Covington Fund I Inc. today reported that it has completed the previously announced transaction with a nominee of Birch Hill Equity Partners in which Birch Hill purchased substantially all of the fund’s venture holdings in an en-bloc sale in exchange for $41 milllion in cash.

On October 19, the Fund announced that it had entered into an agreement with Birch Hill respecting the En-Bloc Sale.

In June 2006, the fund decided to seek liquidity for shareholders and then formally wind up the fund. The fund has reached a stage in its life cycle whereby it was a logical and appropriate time to begin winding up proceedings and to prepare for a return of capital to the fund’s investors.

After completing an evaluation of a number of alternative options and proposals, the board of directors determined that this transaction, the first of its type in Canada, was superior to either an orderly liquidation of all of the fund’s assets or a sale to alternative interested parties.

The en-bloc sale, approved by the fund’s shareholders at an annual and special meeting of shareholders held on November 9, received the approval of greater than 96% of the votes cast.

The fund will now move forward with the winding-up process which will require that it secure formal regulatory approvals, satisfy the remaining obligations of the fund, provide a return of capital to the shareholders of the fund, and complete the dissolution of the corporate entity. These actions are expected to take place over the next 4-8 months.

Further details about the sale and winding up of the fund are contained in the fund’s management information circular dated October 16, which is available at www.covingtonfunds.com.