NewGrowth Corp. Declares Quarterly Dividends and Capital Gains Dividend



    TORONTO, June 16 /CNW/ - The Board of Directors of NewGrowth Corp. (the
"Company") has declared today ordinary dividends of $0.2054 per Series 1 Class
B Preferred Share and $0.28 per Capital Share payable on June 26, 2009 to
holders of record at the close of business on June 25, 2009. The Series 1
Class B Preferred Shares will be redeemed by the Company on June 26, 2009 in
accordance with their share provisions. Pursuant to these provisions, the
Series 1 Class B Preferred Shares will be redeemed at a price per share equal
to the lesser of $18.25 and Unit Value (currently $39.17).
    In addition, the Board of Directors declared a capital gains dividend on
the Capital Shares payable on June 26, 2009 to holders of record on June 25,
2009 in the amount of $ 1.70 per Capital Share payable in Capital Shares. For
shareholders who have retracted their Capital Shares pursuant to the special
retraction right on June 26, 2009, the capital gains dividend is not expected
to result in any additional tax liability than would otherwise have been
realized had the capital gains dividend not been declared.
    Immediately following payment of the dividend, the number of Capital
Shares outstanding will be consolidated such that the number of Capital Shares
outstanding will be equal to the number of Capital Shares outstanding
immediately prior to such payment. The effect on a holder of Capital Shares of
the payment of the dividend is a capital gain of $ 1.70 per Capital Share with
a matching increase in the aggregate adjusted cost base per Capital Share.
    Holders of Capital Shares who have not tendered their shares for
retraction under the special retraction right will continue their investment
in the Company as provided under the Company's share capital reorganization
approved on May 11, 2009.

    NewGrowth Corp. is a mutual fund corporation whose investment portfolio
consists of publicly-listed securities of selected Canadian chartered banks,
telecommunication, utility and pipeline companies. The Capital Shares and
Series 1 Class B Preferred Shares of NewGrowth Corp. are both listed for
trading on The Toronto Stock Exchange under the symbols NEW.A and NEW.PR.B
respectively. The Series 1 Class B Preferred Shares will be delisted after the
close on June 26, 2009.

    %SEDAR: 00002585E




For further information:

For further information: Investor Relations, NewGrowth Corp., (416)
862-3931, E-mail: mc_newgrowth@scotiacapital.com, Web site:
www.scotiamanagedcompanies.com


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