Merger Details:

Effective January 16, 2007, Canadian Financial Dividend & Income Fund merged with Canadian Financial Income Fund, continuing operations as Canadian Financial Income Fund. Holders of Canadian Financial Dividend & Income Fund received 0.902969 units of Canadian Financial Income Fund for each unit of Canadian Financial Dividend & Income Fund formerly held. There was deemed disposition of Canadian Financial Dividend & Income Fund units as of the date of merger, January 16, 2007. Therefore, units of Canadian Financial Income Fund received by former holders of Canadian Financial Dividend & Income Fund should be entered as a purchase at a price equal to the settlement amount of the disposition of the Canadian Financial Dividend & Income Fund units previously held using a purchase settlement date of January 16, 2007. The closing price of Canadian Financial Dividend & Income Fund on January 16, 2007 was $10.35 per unit.