TYG provides the following tax information to its common stockholders pertaining to its character of distributions during 2008. For a stockholder that received all distributions in cash during 2008, $2.2325 will be treated as a return of capital (Box 3). The per share characterization by quarter is reflected in the sample Form 1099-DIV below.

If stockholders participated in the company sponsored dividend reinvestment plan, the tax basis of shares acquired is the greater of the purchase price or the market close price on the payment date.

Nothing contained herein should be construed as tax advice, consult your tax advisor for more information. Furthermore, you may not rely upon any information herein for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code.

Tax Features

Unlike most investment companies, TYG is not treated as a regulated investment company under the U.S. Internal Revenue Code of 1986, and is therefore obligated to pay federal and applicable state corporate taxes on its taxable income.

Although MLPs generate income taxable to TYG, the company expects the MLPs to pay cash distributions in excess of the taxable income reportable.

Similarly, TYG expects to distribute cash in excess of its taxable income to its stockholders and intends to distribute substantially all of its distributable cash flow (generally, cash from operations less certain operating expenses and reserves).

Stockholder Tax Features

TYG stockholders hold stock of a corporation. Shares of stock differ substantially from partnership interests for federal income tax purposes.

Based on the historical performance of MLPs, TYG expects that a significant portion of distributions to its stockholders will constitute a tax-free return of capital. Unlike holders of MLP common units, stockholders of TYG will not recognize an allocable share of TYG income, gains, losses and deductions. Stockholders recognize income only if TYG pays distributions from current or accumulated earnings and profits allocable to the particular shares held by a stockholder.

Such distributions will be taxable to a stockholder in the current period as dividend income. Dividend income will be treated as "qualified dividends" for federal income tax purposes, subject to favorable capital gains rates.

Distributions that exceed TYG's allocated current or accumulated earnings and profits constitute a tax-free return of capital to the extent of a stockholder's basis in its stock. Distributions that exceed a stockholder's basis, will be taxed as capital gain.

Based on the historical performance of MLPs, TYG expects that a significant portion of distributions to holders of stock will constitute a tax-free return of capital. In addition, earnings and profits are treated generally, for federal income tax purposes, as first being used to pay distributions on the preferred stock, if any, and then to the extent remaining, if any, to pay distributions on common stock. There is no assurance that TYG will make regular distributions or that the company's expectation regarding the tax character of its distributions will be realized. The special tax treatment for qualified dividends which was scheduled to expire Dec. 31, 2008 has been extended through Dec. 31, 2010.

Upon the sale of stock, a stockholder generally will recognize capital gain or loss measured by the difference between the sale proceeds received by the stockholder and the stockholder's federal income tax basis in its stock sold, as adjusted to reflect return(s) of capital. Generally, such capital gain or loss will be long-term capital gain or loss if the stock were held as a capital asset for more than one year.