MDC Corporation Inc. of Toronto and Davis + Henderson Income Fund have closed a public offering of 18,965,792 units of the Fund for gross proceeds of approximately $200 million. The two companies have also completed the transfer of MDC’s remaining 50.1% interest in Davis + Henderson.

The offering has been underwritten by a syndicate led by CIBC World Markets Inc. and Scotia Capital Inc., which includes BMO Nesbitt Burns Inc., TD Securities Inc., RBC Dominion Securities Inc., Griffiths McBurney & Partners and Merrill Lynch Canada Inc. The Fund units have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

As part of the closing of this offering, and together with amounts received in connection with the initial public offering of the Fund, MDC will have realized gross proceeds of approximately $470 million. Following the closing of the offering, MDC no longer has a continuing interest in Davis + Henderson, Limited Partnership. MDC’s nominees
to the board of directors of Davis + Henderson G.P. Inc., and the chairman of the board, have resigned and Paul Damp is now the chairman of the board.

Proceeds received by MDC from this offering will be used for the repayment of indebtedness and general corporate purposes.