NewGrowth 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, Sept. 20 /CNW/ - NewGrowth 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 September 17, 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 $41.57 per Unit. Commencing September 20, 2010, warrants may be exercised at any time on or before 5:00 p.m. (Toronto time) on March 31, 2011. The warrants are listed on the Toronto Stock Exchange under the ticker symbol NEW.WT.

Holders of the Preferred Shares are entitled to receive quarterly fixed cumulative dividends equal to $0.2055 per Preferred Share. The Company's Capital Share dividend policy is to pay holders of Capital Shares quarterly dividends in an amount equal to the revenue received by the Company 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.

NewGrowth Corp. is a mutual fund corporation whose investment portfolio consists of publicly-listed securities of selected Canadian chartered banks, telecommunication, pipeline and utility issuers. The Capital Shares and Preferred Shares of NewGrowth Corp. are both listed for trading on The Toronto Stock Exchange under the symbols NEW.A and NEW.PR.C respectively.

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