Press Release

Declares Quarterly Income Distribution

(For Release 4 p.m. EDT, September 17, 2001)

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

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.

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 (Computershare) to enroll in the plan.

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:

Distribution per Unit
$ 0.50
Payable Date
September 28, 2001
Record Date
September 28, 2001
Ex-Dividend Date
September 26, 2001

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

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