FP NEWSPAPERS INCOME FUND ANNOUNCES LABOUR ACTION AT THE WINNIPEG FREE PRESS

Vancouver, B.C. - October 9, 2002 - FP Newspapers Income Fund (TSX:FP.UN), publisher of the Winnipeg Free Press and the Brandon Sun, today issued the following statement on the status of labour negotiations with unions at the Winnipeg Free Press.

Today, following an exchange of proposals, the unions served notice of a work stoppage effective immediately. Management does not currently plan to publish the Winnipeg Free Press during a strike.

The Winnipeg Free Press has been in contract negotiations with the Media Union of Manitoba (CEP Local 191), which represents editorial, advertising, circulation, mailroom and creative services staff and newspaper carriers, and the Graphic Communications International Union (Local 900M), which represents pressroom and technical services staff. The talks aim to replace contracts that expired September 30, 2002 (except newspaper carriers, whose contract expired October 31, 2001).

The previously announced distribution to unitholders for the month of September will be paid as scheduled, on October 30, 2002. Management will monitor the impact of the labour action on operating results, and will keep unitholders informed as to future distributions by the Fund. Management's objective is to reach a fair settlement that reflects the long-term requirements of a competitive daily newspaper.

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
Phone (604) 646-3782, Fax (604) 681-8861, Email: kkarr@estrellagroup.com

or

Rudy Redekop, President and Publisher
Phone (204) 697-7356, Fax (204) 697-7344, Email: rudy.redekop@freepress.mb.ca