Canadian Life Companies Split Corp. Announces Rights Offering

TORONTO, ONTARIO--(Marketwire - Feb. 7, 2011) - Canadian Life Companies Split Corp. ("the Company") today announced that it will issue rights ("Rights") to all Class A Shareholders. Each Class A Shareholder will be entitled to receive one Right for each Class A Share held as of the record date of February 18, 2011. Four Rights will entitle the holder to purchase a Unit consisting of one Class A Share and one Preferred Share for $16.50. The Rights will expire at 4:00 p.m. (local time) on March 31, 2011, the expiry date. If all the Rights are exercised the Company will issue approximately 2,663,307 Units and will receive net proceeds of $43,944,570. The net proceeds from the subscription of Units will be used to acquire additional securities in accordance with the Company's investment objectives. The exercise price is consistent with current trading prices and accretive to the most recently published net asset value per Unit. By raising additional cash through this offering, the Company will be able to capitalize on certain attractive investment opportunities that may arise over the next few months. The offering is expected to increase the trading liquidity of the Company and reduce the management expense ratio.

Both the Preferred Shares and Class A Shares trade on the Toronto Stock Exchange (the "TSX") under the symbol "LFE.PR.A" and "LFE" respectively. The Rights will be listed on the TSX under the ticker symbol LFE.RT. It is expected that Rights will commence trading on February 16, 2011 and continue trading until 12:00 noon (EST) on March 31, 2011.

The Company invests in a portfolio of four publicly traded Canadian life insurance companies as follows: Great-West Lifeco, Industrial Alliance, Manulife Financial and Sun Life Financial. Shares held within the portfolio are expected to range between 10-30% in weight but may vary within these parameters at any time.

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Company. The forward-looking statements are not historical facts but reflect the Manager's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.