Foremost Income Fund
TSX : FMO.UN

Foremost Income Fund

January 24, 2008 19:49 ET

Foremost Income Fund Announces First Quarter 2008 Cash Distribution

CALGARY, ALBERTA--(Marketwire - Jan. 24, 2008) - Foremost Income Fund (the "Fund") (TSX:FMO.UN) has declared its first quarter (Q1-2008) cash distribution of $0.25 per trust unit. Distributions are payable Monday, March 31, 2008 to Unitholders of Record as at Friday, March 14, 2008.

The Trustees have resolved to decrease the distribution from the current $0.40 to $0.25 per quarter, effective for the first quarter distribution. In making this decision, the Trustees want to reassure unitholders Foremost continues to perform at business levels similar to the first three quarters of 2007 (in excess of $8 million of quarterly profit). Furthermore, as per our third quarter report, our balance sheet is in excellent shape, with no long term debt and current assets in excess of current liabilities by over $50 million. The Trustees came to this decision, after careful consideration, for the following reasons:

1. We believe our unitholders recognize the yield paid on a unit is only one consideration in determining value, the underlying strength of the business being far more important.

2. We wish to be in an even stronger position to take advantage of the opportunities we expect to see in these challenging times. We believe our investors are prepared to trade off current yield to position for growth. This has worked successfully for Foremost in the past.

In coming to this difficult decision, the Trustees have tried to strike a balance between yield and growth.

Foremost also announced:

1. The DRIP (distribution reinvestment program) is suspended, at least for the time being, because Foremost does not wish to issue units at these low prices; and

2. The Normal Course Issuer Bid program continues to be in effect.



The Fund's first quarter (Q1-2008) distribution details are as follows:

Distribution per trust unit: $0.25
Ex-distribution date: Wednesday, March 12, 2008
Record date: Friday, March 14, 2008
Payment date: Monday, March 31, 2008


On behalf of the Trustees Foremost Income Fund

James T. Grenon, Trustee

FORWARD-LOOKING STATEMENT

Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward-looking statements involve a number of risks and uncertainties, including: the impact of general economic conditions, industry conditions, changes in laws and regulations, increased competition, fluctuations in commodity prices and foreign exchange, and interest rates and stock market volatility.

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