Mr. John Germain of Mulvihill Capital Management reports

PREMIUM INCOME CORPORATION ANNOUNCES CLOSING OF OVERNIGHT OFFERING OF PREFERRED SHARES

Premium Income Corp. has completed the previously announced treasury offering of 4.3 million preferred shares for gross proceeds of $70.09 million. The preferred shares will trade on the Toronto Stock Exchange under the existing symbol PIC.PR.A. The preferred shares were offered at a price of $16.30 per preferred share.

The fund invests in a portfolio consisting principally of direct and/or indirect investments in common shares of Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and Toronto-Dominion Bank and may invest up to 10 per cent of its net asset value in other securities such as equity securities, fixed income securities (including preferred shares) and investment funds that provide exposure to such securities (including investment funds managed by Mulvihill Capital Management Inc., the manager and investment manager of the fund).

The preferred shares pay fixed cumulative preferential monthly cash distributions in the amount of 10.625 cents ($1.275 per annum) per preferred share representing a yield of 8.50 per cent on the original issue price of $15.00. The syndicate of agents for the offering was led by National Bank Financial Inc.