Press Release

Unitholders Approve Special Resolution
(For Release 9 a.m. EDT, March 9, 2000)

Toronto, March 9, 2000: First Premium Income Trust today announced that its unitholders have approved a special resolution modifying the Trustıs investment restrictions by eliminating the requirement that the Trust invest in issuers paying dividends at a rate equal to 125% of the indicated annual dividend yield for the TSE 300 Composite Index. The effect of the amendment is to permit the Trust to invest in the common shares of any issuer which is in the top 200 of the TSE 300 by market capitalization. Removing the dividend requirement in no way changes the Trustıs original investment objectives of paying quarterly distributions of $0.50 per unit and returning the original issue price of the units ($25.00 per unit) to unitholders on termination of the Trust. The Trust holds a portfolio of common shares issued by major Canadian issuers including those issued by major financial institutions, utilities and pipeline companies. In order to generate returns above the dividend income generated by the portfolio, the Trust will from time to time write covered call options in respect of all or part of the securities in the portfolio. The Trust may also write cash covered put options in respect of the securities in which it is permitted to invest.

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