FP NEWSPAPERS INCOME FUND ANNOUNCES STRIKE SETTLEMENT AT THE WINNIPEG FREE PRESS

Vancouver, B.C. - October 28, 2008 -- FP Newspapers Income Fund (TSX:FP.UN), publisher of the Winnipeg Free Press, the Brandon Sun and the Canstar Community Newspapers, today issued the following statement on the status of labour negotiations with the unions at the Winnipeg Free Press and Canstar Community Newspapers.

Today, following a union membership ratification meeting, a settlement was reached with striking workers at the Winnipeg Free Press and Canstar Community Newspapers. The settlement includes wage increases of 2% in each of the next four years and 1.5% for the 9 months ending June 30, 2013 as well as benefit plan improvements.

The Winnipeg Free Press and Canstar Community Newspapers have been in contract negotiations with the Communications, Energy and Paperworkers Union of Canada (CEP local 191), which represents editorial, advertising, circulation, mailroom and creative services staff and through two additional separate agreements represents Winnipeg Free Press newspaper carriers, and the pressroom and technical services staff. The talks aimed to replace contracts that expired on September 30, 2008. Publication halted on October 14 with the onset of the strike.

“We regret the disruption caused to our readers, advertisers, suppliers and employees, and look forward to resuming publication”, said Publisher Bob Cox. The Winnipeg Free Press intends to resume publication on Thursday October 30 and the Canstar Community News weekly publications will resume publishing during the week of November 3.

The previously announced distribution to unitholders for the month of September will be paid as scheduled, on October 30, 2008. On October 21 the Fund announced a temporary suspension of future distributions. Management will assess the impact of the labour action on operating results, and the Fund will keep unitholders informed as to future distributions by the Fund.

Collective agreements covering unionized employees at the Brandon Sun expire on December 31, 2008.

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 seven community and special interest 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 124,000 copies.  The Brandon Sun also publishes seven days a week, serving the region with an average circulation of approximately 14,000 copies.  Canstar Community News publishes weekly with an average circulation of approximately 206,000 copies.  Based in Winnipeg, the businesses employ approximately 630 people in Winnipeg, Brandon and Thunder Bay.  Further information can be found at www.fpnewspapers.com, and in the disclosure documents filed by FP Newspapers Income Fund with the securities regulatory authorities available at www.sedar.com.

For further information please contact:

Daniel Koshowski, Vice President, Finance and Administration
FP Newspapers Income Fund
Phone (204) 697-7425, Fax (204) 632-0281