NKR Nuveen Arizona Dividend Advantage Municipal Fund 2 Common Shares of Beneficial Interest

Two closed-end funds sponsored by Nuveen Investments today called for redemption at par all of their outstanding auction-rate preferred securities (ARPS). The funds’ Board of Trustees had previously approved each redemption, which total more than $27 million. The funds include the Nuveen Arizona Dividend Advantage Municipal Fund (AMEX: NFZ) and Nuveen Arizona Dividend Advantage Municipal Fund 2 (AMEX: NKR). These redemptions will be funded by proceeds received from the issuance of MuniFund Term Preferred Shares (MTP).

NFZ is redeeming all of its $10.6 million of currently outstanding ARPS.

Series   Cusip #  

Total SharesRedeemed

 

Total AmountRedeemed

  RedemptionDate T   67069L209   424   $10,600,000   November 8, 2010        

NKR is redeeming all of its $16.625 million of currently outstanding ARPS.

Series   Cusip #  

Total SharesRedeemed

 

Total AmountRedeemed

  RedemptionDate W   67071P206   665   $16,625,000   November 8, 2010        

For more information about Nuveen closed-end funds, visit www.nuveen.com/cef. ARPS information and updates are posted on Nuveen’s auction-rate preferred resource center at www.nuveen.com/arps.

Nuveen Investments provides high quality investment services designed to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds, Winslow Capital and Nuveen HydePark. In total, the Company managed more than $160 billion as of September 30, 2010. For more information, please visit the Nuveen Investments website at www.nuveen.com.