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Press release from Marketwire

5Banc Split Inc. Announces Shareholder Approval of Reorganization Proposal

Friday, October 07, 2011

5Banc Split Inc. Announces Shareholder Approval of Reorganization Proposal16:25 EDT Friday, October 07, 2011TORONTO, ONTARIO--(Marketwire - Oct. 7, 2011) - 5Banc Split Inc. (TSX:FBS.B)(TSX:FBS.PR.B) (the "Company") announced today that holders of its Class B capital shares (the "Capital Shares") have approved a share capital reorganization (the "Reorganization") allowing holders of Capital Shares to retain their investment in the Company after the scheduled redemption date of December 15, 2011. The Reorganization extends the life of the Capital Shares beyond the original maturity date of December 15, 2011 for up to an additional 5 years. The Class B preferred shares (the "Preferred Shares") will be redeemed on the same terms originally contemplated in their share provisions. In order to maintain the leveraged "split share" structure of the Company, the Company expects to create and issue a new series of Class C preferred shares on or about December 15, 2011. The issuance of the Class C preferred shares is a requirement to complete the Reorganization. Holders of Capital Shares who do not wish to continue their investment in the Company after December 15, 2011 must give notice that they wish to exercise their special retraction right on or prior to November 15, 2011. Holders of Capital Shares who retract their Capital Shares will be paid on December 15, 2011. The Reorganization will become effective provided that holders of at least 2,500,000 Capital Shares retain their Capital Shares and do not exercise the special retraction right. Holders of Capital Shares, who do not exercise their special retraction right, will continue to enjoy the benefit of a leveraged participation in the capital appreciation of the Company's portfolio (the "Portfolio") of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank while deferring the recognition of capital gains or capital losses which would otherwise be realized on the redemption of their Capital Shares. A requirement of the Reorganization is that at least 2,500,000 Capital Shares remain outstanding after giving effect to the special retraction right. The Capital Shares and the Preferred Shares of the Company are listed on the Toronto Stock Exchange under the symbols FBS.B and FBS.PR.B, respectively. FOR FURTHER INFORMATION PLEASE CONTACT: 416-982-2680Investor Relations