Press Releases

Unitholders Approve Special Resolution
(For Release 4:30 p.m. EDT July 29, 1999)

Toronto, July 29, 1999: First Premium U.S. Income Trust today announced that its unitholders have approved a special resolution permitting the Trust to write cash covered put options as an investment strategy thereby complementing its covered call option writing strategy. The addition of cash covered put options will not in any way change the fundamental objectives of the Trust. This additional feature will constitute an enhancement to the investment management tools currently available to the Trust and should permit the Trust to generate a higher rate of return on cash balances held.

First Premium U.S. 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 corporations that rank in the top 50 of the Standard & Poor's 100 Index. 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 Inc. Trust Units are listed on The Toronto Stock Exchange and The Montreal Exchange under the symbol FPU.un

For more information, please contact:
John Mulvihill, Chairman & CEO, Mulvihill Capital Management
Don Biggs, Vice President, Mulvihill Capital Management

First Premium U.S Income Trust
121 King Street West, Suite 2600
Toronto, Ontario M5H 3T9
(416) 681-3966   (800) 725-7172