Press Release

Declares Monthly Distribution
(For Immediate Release, September 19, 2002)

Toronto, September 19, 2002: Mulvihill Pro-AMS U.S. (the “Fund”) announced today it has declared a monthly distribution of $0.08333 payable on September 30, 2002 to holders of record on such date. This will be the Fund’s 23rd consecutive monthly distribution for a cumulative total of $3.95 per unit from inception.

Effective for the October 31, 2002 distribution, the Fund announced it will be lowering its monthly distributions from $0.08333 to $0.04. Since the initial reduction in monthly distributions to $0.08333 in May, 2002, equity markets (S&P 500) have made further declines of approximately 20%. As a result, an increasing proportion of the NAV of the managed portfolio assets is required to generate sufficient option premium income to fund distributions. This further reduction of distribution levels will give the Managed Portfolio increased flexibility to respond to changing market conditions. The Fund will continue to closely monitor the Net Asset Value of the Managed Portfolio in order to preserve its ability to meet its investment objectives in the long term.

Mulvihill Pro-AMS U.S. was launched in October, 2000 with three investment objectives: (1) to return at a minimum the original issue price of the units ($25.00) to unitholders upon termination of the Fund, (2) to provide unitholders with monthly distributions, and (3) to preserve the value of the Fund's Managed Portfolio.

The forward purchase and sale agreement remains in force with Royal Bank of Canada (“RBC”) pursuant to which RBC will agree to pay to the Fund an amount equal to the original issue price of C$25.00 for each Unit outstanding on the Termination Date on January 4, 2011 in exchange for the Fund agreeing to deliver to RBC equity securities known as the Fixed Portfolio. The Managed Portfolio consists principally of equity securities of companies with a market capitalization in excess of US $5.0 billion selected from the S&P 500 Index. The Fund may from time to time, write covered call options in respect of all or part of the securities in which the Fund is permitted to invest. In addition, the Fund may write cash covered put options in respect of securities in which the Fund is permitted to invest.

The Fund will continue to be managed in a tax efficient manner so that prior year’s capital loss carry forward amounts and existing unrealized capital losses will be utilized to improve the tax efficiency of the current year’s distributions. For example, $0.75 of capital losses from 2001 are available to be applied to 2002 distributions.

The Fund’s investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. Fund Units are listed on The Toronto Stock Exchange under the symbol PAM.UN.

Distribution Details:

For more information, please contact:
John Mulvihill, President & CEO
David Middleton,CFO
Mulvihill Structured Products

Mulvihill Pro-AMS U.S.
121 King Street West, Suite 2600
Toronto, Ontario M5H 3T9
(416) 681-3966   (800) 725-7172
hybrid@mulvihill.com