Prime Dividend Corp.: Regular Monthly Dividend Declaration.

TORONTO -- Prime Dividend Corp. ("Prime Dividend") declares its regular monthly distribution of $0.09375 (7.50% annualized) for each Class A share which reflects the distribution policy of prime rate in Canada (5.50% as at March 15th) plus 2% annually. Prime Dividend also declares its regular monthly distribution of $0.05208 (6.25% annualized) for each Preferred share which reflects the distribution policy of prime rate plus 0.75% annually. Distributions are payable April 10, 2006 to shareholders on record as of March 31, 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:

Investment           Life              Utilities &
Banks              Management           Insurance         Other

Bank of Montreal   AGF Management Ltd.  Great-West        BCE Inc.
The Bank of        CI Financial Inc.     Lifeco Inc.      TransAlta
 Nova Scotia       IGM Financial Inc.   Manulife           Corp
CIBC                                     Financial Corp.  TransCanada
National Bank of                        Sun Life           Corp
 Canada                                  Financial Inc.   Power
Royal Bank of                                              Financial
 Canada                                                    Corp.
Toronto-Dominion                                          TSX Group
 Bank                                                      Inc.

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):                 $0.09375

    Preferred Share (PDV.PR.A)           $0.05208

    Ex-Dividend Date:                    March 29, 2006

    Record Date:                         March 31, 2006

    Payable Date:                        April 10, 2006

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