TORONTO, ONTARIO--(Marketwire - Jan. 26, 2011) - Premium Income Corporation (TSX:PIC.A)(TSX:PIC.PR.A) today announces results for the year ended October 31, 2010. Net realized income before Preferred share transactions amounted to $19.7 million or $1.37 per Unit. Each Unit consists of one Class A share and one Preferred Share. Distributions to shareholders amounted to $0.86 per Preferred share, and $0.60 per Class A share. 

Premium Income Corporation is a mutual fund corporation, which invests in the common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, and the Toronto Dominion Bank. To generate additional returns above the dividend income earned on the portfolio, the Company will, from time to time, write covered call options in respect of all or part of the common shares in the Portfolio. In addition, the Company may write cash covered put options in respect of securities in which the Company is permitted to invest.

Statement of Net Assets   2010    
Assets $ 293.3    
Liabilities   214.4    
Net Assets (Equity) $ 78.9    
     
Statement of Operations        
Income $ 12.4    
Expenses   (4.5 )  
Net Investment Income $ 7.9    
Net Gain on Investments   11.8    
Net Realized Income Before        
Preferred Share Transactions $ 19.7    

For further information, please contact Investor Relations at 416.681.3966, toll free at 1.800.725.7172 or visit www.mulvihill.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Contact Information: Mulvihill Structured Products
John Mulvihill
President and CEO
416.681.3966 or 1.800.725.7172
or
Mulvihill Structured Products
David Roode
President, Fund Services
416.681.3966 or 1.800.725.7172
or
Mulvihill Structured Products
Aaron Ho
Vice-President, Finance
416.681.3966 or 1.800.725.7172
or
Mulvihill Structured Products
121 King Street West, Suite 2600
Toronto, Ontario, M5H 3T9
416.681.3966 or 1.800.725.7172
info@mulvihill.com
www.mulvihill.com