Pour diffusion

Preferred Securities Income Fund Announces Notice Of Intention To Purchase Units

TORONTO, January 31, 2006 - 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. First Asset Funds Inc., as trustee of the Fund, believes it is in the best interests of the Fund and the holders of the Units to undertake this normal course issuer bid.

Under this normal course issuer bid the Fund may purchase up to 488,270 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 4,882,701 as at January 24, 2006. Purchases of Units will commence on February 2, 2006 and will terminate on February 1, 2007, 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.

Within the past twelve months, the Fund has purchased a total of 42,300 Units through the facilities of the TSX at an average price of $21.04 per Unit.

For more information, please call Rob MacNiven, Investor Relations, First Asset Funds Inc. at 416-642-1289 or 1-877-642-1289 or visit www.firstassetfunds.com.