Sentry Select Capital Inc. Proposes Restructuring of Sentry Select Diversified Income Fund (Formerly Sentry Select

TORONTO, ONTARIO, May 25 (MARKET WIRE) --
Sentry Select Capital Inc. ("Sentry Select" or the "Manager") announces
that it will seek the approval of unitholders of Sentry Select
Diversified Income Fund (the "Fund") to restructure the Fund as follows:

(a) convert the Fund from a closed-end investment fund to an open-end
mutual fund which will, among other things, provide for the units of the
Fund (the "Units") to become redeemable on a daily basis, at the net
asset value ("NAV") per Unit, subject to a declining redemption fee
schedule (the "Redemption Fee"), and the implementation of all matters
necessary, or ancillary to, the mutual fund conversion;

(b) amend the management agreement between the Manager and the Fund by
reducing the management fee from 1.5% per annum of the NAV of the Fund to
1.25% per annum of the NAV of the Fund and eliminating the fee payable to
the Manager upon termination of the management agreement, in settlement
of indebtedness of $23,945,138 under the promissory notes of Sentry
Select Capital Corp. held by the Fund;

(c) amend the investment objectives of the Fund; and

(d) have the Manager become the successor trustee of the Fund upon the
resignation of the Computershare Trust Company of Canada, the current
trustee of the Fund (collectively, the "Restructuring").

The directors of the Manager, other than John Driscoll, who is not
considered independent, (the "Independent Directors") have reviewed the
proposed Restructuring and have concluded that the Restructuring is fair
to the unitholders on the basis that it will result in a net benefit to
unitholders. CIBC World Markets Inc. has provided the Independent
Directors with a fairness opinion.

The Fund's independent review committee has reviewed the proposed terms
of the Restructuring and concluded that the Restructuring would achieve a
fair and reasonable result for the Fund.

Among the benefits of the Restructuring to the unitholders of the Fund
include an immediate increase in realizable value for unitholders;
reduced management fees; increased liquidity of the Units and expanded
investment objectives.

Redemption Fee Schedule

Depending on the redemption date, Units may be subject to a Redemption
Fee, payable to the Manager by the redeeming unitholder out of the
redemption proceeds. The Redemption Fee will be the percentage of NAV per
Unit as shown in the following table:

----------------------------------------------------------
Period Redemption Fee
----------------------------------------------------------
Until December 31, 2010 5%
----------------------------------------------------------
From January 1, 2011 to December 31, 2011 4%
----------------------------------------------------------
From January 1, 2012 to December 31, 2012 3%
----------------------------------------------------------
From January 1, 2013 to December 31, 2013 2%
----------------------------------------------------------
From January 1, 2014 to December 31, 2014 1%
----------------------------------------------------------
From January 1, 2015 onwards 0%
----------------------------------------------------------

Mutual Fund Conversion Timing

A special meeting of unitholders will be held on June 26, 2009 (the
"Special Meeting") for unitholders of record on May 22, 2009. If the
Restructuring is approved, Unitholders will have an initial redemption
right following the Special Meeting and prior to effecting the mutual
fund conversion to redeem their Units at NAV per Unit as of July 31,
2009, subject to a 5% Redemption Fee. The Fund's Units would then be
delisted from the Toronto Stock Exchange on or about August 4, 2009 and
the mutual fund conversion would be completed on or about August 14, 2009.

A management information circular and other proxy materials containing
further information regarding the proposed Restructuring will be provided
to unitholders of record.

Sentry Select Diversified Income Fund

Sentry Select Diversified Income Fund 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

Sentry Select is a Canadian wealth management company that offers a
diverse range of investment products including closed-end trusts, mutual
funds, principal-protected notes, flow-through limited partnerships and
hedge funds, covering a variety of domestic and global mandates.

Certain statements included in this news release constitute
forward-looking statements, including, but not limited to, those
identified by the expressions "expect", "intend", "will" 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 including, but not limited to, the
proposed timing for implementing the Restructuring and the failure to
receive all required regulatory and unitholder approvals to implement the
Restructuring. 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. For a complete disclosure record
for the Fund, please visit the Fund's profiles at www.sedar.com.

Sentry Select Capital Inc.
The Exchange Tower
130 King Street West
Suite 2850, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 861-8729
Fax: (416) 364-5615

Contacts:
Sentry Select Capital Inc.
Investor Services
(broker/investor inquiries)
1-888-730-4623
416-364-1197 (FAX)
info@sentryselect.com
www.sentryselect.com

Copyright 2009, Market Wire, All rights reserved.

-0-