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

TORONTO, ONTARIO--(CCNMatthews - Feb. 27, 2007) - 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 renew its Normal Course Issuer Bid (the "NCIB"). Pursuant to the NCIB, the Fund proposes to purchase, from time to time, through the facilities of the TSX, if it is considered advisable, up to 63,698 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 636,985 Units as of the date hereof. Purchases of Units under the NCIB may commence on March 1, 2007. 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 Units purchased by the Fund pursuant to the NCIB will be cancelled. The NCIB will expire on February 29, 2008. There have been no previous purchases of Units by the Fund within the past 12 months.

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