N@N

DWS Strategic Municipal Income Trust (KSM) Declares Distributions for December

^{Published on 2008-12-05 18:43:07 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--DWS Strategic Municipal Income Trust (NYSE: KSM) declared a monthly distribution of $0.061 per common share, payable on December 31, 2008 to shareholders of record on December 15, 2008. The ex-date is December 11, 2008. The previous monthly distribution was $0.055 per share.

The current distribution rate represents a 9.66% annualized yield based on the closing market price of $7.58 on December 4, 2008 and a 7.75% annualized yield on a closing NAV of $9.44 on the same date.

The Fund also declared a special taxable distribution of $.0266 per common share, payable on December 31, 2008 to shareholders of record on December 15, 2008. The ex-date is December 11, 2008. The distribution is taxable as ordinary income. The Fund has both common and preferred shares outstanding. In accordance with a position taken by the Internal Revenue Service, the Fund is required to allocate a proportionate share of distributions designated as taxable to both the common and the preferred shares.

Future earnings cannot be guaranteed and the Fund's distribution policy is subject to change. For more information on KSM please contact a representative at (800) 349.4281 or visit us on the web at [ www.dws-investments.com ].

DWS Strategic Municipal Income Trust seeks a high level of current income exempt from federal income tax by investing in a diversified portfolio of investment-grade tax-exempt securities. The fund will invest at least 50 percent of its assets in investment-grade municipal securities or unrated municipal securities of comparable quality, and may invest up to 50 percent of its assets in high-yield municipal securities that are below investment grade. The fund invests in individual bonds whose yields and market values fluctuate, so that your investment may be worth more or less than its original cost. Additionally, although the fund seeks income that is federally tax–free, a portion of the fund's distributions may be subject to federal, state, local and alternative minimum tax. Bond investments are subject to interest-rate risk such that when interest rates rise, the prices of the bonds, and thus the value of the bond fund, can decline and the investor can lose principal value

Investments in closed-end funds involve risk. Closed-end funds, unlike open-end funds, are not continuously offered.There is a one-time public offering, and once issued, shares of closed-end funds are sold in the open market through a stock exchange.Shares of closed-end funds frequently trade at a discount to net asset value.The price of the Fund's shares is determined by a number of factors, several of which are beyond the control of the Fund.Therefore, the Fund cannot predict whether its shares will trade at, below or above net asset value.

Past performance is no guarantee of future results.Annualized yield is the latest monthly distribution shown as an annualized percentage of net asset value/market price at month end. Annualized yield simply measures the level of distribution and is not a complete measure of performance. Market price, annualized distribution yield, net asset value are historical and will fluctuate and do not guarantee future results.

This announcement is not an offer to purchase or the solicitation of an offer to sell shares of the Fund or a prospectus, circular or representation intended for use in the purchase or sale of Fund shares.

DWS Investments is part of Deutsche Bank's Asset Management division and, within the US, represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company. (R-4469-1 12/08)