Press Release

Announces Semi-Annual Results
(For Release 9 a.m. EDT, September 4, 2001)

Toronto, September 4, 2001: First Premium Income Trust announces results for the six months ended June 30, 2001. Net realized income before distributions amounted to $13.9 million or $2.08 per unit. Net assets decreased from $176.8 million to $158.8 million. Distributions to unitholders amounted to $8.3 million or $1.25 per unit, which included a $0.25 special distribution in June 2001.

First Premium Income Trust was launched in June 1996 to provide investors 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 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 should contact the Plan Agent (Computershare) to enroll in the plan.

The Trust¹s 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.

Selected Financial Information:
($ millions)

Statement of Operations
For the six months ended June 30, 2001
(Unaudited)

For further information, please contact:
John Mulvihill, Chairman & 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
premium@mulvihill.com
www.mulvihill.com