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First Asset PowerGen Fund: Press Release

TORONTO, Oct. 22, 2008 - First Asset PowerGen Fund (TSX:PGT.UN) announces a distribution of $0.07 per Unit for the month ending October 31, 2008. The distribution will be paid on or before November 14, 2008 to unitholders of record on October 31, 2008.

Given the current market volatility, the Manager has adopted a more defensive position. The Fund is not employing leverage, holds a cash position of approximately 20% and is well positioned to take advantage of investment opportunities when the Manager believes it would be prudent to do so. There are approximately $47 million of capital loss carry-forwards and approximately $28 million of non-capital loss carry-forwards available to apply against future gains and to reduce taxable income in future years for the benefit of unitholders.

The Fund anticipates holding Confederation Power, a Canadian private power developer and the Fund's largest holding constituting approximately 52% of Net Asset Value, through January 2009. Accordingly, the Fund may limit the number of units that may be redeemed in January 2009. Pursuant to the Declaration of Trust, the number of units redeemable may be limited where such redemptions may impair the operation of the Fund. The amount of any such limit will be determined by the Manager having regard to, among other things, current market conditions and anticipated capital requirements of the Fund, and the Manager will, in any event, attempt to determine the maximum redemption amount to ensure that, in its reasonable judgment, the redemption will not impair the operation of the Fund. In such circumstances, any redemption would be completed on a pro-rata basis. The Fund will issue a press release announcing any such limitation prior to the redemption cut-off date in January.

The Fund records the securities of Confederation Power, a private company, at estimated fair value, in accordance with Canadian Generally Accepted Accounting Principles. Fair value is determined from several factors, including arm's length investments in the company, any permanent material impairment in the company's operations, and by use of a valuation model, based on assumptions that are not supported by observable market data. Confederation Power has not had any recent arm's length investment and recent market conditions have not resulted in a material impairment in the business of Confederation Power and, as such, there have not been any significant changes to the assumptions used in the valuation model which would warrant a change in its carrying value. The Manager reviews the valuation continually. Further information about Confederation Power is available on its website at www.confedpower.com.

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.