SOURCE: Madison Investment Advisors

July 25, 2005 17:36 ET

Madison Strategic Sector Premium Fund Approves Monthly Dividend Schedule, Declares August Dividend

MADISON, WI -- (MARKET WIRE) -- July 25, 2005 -- The Madison Strategic Sector Premium Fund (the "Fund") (NYSE: MSP) announced today that it declared its monthly dividend for August of $0.15 per share. Dividends will be paid on August 30, 2005, to shareholders of record as of August 19, 2005. The ex-dividend date will be August 17, 2005.

The Fund approved monthly dividends, authorizing dividend declarations through November 2005. Dividends through November are anticipated to be $0.15 per share per month when declared. The Fund anticipates regular monthly distributions after November, although such future distributions could vary based upon the Fund's performance and changes in market conditions.

The Fund is also pleased to announce that information concerning the Fund's investments is available on the Fund's dedicated website at

A percentage of the August dividend and monthly dividends during the early months of the Fund's operation may be characterized as a return of capital. However, for the entire calendar year of 2005, it is anticipated that the actual composition of the Fund's distributions, based on the Fund's investment activity, will be fully taxable, primarily as short term capital gains taxable as ordinary income and secondarily as qualified dividend income. The Fund expects varied timing of recognition of gains primarily related to initial monthly distributions during the period in which the Fund is initially implementing its covered call option strategy. The ultimate tax characterization of the Fund's distributions made in a calendar year will not be determined until after the end of that calendar year.

Certain statements in this release are forward-looking statements. The Fund's actual results may differ from current expectations or projections due to numerous factors, including but limited to changes in the equity markets, changes in the portfolio's value, economic and political conditions and other risks generally discussed in the Fund's filings with the SEC. Neither the Fund nor Madison undertakes any obligation to publicly update or revise any forward-looking statements.

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