PFD & PFO Announce Results of Special Meeting of Shareholders

  
    
  
  
    
      Flaherty & Crumrine Preferred Income Fund Incorporated (NYSE:PFD) and 
      Flaherty & Crumrine Preferred Income Opportunity Fund Incorporated 
      (NYSE:PFO) have announced that their shareholders have approved all 
      proposals considered at the Special Meetings of Common and Preferred 
      Stock Shareholders held on May 21, 2008.
    
    
      The shareholders approved changes to each Fund’s 
      investment policies and advisory agreement, which are intended to give 
      each Fund greater flexibility in responding to the turbulence in the 
      auction market that sets the rates paid on each Fund’s 
      outstanding Preferred Stock. As a result of these changes, each Fund has 
      the option of using borrowing or other debt financing as a means of 
      leverage.
    
    
      About PFD and PFO: PFD was organized in 1991 and PFO was 
      organized in 1992 as closed-end, diversified investment companies which 
      invest primarily in preferred securities. Each fund’s 
      investment objective for holders of its common stock is high current 
      income consistent with preservation of capital. PFD and PFO are managed 
      by Flaherty & Crumrine Incorporated, an independent investment adviser 
      which was founded in 1983 to specialize in the management of portfolios 
      of preferred and related securities. Flaherty & Crumrine also 
      manages two other U.S. closed-end funds: Flaherty & 
      Crumrine/Claymore Preferred Securities Income Fund (NYSE:FFC); and 
      Flaherty & Crumrine/Claymore Total Return Fund (NYSE:FLC).