Prime Dividend Corp.: Dividend Rate Change

TORONTO, ONTARIO, Jan 22 (MARKET WIRE) --
As a result of the Bank of Canada's decision today to decrease the bank
rate in Canada by 0.25%, the Prime Rate has also decreased by 0.25% to
5.75%. As a result, the February dividends payable to both Preferred
Shares and Class A shares of Prime Dividend are each set to decrease by
0.25%. This would result in the February Preferred share dividend once
declared being set at an annualized rate of 6.50% (Prime Rate plus 0.75%)
and the Class A share dividend being set at an annualized rate of 7.75%
(Prime Rate plus 2.0%).

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

Investment Utilities &
Banks Management Life Insurance Other

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

The Bank of Nova CI Financial Manulife Financial TransAlta Corp
Scotia Corp.

CIBC IGM Financial Inc. Sun Life Financial TransCanada Corp
Inc.

National Bank of Power Financial
Canada Corp.

Royal Bank of TSX Group Inc.
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.

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.

Contacts:
Prime Dividend Corp.
Investor Relations
(416) 304-4443 or Toll Free: 1-877-478-2372
Email: info@quadravest.com
Website: www.primedividend.com

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