Press Releases

First Asset Pipes & Power Income Fund Announces Rights Offering

TORONTO, August 16, 2006 - First Asset Funds Inc., the Manager and Trustee of First Asset Pipes & Power Income Fund (the "Fund") (TSX: EWP.UN), announced today that the Fund is issuing rights ("Rights") to subscribe for units of the Fund ("Units") to holders of record at the close of business on August 30, 2006. Each holder of a Unit is entitled to one Right for each Unit held on the record date. Four Rights will entitle the holder to purchase one Unit of the Fund at a price of $8.00 per Unit until 4:00 p.m. (Toronto time) on Thursday, September 28, 2006. The subscription price of $8.00 per Unit represents a discount to the Fund's net asset value of $8.81 per Unit on August 14, 2006 of 9%.

The rights offering is intended to provide the Fund with additional capital that can be used to capitalize on certain attractive investment opportunities that the Fund's Investment Advisor foresees arising over the next few months.

If all the Rights are exercised, the Fund will issue approximately 2,618,245 Units and receive net proceeds of $20,420,960.

The Toronto Stock Exchange (the "TSX") has approved the listing of the Rights on the TSX.

National Bank Financial Inc. will act as dealer manager to form a soliciting dealer group to solicit subscriptions of the Rights.

For further 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.