5Banc Split Inc.

5Banc Split Inc.

August 17, 2011 17:27 ET

5Banc Split Inc. Announces Reorganization Proposal

TORONTO, ONTARIO--(Marketwire - Aug. 17, 2011) - 5Banc Split Inc. (TSX:FBS.B)(TSX:FBS.PR.B) (the "Company") announced today that its Board of Directors has approved a proposal to reorganize the Company. The reorganization will permit holders of Class B Capital Shares to extend their investment in the Company beyond the redemption date of December 15, 2011 for an additional five years. The Class B Preferred Shares will be redeemed in accordance with their terms detailed in the final prospectus dated November 28, 2006.

The reorganization will involve (i) the extension of the originally scheduled redemption date to December 15, 2016, (ii) a special retraction right to holders of Class B Capital Shares to enable them to retract their shares as originally contemplated in the final prospectus dated November 28, 2006 should they not wish to extend their investment and (iii) the creation of new Class C Preferred Shares in order to provide continued leverage for the Class B Capital Shares.

A special meeting of holders of Class B Capital Shares has been called and will be held on October 7, 2011 to consider a vote upon the reorganization. Details of the proposed reorganization will be outlined in an information circular to be prepared and delivered to holders of Class B Capital Shares in connection with the special meeting.

5Banc Split was established to generate dividend income for the Preferred Shares while providing holders of the Capital Shares with a leveraged opportunity to participate in capital appreciation from a portfolio of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank. Information concerning 5Banc Split Inc. is available on our website at www.tdsponsoredcompanies.com.

The Capital Shares and Preferred Shares of 5Banc Split are listed on the Toronto Stock Exchange under the symbols FBS.B and FBS.pr.B respectively.

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