Mr. John Germain reports

PREMIUM INCOME CORPORATION ANNOUNCES CLOSING OF OVERNIGHT OFFERING OF PREFERRED SHARES

Premium Income Corp. has completed the previously announced treasury offering of 2,085,000 preferred shares for gross proceeds of $34,110,600. 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 $16.36 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. The syndicate of agents for the offering was led by National Bank Financial Inc.

You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment fund on the TSX. If shares of the fund are purchased or sold on the TSX, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them.

There are continuing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the investment fund in these documents. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.