Scotiabank Extends Offer and DundeeWealth Declares Special Dividends

TORONTO, Jan. 18 /CNW/ - Scotiabank and DundeeWealth Inc. ("DundeeWealth") today made announcements regarding Scotiabank's offer for all of the common shares of DundeeWealth that it does not already own (the "Offer") and the special dividends that DundeeWealth previously announced it would make in connection with the Offer.

Scotiabank announced that it is extending the expiry of the Offer to 12:01 a.m. ET on February 1, 2011 to allow the remaining required regulatory approvals to be obtained. All other terms of the Offer remain the same.  A formal notice of extension will be mailed to all shareholders of DundeeWealth in due course.  The notice of extension will be filed on SEDAR and will be available at www.sedar.com.  Subject to obtaining the remaining required regulatory approvals, Scotiabank intends to take up and pay for shares tendered to the Offer on February 1, 2011.

In satisfaction of DundeeWealth's obligations under its support agreement with Scotiabank, the Board of Directors of DundeeWealth has approved the payment of a special cash dividend of $2.00 per common share and special share and $1.67 per first preference share, series X as well as the special dividend of one common share of Dundee Capital Markets Inc. ("DCM") per common share and special share and 0.83 of a DCM common share per first preference share, series X. The special cash dividend will be payable on January 31, 2011 to shareholders of record on January 28, 2011, or as otherwise provided under the terms of any applicable escrow agreements. The special dividend of DCM shares is also expected to be paid on or about January 31, 2011 to shareholders of record on January 28, 2011.  The dividends are designated as eligible dividends for the purposes of section 89 of the Income Tax Act (Canada).  DundeeWealth will withhold the amount of non-resident withholding tax payable by a non-resident holder in respect of the special cash dividend and the special dividend of DCM shares by withholding the appropriate amount in respect of the aggregate amount of such dividends from the amount of the special cash dividend.

The final prospectus for DCM will be mailed to shareholders of DundeeWealth before the expiry date of the Offer.

About Scotiabank

Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 70,000 employees, Scotiabank Group and its affiliates serve some 18.6 million customers in more than 50 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. With assets above $526 billion (as at October 31, 2010), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

About DundeeWealth Inc.

DundeeWealth is a Canadian owned, independent wealth management company that currently oversees $83.3 billion in fee earning assets. It provides diversified wealth management and investment solutions including alternative and tax-advantaged products, capital markets and advisory services to financial advisors, institutions, corporations and foundations, and innovative wealth management through independent financial advisors across Canada.  Its award winning investment brand, Dynamic Funds®, managed by Goodman & Company, Investment Counsel Ltd., is also available outside of Canada through distribution platforms in Europe and the United States.  DundeeWealth is listed on the Toronto Stock Exchange (TSX: DW).


SOURCE Scotiabank

For further information:

Kingsdale Shareholder Services Inc.
416-867-2272 or 1-866-851-9601 (toll free in North America only)
contactus@kingsdaleshareholder.com

Scotiabank
Peter Slan, Senior Vice President, Investor Relations
(416) 933-1273

Ann DeRabbie, Director, Media Communications
(416) 933-1344

DundeeWealth

Robert Pattillo, Executive Vice-President, Marketing and Communications
(416)365-6466

Myra Reisler, Director, Public Affairs
(416) 365-5370


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