PDV Prime Dividend Corp

The Board of Directors of Prime Dividend Corp. (the "Company") today announced
that it has filed a Management Information Circular for the special meeting of
the holders of the Company's Preferred Shares and Class A Shares to be held at
11:00 a.m. (Eastern standard time) on Thursday, November 3, 2011. The main
purpose of the meeting is to consider a special resolution to extend the
mandatory termination date for the Company from December 1, 2012 to December 1,
2018. Shareholders of record at the close of business on September 29, 2011 will
be provided with the Notice of meeting and Management Information Circular in
respect of the meeting and will be entitled to vote at the meeting.


The reasons for the term extension proposal are as follows:



--  Shareholders will have the opportunity to continue to participate in a
    fund with attractive floating rate monthly distributions. The current
    yield of the Preferred shares is 4.95% based on the market price at
    September 26, 2011. Preferred shareholders have received 70 consecutive
    monthly dividends for a total of $3.35 per Preferred share since
    inception in November 2005. The current yield of the Class A shares is
    11.6% based on the market price at September 26, 2011. Class A
    shareholders have received a total of $5.23 per Class A share since
    inception. 
    
    
--  Class A Shareholders could benefit from any market appreciation or
    dividend increases in the 17 Canadian blue chip dividend paying
    companies (held in the portfolio) over the extended time period. 
    
    
--  Preferred Shareholders and Class A Shareholders could receive increased
    distributions should the Canadian prime rate increase sufficiently over
    the extended term. 
    
    
--  Long term investors may benefit from an expanded time horizon. 
    
    
--  A longer investment horizon allows the Manager to remain focused on its
    investment strategy without prematurely beginning the process of winding
    down investments. 



If the extension is approved, Class A Shareholders and Preferred Shareholders
will be provided with a Special Retraction right as described in the Management
Information Circular which is designed to provide Shareholders with an
opportunity to retract their Shares, if they so wish, and receive a retraction
price that is calculated in the same way that such price would be calculated if
the Company were to terminate on December 1, 2012 as originally contemplated.


The special resolution also allows the Board of Directors to provide subsequent
5 year extension terms while continuing to provide all shareholders with the
same retraction right entitlement at each extension date as they would have had
if the term of the Company were not to be so extended. The ability to extend the
termination date will save the Company all of the associated costs of holding a
special shareholders meeting while still retaining each shareholders right to
retract their shares on the same basis as if a termination date had occurred.
The resolution provides the Board with the ability to modify the dividend
formula for ensuing extension terms beyond December 1, 2018 if necessary, to
reflect market conditions existing at that time.


The Board of Directors of the Company has determined that the special resolution
is in the best interests of the Company and its shareholders. Accordingly, the
Board of Directors recommends that shareholders vote FOR the special resolution.
The Independent Review Committee of the Company has also unanimously determined
that the calling and holding of the special meeting to consider the matters
described in the Circular, on terms set forth in the Circular, achieves a fair
and reasonable result for shareholders.


The Notice of Special Meeting of Shareholders and the Management Information
Circular is available on SEDAR and the Company's website at
www.primedividend.com.

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