John Hancock Tax-Advantaged Dividend Income Fund Reports Third Quarter Earnings

• Press Release
• Source: John Hancock Funds
• On 4:47 pm EDT, Tuesday October 27, 2009

BOSTON, Oct. 27 /PRNewswire-FirstCall/ -- John Hancock Tax-Advantaged Dividend Income Fund (NYSE: HTD - News; the "Fund"), a closed-end fund managed by John Hancock Advisers, LLC, reported today third quarter earnings.

Net investment income was $9,507,734, equal to $0.248 per common share, for the third quarter ended September 30, 2009. For the comparable period in 2008, net investment income was $9,089,306, equal to $0.233 per common share. As of September 30, 2009 the net asset value ("NAV") per share was $13.20, with total net assets of $758,958,151 and 38,314,317 common shares outstanding. In comparison, as of September 30, 2008 the net asset value per share was $13.85, with total net assets of $817,634,009 and 38,940,617 common shares outstanding. Total net assets include assets attributable to borrowings under Credit Facility Agreement.

Year-to-Date Update

The Fund's year-to-date performance results have been positive, as both preferred and utility stocks have staged a strong recovery since hitting their low points in early March. Year-to-date through September 30, 2009, the Fund's NAV per share is up 17.4% and for the period since the market bottom on March 9, 2009, it is up 122.0%. The market price per share is up 30.4% and 153.3% respectively, for the same periods. As of September 30, 2009, the Fund's average annual total return (at NAV) for the 1-, 3-, 5-, and life of Fund periods were 10.1%, -4.8%, 2.4%, and 2.8%, and at market price were 24.0%, -3.0%, 2.4%, and 0.3% for the same periods. Past performance is no guarantee of future results.

The Fund has had strong relative performance over the last 1-, 3-, and 5-year periods (ended September 30, 2009) versus its respective Lipper Closed-End Value Funds Peer Group (with 9 funds in the group), outperforming the Lipper Category Average in each time period on both a NAV and market price basis. The Fund ranked first, third, and third out of 9 funds for each of the 1-, 3-, and 5-year periods (ended September 30, 2009) on a NAV basis and ranked first, first, and third in the same time periods on a market price basis. In addition, the Fund's current annualized distribution rate of 8.27% on NAV and 9.02% on market price both ranked at the top of the Lipper Peer Group as of September 30, 2009. Source of performance data stated is Lipper, Inc. as of September 30, 2009.

The Fund's subadviser, MFC Global Investment Management (U.S.) LLC ("MFC Global US"), believes that electric utility stocks present attractively low price-earnings multiples with attractive dividend yields. In addition to attractive dividends, utility investors could see modest annual increases, enhancing the appeal of utility stocks relative to bonds. Some examples of stocks that have performed well for the Fund in 2009 include OGE Energy, ONEOK and Spectra Energy. MFC Global US believes these utilities have sound management teams, and these three utilities with large midstream gas processing corporations have remained profitable in the face of volatile oil prices. The oil companies have also remained strong, as BP PLC and Total SA show positive returns for the year. Detracting from performance was Ameren Corporation, who performed poorly because it cut its dividend earlier this year, which negatively impacted the Fund.

MFC Global US believes that recent economic data points to a building recovery and the outlook remains positive as yield spreads continue to tighten. Credit markets have shown signs of improvement, the Federal Reserve continues to hold short-term rates near zero, commodity prices have risen and inflation remains muted. Against this backdrop, investor demand for preferreds and utilities has been revived, helping to push their prices higher.

Actions Taken By Fund's Board of Trustees

The Fund's Board of Trustees has taken a number of steps over the last couple of years to enhance shareholder value and potentially decrease the discount between the market price and the NAV of the Fund's common shares. The Fund has strategically participated in a share repurchase program in each of the last two years, beginning with the commencement of the initial plan on December 4, 2007. Through September 30, 2009 the Fund has repurchased 3,763,170 shares, or 8.94% of total outstanding shares. During this period the share repurchases have been accretive to the Fund's NAV by approximately $0.17 per share. The share repurchase plan is currently in effect through December 31, 2009 and repurchase activity will be disclosed in its shareholder report for the relevant fiscal period. There is no assurance that the Fund will purchase shares at any specific discount levels or in any specific amounts. There is no assurance that the market price of the Fund's shares, either absolutely or relative to net asset value, will increase as a result of any share repurchases.

As previously announced on July 27, 2009, the Fund has implemented a covered call options strategy ("options strategy") managed by Analytic Investors, LLC. The goal of the options strategy is to enhance risk-adjusted returns, reduce overall portfolio volatility and generate tax-advantaged gains for current distributions from options premium. There is no guarantee that the Fund will achieve its options strategy goal. The options strategy will be accomplished by primarily writing (selling) call index options on a variety of both U.S. and non-U.S. broad-based securities indices that also qualify for favorable federal income tax treatment as "section 1256 contracts" under the Internal Revenue Code.

The Fund's investment objective is to provide a high level of after-tax total return from dividend income and gains and capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in dividend-paying common and preferred securities that the Adviser believes at the time of acquisition are eligible to pay dividends which, for individual shareholders, qualify for U.S. federal income taxation at rates applicable to long-term capital gains, which currently are taxed at a maximum rate of 15%.

The views of the MFC US investment team reflect its own opinions and they are in no way guarantees of future events, and are not intended to be used as an investment advice or a recommendation regarding any specific security. They are also subject to change at any time as market and other conditions warrant.

Statements in this press release that are not historical facts are forward-looking statements as defined by the United States securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors which are, in some cases, beyond the Fund's control and could cause actual results to differ materially from those set forth in the forward-looking statements.

Past performance is no guarantee of future results. The Fund's performance during the periods year-to-date through September 30, 2009 and March 9, 2009 to September 30, 2009 reflect strong stock market performance and/or the strong performance of stocks held by the Fund during these periods. This performance is not typical and may not be repeated. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. The Fund's performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund's shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. For performance as of the most recent month end, please refer to www.jhfunds.com.

Fund shares do not represent a deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Data are based on total market value of Fund holdings unless otherwise indicated. The data provided in this press release are for information only and are not intended for trading purposes. The Fund is subject to investment risks, including possible loss of principal invested. Portfolio information is subject to change due to active management. The amount of distributions may vary depending on a number of factors. As portfolio and market conditions change, the rate of distributions on Fund common shares could change.

Before investing, prospective investors should consider carefully the Fund's objective, risks, and charges and expenses. For more complete information about the Fund, please contact your financial advisor.

About John Hancock Funds

The Boston-based mutual fund business unit of John Hancock Financial, John Hancock Funds, manages more than $42.9 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors at June 30, 2009.

About John Hancock Financial and Manulife Financial Corporation

John Hancock Financial is a unit of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 22 countries and territories worldwide. Operating as Manulife Financial in Canada and in most of Asia, and primarily as John Hancock in the United States, Manulife Financial Corporation offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$421 billion (US$362 billion) at June 30, 2009.

Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.

The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers a broad range of financial products and services, including life insurance, fixed and variable annuities, fixed products, mutual funds, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at www.johnhancock.com.

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