestment Plan. Unitholders should contact their broker or the Plan Agent (Montreal Trust Company of Canada) to enroll in the plan.

Mulvihill Capital Management Inc., the Investment Manager of the Trust is also pleased to announce that Mr. Donald Biggs has joined the firm. Mr. Biggs will focus on the management of the existing four Premium Funds - First Premium Income Trust, First Premium US Income Trust, First Premium Oil & Gas Income Trust and Premium Income Corporation within the Mulvihill Group. He joins Mulvihill most recently from one of Canada's largest asset managers and brings an extensive background in Derivative Products and Funds Management.

First Premium Income Trust's investment objectives are to provide unitholders 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. In order to generate returns above the dividend income generated by the portfolio, the Trust will write covered call options in respect of all or part of the securities in the portfolio.

The Trust's investment portfolio is managed by it's investment manager, Mulvihill Capital Management. Trust Units are listed on The Toronto Stock Exchange and The Montreal Exchange under the symbol FPI.un

Distribution Details:

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

First Premium Income
121 King Street West, Suite 2600
Toronto, Ontario M5H 3T9
(416) 681-3966   (800) 725-7172
premium@mulvihill.com
www.mulvihill.com