Press Releases

First Asset Pipes & Power Income Fund Announces Rights Offering

TORONTO, February 7, 2011 - First Asset Pipes & Power Income Fund (TSX:EWP.UN) (the "Fund") announces that it has filed a preliminary short form prospectus in connection with the offering of Rights to its Unitholders to subscribe for Units of the Fund (the "Rights Offering"). The Rights Offering is subject to receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange.

Rights and Subscription Price. Each Unitholder will receive one Right for each Unit held on the record date. Three Rights will entitle the holder to purchase one Unit (the "Basic Subscription Privilege"). The record date, subscription price and Rights expiration date have not yet been determined. The Fund will make a further announcement with respect to these matters concurrently with the filing of the final short form prospectus. The subscription price will be determined in the context of the market at the time the final short form prospectus is filed.

Additional Subscription Privilege. Holders of Rights who exercise their Rights under the Basic Subscription Privilege are entitled to subscribe pro rata for additional Units that were not subscribed for initially, if any.

Step Up Privilege. Holders of a number Rights not evenly divisible by three will be entitled to round up their subscription to the next highest whole number of Units, subject to certain limits.

Use of Proceeds. The net proceeds of the Rights Offering will provide the Fund with additional capital that can be used to capitalize on attractive investment opportunities, and it is also expected to increase the trading liquidity of the Units and reduce the management expense ratio of the Fund.

Dealer Manager. National Bank Financial Inc. will be engaged to be the Dealer Manager for the Rights Offering.

A preliminary prospectus relating to these securities has been filed with securities commissions or similar authorities in each of the provinces of Canada but has not yet become final for the purpose of a distribution to the public. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any province of Canada prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission or similar authority in such province.

For further information, please call Rob MacNiven, Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.