Blue Ribbon Fund Management Ltd.

Blue Ribbon Fund Management Ltd.
Citadel Diversified Investment Trust
TSX : CTD.UN

Citadel Diversified Investment Trust
Citadel S-1 Income Trust Fund
TSX : SDL.UN

Citadel S-1 Income Trust Fund
Citadel HYTES Fund
TSX : CHF.UN

Citadel HYTES Fund
Series S-1 Income Fund
TSX : SRC.UN

Series S-1 Income Fund
Citadel Premium Income Fund
TSX : CPF.UN

Citadel Premium Income Fund

September 18, 2009 14:54 ET

Blue Ribbon Responds to Citadel Funds Administrator

TORONTO, ONTARIO--(Marketwire - Sept. 18, 2009) - Blue Ribbon Fund Management, the sponsor of the so called "Hostile Proposal" relating to Citadel Diversified Investment Trust (TSX:CTD.UN), Citadel S-1 Income Trust Fund (TSX:SDL.UN), Citadel HYTES Fund (TSX:CHF.UN), Series S-1 Income Fund (TSX:SRC.UN), and Citadel Premium Income Fund (TSX:CPF.UN), (collectively, the "Citadel Funds") responds today to the latest press release issued by Citadel Funds Administrator.

In its press release, Citadel Funds Administrator suggests that there is a securities regulatory issue with the Hostile Proposal that requires Blue Ribbon to seek an exemption from securities regulators to implement the Hostile Proposal. This suggestion has no merit. No securities regulator has taken the position that the Hostile Proposal requires any such exemption. The alleged "issue" that the Citadel Funds Administrator is raising is simply a smear tactic that could potentially mislead investors of the Citadel Funds on the eve of the proxy cut-off for the upcoming meetings. While this latest tactic is disappointing, it is not surprising in view of Crown Hill's pattern of behavior which is summarized in the Blue Ribbon Circular.

Blue Ribbon reminds investors that if they vote in favour of the "Reorganization Proposal" initiated by Crown Hill, they will put themselves into a fund to which Crown Hill has the power to make substantive changes to any feature of the fund, without consulting unitholders. It is a power that Crown Hill has used in the past to cancel redemptions, increase fees and increase the fund's risk profile, and which Blue Ribbon believes Crown Hill may use again in the future.

Blue Ribbon recommends that the Right Way Forward for Citadel Funds is that unitholders vote their blue proxy / voting instruction forms both AGAINST the Reorganization Resolution and FOR the Hostile Resolution (Blue Ribbon Proposal) for the upcoming meeting of unitholders to be held on September 30, 2009.

Investors are urged to visit our website at www.therightwayforward.com, to review the Blue Ribbon Proxy Circular on www.sedar.com, and to vote their proxy as soon as possible.

Contact Information

  • Mark Caranci
    416-642-6004
    or
    David Roode
    416-642-6008
    or
    Lorne Zeiler
    416-642-9058
    or
    Chris Cullen
    416-642-9064
    or
    Toll-free: 1-866-642-6001
    info@bromptongroup.com