Unitholders of Sentry Select Focused 50 Income Fund unanimously approved the merger of the fund with Sentry Select Canadian Income Fund at a special meeting held today.

The effective date of the merger is expected to be on August 20. The terminating fund will transfer all of its assets to Canadian Income Fund in exchange for units of Canadian Income Fund and the assumption by Canadian Income Fund of all the liabilities of the terminating fund. Each unitholder of the terminating fund will receive units of Canadian Income Fund having the same aggregate net asset value as their units of the terminating fund as of the close of business on the business day prior to the effective date of the merger.

The proposed Merger is subject to regulatory approval.

Sentry Select Capital Corp. says it believes that the merger will result in significant benefits to unitholders of the terminating fund for the following reasons:

> the potential for portfolio diversification should improve through the management of a larger Canadian Income Fund.

> the investment objectives of the terminating fund limit the fund to investing only in income funds with specified rating requirements, while the broader investment objectives of Canadian Income Fund provide additional flexibility to the fund’s manager, which Sentry Select believes may be beneficial to unitholders; and

> changes to the tax treatment of income trusts announced by the Minister of Finance on October 31, 2006 have resulted in a reduction in the number of income trusts due to take-overs and conversions into corporations. Sentry Select believes that the interests of the unitholders are better served by being invested in a larger Canadian Income Fund with a more flexible mandate, which is better suited to the changing investment environment.

Sentry Select is proposing that the merger be effected on a tax-deferred basis, and all costs and expenses associated with the merger will be borne by Sentry Select.

Toronto-based Sentry Select manages over $6 billion in assets as of June 30.