Mulvihill Fund Services Inc. announces approval of merger of First Premium
Income Trust and Premier Canadian Income Fund

TORONTO, June 4 /CNW/ - First Premium Income Trust (TSX: FPI.UN), which operates as Mulvihill Premium Canadian Fund ("FPI") and Premier Canadian Income Fund (TSX: GIP.UN) ("PCI" and, together with FPI, the "Funds") announced that at a special meeting of unitholders of each Fund held today, unitholders approved the merger of FPI and PCI.

PCI has been designed to generate attractive returns for investors by investing in a high quality portfolio of common shares of large-capitalization Canadian issuers selected from the S&P/TSX 60 Index and invests primarily in common shares of issuers in the energy, materials and financials sectors. As both the FPI and PCI portfolios are invested in common shares of major Canadian issuers, in connection with the merger, FPI will be able to smoothly transition its assets into a larger continuing fund with the ability to grow in size and increase in value, with lower administrative costs and increased trading liquidity for unitholders. Once the merger is implemented, PCI will be the continuing fund and holders of units of FPI will become holders of units of PCI.

To implement the merger, FPI will transfer all of its net assets to PCI for a number of units of PCI determined based on an exchange ratio calculated by reference to the relative net asset value of the units of each of FPI and PCI. Subsequently, all units of FPI will be automatically redeemed and each FPI unitholder will receive that number of units of PCI equal to the number of units of FPI held multiplied by the exchange ratio. The merger is expected to occur on June 30, 2010. Unitholders of FPI will have the opportunity to redeem their units on June 24, 2010 if they choose not to participate in the merged fund. Unitholders of FPI and PCI are not required to take any action for the merger to be implemented.

Subsequent to the implementation of the merger, the continuing fund intends to issue to its unitholders warrants to subscribe for additional units of the merged fund by way of a prospectus.

    
    John Mulvihill, President and CEO
    David Roode, President, Fund Services
    John Germain, Senior Vice-President
    Sheila Szela, Vice-President, Finance and CFO

    A member of the Mulvihill Capital Management Inc. Group of Funds

    Mulvihill Structured Products

    121 King Street West
    Suite 2600
    Toronto, Ontario, M5H 3T9
    (416) 681-3966; (800) 725-7172
    www.mulvihill.com
    hybrid@mulvihill.com
    

SOURCE FIRST PREMIUM INCOME TRUST

For further information: For further information: Investor Relations at (416) 681-3966, toll free at 1-800-725-7172 or visit www.mulvihill.com

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FIRST PREMIUM INCOME TRUST

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PREMIER CANADIAN INCOME FUND

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