Press Releases

First Asset Diversified Convertible Debenture Fund Completes Reorganization

TORONTO, July 20, 2010 - First Asset Diversified Convertible Debenture Fund (TSX: DCD.UN) announces the completion of the reorganization of the Fund which Unitholders approved on May 25, 2010. The Fund now has exposure to its portfolio through a forward agreement with a Canadian chartered bank. The use of the forward agreement provides Unitholders with continued exposure to the portfolio of convertible debentures while facilitating tax efficient distributions to Unitholders (primarily returns of capital for income tax purposes until the Fund's capital loss carry-forwards have been used and, thereafter, returns of capital and capital gains for income tax purposes).

For more information, please call Robert MacNiven, Director of Investor Relations at (416) 642-1289 or (877) 642-1289, or visit www.firstasset.com.