Prime Dividend Corp.
TSX : PDV
TSX : PDV.PR.A

Prime Dividend Corp.

May 18, 2006 09:00 ET

Prime Dividend Corp.: Regular Monthly Dividend Declaration

TORONTO, ONTARIO--(CCNMatthews - May 18, 2006) - Prime Dividend Corp. ("Prime Dividend") declares its regular monthly distribution of $0.09688 (7.75% annualized) for each Class A share which reflects the distribution policy of prime rate in Canada (5.75% as at May 15th) plus 2% annually. Prime Dividend also declares its regular monthly distribution of $0.05417 (6.50% annualized) for each Preferred share which reflects the distribution policy of prime rate
plus 0.75% annually. Distributions are payable June 9, 2006 to shareholders on record as of May 31, 2006.

Since inception Class A shareholders have received a total of $0.55 per share and Preferred shareholders have received a total of $0.33 per share inclusive of this distribution, for a combined total of $0.88.

The fund's investment objectives are:

Floating Rate Preferred Shares:

(i) to provide holders of the Preferred Shares with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the Prime Rate in Canada plus 0.75% (minimum 5%, maximum 7%) based on original issue price of $10.00 per share

(ii) on or about December 1, 2012 (termination date), to pay the holders of the Preferred Shares the original issue price of those shares.

Floating Rate Class A Shares:

(i) to provide holders of the Class A Shares with regular floating rate monthly cash distributions targeted to be at a rate per annum equal to the Prime Rate in Canada plus 2.0% (minimum 5%, maximum 10%) based on original issue price of $15.00 per share

(ii) on or about December 1, 2012 (termination date), to pay the holders of Class A Shares at least the original issue price of those shares.

Prime Dividend invests in a portfolio of high yielding Canadian Companies as follows:



Investment Life Utilities &
Banks Management Insurance Other

Bank of Montreal AGF Management Ltd. Great-West BCE Inc.
The Bank of CI Financial Inc. Lifeco Inc. TransAlta
Nova Scotia IGM Financial Inc. Manulife Corp
CIBC Financial Corp. TransCanada
National Bank of Sun Life Corp
Canada Financial Inc. Power
Royal Bank of Financial
Canada Corp.
Toronto-Dominion TSX Group
Bank Inc.


Shares held within the Portfolio will generally represent no less than 4% and no more than 8% of the net asset value.



Distribution Details:

Class A Share (PDV): $0.09688

Preferred Share (PDV.PR.A) $0.05417

Ex-Dividend Date: May 29, 2006

Record Date: May 31, 2006

Payable Date: June 9, 2006


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