Press Release

Declares Special Distribution
(For Release 4 p.m. EDT June 5, 2000)

Toronto, June 5, 2000: First Premium U.S. Income Trust has declared a quarterly cash distribution of C$0.75 per Unit payable June 30, 2000 to holders of record June 30, 2000. This distribution consists of the regular quarterly distribution of C$0.50 per Unit and a special distribution of C$0.25 per Unit.

Unitholders of First Premium U.S. Income Trust may elect to have their distributions re-invested into additional units by enrolling in the Trustıs Distribution Reinvestment Plan. Unitholders should contact their broker or the Plan Agent (Montreal Trust Company of Canada) to enroll in the plan.

First Premium U.S. Income Trustıs 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 & Poorıs 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. In addition, the Trust may write cash covered put options in respect of securities in which the Trust is permitted to invest.

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

Distribution Details:

Regular Distribution per Unit: $ 0.50
Special Distribution per Unit: $ 0.25
Payable Date: June 30, 2000
Record Date: June 30, 2000
Ex-Dividend Date: June 28, 2000

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