FA NORTH AMERICAN COVERTIBLES FUND T.NCD.UN

NEWS RELEASE

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NCE Diversified Income Trust (TSE: NCD.UN, NCD.WT) Outstanding Warrants Update and Recent Portfolio Holdings TORONTO , ONTARIO-- NCE Diversified Income Trust (the "Trust") announced today an update on the solicitation to exercise all of the outstanding Trust unit purchase warrants (the "Warrants") prior to the expiry date of February 28, 2001. Warrant update The following table details the number of Warrants exercised as well as the number of Warrants left outstanding and their respective cash value as at February 12, 2001. /T/ Warrants issued Warrants exercised Warrants outstanding ------------------------------------------------------------- 24,072,199 10,382,967 13,689,232 ------------------------------------------------------------- $ 84,493,418.49 $ 36,444,214.17 $ 48,049,204.32 ------------------------------------------------------------- ------------------------------------------------------------- Exchange ratio and exercise price Each Warrant entitles the holder to purchase one Trust Unit at the Exercise Price of $3.51 per Trust Unit. Retail conference call A conference call will be held today at 4:15pm EST to explain the "Call to Exercise" in further detail. * Conference call number: 1-800-273-9672 or 416-695-5806 * Replay number: (1-800-408-3053 or 416-695-5800) (until and including February 28, 2001) Passcode: 672721 /T/ Current prices The market price for NCE Diversified Income Trust (NCD.UN) as at February 12, 2001 on The Toronto Stock Exchange was $3.78 per trust unit. The market price for NCE Diversified Income Trust Warrants (NCD.WT) as at February 12, 2001 on The Toronto Stock Exchange was $0.22 per Warrant. Distribution eligibility Holders of Warrants who exercise on or before the expiry date of February 28, 2001 (at 4:00 pm EST) and hold their units will receive the scheduled February distribution. NCE Diversified Income Trust NCE Diversified Income Trust is a closed-end trust with the objective of maximizing distributions to unitholders by investing primarily in a broad range of royalty and income trusts, real estate investment trusts and other high-yielding securities. Portfolio holdings The following are the NCE Diversified Income Trust portfolio holdings as at February 8, 2001: /T/ Securities Units % of Value Portfolio ----------------------------------------------------------------------- Oil & Gas ----------------------------------------------------------------------- ARC Energy Trust 1,250,000 $ 14,200,000.00 8.30% ----------------------------------------------------------------------- EnerMark Income Fund 1,495,000 $ 7,250,750.00 4.23% ----------------------------------------------------------------------- Enerplus Resources Fund 445,000 $ 10,292,850.00 6.01% ----------------------------------------------------------------------- NAL Oil & Gas Trust 698,500 $ 6,635,750.00 3.88% ----------------------------------------------------------------------- Pengrowth Energy Trust 270,000 $ 5,359,500.00 3.13% ----------------------------------------------------------------------- Shiningbank Energy Income Fund 390,000 $ 6,415,500.00 3.75% ----------------------------------------------------------------------- Viking Energy Royalty Trust 620,000 $ 5,673,000.00 3.31% ----------------------------------------------------------------------- $ 55,827,350.00 32.61% ------------------------- ------------------------- Long Life Resources ----------------------------------------------------------------------- Canadian Oil Sands Trust 260,000 $ 8,905,000.00 5.20% ----------------------------------------------------------------------- $ 8,905,000.00 5.20% ------------------------- ------------------------- Mining & Resources ----------------------------------------------------------------------- Labrador Iron Ore Royalty Income Trust 175,000 $2,502,500.00 1.46% ----------------------------------------------------------------------- $ 2,502,500.00 1.46% ------------------------- ------------------------- Pipelines ----------------------------------------------------------------------- Fort Chicago 500,000 $ 4,425,000.00 2.58% ----------------------------------------------------------------------- Koch Pipelines Canada LP 600,000 $ 3,780,000.00 2.21% ----------------------------------------------------------------------- Pembina Pipeline Income Fund Trust 1,100,000 $ 10,010,000.00 5.85% ----------------------------------------------------------------------- $ 18,215,000.00 10.64% ------------------------- ------------------------- Power ----------------------------------------------------------------------- Algonquin Power Income Fund Trust 200,000 $ 1,990,000.00 1.16% ----------------------------------------------------------------------- Great Lakes Hydro Income Fund Trust 350,000 $ 4,252,500.00 2.48% ----------------------------------------------------------------------- KMS Power Income Fund 170,700 $ 1,450,950.00 0.85% ----------------------------------------------------------------------- Northland Power Income Fund Trust 755,000 $ 7,134,750.00 4.17% ----------------------------------------------------------------------- TransCanada Power LP 200,000 $ 5,540,000.00 3.24% ----------------------------------------------------------------------- $ 20,368,200.00 11.90% ------------------------- ------------------------- Other ----------------------------------------------------------------------- ACS Freezers 550,000 $ 4,785,000.00 2.79% ----------------------------------------------------------------------- Hollinger Canadian Newspapers LP 275,000 $ 1,251,250.00 0.73% ----------------------------------------------------------------------- North West Co Inc (The) 326,300 $ 4,241,900.00 2.48% ----------------------------------------------------------------------- SCI Income Trust 251,300 $ 2,877,385.00 1.68% ----------------------------------------------------------------------- Superior Propane Income Fund 665,000 $ 10,540,250.00 6.16% ----------------------------------------------------------------------- $ 23,695,785.00 13.84% ------------------------- ------------------------- Real Estate ----------------------------------------------------------------------- Cdn Apartment Properties REIT 370,000 $ 4,625,000.00 2.70% ----------------------------------------------------------------------- Cominar REIT 400,000 $ 4,100,000.00 2.40% ----------------------------------------------------------------------- H&R REIT 600,000 $ 7,698,000.00 4.50% ----------------------------------------------------------------------- Legacy Hotels REIT 465,000 $ 4,092,000.00 2.39% ----------------------------------------------------------------------- Morguard REIT 200,000 $ 1,718,000.00 1.00% ----------------------------------------------------------------------- Residential Equity REIT 370,000 $ 4,699,000.00 2.74% ----------------------------------------------------------------------- RioCan REIT 1,085,000 $ 10,622,150.00 6.20% ----------------------------------------------------------------------- Royal Host REIT 400,000 $ 2,480,000.00 1.45% ----------------------------------------------------------------------- $ 40,034,150.00 23.38% ------------------------- ------------------------- US ----------------------------------------------------------------------- Healthcare Realty Trust Inc 50,000 $ 1,669,305.00 0.97% ----------------------------------------------------------------------- ------------------------- $ 1,669,305.00 0.97% ------------------------- Portfolio at Market $ 171,217,290.00 100% ----------------------------------------------------------------------- ------------------------- /T/ NCE Resources Group NCE Diversified Income Trust is a member of NCE Resources Group. NCE Resources Group was formed in 1984 as an investment management organization. The company has invested or manages the investment of more than $1.2 billion of investor capital. NCE employs approximately 170 people. -30- FOR FURTHER INFORMATION PLEASE CONTACT: NCE Investor Services (investor enquiries) [phone] or 1-888-739-4623 e-mail: [e-mail] or Jim Wright (media enquiries) [phone] or 1-800-563-4623 website: www.nceresources.com