Allbanc Split Corp. Closes Warrant Offering

/THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO, Oct. 5 /CNW/ - Allbanc Split Corp. (the "Company"), is pleased to announce that the Company has issued one warrant for each Capital Share held by holders of Capital Shares of the Company of record as at the close of business on October 1, 2010.

Each warrant will entitle the holder to purchase one Unit, each Unit consisting of one Capital Share and one Preferred Share, for a subscription price of $62.78 per Unit. Commencing October 4, 2010, warrants may be exercised at any time on or before 5:00 p.m. (Toronto time) on June 6, 2011. The warrants are listed on the Toronto Stock Exchange under the ticker symbol ABK.WT.

Holders of Preferred Shares are entitled to receive quarterly fixed cumulative distributions equal to $0.3344 per Preferred Share. The Company's Capital Share dividend policy is to pay a quarterly dividend on the Capital Shares equal to the dividends received on the underlying portfolio securities minus the dividends payable on the Preferred Shares and all administrative and operating expenses provided the net asset value per Unit at the time of declaration, after giving effect to the dividend, would be greater than the original issue price of the Preferred Shares.

Allbanc Split Corp. is a mutual fund corporation created to hold a portfolio of publicly listed common shares of selected Canadian chartered banks. Class A Capital Shares and Class B Preferred Shares of Allbanc Split Corp. are listed for trading on The Toronto Stock Exchange under the symbols ABK.A and ABK.PR.B respectively.

%SEDAR: 00009809E

For further information: Investor Relations, Allbanc Split Corp., [phone], E-mail: [email protected], Web site: www.scotiamanagedcompanies.com