Sentry Select Diversified Income Trust (TSX: SDT.UN) announces Exchange Offer

09/19/2007

TORONTO: Sentry Select Capital Corp. (“Sentry Select” or “Manager”) is pleased to announce that Sentry Select Diversified Income Trust (the “Trust”) has filed, and received a receipt for, a preliminary short-form prospectus across Canada, qualifying units of the Trust (the “Trust Units”) to be issued in connection with its exchange offer (the “Exchange Offer”) for securities of issuers (the “Issuers”) listed below.

Deposit date and closing: Acceptances of the Exchange Offer must be deposited with Computershare Investor Services Inc. through CDS Clearing and Depository Services Inc. (“CDS”) until 4:00 pm (Toronto time) on October 15, 2007 (the “Deposit Date”). Subject to the satisfaction of the conditions of the Exchange Offer, the closing is expected to occur on or about October 26, 2007.

Exchange ratio: Trust Units may be purchased by the exchange of eligible securities of any Issuer named below. The number of Trust Units issuable for the securities of each Issuer (the “Exchange Ratio”) will be determined by dividing the volume weighted average trading price of such securities on the Toronto Stock Exchange (“TSX”) during the period of three consecutive trading days ending on the Deposit Date (the “Pricing Period”) by the volume weighted average trading price of the Trust Units on the TSX during the Pricing Period.

Acceptance: The Exchange Offer will remain open for acceptance until 4:00 p.m. (Toronto time) on October 15, 2007. The Exchange Offer may be accepted only by means of a book-entry deposit through CDS. Holders of securities of an Issuer who wish to accept the Exchange Offer must request their investment adviser, investment dealer, bank, trust company or other nominee to effect the transaction for them and should do so not later than October 12, 2007 to ensure that their securities are included in the deposit to be made through CDS on October 15, 2007. Some nominees may require an earlier deadline for receiving instructions concerning a deposit.

Reimbursement of expenses: The Manager has agreed to reimburse the Trust for the expenses of the Exchange Offer, including the solicitation and agency fees, incurred by the Trust in 28 equal quarterly instalments (due January 1, April 1, July 1 and October 1), together with interest, beginning on January 1, 2009. This obligation will be evidenced by a promissory note to be issued at the closing of the Exchange Offer, which will bear interest from the date of issue at the prime rate of interest posted from time to time by the Trust’s bank.

Issuers:

A&W Revenue Royalties Income Fund	Canadian Utilities Ltd.
Acadian Timber Income Fund	Canadian Western Bank
Advantage Energy Income Fund	Canetic Resource Trust
Aeroplan Income Fund	Canexus Income Fund
Ag Growth Income Fund	Canfor Pulp Income Fund
AGF Management Ltd.	CanWel Building Materials Income Fund
Agrium Inc.	Cargojet Income Fund
Agtech Income Fund	Cathedral Energy Services Income Trust
Algonquin Power Income Fund	Chartwell Seniors Housing Real Estate Investment Trust
Allied Properties Real Estate Investment Trust	Chemtrade Logistics Income Fund
AltaGas Income Trust	Chesswood Income Fund
Altus Group Income Fund	CI Financial Income Fund
ARC Energy Trust	Cineplex Galaxy Income Fund
Arctic Glacier Income Fund	Cinram International Income Fund
Armtec Infrastructure Income Fund	CML HealthCare Income Fund
Artis Real Estate Investment Trust	Coast Wholesale Appliances Income Fund
ATCO Ltd.	Colabor Income Fund
Atlantic Power Corporation	Cominar Real Estate Investment Trust
ATS Andlauer Income Fund	Connors Bros. Income Fund
AutoCanada Income Trust	Contrans Income Fund
Avenir Diversified Income Trust	Crescent Point Energy Trust
Badger Income Fund	Creststreet Power & Income Fund
Bank of Montreal	Crombie Real Estate Investment Trust
Bank of Nova Scotia	Davis + Henderson Income Fund
Baytex Energy Trust	Daylight Resources Trust
BCE Inc.	DirectCash Income Fund
Bell Aliant Regional Communications Income Fund	Drive Products Income Fund
BFI Canada Income Fund	Dundee Real Estate Investment Trust
Big Rock Brewery Income Trust	Emera Inc.
Bird Construction Income Fund	Enbridge Inc.
Boardwalk Real Estate Investment Trust	Enbridge Income Fund
Bonavista Energy Trust	EnCana Corp.
Bonterra Energy Income Trust	Energy Savings Income Fund
Boralex Power Income Fund	Enerplus Resources Fund
Boston Pizza Royalties Income Fund	EPCOR Power L.P.
Brookfield Asset Management	Eveready Income Fund
Brookfield Properties Corp.	Extendicare Real Estate Investment Trust
Builders Energy Services Trust	Fairborne Energy Trust
CAE Inc.	Finning International Inc.
Calloway Real Estate Investment Trust	Firm Capital Mortgage Investment Trust
Canadian Apartment Properties Real Estate Investment Trust	First Capital Realty Inc.
Canadian Helicopters Income Fund	First National Financial Income Fund
Canadian Imperial Bank of Commerce	Focus Energy Trust
Canadian National Railway Company	Fording Canadian Coal Trust
Canadian Natural Resources Ltd.	Foremost Income Fund
Canadian Oil Sands Trust	Fort Chicago Energy L.P.
Canadian Pacific Railway Ltd.	Fortis Inc.
Canadian Real Estate Investment Trust	FP Newspapers Income Fund

