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Distribution Change to GGOF Small Cap Growth and Income Fund Provides Investors with Predictable Monthly Payments Fund's successful first year demonstrates that income trusts remain an attractive asset class for investors seeking income

Guardian Group of Funds Ltd. (GGOF) today announced GGOF Small Cap Growth and Income Fund will begin making fixed monthly distributions of three cents per unit, effective with the May 28, 2007 distribution. The Fund will make distributions from its income, capital gains and tax-deferred capital gains in the form of return on capital. Previously, the Fund made variable income distributions on a quarterly basis.

“The change to the distribution policy reflects a successful first year for the Fund, which demonstrates that income trusts, if selected by an experienced management team for the stability of their cash flows, and with a conservative distribution policy, remain an attractive asset class for investors seeking income,” said Gavin Graham, Chief Investment Officer, Guardian Group of Funds. “This is true regardless of the size of the trust, as there are some excellent businesses organized as trusts with a market capitalization of less than $500 million, which gives them strong prospects for growing their operations and generating increasing cash flows for investors.”

The Fund's goal is to provide long-term growth through capital appreciation and income by investing primarily in a portfolio of Canadian equities, income trusts and equity-related securities issued by companies with small-to-medium market capitalization. GGOF Small Cap Growth and Income Fund is best suited for investors seeking less volatile exposure to these companies, along with predictable monthly income.

The Fund is managed by the equity team from Barrantagh Investment Management – Wally Kusters, Bruce Jackson and Peter Comber. This team also co-manages GGOF Resource Fund and GGOF Global Diversified Fund. Barrantagh Investment Management, with $500 million under management, is known for its ability to provide above-average returns with below-average levels of risk.

GGOF provides investors with a full product line of 31 mutual funds, diversified by asset class, geographic region and investment style. GGOF, with $6.2 billion of mutual fund assets under management at April 30, 2007, offers its funds exclusively through financial intermediaries.

GGOF is a member of BMO Financial Group and part of the organization's Private Client Group. The Private Client Group provides integrated wealth management services in Canada and the United States and had total assets under management and administration and term investments of $299.86 billion as at April 30, 2007.

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