DBRS Confirms Mulvihill Premium Canadian Bank at Pfd-2

Dominion Bond Rating Service (“DBRS”) has today confirmed the ratings of the Cumulative Preferred Shares (“Preferred Shares”) issued by Mulvihill Premium Canadian Bank (the “Company") in September 2003, following an amendment in May 2003 to extend the mandatory redemption date for an additional seven years to November 1, 2010. The Company holds a portfolio (the “Portfolio”) of common shares of Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, and The Toronto-Dominion Bank. The Portfolio is managed by Mulvihill Capital Management.

Holders of the Preferred Shares are entitled to receive fixed, quarterly cumulative distributions for an annual yield of 5.51%. As of February 2004, the Portfolio provided a downside protection of approximately 42%, net of expenses to the principal amount of the outstanding Preferred Shares which increased to 44.63% as of December 2005.

For the six months ended April 30, 2005, the annualized Portfolio yield was 3.14%. During October 2004 and April 2005, the interest coverage ratio increased from 0.56 to 0.61 times, respectively. The distributions to both classes of shares are made from income generated by the underlying yield on the Portfolio and from writing covered call options on the common shares in the Portfolio. The rating confirmation of the Preferred Shares is based on: (1) the available downside protection, (2) consistency of dividend distributions of the Portfolio, and (3) the size and stability of the underlying companies in the Portfolio. The main constraints to the rating are the concentration of the Portfolio in the financial services industry in Canada and the Company’s dependence on the value and dividend policies of the companies in the Portfolio. There is a risk that the use of covered call option writing strategies can potentially distribute the income to the Class A Shares while grinding down the NAV of the Portfolio, resulting in reduced levels of protection for the Preferred Shares.