Press Releases

Preferred Securities Income Fund announces Notice of Intention to Purchase Units

TORONTO, January 31, 2005 - Preferred Securities Income Fund (TSX: PFS.UN) announces that to enable it to continue to execute its mandatory market purchase program if and when required, and to permit the Fund to otherwise acquire Units, the Fund has filed with the Toronto Stock Exchange a notice of intention to make normal course purchases of its Units. The TSX has accepted the notice.

Under this normal course issuer bid the Fund may purchase up to 520,000 of the Units of the Fund, representing 10% of the public float of the Fund, which is the same number as the Fund's outstanding Units, being 5,200,000 as at January 21, 2005. Purchases of Units will commence on February 2, 2005 and will terminate on February 1, 2006, or on such earlier date as the Fund may complete its purchases pursuant to the Notice. Purchases will be made in the open market through the facilities of the TSX in accordance with its rules and policies. The price that the Fund will pay for any such Units will be the market price of such Units at the time of acquisition. Units purchased will be cancelled.

To the knowledge of the Trustee, no director, officer or other insider of the Trustee or the Fund intends at present to sell any Units under this bid.

For more information, please call Tanya Carey at First Asset Funds Inc. at 416-642-1289 or 1-877-642-1289, or visit www.firstassetfunds.com.