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FFC Board of Directors Declares Year-End Distribution and Dividends as Discussed in the Following Text of the Shareholder Letter.

Business Editors

PASADENA, Calif. & WHEATON, Ill.--(BUSINESS WIRE)--Dec. 4, 2003

On December 4, 2003, the Board of Directors of Flaherty & Crumrine/Claymore Preferred Securities Income Fund Incorporated declared a special distribution in the amount of $0.90 cents per share payable in additional Fund shares, with shareholders having the option to receive the distribution in cash. The payment date will be December 31, 2003, to holders of record on December 11, 2003. The expected ex-dividend date for this special year-end distribution is December 9, 2003, and it will consist of both long-term capital gain and amounts to be taxable as ordinary income. Complete tax reporting will be available shortly after year-end.

The Board has also declared the December dividend of $0.1725 cents per share, to be paid on December 16, 2003 to shareholders of record on December 11, 2003. The expected ex-dividend date for the December dividend will be December 9, 2003. In addition, the Board has declared a regular monthly dividend of $0.1725 cents per share to be paid on January 30, 2004 to shareholders of record on January 23, 2004. The expected ex-dividend date is January 21, 2004. Beginning with January's dividend, the regular monthly dividend pay date will be the last business day of the month. The change will not affect the income earned by the shareholder; it will only change the timing of the dividend payments.

A word of caution - most of the special distribution results from gains realized on the protective hedging strategy employed by the Fund. These gains substantially offset losses on the Fund's investments and helped stabilize the Fund's net asset value (NAV) as interest rates rose in June and July and have been reflected in the Fund's NAV. (Due to tax reasons, it is generally in the best interest of the shareholder for the Fund to distribute long-term gains. For shareholder reporting purposes, the short-term gain portion of the distribution will be classified as "ordinary income".)

How will this special distribution affect the NAV of the Fund? Just like any investment company, when the Fund declares a dividend or distribution payment, the Fund's NAV must decline by the amount of the payment on the ex-dividend date. For regular monthly dividends, income earned on the Fund's assets typically offsets the decline in NAV due to the dividend payment. However, the special year-end distribution is different; it primarily reflects a return of the shareholders' original investment. Those electing to receive the special distribution in shares will experience virtually no change in the total net asset value of their shares. However, shareholders electing to take the distribution in cash will see the total net asset value of their shares decline by the amount of the special distribution.

How will this special distribution affect a shareholder's monthly income? The protective hedging strategy employed by the Fund is designed to allow a shareholder's dividend income to increase in response to significant increases in interest rates. For this strategy to be successful, the special distribution must be reinvested. A shareholder holding 1000 shares of the Fund, and electing to receive the special distribution in shares, will have his or her monthly dividend income increase from $172.50 to approximately $179. Those electing to receive cash will have no change in monthly dividend income.

To benefit from the protective hedging strategy and allow your total dividend income to increase, you must reinvest this special year-end distribution. Shareholders should contact their financial consultant or broker immediately after December 11, 2003 to tell them whether to reinvest this distribution in additional Fund shares or to receive it in cash.

Your tax consequences from the dividend will be the same whether you reinvest in additional shares or elect to take cash. As always, if you have any questions, contact FFC Shareholder Servicing by telephone at 1-866-233-4001 or on the Internet at www.fcclaymore.com.
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Publication:Business Wire
Date:Dec 4, 2003
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