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Diversified Preferred Share Trust (TSX: DPS.UN) proposes issuance of additional units and amendment to Declaration of Trust

TORONTO: The administrator of Diversified Preferred Share Trust (the “Trust”) announces that it has called a special meeting of the unitholders of the Trust to consider and approve the listing of an additional 500,000 units to be reserved for issuance to the administrator as payment of the monthly administration fee; and an amendment to the Declaration of Trust that will enable the Trust to issue units at less than $25 per unit, provided that the units will be issued for net proceeds that equal or exceed the Net Asset Value per Unit (“NAVPU”).

The distribution of units to the administrator as payment of the administration fee has the effect of providing additional cash flow for distribution to unitholders of the Trust. The last remaining units that were reserved for issuance for monthly payment to the administrator were paid out by January, 2007. The Trustees believe that it is in the best interests of the unitholders that the Trust continues to pay the monthly administration fee in units, because it enables the Trust to pay more of its cash flow as distributions to unitholders.

Issuing additional units for net proceeds equal or exceeding NAVPU, even if less than $25, would decrease the management expense ratio by spreading the fixed operating costs of the Trust over more units and, if the net proceeds exceed NAVPU, would be accretive to NAVPU.

Unitholder approval: The Toronto Stock Exchange has conditionally approved the listing of an additional 500,000 units for the administration fee pending the approval of a simple majority of the votes cast by unitholders at a special meeting to be held on May 1, 2007. The amendment to the Declaration of Trust will require approval of two-thirds of the votes cast by unitholders at the special meeting. The record date for the purpose of determining the unitholders entitled to receive notice and vote at the meeting is the close of business on March 27, 2007.

Diversified Preferred Share Trust: Diversified Preferred Share Trust is designed to provide unitholders with the opportunity to receive quarterly cash distributions by investing in an equally weighted diversified portfolio of preferred shares and preferred securities of Canadian issuers managed on a passive basis and to receive the benefits of a low management expense ratio. The Trust’s units trade on the Toronto Stock Exchange under the symbol DPS.UN.

Sentry Select Capital Corp.: Sentry Select Capital Corp., the administrator of the Trust, is an innovative Canadian wealth management company who manages approximately $8 billion in gross assets as of March 31, 2007. The company offers a diverse range of investment products including closed-end trusts, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates. With 37 reporting entities, Sentry Select is the leading issuer of securities listed on the Toronto Stock Exchange.

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

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