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

Prime Dividend Corp.

December 04, 2007 17:31 ET

Prime Dividend Corp.: Dividend Rate Change

TORONTO, ONTARIO--(Marketwire - Dec. 4, 2007) - As a result of the Bank of Canada's decision today to decrease the bank rate in Canada by 0.25%, the Prime Rate has also decreased by 0.25% to 6.00% . As a result, the December dividends payable to both Preferred Shares and Class A shares of Prime Dividend are each set to decrease by 0.25% . This would result in the December Preferred share dividend once declared being set at an annualized rate of 6.75% (Prime Rate plus 0.75%) and the Class A share dividend being set at an annualized rate of 8.00% (Prime Rate plus 2.0%).

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



Investment Life Utilities
Banks Management Insurance & Other

Great-West
Bank of Montreal AGF Management Ltd. Lifeco Inc. BCE Inc.

Manulife
The Bank of Nova CI Financial Financial Corp. TransAlta Corp.
Scotia
Sun Life TransCanada
CIBC IGM Financial Inc. Financial Inc. Corp.

National Bank of Power Financial
Canada Corp.

Royal Bank of
Canada TSX Group Inc.

Toronto-Dominion
Bank


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

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.

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