Press Releases

Declares Income Distribution (For Release 4 p.m. EDT December 17, 1998)

Toronto, December 17, 1998: First Premium Income Trust has declared a quarterly income distribution of C$1.00 per Unit payable December 31, 1998 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$0.50 per Unit. The special distribution will ensure that the Trust distributes sufficient of its net income and net realized capital gains for 1998 so that it will not be liable for tax. The amount of the distribution may therefore be subject to minor adjustment.

The total distribution for Unitholders for the year ending December 31, 1998 should therefore be $2.75 per unit (including special distributions during the year of $0.75) equivalent to a 11% annual distribution yield on the original issue price of $25.00.

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.

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:

Distribution per Unit: $ 1.00 (subject to adjustment)
Payable Date: December 31, 1998
Record Date: December 31, 1998
Ex-Dividend Date: December 29, 1998

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