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First Asset Diversified Convertible Debenture Fund Announces Normal Course Issuer Bid For Units

TORONTO, March 14, 2011 - First Asset Diversified Convertible Debenture Fund (the "Fund") (TSX: "DCD.UN") announced today acceptance by the Toronto Stock Exchange (the "TSX") of the Fund's Notice of Intention to make a Normal Course Issuer Bid (the "NCIB").

Pursuant to the NCIB, the Fund proposes to purchase through the facilities of the TSX, from time to time, if it is considered advisable, up to 477,664 Units of the Fund, representing approximately 10% of the public float which is the same number as the Fund's issued and outstanding Units, being 4,776,640 Units as of the date hereof. The Fund will not purchase in any given 30-day period, in the aggregate, more than 95,532 Units, being 2% of the issued and outstanding Units as of the date hereof. Purchases of Units under the NCIB may commence on March 16, 2011. The Board of Directors of First Asset Investment Management Inc., the manager of the Fund, believes that such purchases are in the best interests of the Fund and are a desirable use of the Fund's funds. All purchases will be made through the facilities of the TSX in accordance with its rules and policies. All Units purchased by the Fund pursuant to the NCIB will not be cancelled and will be held for resale. The NCIB will expire on March 15, 2012.

On February 25, 2010, the Fund announced that it was making a Normal Course Issuer Bid, which commenced March 1, 2010, to purchase up to 538,987 Units through the facilities of the TSX. Under the bid, which expired on February 28, 2011, an aggregate of 8,600 Units were repurchased at an average price of $16.35 per Unit excluding commissions.

For further information, please contact Rob MacNiven, Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com