Horizons Enhanced U.S. Equity Income Fund Announces Monthly Distribution

TORONTO, May 23, 2012 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. are pleased to announce the monthly distribution of the Horizons Enhanced U.S. Equity Income Fund (the "Fund") for May 2012 in the amount of $0.05945 per Class A unit of the Fund. The Class A units of the Fund are listed for trading on the Toronto Stock Exchange ("TSX") under the symbol HES.UN.

The distribution represents a 7.02% annualized yield on the Fund's initial public offering price of $10.00 per Class A unit. The May distribution ex-dividend date is anticipated to be May 29, 2012, for all Class A unitholders of record on May 31, 2012. The distribution is payable on June 12, 2012.

The Fund's investment objectives are to provide holders of units with: (a) the performance of an equal weighted portfolio of equity securities of large capitalization U.S. companies; (b) the opportunity for capital appreciation; (c) monthly distributions; and (d) lower overall volatility of portfolio returns than would be experienced by owning the Fund's equity portfolio without employing a covered call option strategy.  To mitigate the downside risks associated with holding the Fund's equity portfolio, generate cashflow and allow for potential capital appreciation, the Fund generally writes short-term, "out-of-the-money" covered call options on 100% of its equity securities. The level of covered call option writing may vary based on market volatility and other factors. The Fund generally seeks to hedge substantially all of its exposure to the U.S. dollar back to the Canadian dollar.

About Horizons Exchange Traded Funds Inc. (www.horizonsetfs.com)
Horizons ETFs is an innovative financial services company offering the Horizons ETFs family of ETFs. The Horizons ETFs family includes a broadly diversified range of investment tools with solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. With more than $3.4 billion in assets under management and 84 ETFs listed on the TSX, the Horizons ETFs family makes up one of the largest families of ETFs in Canada. Horizons ETFs is a subsidiary of Horizons ETFs Management (Canada) Inc. and a member of the Mirae Asset Financial Group.

Martin Fabregas, Investor Relations, [phone] or 1-866-641-5739.