Foremost Income Fund

Foremost Income Fund

February 25, 2009 11:25 ET

Foremost Income Fund Announces First Quarter 2009 Cash Distribution

CALGARY, ALBERTA--(Marketwire - Feb. 25, 2009) - Foremost Income Fund (the "Fund") (TSX:FMO.UN) has declared its first quarter (Q1-2009) cash distribution of $0.10 per trust unit. This represents a decrease from $0.25 per unit distributed at quarter end last year. Distributions are payable Tuesday, March 31, 2009 to Unitholders of Record as at Friday, March 13, 2009. The Trustees have given significant consideration to the current state of the global economy as well as the oil and gas industry. It is anticipated that both 2009 and 2010 will reflect reduced business activity and the Trustees believe the most financially prudent approach to this period of economic instability is to reduce the distributions to a more moderate level.

The Fund is distributing a conservative amount of the annual distributable cash flows in order to ensure that the Fund maintains a solid financial position to weather this acute economic downturn. Going forward the Fund intends to distribute roughly one-half of the Fund's annual distributable cash flows with fluctuations on a quarterly basis as required.

The Fund already possesses considerable strength in its balance sheet, with no long term debt or bank indebtedness. Any excess cash flows not distributed will serve to further improve the Fund's already strong financial position. This places the Fund in a different position than most of its peers. As always, the Fund will look to increase unitholder value by way of accretive acquisitions and continual operational improvement, including administrative cost reductions.

The Fund's first quarter (Q1-2009) distribution details are as follows:

Distribution per trust unit: $0.10
Ex-distribution date: Wednesday, March 11, 2009
Record date: Friday, March 13, 2009
Payment date: Tuesday, March 31, 2009

On behalf of the Trustees

Foremost Income Fund

James T. Grenon, Trustee


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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