Prime Dividend Corp.

Prime Dividend Corp.

July 28, 2006 10:47 ET

Prime Dividend Corp.: Financial Results To May 31, 2006

TORONTO, ONTARIO--(CCNMatthews - July 28, 2006) - Prime Dividend Corp. ("Prime Dividend") announces its semi-annual financial results for the six months ending May 31, 2006.

Distributions to both Class A and Preferred shareholders were made at the targeted rate. The Canadian Prime Rate increased by 1.25% to 6% as at May 31, 2006, resulting in increased distributions for each class of share. Class A shares received distributions of $0.55001 per share and Preferred shares received distributions of $0.3287 per share during the period. The net asset value per unit (one Preferred Share and one Class A share) was $23.15 (after all distributions) as at May 31, 2006.

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.
Lifeco Inc.
The Bank of Nova CI Financial Inc. Manulife TransAlta Corp
Scotia Financial Corp.
CIBC IGM Financial Inc. Sun Life TransCanada
Financial Inc. Corp
National Bank of Power
Canada Financial Corp.
Royal Bank of TSX Group Inc.

Selected Financial Information from the Semi-annual Statement of Financial Operations:

For the six months ending May 31 ($ Millions)


Income .782

Expenses (.303)

Net investment income .479

Realized option premiums and gain on sale of investments .389

Change in unrealized appreciation (depreciation) of investments (.519)

Increase in net assets from operations before distributions .349

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