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Sentry Select MBS Adjustable Rate Income Fund II (MGS.UN) Announces Resignation of Investment Manager

TORONTO: Sentry Select Capital Corp. (“Sentry Select” or the “Manager”), as manager of Sentry Select MBS Adjustable Rate Income Fund II (the “Fund”), announces that Fixed Income Discount Advisory Company (“FIDAC”) has delivered to the Manager a notice of its resignation (the “Notice”) as investment manager of Mortgage-Backed Securities Limited Partnership (the “Partnership”). The Fund obtains exposure to the Partnership through a forward agreement. FIDAC’s resignation will become effective on July 14, 2008 or such earlier date as the Manager may wish.

In the Notice, FIDAC advised that the reason for its resignation was the impact of the Fund’s annual redemption right and mandatory market purchase program, as well as market conditions, which have reduced the Partnership’s capital to a size that makes it uneconomic for the Partnership to obtain financing to leverage the Partnership’s capital according to the Partnership’s investment objectives. Sentry Select has identified several other investment managers that manage funds with similar investment strategies and expects to be able to engage a new manager prior to July 14, 2008.

Due to the reduction of capital in the Partnership resulting from the Fund’s April 2008 annual redemption, combined with current market conditions that have resulted in reduced availability of credit, leverage in the Fund has been reduced and is currently 1.15:1. As such, it is anticipated that the distribution on the Fund’s units for the remainder of the quarter will primarily be a return of capital.

The Manager is considering changing the structure of the Fund with the goal of improving the performance of the Fund and enhancing the likelihood of the Fund remaining a viable, attractive investment for the life of the Fund. Such changes would be subject to Unitholder approval and may be subject to regulatory approval.

Sentry Select Capital Corp.: Sentry Select Capital Corp. is a Canadian wealth management company that manages approximately $6.5 billion in gross assets as of March 31, 2008. The company offers a diverse range of investment products including closed-end investment funds, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates. Sentry Select is the manager and/or advisor to 29 TSX-listed reporting issuers. In addition, Sentry Select manages and/or provides advisory services to four reporting issuers listed on the TSX Venture Exchange.

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

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions ‘‘expect’’, ‘‘intend’’, “will”, “believe” and similar expressions to the extent they relate to Sentry Select. The forward-looking statements are not historical facts but reflect Sentry Select’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Sentry Select believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Sentry Select undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

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 (