Columbia Seligman Premium Technology Growth Fund Announces Fourth Quarter Distribution: 9.25% Annual Rate For IPO Investors

Today, Columbia Seligman Premium Technology Growth Fund, Inc. (NYSE: STK) (the Fund) declared a fourth-quarter distribution, pursuant to its managed distribution policy, in the amount of $0.4625 per share, which is equal to a quarterly rate of 2.3125% (9.25% annualized) of the $20.00 offering price in the Fund's initial public offering in November 2009. The fourth-quarter distribution of $0.4625 per share is equal to a quarterly rate of 2.5552% (10.22% annualized) of the Fund's market price of $18.10 per share as of October 31, 2016.

The distribution will be paid on November 22, 2016 (the Payment Date) to Stockholders of record on November 14, 2016. The ex-dividend date is November 10, 2016. It is anticipated that the Fund will make a subsequent distribution under its managed distribution policy in the month of February.

Prior to the managed distribution policy, the Fund paid distributions pursuant to a level rate distribution policy. Under its former distribution policy and consistent with the Investment Company Act of 1940, as amended, the Fund could not distribute long-term capital gains more often than once in any one taxable year.

In October 2010, the Fund received exemptive relief from the Securities and Exchange Commission that permits the Fund to make periodic distributions of long-term capital gains more often than once in any one taxable year. After consideration by the Fund's Board, the Fund adopted the current managed distribution policy which allows the Fund to make periodic distributions of long-term capital gains.

The following table sets forth the estimated breakdown of the distribution noted above, on a per share basis, from the following sources: net investment income; net realized short-term capital gains; net realized long-term capital gains; and return of capital or other capital source.
   
      Breakdown of Distribution
Sources     %     US Dollar
Net Investment Income 0.00%     $0.0000
Net Realized Short-Term Capital Gains 18.03% $0.0834
Net Realized Long-Term Capital Gains 81.97% $0.3791
Return of Capital or other Capital Source     0.00%     $0.0000
Total     100.00%     $0.4625
 

The following table sets forth the estimated breakdown, on a per share basis, of all distributions made by the Fund during the year-to-date period ended on the Payment Date (includes the dividend payment noted in the table above) from the following sources: net investment income; net realized short-term capital gains; net realized long-term capital gains; and return of capital or other capital source.
   

 
   

Breakdown of All Distributions Paid Through Year-To-Date Period Ended on the Payment Date
Sources     %     US Dollar
Net Investment Income 0.00%     $0.0000
Net Realized Short-Term Capital Gains 9.73% $0.1800
Net Realized Long-Term Capital Gains 90.27% $1.6700
Return of Capital or other Capital Source     0.00%     $0.0000
Total     100.00%     $1.8500
 

Historically, the Fund has distributed more than its income and net realized capital gains, which has resulted in Fund distributions substantially consisting of return of capital or other capital source. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income." As of the payment date of the current distribution, all Fund distributions paid in 2016 (as estimated by the Fund based on current information) are from the earnings and profits of the Fund and not a return of capital. This could change during the remainder of the year, as further described below.

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