Nuveen Investments Arranges Additional VRDP Liquidity Facilities for Its Closed-End Funds

Nuveen Investments has arranged up to $2.5 billion in liquidity support from three major financial institutions for its leveraged municipal closed-end funds to issue Variable Rate Demand Preferred shares (VRDP). This represents an important action necessary to refinance those funds’ outstanding auction rate preferred securities (ARPS). These new liquidity facilities are intended to enable the funds to resume the issuance of VRDP shares beginning in early 2010. Four Nuveen municipal funds successfully issued approximately $500 million in VRDP to fully refinance their outstanding ARPS in August 2008, but issuance by additional funds was suspended in the wake of the financial crisis that began in late 2008.

“As credit markets continue to improve, this latest liquidity support represents a positive step forward in our closed-end funds’ efforts to complete the refinancing of their remaining ARPS, while also seeking to reduce the costs of leverage over time for those funds’ common shareholders,” said Bill Adams, Executive Vice President, Nuveen Investments. “We continue to believe that strong demand for VRDP exists in the market, based on the continued successful weekly remarketing of the VRDP issued by four of our funds in August 2008.”

VRDP is a new preferred security designed to replace the ARPS currently used as leverage in many municipal closed-end funds. VRDP would include an unconditional “put” feature backed by a major financial institution, making the VRDP eligible for investment by tax-exempt money market funds. The issuance of VRDP is subject to approval by the funds’ Board of Trustees as well as market conditions, the willingness of tax-exempt money market funds and/or other institutional investors to invest in VRDP, and obtaining necessary ratings for the VRDP. Additional considerations include the need to comply with applicable laws and regulations; the agreement by all involved parties, including the liquidity providers, to final terms of the transactions; and the extension of the expiration date of certain regulatory relief due to expire at the end of 2009. In May of 2008, the Internal Revenue Service provided relief from various structural provisions required by liquidity providers. Closed-end funds issuing VRDP will need to rely on the continuation of this regulatory relief to issue new VRDP. Nuveen Investments and other closed-end fund sponsors, through the Investment Company Institute (ICI)(FREE stock trend analysis), have requested that the Internal Revenue Service extend the expiration date of this relief.

It is anticipated that any fund issuing VRDP will use the proceeds of the offering to redeem all of its outstanding ARPS. Since VRDP will be issued through private offerings, funds will not file public registration documents. The identity of the specific funds issuing VRDP, and the timing of each fund’s issuance, will depend on various factors, including criteria determined by the liquidity providers regarding the liquidity facility size, the quality and diversification of the fund’s portfolio, and other factors. Funds issuing VRDP each expect to announce their successful VRDP offering at the time the offering is completed, and shortly thereafter plan to issue corresponding ARPS redemption notices.

For complete information on Nuveen’s Closed-End Funds’ leverage and refinancings, including previous announcements, visit http://www.nuveen.com/arps or more specifically by searching http://www.nuveen.com/Home/Search/SearchResults.aspx?q=VRDP.

MuniFund Term Preferred Advances ARPS Refinancing Efforts

Several Nuveen municipal closed-end funds have recently issued or have filed SEC registration statements for MuniFund Term Preferred (MTP)(FREE stock trend analysis) shares. MTP is a fixed-rate form of preferred stock that has a mandatory redemption period. Proceeds from previously issued MTP have been used to refinance each issuing fund’s existing ARPS. By issuing MTP, the funds seek to take advantage of the current historically low interest rate environment to lock in an attractive tax-exempt cost of leverage for a period as long as the term of the MTP. To date, more than $150 million of MTP shares have been issued by three Nuveen municipal closed-end funds and now trade on the New York Stock Exchange.

Nuveen’s taxable closed-end funds have completed the refinancing of their $4.3 billion in ARPS. To date, through a combination of issuing VRDP and MTP and by investing in Tender Option Bond (TOB) structures, Nuveen’s municipal closed-end funds have refinanced $2.5 billion of their $11 billion of ARPS since the ARPS crisis began in February 2008. Nuveen remains committed to securing the refinancing of its closed-end funds’ ARPS, while reducing the costs of leverage for our funds’ common shareholders over time, and will continue to provide updates on the funds’ progress.

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 HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, the Company managed $141 billion of assets on September 30, 2009. For more information, please visit the Nuveen Investments website at www.nuveen.com.

FORWARD LOOKING STATEMENTS

Certain statements made in this release are forward-looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to:

• the acceptance by qualified institutional buyers of VRDP as an appropriate investment;
• the acceptance by the market, and demand for, VRDP in amounts sufficient for the fund to refinance all or a portion of its outstanding ARPS;
• the need to obtain the agreement of all parties to the final terms of the offering of VRDP, including the liquidity provider;
• the extension of regulatory relief provided by the Internal Revenue Service beyond its scheduled expiration on December 31, 2009, permitting the issuance of VRDP;
• other legal and regulatory developments; and
• other additional risks and uncertainties.

Nuveen and the closed-end funds managed by Nuveen and its affiliates undertake no responsibility to update publicly or revise any forward-looking statement.