BlackRock Enhanced Government Fund, Inc. Announces Expiration of Annual Repurchase Offer

NEW YORK--(BUSINESS WIRE)--BlackRock Enhanced Government Fund, Inc. (the “Fund”) (NYSE: EGF, CUSIP: 09255K108) announced the expiration of the Fund’s annual repurchase offer for its shares of common stock. The repurchase offer and withdrawal rights expired at 5:00 p.m., Eastern Time, on November 27, 2009. The Fund offered to repurchase up to 5% of its outstanding shares of common stock for cash at a price equal to the net asset value as of the close of regular trading on the New York Stock Exchange on December 11, 2009, subject to a repurchase fee of 2% of the Fund’s net asset value per share, which will be deducted from the repurchase price. As of Friday, November 27, 2009, 11,723,994 shares of the Fund were outstanding. A repurchase amount of 5% of the outstanding shares of the Fund’s common stock would represent approximately 586,199 shares.

The preliminary count by The Bank of New York Mellon, the Fund's depositary agent, indicated that approximately 36,242 shares (approximately 0.31% of the Fund's outstanding shares) were validly tendered and not withdrawn prior to the expiration of the Fund's repurchase offer. This determination is subject to final confirmation and the proper delivery of all shares tendered and not withdrawn.

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 has 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, The Bank of New York Mellon, which is acting as the depositary agent in connection with the Repurchase Offer.

About BlackRock

BlackRock is one of the world’s largest publicly traded investment management firms. At September 30, 2009, BlackRock’s assets under management were $1.435 trillion. The firm manages assets on behalf of institutions and individuals worldwide through a variety of equity and balanced, fixed income, cash management, alternative investment and advisory products. In addition, a growing number of institutional investors use BlackRock Solutions investment system, risk management and financial advisory services. Headquartered in New York City, as of September 30, 2009, the firm has approximately 5,000 full-time employees in 21 countries and a major presence in key global markets, including the United States, Europe, Asia, Australia and the Middle East. For additional information, please visit the firm’s website at www.blackrock.com.

Forward-Looking Statements

This press release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to 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 in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in the Fund’s net asset value; (2) the performance of the Fund’s investments; (3) the impact of increased competition; (4) the extent and timing of any distributions or share repurchases; (5) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or BlackRock, as applicable; and (6) BlackRock’s ability to attract and retain highly talented professionals.

The 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.gov and on BlackRock’s website at www.blackrock.com, and may discuss these or other factors that affect the Fund. The information contained on our website is not a part of this press release.