BTZ BlackRock Credit Allocation Income Trust

BlackRock Credit Allocation Income Trust IV (NYSE:BTZ) and BlackRock Enhanced Government Fund, Inc. (NYSE:EGF) (the “Funds”) today paid the following dividends per share:

Ticker     Pay Date     Per Share BTZ     December 18, 2009     $ 0.100000 EGF     December 18, 2009     $ 0.272000        

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 December 18, 2009       Fund   Distribution  

Net Investment

Income

 

Net Realized

Short-Term Gains

 

Net Realized

Long-Term Gains

  Return of Capital BTZ1   $ 0.100000   $0.0300 (30%)   $0.00 (0%)   $0.00 (0%)   $0.0700 (70%) EGF1, 2   $ 0.272000   $0.0616 (23%)   $0.00 (0%)   $0.1670 (61%)   $0.0434 (16%)         Estimated Allocations for the Fiscal Year Through December 18, 2009       Fund   Distribution  

Net Investment

Income

 

Net Realized

Short-Term Gains

 

Net Realized

Long-Term Gains

  Return of Capital BTZ1   $ 0.200000   $0.00777 (39%)   $0.00 (0%)   $0.00 (0%)   $0.1223 (61%) EGF1, 2   $ 1.322000   $0.9467 (72%)   $0.00 (0%)   $0.2968 (22%)   $0.0785 (6%)  

1The Funds estimate that they have distributed more than their 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’.

2At December 14, 2009, and after giving effect to the distribution, the sum of the Fund's accumulated net realized losses and net unrealized depreciation of portfolio securities was approximately $(13.5) million. The amount of the Fund's unrealized depreciation of portfolio securities as of that date was $(13.6) million.

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 annual total return (in relation to NAV) from inception to November 30, 2009   Annualized current distribution rate expressed as a percentage of NAV as of November 30, 2009   Cumulative total return (in relation to NAV) for the fiscal year through November 30, 2009   Cumulative fiscal year distributions as a percentage of NAV as of November 30, 2009 BTZ   (8.70)%   9.40%   1.87%   1.57% EGF   4.71%   19.21%   12.85%   7.78%        

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 a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. With approximately $3.2 trillion under management as of September 30, 2009 (pro forma), BlackRock offers products that span the risk spectrum to meet clients’ needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, the firm has over 8,500 employees in 24 countries. For additional information, please visit BlackRock’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; (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 Securities and Exchange Commission (“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.