Preferred Income Fund, Preferred Income Opportunity Fund, preferred stocks
2007 Tax Information (as a Percent of Total Distributions)

Flaherty & Crumrine Preferred Income Fund (PFD)
Calendar Year 2007
 
Individual
  
Corporation
 
QDI
Ordinary
Income
DRD
Ordinary
Income
Common Stock
69.12%
30.88%
 
59.01%
40.99%
MMPâ (Money Market Preferred)
68.94%
31.06%
 
58.70%
41.30%


Flaherty & Crumrine Preferred Income Opportunity Fund (PFO)
Calendar Year 2007
 
Individual
  
Corporation
 
QDI
Ordinary
Income
DRD
Ordinary
Income
Common Stock
70.57%
29.43%
 
60.56%
39.44%
MMPâ (Money Market Preferred)
71.23%
28.77%
 
61.50%
38.50%

 

For Individual investors, a portion of the distributions consisted of Qualified Dividend Income ("QDI") eligible for the maximum 15% personal tax rate.

For corporate investors, a portion of the distributions consisted of income eligible for the inter-corporate Dividends Received Deduction ("DRD").

 

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