The Citadel Group of Funds today announced that it will be merging each of MYDAS Fund, Citadel Multi-Sector Income Fund, and Citadel Income & Growth Fund, into Citadel Premium Income Fund to create one of Canada’s largest closed-end income fund with assets of approximately $750 million.

Citadel is targeting July 20 as the effective date for the mergers.

At the special meetings of the unitholders of each of the merging funds held on Sept. 14, 2005 and, in respect of Citadel Multi-Sector Income Fund and Citadel Income & Growth Fund, as adjourned to Oct. 12, 2005, unitholders of each of the merging funds were asked to approve a special resolution authorizing the administrators of those funds to merge with any one or more other income funds administered by an affiliate of Canadian Income Fund Group Inc. or its successor, provided that the funds to be merged or otherwise combined or consolidated met certain criteria for merging funds.

Subsequent to the special meetings and receipt of unitholder approval, the administrators of each of the merging funds determined to implement the fund mergers. In order to do so, the administrator of each of the merging funds have determined in good faith that the Citadel Premium Income Fund’s Investment Objectives are similar to the respective investment objectives of each of the merging funds, that the general and administrative expenses attributable to each merging fund will be reduced following the mergers and that the mergers will not result in an increase to the management expense ratio of each merging fund.

The administrators of each of the merging funds believe that there are numerous synergies that can be realized through the combination of the merging funds into Citadel Premium Income Fund and believe the fund mergers are in the best interests of the respective merging funds and their unitholders.

Following the merger it is expected that aggregate fund operating costs on a per unit basis will be reduced.

The mergers will be effected on a tax-deferred “rollover” basis for unitholders.

The portfolios of the merging funds will, by inclusion in Citadel Premium Income Fund, be subject to similar investment objectives, investment policies and investment restrictions as previously, as well as having common investments in a significant number of issuers.

Each of the merging funds has provided high levels of cash distributions to its respective unitholders, a portion of which have been paid on a tax-deferred basis. Following the mergers, Citadel Premium Income Fund will provide unitholders with the opportunity to continue to receive tax-deferred cash distributions on a monthly basis generated through its combined diversified portfolio of income producing portfolio securities. It is estimated that immediately following the mergers, the trust units of Citadel Premium Income Fund will have a net asset value of $12 per trust unit and will pay a monthly cash distribution of $0.085 per trust unit, representing a current yield of 8.5% per annum based on net asset value.

Citadel Premium Income Fund’s investment manager is Fiera Capital Management Inc. The investment manager directly and through its wholly owned subsidiary YMG Capital Management Inc. offer tailored multi-style investment solutions to their respective clients using four core investment processes: active fixed income, structured fixed income, active equity and quantitative products/financial engineering. Fiera YMG has assets under management of over $26 billion.