ING Prime Rate Trust Announces Intended Redemption of Auction-Rate Preferred Shares

ING Prime Rate Trust, a diversified closed-end management investment company listed on the New York Stock Exchange (NYSE: PPR), has announced today its intention to redeem a portion of its outstanding auction-rate preferred shares (ARPS). The Trust's Board of Trustees has approved a partial redemption that will be paid primarily by drawing on leverage available under the Trust's credit facilities. The redemption would provide liquidity at par for the holders of a portion of the Trust's ARPS.

The Trust expects to redeem approximately $25 million of the $150 million ARPS currently outstanding, approximately 16.6% by series, subject to satisfying the notice and other requirements that apply to ARPS redemptions. Upon completion of such notice and other requirements, the Trust will issue a formal redemption notice to the paying agent and record holders. The Trust expects to issue a formal redemption notice by the second week of September and anticipates that the redemption of the $25 million of ARPS will be completed by mid- to late October.

In December 2009, the Trust announced its intention to redeem up to $100 million of the $225 million ARPS then outstanding, through a series of four quarterly periodic redemptions of up to $25 million each. The first three redemptions were completed in late January, mid-April and mid-July, and this is intended to be the fourth redemption. The amount and timing of subsequent redemptions of ARPS will be at the discretion of the Trust's Board of Trustees and management, subject to market conditions and investment considerations.

The Depository Trust Company (DTC) will determine how partial series redemptions will be allocated among each participant broker-dealer account. Each participant broker-dealer, as nominee for its customers who are beneficial owners of the ARPS (street name shareholders), in turn will determine how redeemed shares are to be allocated among its customers. The procedures used by broker-dealers to allocate redeemed shares among beneficial owners may differ from each other as well as from the procedures used by DTC.

SHAREHOLDER INQUIRIES: ING Funds Shareholder Services at (800) 992-0180

Certain statements made on behalf of the Trust in this release may be considered forward-looking statements. The Trust's actual future results may differ significantly from those anticipated in any forward-looking statements due to numerous factors, including but not limited to a decline in value in markets in general or the Trust's investments specifically. Neither the Trust nor ING undertakes any responsibility to update publicly or revise any forward-looking statement.

ING Investments, LLC, the manager of the Trust, is part of ING, a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services to over 75 million private, corporate and institutional clients in more than 50 countries. With a diverse workforce of about 125,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand.

ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services to over 85 million private, corporate and institutional clients in more than 40 countries. With a diverse workforce of about 110,000 people, ING is dedicated to setting the standard in helping our clients manage their financial future.

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SOURCE: ING

CONTACT: Dana Ripley, +1-770-980-4865 or +1-404-788-9624