Toronto, September 17, 2001: First Premium Income Trust has declared a regular quarterly income distribution of C$0.50 per Unit payable September 28, 2001 to holders of record on such date.

First Premium Income Trust¹s 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.

Holders of First Premium Income Trust may elect to have their distributions re-invested into additional units by enrolling in the Trust¹s 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.