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Sentry Select Diversified Income Trust (TSX: SDT.UN) closes the Exchange Offer, raises $210,611,539.84

TORONTO: Sentry Select Capital Corp. (“Sentry Select”) is pleased to announce the closing of Sentry Select Diversified Income Trust (the “Trust”) Exchange Offer.

Gross proceeds: At the closing, the Trust issued 35,840,842 units for total gross proceeds of $210,611,539.84

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.

Reimbursement of expenses: Sentry Select, the manager of the Trust previously announced that in connection with the 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 four-year period commencing on January 1, 2008.

Trading information and NAV: Sentry Select Diversified Trust units trade on the Toronto Stock Exchange under the symbol SDT.UN. As of September 20, 2006, the Fund’s closing price on the TSX was $5.72 per unit and the net asset value was $5.79 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.

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 4 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.

Dealer manager: National Bank Financial has been engaged as the dealer manager for the Exchange Offer.

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 (