Foremost Income Fund
TSX : FMO.UN

Foremost Income Fund

October 10, 2008 10:19 ET

Foremost Income Fund Announces Sale of Geotechnical Drill Rig Product Line

CALGARY, ALBERTA--(Marketwire - Oct. 10, 2008) - Foremost Income Fund (the "Fund") (TSX:FMO.UN) today announces the sale of its Indianapolis, Indiana based geotechnical drill rig product line, which was sold by the Fund's subsidiary, Mobile Drilling Company, Inc. The product line was a small non-core segment of the Fund's overall business and was challenging to manage from afar. This $5 million asset based divestiture will allow the Fund to further improve its strong balance sheet. The gain of approximately $1.6 million will be reflected in the Fund's 2008 fourth quarter financial results.

The Fund is an unincorporated open end mutual fund trust conducting its business through Foremost Universal LP ("Universal") and Foremost Industries LP ("Foremost"). The Fund derives its operational income from both Universal and Foremost. Universal's overall business is focused on the oil and gas industry and contains the business units of: Universal Industries, a manufacturer of oil treating systems, shop and field storage tanks; Maloney Industries, a manufacturer of medium- to large-scale oil and gas process treating equipment; Stettler Universal Limited Partnership, a gas separator manufacturer; Wilco Industries; Corlac Industries; Peace Land Fabricating and Supply Ltd. and De-In Industries Ltd., all shop tank manufacturers. Foremost is comprised of the business unit of Foremost Industries, a manufacturer of custom equipment used for the oil and gas, construction, water-well and mining industries.

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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