Split Yield Corporation
TSX : YLD.PR.A
TSX : YLD
TSX : YLD.PR.B

Split Yield Corporation

July 20, 2005 09:00 ET

Split Yield Corporation: Regular Quarterly Dividends For Class I and Class II Preferred Shares

TORONTO, ONTARIO--(CCNMatthews - July 20, 2005) - The Board of Directors of Split Yield (TSX:YLD)(TSX:YLD.PR.A)(TSX:YLD.PR.B) declares regular quarterly distributions of $0.2750 for each Class I Preferred Share and $0.2625 for each Class II Preferred Share payable July 29, 2005 to shareholders of record on that date. There will be no dividend for Capital Shares for the quarter ending July 29, 2005.

Split Yield Corporation is an actively managed mutual fund corporation that invests primarily in common shares of companies included in the TSX 100 Index and the S&P 100 Index. To generate additional returns above the dividend income earned in the portfolio, the Corporation will from time to time write covered call options in respect to all or part of the common shares in the portfolio.

One unit of Split Yield Corporation is comprised of one Class I Preferred Share, one Class II Preferred Share and one Capital Share. The holders of Class I Preferred shares are entitled to receive fixed cumulative dividends of $1.10 per share or 5.50% annually based on the initial issue price. The holders of Class II Preferred Shares are entitled to receive $1.05 per share or 7% annually based on the initial issue price. The holders of Capital shares are eligible to receive variable quarterly dividends in each year equal to the amount, if any by which the net realized capital gains, dividends and option premiums earned on the portfolio in the year, net of expenses, taxes and loss carry forwards, exceed the amount of dividends paid to the Class I Preferred shares and the Class II Preferred shares.

The Board of Directors will re-evaluate the next quarterly Capital share distribution in mid October 2005. The amount of this variable distribution will be based on prevailing market conditions, income levels, the value of the portfolio and the overall asset coverage levels on the Preferred Shares existing at such time.

Class I Preferred shares were issued at $20 per share, Class II Preferred shares at $15 per shares. All Class I preferred shares and Class II Preferred Shares outstanding at February 1, 2012 will be redeemed by the Corporation on that date. The Class I Preferred shares rank in priority to the Class II Preferred shares and the Class II preferred shares rank in priority to the Capital Shares with respect to the payment of dividends and repayment of capital upon dissolution or winding up of the Corporation. Capital shareholders will receive the remaining value of the net assets of the Company, at the termination date, after redeeming the Class I and Class II Preferred shares for $35 in aggregate. The current net asset value of a unit of Split Yield Corporation was $31.03 as at July 15, 2005.

Since inception Class I Preferred shareholders have received a total of $8.02 per share, Class II Preferred shareholders have received a total of $7.65 per share and Capital shareholders have received a total of $7.25 per share, for a combined total of $22.92.



Preferred Distribution Details:

Dividend per Class I Preferred Share: $ 0.2750 (YLD.PR.A)

Dividend per Class II Preferred Share: $ 0.2625 (YLD.PR.B)

Payable Date: July 29, 2005

Record Date: July 29, 2005

Ex-Dividend Date: July 27, 2005


This news release contains certain forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in our forward-looking statements. Actual outcomes and results may differ materially from those expressed in such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made.

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