BTZ BlackRock Credit Allocation Income Trust

Today, BlackRock Preferred & Equity Advantage Trust (NYSE: BTZ) and BlackRock Enhanced Government Fund, Inc. (NYSE: EGF) (collectively, the “Funds”) paid the following dividends per share:

Fund   Pay Date   Per Share BTZ   October 30, 2009   $ 0.100000 EGF   October 30, 2009   $ 0.105000

Each of the Funds has adopted a level distribution plan (the “Plan”) and employs either a managed distribution or an option over-write policy to support a level distribution of income, capital gains and/or return of capital. The fixed amounts distributed per share are subject to change at the discretion of each Fund’s Board. Under its Plan, each Fund will distribute all available investment income to its shareholders, consistent with its primary investment objectives and as required by the Internal Revenue Code of 1986, as amended (the “Code”). If sufficient investment income is not available on a quarterly/monthly basis, the Funds will distribute long-term capital gains and or return capital to their shareholders in order to maintain a level distribution.

The Funds’ estimated sources of the distributions paid this month and for their current fiscal years are as follows:

Estimated Allocations as of October 31, 2009 Fund   Distribution  

Net InvestmentIncome

 

Net RealizedShort-Term Gains

 

Net RealizedLong-Term Gains

  Return of Capital BTZ1   $ 0.100000   $0.047700 (48%)   $0.00 (0%)   $0.00 (0%)   $0.052300 (52%) EGF   $ 0.105000   $0.042800 (41%)   $0.00 (0%)   $0.062200 (59%)   $0.000000 (0%)           Estimated Allocations for the fiscal year through October 31, 2009 Fund   Distribution  

Net InvestmentIncome

 

Net RealizedShort-Term Gains

 

Net RealizedLong-Term Gains

  Return of Capital BTZ1   $ 1.410000   $0.934700 (66%)   $0.00 (0%)   $0.00 (0%)   $0.475300 (34%) EGF   $ 0.945000   $0.830700 (88%)   $0.00 (0%)   $0.114300 (12%)   $0.000000 (0%)

1The Fund estimates that it has distributed more than its income and capital gains in the current fiscal year; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment is paid back to the shareholder. A return of capital distribution does not necessarily reflect a Fund's investment performance and should not be confused with ‘yield’ or ‘income’.

The amounts and sources of distributions reported are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Funds will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Fund Performance and Distribution Rate Information: Fund  

Average annualtotal return (inrelation to NAV)from inception toSeptember 30,2009

 

Current fiscal period'sannualizeddistribution rate as apercentage of NAV asof September 30, 2009

 

Cumulative total return(in relation to NAV) forthe fiscal year throughSeptember 30, 2009

 

Cumulative fiscal yeardistribution rateexpressed as apercentage of NAV as ofSeptember 30, 2009

BTZ   (10.67)%   9.66%   37.37%   10.55% EGF   4.52%   7.43%   11.21%   4.96%

Shareholders should not draw any conclusions about a Fund’s investment performance from the amount of the Fund’s current distributions or from the terms of the Fund’s Plan.

About BlackRock

BlackRock is one of the world’s largest publicly traded investment management firms. At September 30, 2009, BlackRock’s assets under management was $1.435 trillion. The firm manages assets on behalf of institutions and individuals worldwide through a variety of equity and balanced, fixed income, cash management, alternative investment and advisory products. In addition, a growing number of institutional investors use BlackRock Solutions investment system, risk management and financial advisory services. Headquartered in New York City, as of September 30, 2009, the firm has approximately 5,000 full-time employees in 21 countries and a major presence in key global markets, including the United States, Europe, Asia, Australia and the Middle East. For additional information, please visit the firm’s website at www.blackrock.com.

Forward-Looking Statements

This press release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

With respect to each Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in the Fund’s net asset value; (2) the performance of the Fund’s investments; (3) the impact of increased competition; (4) the extent and timing of any distributions or share repurchases; (5) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or BlackRock, as applicable; and (6) BlackRock’s ability to attract and retain highly talented professionals.

The Annual and Semi-Annual Reports and other regulatory filings of the Funds with the SEC are accessible on the SEC's website at www.sec.gov and on BlackRock’s website at www.blackrock.com, and may discuss these or other factors that affect the Funds. The information contained on our website is not a part of this press release.