Requisitions received for special meetings of 5 Citadel funds by Brompton & Bloom



    
    Bloom's current stewardship over these Funds and the resulting
    performance does not suggest long-term value creation for unitholders
    

    TORONTO, Aug. 7 /CNW/ - Citadel Fund Administrator ("Citadel"), the
administrator of the Citadel Group of Funds (the "Funds"), one of Canada's
largest managers of closed end funds, issued the following statement in
response to the announcement by Brompton Administration Limited and Bloom
Investment Counsel, Inc. that unitholders have delivered requisitions for
meetings of 5 of the Funds, being Citadel Diversified Investment Trust,
Citadel S-1 Income Trust Fund, Citadel HYTES Fund, Citadel SMaRT Fund, Series
S-1 Income Fund and Citadel Premium Income Fund.
    Citadel and the Trustee of the Funds are reviewing the requisitions.
After receiving such legal and financial advice as may be appropriate,
together with recommendations from the Independent Review Committee of the
Funds, Citadel will issue a more detailed response.

    The proposed reorganization of the Funds by Citadel is the way forward

    Citadel wishes to remind unitholders that its proposed reorganization
plan for 8 of the Funds significantly increases long-term value for
unitholders. In the short period of time that Citadel has been the
administrator of the Funds, it has taken and formulated plans for several
actions to ensure long-term value creation.

    
    -  Retaining Jarislowsky Fraser, Canada's largest independent investment
       counsel firm, to serve as the investment manager for the proposed new
       combined fund, Citadel Income Fund. Bloom's current stewardship of
       several of the Funds and the resulting performance does not suggest
       long-term value creation for unitholders.

    -  Proposing an expanded investment strategy for the Citadel Income Fund
       which will include investment in a broad variety of income producing
       securities, including income trusts, common shares and debt
       securities.

    -  Offering unitholders of the 8 Funds the right to redeem their units at
       the time of the reorganization for an amount based on the net asset
       value per unit of the applicable Fund less applicable fees and
       charges, and offering unitholders of the Citadel Income Fund the right
       to redeem their units in 2010 and subsequent years.

    -  Proposing additional benefits for unitholders of the Citadel Income
       Fund, such as enhanced liquidity, a reduction in operating costs, no
       "permitted merger" provisions and an entitlement to warrants to
       acquire additional units.
    

    Unitholders will have their say - proposed meeting postponed

    Citadel believes that Citadel's proposed reorganization is in the best
interest of unitholders and significantly increases long-term value for
unitholders. As previously announced by Citadel, unitholders of the 8 Funds
involved in the proposed reorganization will have the opportunity to consider
and vote at special meetings of unitholders. However, Citadel has requested
that the Trustee temporarily postpone these meetings, which had been planned
for September 3, 2009, to permit Citadel and the Trustee to complete their
review of the requisitions.

    %SEDAR: 00023840E




For further information:

For further information: Kingsdale Shareholder Services Inc. at
1-888-518-6828; Media Contact: Janet Craig, Kingsdale Communications Inc.,
(416) 867-2315, jac@kingsdalecommunications.com

Organization Profile

CITADEL PREMIUM INCOME FUND

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CITADEL S-1 INCOME TRUST FUND

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