Freehold Royalty Trust	Northern Property Real Estate Investment Trust
Futuremed Healthcare Income Fund	Northland Power Income Fund
Gamehost Income Fund	Oceanex Income Fund
GAZ Metro Limited Partnership	OFI Income Fund
General Donlee Income Fund	Onex Corp.
GENIVAR Income Fund	Paramount Energy Trust
Gluskin Sheff + Associates Inc.	Park Lawn Income Trust
GMP Capital Trust	Parkland Income Fund
Golf Town Income Fund	PDM Royalties Income Fund
Great Lakes Hydro Income Fund	Peak Energy Services Trust
Great-West Lifeco Inc.	Pembina Pipeline Income Fund
H&R Real Estate Investment Trust	Pengrowth Energy Trust
Harvest Energy Trust	Penn West Energy Trust
Home Equity Income Trust	Peyto Energy Trust
Huntingdon Real Estate Investment Trust	Phoenix Technology Income Fund
IAT Air Cargo Facilities Income Fund	Pizza Pizza Royalty Income Fund
IBI Income Fund	Pollard Banknote Income Fund
IGM Financial Inc.	Power Corporation of Canada
Imperial Oil Ltd.	Power Financial Corp.
Industrial Alliance Insurance and Financial Services Inc.	Precision Drilling Trust
ING Canada Inc.	Premium Brands Income Fund
Inmet Mining Corp.	Primaris Retail Real Estate Investment Trust
Innergex Power Income Fund	Primary Energy Recycling Corporation
InnVest Real Estate Investment Trust	Prime Restaurants Royalty Income Fund
Inter Pipeline Fund	Prime West Energy Trust
InterRent Real Estate Investment Trust	Priszm Income Fund
Jazz Air Income Fund	Progress Energy Trust
K-Bro Linen Income Fund	Provident Energy Trust
Keyera Facilities Income Fund	PRT Forest Regeneration Income Fund
Keystone North America Inc.	Public Storage Canadian Properties
Labrador Iron Ore Royalty Income Fund	Resolve Business Outsourcing Income Fund
Lanesborough Real Estate Investment Trust	Retrocom Mid-Market Real Estate Investment Trust
Liquor Stores Income Fund	Richards Packaging Income Fund
Livingston International Income Fund	RioCan Real Estate Investment Trust
Macquarie Power & Infrastructure Income Fund	Rogers Communications Inc.
Manitoba Telecom Services Inc.	Rogers Sugar Income Fund
Manulife Financial Corp.	Royal Bank of Canada
Medical Facilities Corporation	Royal Host Real Estate Investment Trust
Medisys Health Group Income Fund	Royal LePage Franchise Services Fund
Morguard Real Estate Investment Trust	Royal Utilities Income Fund
Morneau Sobeco Income Fund	Scotts Real Estate Investment Trust
Mullen Group Income Fund	Second Cup Royalty Income Fund
NAL Oil and Gas Trust	SFK Pulp Fund
National Bank of Canada	Sherritt International Corp.
New Flyer Industries Inc.	Shoppers Drug Mart Corp.
Newalta Income Fund	Sleep Country Canada Income Fund
Newport Partners Income Fund	SNC-Lavalin Group Inc.
Noranda Income Fund	Spectra Energy Income Fund
Norbord Inc.	Sterling Shoes Income Fund
North West Company Fund	Stoneham Drilling Trust

Strongco Income Fund	TransAlta Corp.
Student Transportation of America Ltd.	TransAlta Power L.P.
Sun Gro Horticulture Income Fund	TransCanada Corp.
Sun Life Financial Inc.	TransForce Income Fund
Superior Plus Income Fund	Tree Island Wire Income Fund
Supremex Income Fund	Trilogy Energy Trust
Swiss Water Decaffeinated Coffee Income Fund	Trimac Income Fund
Talisman Energy Inc.	Trinidad Energy Services Income Trust
Taylor NGL L. P.	TSX Group Inc.
Teck Cominco Ltd.	Vault Energy Trust
Telus Corp.	Vermilion Energy Trust
Teranet Income Fund	Vicwest Income Fund
The Brick Group Income Fund	Village Farms Income Fund
The Consumers' Waterheater Income Fund	Wajax Income Fund
The DATA Group Income Fund	Wellco Energy Services Trust
The Keg Royalties Income Fund	West Fraser Timber Co. Ltd.
Tim Hortons Inc.	Westshore Terminal Income Fund
TimberWest Forest Corp.	Yellow Pages Income Fund
Toronto-Dominion Bank	Zargon Energy Trust
Total Energy Services Trust

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

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

Sentry Select Capital Corp.: Sentry Select is a Canadian wealth management company that manages over $8 billion in gross assets as of July 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 29 reporting issuers, Sentry Select is the leading manager and/or advisor to entities listed on the TSX. In addition, Sentry Select manages and/or provides advisory services to four reporting issuers listed on the TSX Venture Exchange.

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 info@sentryselect.com www.sentryselect.com

A preliminary prospectus dated September 18, 2007 relating to these securities has been filed with the securities regulatory authority in each of the provinces and territories of Canada, but has not yet become final for the purpose of the sale of securities to the public. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale or any acceptance of an offer to buy these securities in any province or territory of Canada prior to the time a receipt of the final prospectus is obtained from such securities regulatory authorities. Important information concerning this offering is contained in the prospectus. Obtain a copy from your financial advisor and read the prospectus before investing.

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