Foremost Income Fund TSX: FMO.UN

CALGARY, ALBERTA--(CCNMatthews - Feb. 22, 2007) - Foremost Income Fund (TSX:FMO.UN) ("Foremost", the "Fund") announced today its intention to buy back certain of its outstanding Trust Units (the "Units").

Foremost has filed a Notice of Intention to make a Normal Course Issuer Bid ("Issuer Bid") with the Toronto Stock Exchange (the "TSX"), which has been accepted, for the purchase, from time to time, of Units through the facilities of the TSX. The Units will be purchased by Foremost for cancellation. In accordance with the Deed of Trust by which the Fund is governed, market purchases pursuant to its Normal Course Issuer Bid may be effected by the Fund.

The Fund is not obliged to acquire any specific number of Units but intends to purchase up to a maximum of 1,001,999 Units during the course of the Normal Course Issuer Bid. This maximum amount equals 5% of the 20,039,981 presently issued and outstanding Units as at February 22, 2007. Purchases from all sources in any thirty-day period will not exceed 2% of the issued and outstanding Trust Units at the time of purchase. All Units so purchased will be cancelled.

The Issuer Bid will commence on the 26th day of February, 2007 and will terminate on the earlier of the 25th day of February, 2008 and the date on which the aggregate maximum number of Trust Units which may be purchased are in fact purchased pursuant to the Issuer Bid.

All purchases will be made through the facilities of the TSX at the discretion of Foremost's management, as and when it will deem the market price of the Units to be favourable to the reduction of its outstanding equity capital. The purchase of and payment for the Units will be made by Foremost in accordance with the Rules and Policies of the TSX, and the price Foremost will pay for any Units will be the market price of such Units at the time of acquisition.

The board of trustees of Foremost believes that, in view of recent announcements concerning the tax treatment of income trusts, and otherwise from time to time, the market price of Foremost's Units may not adequately reflect the current value of, and prospects for, Foremost's business. As a result, the board of trustees believes that Foremost's outstanding Units may, at such times, represent an attractive opportunity to realize additional unitholder value and that purchases of Units at such times would be an appropriate and desirable use of Foremost's available funds.

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.