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Sentry Select 40 Split Income Trust (TSX: SFO.UN, SFO.PR.A) raises gross proceeds of $96.4 million after exercise of over-allotment for $6.4 million

TORONTO: Sentry Select Capital Corp. is pleased to announce that Sentry Select 40 Split Income Trust (the “Trust”) has issued an additional 320,000 Capital Units and 320,000 Preferred Securities for gross proceeds of $6,400,000 pursuant to the exercise by the agents of their over-allotment options.

Gross proceeds: Including the over-allotment, the total gross proceeds of the Trust’s recent public offering are $96,400,000.

Trading information: The Capital Units and the Preferred Securities trade on the Toronto Stock Exchange under the symbols SFO.UN and SFO.PR.A, respectively.

Investment objectives:

The Trust’s investment objectives are:

• with respect to the Preferred Securities, (i) to pay fixed quarterly interest payments equal to 5.25% per annum on the principal amount of the Preferred Securities; • with respect to the Capital Units, (i) to pay monthly distributions, initially expected to be equal to 10% per annum, and (ii) to preserve and enhance net asset value.

Conversion of the Trust :

Capital Units will be redeemable at net asset value on December 1, 2008. On December 2, 2008 the Trust will become an open ended mutual fund and the Capital Units will be delisted and will become redeemable at net asset value per Capital Unit on a daily basis.

Preferred Securities will be redeemable at the original subscription price on December 1, 2008 (in cash or, at the election of the holder, in Capital Units).

Investment strategy :

The net proceeds of the Offering will be used by the Trust to acquire the portfolio of approximately 40 securities of income funds and other high-yielding equities that will be managed using the following qualitative guidelines:

• Securities of issuers with an STA-1, STA-2 or STA-3 stability rating by DBRS and unrated securities of issuers of similar quality as determined by the manager must make up at least 60% of the portfolio. • Securities of issuers with an STA-1 or STA-2 stability rating by DBRS and unrated securities of issuers of similar quality as determined by the manager must make up at least 25% of the portfolio.• Oil and gas securities may make up no more than 20% of the portfolio.• No security may make up more than 5% of the portfolio.

Sentry Select Capital Corp.: Sentry Select Capital Corp. is a wealth management company providing investment, administrative and marketing services to 35 exchange-listed closed-end funds and corporations (including preferred securities and debentures), 22 principal-protected notes, 16 mutual funds and four flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of December 31, 2006, the firm had approximately $8 billion in gross assets under management.

Agents: A syndicate of agents was co-led by CIBC World Markets Inc. and RBC Capital Markets, and included BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Berkshire Securities Inc., Blackmont Capital Inc., Wellington West Capital Inc., Desjardins Securities Inc., IPC Securities Corporation, Jory Capital Inc. and Research Capital Corporation.

More information: Investor Services (broker/investor inquiries) or Kinga Lam (media inquiries)Tel: 1-888-246-6656 Fax: 416-364-1330

This news release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, the future performance of the Trust. When used in this news release, the word “expects” and the use of the future tense generally identify forward-looking statements. These statements reflect Sentry Select’s current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, Sentry Select cannot assure that the forward-looking statements contained in this news release will be realized.

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 (