BlackRock Enhanced Government Fund, Inc. Completes Annual Repurchase Offer

  BlackRock Enhanced Government Fund, Inc. Completes Annual Repurchase Offer

Business Wire

NEW YORK -- December 05, 2012

BlackRock Enhanced Government Fund, Inc. (the “Fund”) (NYSE: EGF, CUSIP:
09255K108) today announced the completion of its offer to repurchase up to 10%
of its outstanding shares of common stock from its stockholders (the
“Repurchase Offer”).

Under the terms of the Repurchase Offer, the Fund offered to repurchase up to
10% of its outstanding shares of common stock for cash at a price equal to the
Fund’s net asset value per share calculated as of the close of business of the
New York Stock Exchange on December 4, 2012, fourteen days after Tuesday,
November 20, 2012, the expiration date of the Repurchase Offer.

As previously announced, at the Repurchase Offer’s expiration, Computershare
Shareowner Services LLC, the Fund’s depositary agent, indicated that 3,367,976
shares (approximately 30.61% of the Fund’s outstanding shares) were validly
tendered and not withdrawn. Since more than 10% of Fund shares outstanding
were tendered, the Fund repurchased shares on a pro rata basis except with
regard to odd lot shareholders who tendered all of their shares which were
purchased in their entirety, as disclosed in the Repurchase Offer Statement.
Consequently, approximately 32.53% of shares tendered were accepted for
repurchase.

On December 4, 2012, and subject to pro ration as applicable, tendered shares
were repurchased by the Fund at $16.17 per share (subject to the repurchase
fee of 2% of the net asset value per share, which was deducted from the
repurchase price), the Fund’s net asset value per share determined as of 4:00
p.m. EST, Tuesday, December 4, 2012.

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 made 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 registered stockholders,
Computershare Shareowner Services LLC, which is acting as the depositary agent
in connection with the Repurchase Offer.

About BlackRock

BlackRock is a leader in investment management, risk management and advisory
services for institutional and retail clients worldwide. At September 30,
2012, BlackRock’s AUM was $3.673 trillion. 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, as of September 30, 2012, the firm has approximately 10,400
employees in 29 countries and a major presence in key global markets,
including North and South America, Europe, Asia, Australia and the Middle East
and Africa. For additional information, please visit BlackRock’s website at
www.blackrock.com.

Forward-Looking Statements

This press release, and other statements that BlackRock or the Fund may make,
may contain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act, with respect to the Fund or 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 the Fund, the following factors, among others, could cause
actual events to differ materially from forward-looking statements or
historical performance: (1) changes and volatility in political, economic or
industry conditions, the interest rate environment, foreign exchange rates or
financial and capital markets, which could result in changes in demand for the
Fund or in the Fund’s net asset value; (2) the relative and absolute
investment performance of the Fund and its investments; (3) the impact of
increased competition; (4) the unfavorable resolution of any legal
proceedings; (5) the extent and timing of any distributions or share
repurchases; (6) the impact, extent and timing of technological changes; (7)
the impact of legislative and regulatory actions and reforms, including the
Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory,
supervisory or enforcement actions of government agencies relating to the Fund
or BlackRock, as applicable; (8) terrorist activities, international
hostilities and natural disasters, which may adversely affect the general
economy, domestic and local financial and capital markets, specific industries
or BlackRock; (9) BlackRock’s ability to attract and retain highly talented
professionals; (10) the impact of BlackRock electing to provide support to its
products from time to time; and (11) the impact of problems at other financial
institutions or the failure or negative performance of products at other
financial institutions.

Annual and Semi-Annual Reports and other regulatory filings of the Fund 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 Fund. The information
contained on BlackRock’s website is not a part of this press release.

Contact:

BlackRock Enhanced Government Fund, Inc.
1-800-882-0052