Davis + Henderson To Acquire Cyence International Inc.

TORONTO, Dec. 11 /CNW/ - Davis + Henderson Income Fund (TSX: DHF.UN)
today announced that its Filogix Segment, Canada's leading mortgage technology
provider, will acquire Cyence International Inc. for $38 million.
Established in 1996, and with clients in Canada, the United States and
Australia, Cyence is a leading international provider of credit lifecycle
management software and service solutions to the financial services industry.
Its premier software platform, ExpressOS™, offers a sophisticated suite of
lending and leasing front-office solutions that automate, integrate and
facilitate the origination, decisioning and loan servicing business processes.
Highly configurable, user friendly applications allow clients to create and
manage real-time transactions with significantly improved efficiency and
savings.
"This acquisition is consistent with our stated strategy of delivering
more programs within the lending services marketplace," said Bob Cronin, Chief
Executive Officer of Davis + Henderson. "We are pleased to add Cyence's
product capability, geographical reach and talented team to our organization.
This acquisition will expand upon our strategy of evolving our overall
business by increasing the depth and breadth of services that we provide to
our financial institution customers."
"Major financial institutions are increasingly seeking answers to meet a
wide variety of credit needs, from retail secured and unsecured credit
solutions through to small business and commercial lending applications," said
Gerrard Schmid, CEO of Filogix. "Adding Cyence's highly configurable lending
platforms to the Filogix suite of products significantly enhances our ability
to better serve our clients. Cyence's leading position in Equipment Finance,
Commercial Banking and Small Business lending complements our leading position
in mortgage origination and underwriting. As lenders tighten their lending
criteria we also see growth opportunities by providing compliance solutions
and specialty lending applications like equipment financing."
"The acquisition by Filogix will accelerate Cyence's evolution to the
next level" said Peter Hyne, founder of Cyence. "Davis + Henderson and Filogix
have a proven track record of delivering enhanced solutions to the financial
services industry and share our passion for providing services by applying
best-of-breed technology, with a strong customer focus. This transaction will
be good for all of our stakeholders, especially our employees and clients.
Davis + Henderson's 130 year history of serving financial institutions brings
tremendous depth, breadth and expertise to our existing client relationships."
This acquisition advances Filogix's strategy of accelerating growth via a
broader base of client-centric products with deeper coverage capability within
the credit lifecycle. The multi-language, configurable platform is also
ideally positioned to deliver lending solutions for lenders seeking a flexible
multi-country product solution across multiple credit products with enhanced
internal controls and workflow attributes.
The acquisition is expected to close before the end of December, subject
to several closing conditions. Financing for the acquisition will be provided
from cash balances and from drawings under Davis + Henderson's existing credit
facilities. The transaction is expected to be modestly accretive to cash flow
in 2009.

About Filogix

Filogix is a leading provider of credit solutions ranging from mortgage
origination through mortgage underwriting and lending lien registration
services, as well as a leading provider of real estate listing technologies.
Filogix's origination systems are used by captive salesforces, brokers and
bank branches across Canada, while their underwriting solutions are used by
more than 25 lenders across Canada, and their lien registration solutions are
used by several of Canada's largest banks. Filogix also provides connectivity
to the mortgage marketplace to mortgage insurance providers, credit bureaus,
appraisal firms and credit insurance providers.

About Davis + Henderson

Davis + Henderson and its predecessors have been serving the Canadian
financial services industry since 1875. Through integrated service offerings,
Davis + Henderson is a market leader in providing programs to customers who
offer chequing account and lending services within Canada. Davis + Henderson
Income Fund is listed on the Toronto Stock Exchange, symbol DHF.UN.

Caution Concerning Forward-Looking Statements

This news release contains certain statements that constitute
forward-looking statements or forward-looking information within the meaning
of applicable securities laws (collectively, "forward looking statements").
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors that relate to, among other things, sales growth, expansion
and growth of the respective businesses, future capital expenditures and the
business strategies of each of Davis + Henderson, Davis + Henderson Income
Fund and Filogix (collectively, the "D+H Entities"). While the D+H Entities
consider these factors and assumptions to be reasonable, they may prove to be
incorrect. Forward-looking statements include all disclosure regarding
possible events, conditions or results of operations that are based on
assumptions about future economic conditions and courses of action. Forward
looking statements may also include, without limitation, any statement
relating to future events, conditions or circumstances. As such, forward
looking statements are subject to inherent uncertainties and a number of
factors could cause actual results to differ materially from those in the
forward-looking statements, including, but not limited to: general industry
and economic conditions, changes in the D+H Entities' relationships with their
suppliers and customers, pricing pressures and other competitive factors, the
availability and costs of utilities, the results of the D+H Entities' ongoing
efforts to improve cost effectiveness, changes in regulatory requirements
affecting the businesses of the D+H Entities and the availability and terms of
financing and the ability of Cyence International Inc. to meet its revenue and
EBITDA targets. Other Risk Factors are set out and described in the Annual
Information Form for the Davis + Henderson Income Fund which is available at
www.sedar.com or the Fund's web site at www.dhltd.com. Consequently, actual
results and events may vary significantly from those included in, contemplated
by or implied by such forward-looking statements. In evaluating
forward-looking statements, readers should specifically consider the various
factors that could cause actual events or results to differ materially from
such forward-looking statements. Forward-looking statements are given only as
at the date of this press release and the D+H Entities disclaim any obligation
to update or revise the forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by applicable law.

Conference Call

Davis + Henderson will discuss this potential transaction via conference
call at 4:00 p.m. EST (Toronto time) on Thursday December 11, 2008. The number
to use for this call is 416-644-3417 for Toronto area callers or
1-800-731-5774 for all other callers. The conference call will be hosted by
Bob Cronin, Chief Executive Officer of Davis + Henderson, and by Gerrard
Schmid, Chief Executive Officer of Filogix. The conference call will also be
available on the web by accessing CNW Group's website
www.newswire.ca/webcast/. For anyone unable to listen to the scheduled call,
the rebroadcast number is 416-640-1917 for Toronto area callers, or
1-877-289-8525 for all other callers, with reservation number 21291839
followed by the number sign. The rebroadcast will be available until Friday,
December 26, 2008. An archive recording of the conference call will also be
available at the above noted web site address for one month following the call
and a text version of the call will be available at www.dhltd.com.

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