Sylogist declares special dividend

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CALGARY, Dec. 7, 2011 /CNW/ - Sylogist Ltd. ("Sylogist" or the "Company") - (TSX-V:SYZ), is pleased to announce a special dividend of $0.075 per share payable on January 15, 2012 to shareholders of record on the close of business on January 4, 2012.  This special dividend will be treated as an "eligible dividend" within the meaning of Income Tax Act (Canada), unless otherwise indicated.

In the course of conducting its fiscal 2011 year end audit, which is ongoing, the Company has been advised that previously declared and paid dividends in calendar years 2010 and 2011 should be treated as "non-eligible dividends", rather than as a return of capital.  The Company has been advised that "non-eligible dividends" may be taxable, however, unlike return of capital distributions, non-eligible dividends, as well as eligible dividends, do not reduce a shareholder's adjusted cost base in his shares.  Accordingly, shareholders may expect to receive T5 - Statements of Investment Income for calendar years 2010 and 2011.  If a T5 for calendar 2010 is received, a shareholder may be obliged to amend his 2010 tax filing.

Sylogist declared a dividend of $0.025 payable December 15, 2011, to shareholders of record November 30, 2011, which should also be treated as an eligible dividend.

Finally, the Company has been advised that notwithstanding this change in treatment of dividends, there is no impact to the Company's financial statements in either 2010 or 2011.

About Sylogist

Sylogist is a technology innovation and licensing company which, through strategic acquisitions, investments and operations management, provides intellectual property solutions to a wide range of public and private sector customers. The Company's stock is traded on the TSX Venture Exchange under the symbol "SYZ".

- Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release -