BlackRock Enhanced Government Fund, Inc. Completes Annual Repurchase Offer

BlackRock Enhanced Government Fund, Inc. Completes Annual Repurchase Offer

NEW YORK--(BUSINESS WIRE)-- BlackRock Enhanced Government Fund, Inc. (the "Fund") (NYSE: EGF, CUSIP: 09255K108) today announced the completion of its offer to repurchase up to 10% of its outstanding shares of common stock from its stockholders (the "Repurchase Offer").

Under the terms of the Repurchase Offer, the Fund offered to repurchase up to 10% of its outstanding shares of common stock for cash at a price equal to the Fund's net asset value per share calculated as of the close of business of the New York Stock Exchange on December 4, 2012, fourteen days after Tuesday, November 20, 2012, the expiration date of the Repurchase Offer.

As previously announced, at the Repurchase Offer's expiration, Computershare Shareowner Services LLC, the Fund's depositary agent, indicated that 3,367,976 shares (approximately 30.61% of the Fund's outstanding shares) were validly tendered and not withdrawn. Since more than 10% of Fund shares outstanding were tendered, the Fund repurchased shares on a pro rata basis except with regard to odd lot shareholders who tendered all of their shares which were purchased in their entirety, as disclosed in the Repurchase Offer Statement. Consequently, approximately 32.53% of shares tendered were accepted for repurchase.

On December 4, 2012, and subject to pro ration as applicable, tendered shares were repurchased by the Fund at $16.17 per share (subject to the repurchase fee of 2% of the net asset value per share, which was deducted from the repurchase price), the Fund's net asset value per share determined as of 4:00 p.m. EST, Tuesday, December 4, 2012.

The Fund is a diversified, closed-end management investment company. The Fund's primary investment objective is to provide stockholders with current income and gains.

None of the Fund, its investment adviser or its Board of Directors made any recommendation to any stockholder as to whether to tender or refrain from tendering shares in the Repurchase Offer.

For client-specific information regarding the Repurchase Offer, please contact your broker or financial advisor, or in the case of registered stockholders, Computershare Shareowner Services LLC, which is acting as the depositary agent in connection with the Repurchase Offer.

About BlackRock

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At September 30, 2012, BlackRock's AUM was $3.673 trillion. BlackRock offers products that span the risk spectrum to meet clients' needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares^®(exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions^®. Headquartered in New York City, as of September 30, 2012, the firm has approximately 10,400 employees in 29 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit BlackRock's website at www.blackrock.com.

Forward-Looking Statements

This press release, and other statements that BlackRock or the Fund may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Fund or BlackRock's future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "potential," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

With respect to the Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Fund or in the Fund's net asset value; (2) the relative and absolute investment performance of the Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or BlackRock, as applicable; (8) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (9) BlackRock's ability to attract and retain highly talented professionals; (10) the impact of BlackRock electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

Annual and Semi-Annual Reports and other regulatory filings of the Fund with the Securities and Exchange Commission ("SEC") are accessible on the SEC's website at www.sec.govand on BlackRock's website at www.blackrock.com, and may discuss these or other factors that affect the Fund. The information contained on BlackRock's website is not a part of this press release.

BlackRock Enhanced Government Fund, Inc.
1-800-882-0052

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS:

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