FP NEWSPAPERS INCOME FUND ANNOUNCES MONTHLY DISTRIBUTION - OCTOBER 2002

Vancouver, B.C. - October 22, 2002 - FP Newspapers Income Fund (TSX:FP.UN), publisher of the Winnipeg Free Press and the Brandon Sun, announced today a distribution of 10 cents per unit for the month of October 2002, to unitholders of record on October 31, 2002. The distribution will be paid November 28, 2002.

The distribution of 10 cents per unit represents an annual cash-on-cash yield of 12% on the Initial Public Offering unit price of $10 per unit. Distributions in the prior three months were 11.25 cents per unit per month. The reduced distribution is necessary because of the financial impact of the eight-day strike at the Winnipeg Free Press, which ended October 18, 2002. Based on current forecasts, the Trustees expect to pay monthly distributions at a rate of 10 cents per unit for the next twelve months.

The work stoppage resulted in the loss of circulation and advertising revenue during the ten days the Winnipeg Free Press was not published. This loss of publishing days included two Fridays and two Saturdays and occurred during the busy fall advertising season.

In order to maintain distributions to unitholders of the Fund, notwithstanding the lost distributable cash of the operating partnership, the Trustees have decided to spread the impact over a longer period. Companies affiliated with Ronald Stern and Robert Silver have offered to provide and the Trustees have agreed-in-principle to approve (with Ronald Stern abstaining from voting) an unsecured line of credit to borrow up to $2 million, to allow the Fund to pay distributions to unitholders, in the event distributions from FP Canadian Newspapers Limited Partnership are temporarily unavailable. The loan will be interest free for the first year of a three-year term and then bear interest at bank prime plus the margin then in force on the operating partnership's operating line of credit. Beginning January 1, 2003, funds borrowed under the line of credit will be repayable out of distributable cash of the Fund to the extent that such distributable cash exceeds 10 cents per unit per month, with any remaining balance due at the end of the term. The line of credit may be drawn down at any time through December 31, 2003, provided that there is no event of default under the operating partnership's credit facilities.

The Fund owns securities entitling it to 49% of the distributable cash of FP Canadian Newspapers Limited Partnership. The Fund's policy is for unitholders of record on the last business day of a calendar month to receive distributions on or before the last day of the following month. Holders of units who are non-residents of Canada will be required to pay all withholding taxes payable in respect of any distributions of income by the Fund.

FP Canadian Newspapers Limited Partnership owns the Winnipeg Free Press, the Brandon Sun, and their related businesses. The Winnipeg Free Press newspaper publishes seven days a week, serving Winnipeg and Manitoba with an average seven-day circulation of approximately of 129,000. The Brandon Sun also publishes seven days a week, serving the region with an average circulation of approximately 15,000. Based in Winnipeg, the businesses employ approximately 580 people in Winnipeg and Brandon. 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.

Forward-looking statements
This document may contain forward-looking statements, relating to the Fund's operations or to the environment in which it operates, which are based on the Fund's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond the Fund's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in other public filings. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. FP Newspapers Income Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information please contact:

Kevin Karr, Vice President, Corporate Development and Secretary
FP Newspapers Income Fund
Phone (604) 646-3782, Fax (604) 681-8861
kkarr@estrellagroup.com