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

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

Business Wire

BOSTON -- February 6, 2014

Today, Columbia Seligman Premium Technology Growth Fund, Inc. (NYSE: STK) (the
Fund) declared a first-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 November2009. The first-quarter
distribution of $0.4625 per share is equal to a quarterly rate of 3.0609%
(12.24% annualized) of the Fund’s market price of $15.11 per share as of
January 31, 2014.

The distribution will be paid on February 26, 2014 (the Payment Date) to
Stockholders of record on February 18, 2014. The ex-dividend date is February
13, 2014. It is anticipated that the Fund will make a subsequent distribution
under its managed distribution policy in the month of May.

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
Net Realized Short-Term Capital Gains         0.00%          $0
Net Realized Long-Term Capital Gains          39.59%         $0.1831
Return of Capital or other Capital Source   60.41%       $0.2794
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
Net Realized Short-Term          0.00%                          $0
Capital Gains
Net Realized Long-Term           39.59%                         $0.1831
Capital Gains
Return of Capital or other     60.41%                       $0.2794
Capital Source
Total                          100.00%                      $0.4625
                                                                

The Fund estimates that it has distributed more than its income and net
realized capital gains. Therefore, all or a portion of your distribution may
be a return of capital or other capital source. Areturn 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.”

The amounts, sources and percentage breakdown of the distributions reported
above are only estimates and are not being provided for, and should not be
used for, tax reporting purposes. The actual amounts, sources and percentage
breakdown of the distribution for tax reporting purposes, which may include
return of capital, will depend upon the Fund’s investment experience during
the remainder of its fiscal year and may be subject to changes based on tax
regulations.

The following table sets forth (i) the average annual total return of a share
of the Fund’s common stock at net asset value (NAV) for the period since
inception of Fund investment operations through the period noted and (ii) the
Fund’s annualized distribution rate, for the same period, expressed as a
percentage of the NAV price of a share of the Fund’s common stock at January
31, 2014.

                                                                      
Average Annual Total NAV Return for the Period Since Inception of      6.56%
Investment Operations (November 30, 2009) Through January 31, 2014
Annualized Distribution Rate as a Percentage of January 31, 2014 NAV
Price (For the Period Since Inception of Investment Operations         11.46%
(November 30, 2009) through January 31, 2014)
                                                                      

The following table sets forth (i) the cumulative total return (at NAV) of a
share of the Fund’s common stock for the year-to-date period ended January 31,
2014 and (ii) the Fund’s distribution rate, for the same period, expressed as
a percentage of the NAV price of a share of the Fund’s common stock at January
31, 2014.

                                                 
Cumulative Total NAV Return for the               -0.25%
Year-to-Date Period Ended January 31, 2014
Distribution Rate as a Percentage of January        N/A – No distribution made
31, 2014 NAV Price (For the Year-to-Date Period   during the period.
Ended January 31, 2014)
                                                 

You should not draw any conclusions about the Fund’s investment performance
from the amount of the distributions noted in the tables above or from the
terms of the Fund’s distribution policy.

The Fund or your financial professional will send you a Form 1099-DIV for the
calendar year that will tell you how to report these distributions on your US
federal income tax return. For tax purposes, the Fund is required to report
unrealized gains or losses on certain non-US investments as ordinary income or
loss, respectively. Accordingly, the amount of the Fund’s total distributions
that will be taxable as ordinary income may be different than the amount of
the distributions from net investment income reported above.

The Board may change the Fund’s distribution policy and the amount or timing
of the distributions, based on a number of factors, including, but not limited
to, the amount of the Fund’s undistributed net investment income and net
short- and long-term capital gains and historical and projected net investment
income and net short- and long-term capital gains.

The Fund is a closed-end investment company that trades on the New York Stock
Exchange.

Past performance does not guarantee future results.

Important Disclosures:

Investors should consider the investment objectives, risks, charges, and
expenses of the Fund carefully before investing. You can obtain the Fund’s
most recent periodic reports and other regulatory filings by contacting your
financial advisor or visiting www.columbiamanagement.com. These reports and
other filings can also be found on the Securities and Exchange Commission’s
EDGAR Database. You should read these reports and other filings carefully
before investing.

The Fund expects to receive all or some of its current income and gains from
the following sources: (i) dividends received by the Fund that are paid on the
equity and equity-related securities in its portfolio; and (ii) capital gains
(short-term and long-term) from option premiums and the sale of portfolio
securities. It is possible that the Fund’s distributions will at times exceed
the earnings and profits of the Fund and therefore all or a portion of such
distributions may constitute a return of capital as described below. A return
of capital is a return of your original investment. A return of capital
distribution does not necessarily reflect the Fund’s investment performance
and should not be confused with “yield” or “income.” You should not draw any
conclusions about the Fund’s investment performance from the amount of this
distribution or from the Fund’s distribution policy.

Distributions that qualify as a return of capital are a return of some or all
of your original investment in the Fund. A return of capital reduces a
stockholder’s tax basis in his or her shares. Once the tax basis in your
shares has been reduced to zero, any further return of capital may be taxable
as capital gain. Shareholders should consult their tax advisor or tax attorney
for proper treatment.

Distributions may be variable, and the Fund’s distribution rate will depend on
a number of factors, including the net earnings on the Fund’s portfolio
investments and the rate at which such net earnings change as a result of
changes in the timing of, and rates at which, the Fund receives income from
the sources noted above. As portfolio and market conditions change, the rate
of dividends on the shares and the Fund’s distribution policy could change.
The Board may change the Fund’s distribution policy and the amount or timing
of the distributions, based on a number of factors, including, but not limited
to, the amount of the Fund’s undistributed net investment income and net
short- and long-term capital gains and historical and projected net investment
income and net short- and long-term capital gains.

The market prices of technology and technology-related stocks tend to exhibit
a greater degree of market risk and price volatility than other types of
investments. These stocks may fall in and out of favor with investors rapidly,
which may cause sudden selling and dramatically lower market prices. These
stocks also may be affected adversely by changes in technology, consumer and
business purchasing patterns, government regulation and/or obsolete products
or services. Technology and technology-related companies are often smaller and
less experienced companies and may be subject to greater risks than larger
companies, such as limited product lines, markets and financial and managerial
resources. These risks may be heightened for technology companies in foreign
markets.

Investment products are not federally or FDIC-insured, are not deposits or
obligations of, or guaranteed by any financial institution, and involve
investment risks including possible loss of principal and fluctuation in
value.

The Fund's use of derivatives introduces risks possibly greater than the risks
associated with investing directly in the investments underlying the
derivatives. A relatively small price movement in an underlying investment may
result in a substantial gain or loss.

The Fund should only be considered as one element of a complete investment
program. An investment in the Fund should be considered speculative. The
Fund's investment policy of investing in technology and technology-related
companies and writing call options involves a high degree of risk.

There is no assurance that the Fund will meet its investment objectives or
that distributions will be made. You could lose some or all of your
investment. In addition, closed-end funds frequently trade at a discount to
their net asset values, which may increase your risk of loss.

The Columbia Seligman Premium Technology Growth Fund is managed by Columbia
Management Investment Advisers, LLC. This material is distributed by Columbia
Management Investment Distributors, Inc., member FINRA.

© 2014 Columbia Management Investment Advisers, LLC. All rights reserved.

AdTrax 813189

Contact:

For Columbia Seligman Premium Technology Growth Fund, Inc.
Stockholder contact:
Gary Terpening, 212-850-1533
gary.a.terpening@columbiamanagement.com
or
Media contact:
Steven Connolly, 612-671-4146
steven.x.connolly@ampf.com
 
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