NRL Neuberger BM RE

Neuberger Berman Real Estate Income Fund Inc. (NYSE: NRL) announced that the federal district court for the District of Maryland issued a Declaratory Judgment Order in the case Neuberger Berman Real Estate Income Fund Inc. v. Lola Brown Trust No. 1B et al., 04-cv-03056 (AMD). Judge Andre M. Davis held that NRL�s adoption of successive rights agreements �with the purpose and effect of defeating the tender offer at issue in this case, does not violate federal or state law or plaintiff�s charter,� thus upholding NRL�s �poison pill� defense. The court also upheld NRL�s interpretation of the scope of any exemption for Lola Brown Trust No. 1B (the �Trust�) under the Maryland Control Share Acquisition Act (the �MCSAA�), ruling that the Trust could vote the NRL shares it held at the time NRL opted into the MCSAA, but that the Trust �may vote any shares it acquired after [NRL�s] opt-in on September 23, 2004, or it hereafter acquires, only with the approval of two-thirds of disinterested shareholders of (NRL), as provided in that statute.� Finally, the court held that �Lola Brown Trust No. 1B is not an investment company and is not a constituent entity of an investment company within the meaning of the Investment Company Act of 1940, as amended, and is not prohibited by section 12(d) thereof from owning more than 3% of the outstanding voting shares of a registered investment company.� The Declaratory Judgment Order did not address all pending claims in the litigation. The court stated that it would issue an opinion shortly. Forward-Looking Statements Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Fund�s performance, a general downturn in the economy, competition from other funds, changes in government policy or regulation, inability of the Fund�s investment advisor to attract or retain key employees, inability of the Fund�s investment advisor to implement its investment strategy, inability of the Fund to manage unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.