Press Releases

Announces 1997 Results (For Release 4 p.m. EDT May 19, 1998)

Toronto, May 19, 1998: First Premium Income Trust announces results for the year ended December 31, 1997. Total results from financial operations amounted to $31.9 million or $4.83 per unit. Net assets increased from $169.5 million to $179.0 million. Distributions to Unitholders amounted to $23.2 million or $3.50 per unit, which included special distributions of $0.50 and $1.00 in June 1997 and December 1997, respectively.

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. 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.

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

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.

Selected Financial Information:
($ millions unless stated otherwise)

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