Press Releases

Declares Initial Cash Distribution
(For Release 9 a.m. EDT September 19, 1996)

Toronto, September 19, 1996: First Premium Income Trust has declared an initial quarterly cash distribution of C$ 0.50 a share payable September 30, 1996 to holders of record September 30, 1996.

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.

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

Distribution Details:

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