Press Release

Declares Special Income Distribution
(For Release 6 p.m. EDT, September 5, 2000)

Toronto, September 5, 2000 First Premium Income Trust has declared a quarterly income distribution of C$1.00 per Unit payable September 29, 2000 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.

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. In addition, the Trust may write cash covered put options in respect of securities in which the Trust is permitted to invest.

The Trust's investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. Trust Units are listed on The Toronto Stock Exchange under the symbol FPI.UN

Distribution Details:

First Premium Income Trust
121 King Street West, Suite 2600
Toronto, Ontario M5H 3T9
(416) 681-3900   (800) 725-7172
premium@mulvihill.com
www.mulvihill.com