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NEWS RELEASE

FP NEWSPAPERS INCOME FUND COMPLETES CDN $60 MILLION TERM DEBT RE-FINANCING

Vancouver, B.C. - May 5, 2005 -- FP Newspapers Income Fund (TSX:FP.UN), today completed the re-financing announced May 4, 2005, whereby an affiliate has arranged replacement financing for the maturing $59.6 million term debt of FP Canadian Newspapers Limited Partnership. The Fund owns securities entitling it to 49% of the distributable cash of FP Canadian Newspapers Limited Partnership.

FPCN Media Funding Inc, a wholly owned subsidiary of FPCN General Partner Inc, the managing general partner of FP Canadian Newspapers Limited Partnership today issued $60 million of 5.20% Series A Senior Secured Notes due June 5, 2010. The proceeds were on-lent to FP Canadian Newspapers Limited Partnership and used to repay the maturing $59.6 million term credit facility, and for general purposes.

The initial purchaser of the notes was Prudential Capital Group ("Prudential"). In connection with the transaction, Prudential provided an uncommitted three year shelf facility in the amount of USD $25.6 million (or the Canadian dollar equivalent) whereby FPCN Media Funding Inc. may issue additional notes with terms of between five and seven years, bearing interest at rates to be determined at the time of issue, subject to acceptance of such notes by Prudential. In addition, the Toronto-Dominion Bank will continue to provide a $10 million 364-day revolving credit facility to FP Canadian Newspapers Limited Partnership.

FP Canadian Newspapers Limited Partnership owns the Winnipeg Free Press, the Brandon Sun, and their related businesses, as well as Canstar Community News Limited, the publisher of five community newspapers in the Winnipeg region. The Winnipeg Free Press newspaper publishes seven days a week, serving Winnipeg and Manitoba with an average seven-day circulation of approximately of 128,000. The Brandon Sun also publishes seven days a week, serving the region with an average circulation of approximately 15,000. Canstar Community News publishes weekly with an average circulation of approximately 182,000. Based in Winnipeg, the businesses employ approximately 620 people in Winnipeg, Brandon and Thunder Bay. Further information can be found in the disclosure documents filed by FP Newspapers Income Fund with the securities regulatory authorities available at www.sedar.com.

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For further information please contact:

Kevin Karr, Vice President, Chief Financial Officer and Secretary
FP Newspapers Income Fund
Phone (604) 646-3782
Fax (604) 681-8861