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Sentry Select Diversified Income Trust (TSX: SDT.UN) Announces Manager to Pay Expenses of Exchange Offer

TORONTO: Sentry Select Capital Corp. (“Sentry Select”), the manager of Sentry Select Diversified Income Trust (the “Trust”) announced today that in connection with the Trust’s previously announced Exchange Offer, Sentry Select has agreed to issue a promissory note in favour of the Trust on the closing of the offering to reimburse the Trust for all expenses incurred in connection with the offering, including the fees payable to the dealer manager and soliciting dealers. The note will bear interest at the prime rate of interest and will be payable in equal quarterly payments over a period of five years.

Deposit date and closing: The Exchange Offer is open for acceptance up to 4:00 p.m. (Toronto time) on September 12, 2006 by holders of securities of the Issuers identified in the Preliminary Prospects dated August 11, 2006. Holders of an Issuer who wish to accept the Exchange Offer must request their CDS participant to effect the deposit for them, and should do so no later than September 11, 2006 to ensure that their securities are included in the deposit to be made through CDS prior to expiration.

Exchange ratios: The number of units of the Trust issuable for securities of each Issuer will be determined by dividing the weighted average trading price of such securities on the Toronto Stock Exchange (“TSX”) during the period of three consecutive trading days ending on September 12, 2006, by the weighted average trading price of the units of the Trust on the TSX during the same period. The closing is expected to occur on or about September 21, 2006.

Sentry Select Diversified Income Trust: Sentry Select Diversified Income Trust is a closed-end trust that aims to maximize distributions to unitholders by investing primarily in a broad range of royalty and income trusts, real estate investment trusts and other high-yielding securities.

Trading information and NAV: Sentry Select Diversified Trust units trade on the Toronto Stock Exchange under the symbol SDT.UN. As of September 7, 2006, the Fund’s closing price on the TSX was $5.99 per unit and the net asset value was $5.88 per unit.

Distribution reinvestment plan: The Trust offers a distribution reinvestment plan whereby residents of Canada may elect to have their cash distributions reinvested in additional units of the Trust.

Website: To find out more about the Trust, including portfolio holdings, net asset values and investment objectives, please go to

Sentry Select Capital Corp.: Sentry Select Capital Corp. provides investment, administrative and marketing services to 33 exchange-listed closed-end funds and corporations, including preferred securities and debentures, 16 mutual funds, 15 principal-protected notes and four flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of August 31, 2006, the firm had approximately $8.5 billion in gross assets under management.

Restrictions: The Exchange Offer is not a take-over bid for any of the issuers and is not, and under no circumstances is to be construed as, an offering of any Trust Units for sale in the U.S. or to any resident thereof.

More information: Investor Services (broker/investor inquiries) or Kinga Lam (media inquiries) Tel: 1-888-246-6656 Fax: 416-364-1197

Documents (including press releases) regarding the various investment funds that are managed or advised by Sentry are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (