Covington Fund I Inc. announced today that, as of February 5, it had completed the first distribution of fund proceeds to its shareholders. The return of capital, in the amount of $5.50 per share, was effected as a partial purchase for cancellation of shares of the fund.

This announcement follows the fund’s sale of substantially all of the its venture holdings in an en bloc sale to Birch Hill Equity Partners.

Returning shareholder proceeds in the form of units of the CI Money Market Fund provides investors with the most timely and cost effective method of a return of capital. Additionally, shareholders are provided the flexibility to access, and trade, units of CI Money Market Fund immediately or to retain them in their account until a final investment decision is made.

This first distribution returned to investors approximately 75% of the current market value of their holdings in time for reinvestment in the 2006 RRSP season. A second distribution is expected to occur later in 2007.

The fund will continue to move forward with the wind up process including, the remaining obligations of the fund, providing final return of capital to the shareholders, and dissolving the corporate entity. It is anticipated that these actions will be completed by before the end of 2007.

The en-bloc sale of the fund’s portfolio, and subsequent liquidation and dissolution of the fund, was approved by the fund’s shareholders at a meeting on Nov. 9, 2006, received the approval of greater than 96% of the votes cast at the meeting by shareholders of the fund.

Further details about the En-Bloc Sale and winding up of the Fund are contained in the Fund’s management information circular dated Oct. 16, 2006 which is available at www.covingtonfunds.com.