N@N

Neuberger Berman Dividend Advantage Fund Inc. Announces Redemption ofIts Auction Market Preferred Shares, a Reduction in Levera

_{//business-finance.news-articles.net/content/200 .. rket-preferred-shares-a-reduction-in-levera.html}
^{Published in Business and Finance on Monday, November 17th 2008 at 18:35 GMT by Market Wire}  

NEW YORK--([ BUSINESS WIRE ])--Neuberger Berman Dividend Advantage Fund Inc. (AMEX: NDD) (the "Fund" or "NDD") announced today that it has redeemed all of its outstanding auction market preferred shares ("AMPS") and has reduced its leverage by approximately $26,250,000. Additionally, the Fund announced a reduced quarterly distribution of $0.11 per share payable on December 15, 2008 to shareholders of record on November 28, 2008 with an ex-date of November 25, 2008.

As previously announced, the Fund entered into a refinancing arrangement with a major unaffiliated financial institution that would allow it to refinance 100% of its outstanding AMPS. Due to the deterioration in the value of the Fund's portfolio securities and the continued market volatility and economic uncertainty, the Fund's investment manager believes that a lower level of leverage is appropriate and may provide greater stability to the Fund. Accordingly, in connection with redeeming all of its AMPS and issuing privately placed preferred stock and notes, the Fund reduced its leverage by approximately 50%.

After considering the continued challenges the Fund has experienced in the markets for its portfolio securities, the lower level of leverage the Fund will have on a going forward basis and its associated costs, as well as the Fund's potential to earn income and capital gains, the Board approved a reduction in the Fund's quarterly distribution from $0.30 to $0.11 per share. Under its level distribution policy, the Fund anticipates that it will continue to pay a quarterly distribution, subject to market conditions, of $0.11 per share, unless further action is taken by the Fund's Board of Directors to determine another amount. The Fund's ability to maintain a stable distribution will depend on a number of factors, including the stability of income received from its investments, availability of capital gains, the expenses associated with its leverage and the level of other Fund expenses. There is no assurance that the Fund will always be able to pay a distribution of any particular size or that a distribution will consist only of net investment income.

Due to an effort to maintain a stable distribution amount, the distribution announced today, as well as future distributions, may consist of net investment income, realized capital gains and return of capital.

In compliance with Section 19 of the Investment Company Act of 1940, as amended, a notice would be provided for any distribution that does not consist solely of net investment income. This notice would be for informational purposes and would disclose, among other things, estimated portions of the distribution, if any, consisting of net investment income, capital gains and return of capital.

Neuberger Berman Management LLC, the Fund's investment manager, is a subsidiary of Neuberger Berman Holdings LLC, an investment advisory company serving individuals, families, and taxable and non-taxable institutions with a broad range of investment products, services and strategies. Neuberger Berman engages in wealth management services including private asset management, financial planning; and mutual funds, institutional management and alternative investments. For further information about Neuberger Berman please visit [ www.nb.com ].

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, the cost and effect of the Fund's use of leverage, a general downturn in the economy, competition from other closed-end investment companies, changes in government policy or regulation, inability of the Fund's investment adviser to attract or retain key employees, inability of the Fund to implement its investment strategy, inability of the Fund to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. These risks and uncertainties may cause the actual results, performance or achievements of the Fund, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. As a result, no assurance can be given as to future results, performance or achievements, and neither the Fund nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.