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

Prime Dividend Corp.

July 11, 2007 11:10 ET

Prime Dividend Corp.: Dividends Set to Increase

TORONTO, ONTARIO--(Marketwire - July 11, 2007) - As a result of the Bank of Canada's decision yesterday to increase the bank rate in Canada by 0.25%, the Prime Rate has also increased by 0.25% to 6.25%. As a result, the July dividends payable to both Preferred Shares and Class A shares of Prime Dividend are each set to increase by 0.25%. This would result in the July Preferred share dividend once declared being set at an annualized rate of 7.00% (Prime Rate plus 0.75%) and the Class A share dividend being set at an annualized rate of 8.25% (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

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

The Bank of Nova Manulife TransAlta
Scotia CI Financial Financial Corp. Corp

Sun Life TransCanada
CIBC IGM Financial Inc. Financial Inc. Corp

Power
National Bank of Financial
Canada Corp.

Royal Bank of TSX
Canada 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.

Contact Information