Prime Dividend Corp.: Regular Monthly Dividend Declaration.

TORONTO -- Prime Dividend Corp. ("Prime Dividend") declares its regular monthly distribution of $0.09063 (7.25% annualized) for each Class A share which reflects the distribution policy of prime rate in Canada (5.25% as at Feb. 15th) plus 2% annually. Prime Dividend also declares its regular monthly distribution of $0.05 (6.0% annualized) for each Preferred share which reflects the distribution policy of prime rate plus 0.75% annually. Distributions are payable March 10, 2006 to shareholders on record as of February 28, 2006.

The fund's investment objectives are:

Floating Rate 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.

Floating Rate 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 Dividend invests in a portfolio of high yielding Canadian Companies as follows:

Banks     Investment Management Life Insurance      Utilities & Other

Bank of   AGF Management Ltd.   Great-West Lifeco   BCE Inc.
 Montreal                        Inc.

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

Shares held within the Portfolio will generally represent no less
 than 4% and no more than 8% of the net asset value.

Distribution Details:
Class A Share (PDV):             $0.09063
Preferred Share (PDV.PR.A)       $0.05
Ex-Dividend Date:                February 24, 2006
Record Date:                     February 28, 2006
Payable Date:                    March 10, 2006

Prime Dividend Corp. (TSX:PDV) (TSX:PDV.PR.A)