NewGrowth : Declares Quarterly Dividends

NEWGROWTH CORP. P R E S S R E L E A S E NewGrowth Corp. Declares Quarterly Dividends

Toronto, December 7, 2016

Attention: Business / Financial Editors

The Board of Directors of NewGrowth Corp. (the "Company") has declared today ordinary dividends of $0.3327 per Preferred Share and $0.2650 per Capital Share payable on December 23, 2016 to holders of record at the close of business on December 16, 2016.

Holders of the Preferred Shares are entitled to receive quarterly fixed cumulative dividends equal to $0.3327 per Preferred Share. The Company's Capital Share dividend policy is to pay holders of Capital Shares quarterly dividends in an amount equal to the dividends received by the Company on the underlying portfolio securities minus the dividends payable on the Preferred Shares and all administrative and operating expenses provided the net asset value per Unit at the time of declaration, after giving effect to the dividend, would be greater than the original issue price of the Preferred Shares.

NewGrowth Corp. is a mutual fund corporation whose investment portfolio consists of publicly-listed securities of selected Canadian chartered banks, telecommunication, oil and gas, pipeline and utility issuers. The Capital Shares and Preferred Shares of NewGrowth Corp. are listed for trading on The Toronto Stock Exchange under the symbols NEW.A and NEW.PR.D respectively.

For more information, please contact

Investor Relations NewGrowth Corp. [phone]

E-mail: [e-mail]

Web site: www.scotiamanagedcompanies.com

26th Floor, 40 King Street West, Toronto, Ontario M5W 2X6 Tel: [phone] Fax: [phone]