Press Release

Year End Financial Results
(For Release 9 a.m. EDT May 23, 2000)

Toronto, May 23, 2000: First Premium Income Trust announces results for the year ended December 31, 1999. Total results from financial operations amounted to $24.1 million or $3.61 per unit which includes both realized and unrealized capital gains and losses. Net assets increased from $161.1 million to $168.8 million. Distributions to Unitholders amounted to $16.6 million or $2.50 per unit, which included a special distribution of $0.50 in December 1999.

First Premium Income Trust was launched in June 1996 to provide investors with a stable stream of income. The Trust's objectives are to provide quarterly distributions to holders of at least $0.50 per unit. The Trust invests 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 Trust's investment portfolio is managed by its investment manager, Mulvihill Capital Management. Trust Units are listed on The Toronto Stock Exchange under the symbol FPI.UN.

Selected Financial Information:
($ millions)

Statement of Net Assets 1999
Assets $ 172.3
Liabilities 3.5
Net Assets
(Unitholders Equity)
$ 168.8
Statement of Financial Operations
Income $ 6.3
Expenses 2.3
Net Investment Income 4.0
Net Gain on Investments 20.1
Total Results from Financial Operations $ 24.1

For further information, contact:
John Mulvihill, President & CEO, Mulvihill Capital Management
Donald Biggs, Vice President, Mulvihill Capital Management

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