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

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 20, 2012. The Fund offered to repurchase up to 10% 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 4, 2012, 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 Tuesday, November 20, 2012, 10,999,641 shares of the Fund were outstanding. A repurchase amount of 10% of the outstanding shares of the Fund’s common stock would represent approximately 1,099,964 shares.

The preliminary count by Computershare Shareowner Services LLC, the Fund's depositary agent, indicated that approximately 3,367,976 shares (approximately 30.61% of the Fund's outstanding shares) were validly tendered and not withdrawn prior to the expiration of the Fund's Repurchase Offer. This determination is subject to final confirmation and the proper delivery of all shares tendered and not withdrawn.

Because the aggregate number of shares tendered exceeds the total number of shares that the Fund offered to repurchase, the Fund will repurchase any shares tendered on a pro rata basis. However, the Fund will accept all shares tendered by shareholders who own, beneficially or of record, an aggregate of not more than 99 shares and who tender all of their shares, before pro rating shares tendered by others.

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.