Press Releases

Pipes & Power Income Fund (EWP.UN), Payout Performers(R) Income Fund (PPF.UN), First Asset PowerGen Fund (PGT.UN) and FA Power Fund (PFA.UN) Benefit From Take-Over of UE Waterheater Income Fund

TORONTO, April 17, 2007 - First Asset Funds Inc. is pleased to report that First Asset Pipes & Power Income Fund (EWP.UN), Payout Performers® Income Fund (PPF.UN), First Asset PowerGen Fund (PGT.UN) and FA Power Fund (PFA.UN) all currently hold investments in UE Waterheater Income Fund ("UE Waterheater").

UE Waterheater announced yesterday that New York based private-equity investor, Alinda Capital Partners LLC, has initiated a C$1.74 billion deal to acquire all of the units of UE Waterheater for $23 per unit, representing a 46% premium to UE Waterheater's closing price on April 13, 2007, and a 50% premium to its 30-day average trading price.

Commenting on the announcement, John Stephenson, Senior Vice President and Portfolio Manager at First Asset says, "This announcement is a testament to our belief that we have assembled a portfolio of companies that offer real capital growth opportunities in addition to current income. The fact that Alinda has recognized the value of UE Waterheater Income Fund is immediately positive for our portfolios, and as a result of this takeover we expect to see improved valuations overall as the market speculates on other takeover targets and recognizes the value these holdings represent to other global players."

The following is a summary of current net asset values for the First Asset funds that hold UE Waterheater prior to and after the announcement:

Fund Ticker NAV April 13 NAV April 16 % Increase
First Asset Pipes & Power Income Fund EWP.UN $8.05 $8.18 1.61%
Payout Performers® Income Fund PPF.UN $9.27 $9.56 3.13%
First Asset PowerGen Fund PGT.UN $20.85 $21.18 1.58%
FA Power Fund PFA.UN $21.75 $22.06 1.43%

For further information, please contact Robert MacNiven (Investor Relations) at First Asset Funds Inc. at (416) 642-1289 or 1-877-642-1289, or visit www.firstassetfunds.com.

This document may contain certain forward-looking statements. These statements may relate to future events or future performance and reflect management's current expectations. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Neither the Funds nor their respective managers assume any obligation to update or revise any forward-looking statement to reflect new events or circumstances. Actual results may differ materially from any forward-looking statement. Historical results and trends should not be taken as indicative of future operations.