BlackRock Enhanced Government Fund, Inc. Announces Upcoming Repurchase Offer

The offer by BlackRock Enhanced Government Fund, Inc. (the “Fund”) (NYSE: EGF, CUSIP: 09255K108) to repurchase up to 10% of its outstanding shares of common stock (the “Shares”) from its stockholders (the “Repurchase Offer”) will commence on October 19, 2012.

Under the terms of the Repurchase Offer, the Fund is offering to purchase up to 10% of its Shares from stockholders at an amount per Share equal to the Fund’s net asset value (“NAV”) per Share calculated as of the close of regular trading on the New York Stock Exchange on December 4, 2012, less a repurchase fee of 2% of the value of the Shares repurchased. The Repurchase Offer is scheduled to expire on November 20, 2012, unless extended, with payment for the Shares repurchased to be made on or before December 11, 2012.

The Fund has established a record date of October 5, 2012 solely for the purpose of identifying stockholders eligible to receive Repurchase Offer materials.

The Fund is a diversified, closed-end management investment company. The Fund’s investment objective is to provide stockholders with current income and gains. The Shares have at times traded at a premium to the Fund’s NAV per Share. It may not be in a shareholder’s interest to tender Shares in connection with this Repurchase Offer if the Shares are trading at a premium. The market price of the Shares can and does fluctuate. Accordingly, on December 4, 2012, the pricing date of the Repurchase Offer, the market price of the Shares may be above or below the Fund’s NAV per Share.

None of the Fund, its investment adviser or its Board of Directors is making 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 direct stockholders, Computershare Shareowner Services, which will act as the Depositary Agent in connection with the Repurchase Offer.