Prime Rate Plus Corp.
TSX : PPL.PR.A
TSX : PPL

Prime Rate Plus Corp.

May 18, 2006 09:00 ET

Prime Rate Plus Corp. Regular Monthly Dividend Declaration

TORONTO, ONTARIO--(CCNMatthews - May 18, 2006) - Prime Rate Plus Corp. ("Prime Plus") declares its regular monthly distribution of $0.09688 (7.75% annualized) for each Class A share which reflects the distribution policy of prime rate in Canada (5.75% as at May 15th) plus 2% annually. Prime Plus also declares its regular monthly distribution of $0.05417 (6.50% annualized) for each Preferred share which reflects the distribution policy of prime rate plus 0.75% annually. Distributions are payable June 9, 2006 to shareholders on record as of May 31, 2006.

Since inception Class A shareholders have received a total of $0.88 per share and Preferred shareholders have received a total of $0.50 per share inclusive of this distribution, for a combined total of $1.38.

The fund's investment objectives are:

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.

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.

Prime Plus invests in a portfolio of six publicly traded Canadian Banks as follows: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia, Toronto-Dominion Bank. Shares held within the portfolio are expected to range between 5-20% in weight but may vary at any time. To generate additional returns above the dividend income earned on the portfolio, Prime Plus will engage in a
selective covered call writing program.



Distribution Details:

Class A Share (PPL): $0.09688

Preferred Share (PPL.PR.A) $0.05417

Ex-Dividend Date: May 29, 2006

Record Date: May 31, 2006

Payable Date: June 9, 2006


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