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

Prime Dividend Corp.

March 06, 2008 09:39 ET

Prime Dividend Corp.: Dividend Rate Change

TORONTO, ONTARIO--(Marketwire - March 6, 2008) - As a result of the Bank of Canada's decision on March 4, 2008 to decrease the bank rate in Canada by 0.50%, the Prime Rate has also decreased by 0.50% to 5.25% . As a result, the March dividends payable to both Preferred Shares and Class A shares of Prime Dividend are each set to decrease by 0.50% . This would result in the March Preferred share dividend once declared being set at an annualized rate of 6.00% (Prime Rate plus 0.75%) and the Class A share dividend being set at an annualized rate of 7.25% (Prime Rate plus 2.0%).

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



Banks Investment Life Insurance Utilities
Management & Other

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