Premium Income Completes Offering

On September 29, 2003, Premium Income Corporation completed a $230.7 million offering in Canada of its class A shares and preferred shares. Premium invests in a portfolio consisting primarily of common shares issued by Bank of Montreal, The Bank of Nova Scotia, CIBC, RBC and TD Bank. To generate additional returns above the dividend income generated by the portfolio, the company writes covered call options in respect of all or part of the securities in its portfolio.

Premium and its investment manager, Mulvihill Capital Management Inc., were represented by Andrew Aziz, Andrew McGuffin and Katy Waugh of Osler, Hoskin & Harcourt LLP. The underwriting syndicate, led by RBC Dominion Securities Inc., was represented by Shawn McReynolds, Ronald Wilson and Philippe Rousseau of Davies Ward Phillips & Vineberg LLP.