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DWS RREEF Real Estate Fund II Announces Additional Partial Redemption of Auction Rate Preferred Shares

^{Published on 2009-02-18 14:49:56, Last Modified on 2009-02-18 14:51:19 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--DWS RREEF Real Estate Fund II, Inc. (NYSE:SRO) (the "Fund") announced today that it is making an additional partial redemption of its outstanding auction rate preferred shares ("ARPS"). The Fund's Board of Directors has authorized the proposed partial redemption, which will be funded with cash on hand. The proposed redemption will be accomplished by the Fund in accordance with its charter documents on a pro-rata basis among the Fund's series of ARPS. Depository Trust Company ("DTC"), the record holder for each of the ARPS, will conduct a lottery to determine the allocation of redemptions among broker-dealer firms, and each broker-dealer will, in turn, determine how redeemed ARPS are to be allocated among its underlying beneficial owners. Allocation procedures among different broker-dealers may vary, and the Fund has no control over the allocation process of DTC or the broker-dealers. As a result, beneficial owners of ARPS may not be redeemed on a strictly pro-rata basis or may not have any ARPS redeemed.

The Fund intends to redeem $10 million of its currently outstanding $33 million of ARPS. The table below lists, on a per series basis, the total number of ARPS proposed to be redeemed, the total dollar amount proposed to be redeemed, and currently scheduled redemption dates:

The Fund's Board has authorized such additional ARPS redemptions as may be necessary to ensure the Fund's compliance with applicable ARPS asset coverage requirements. In the event DWS Investments intends to pursue such additional redemptions, notification will be made to shareholders. There is no assurance that the Fund will seek to maintain any amount of leverage in the future.

For more information about DWS Investments closed-end funds, visit [ www.dws-investments.com ] or call (800) 349-4281.

IMPORTANT INFORMATION

Shares of common stock of closed-end funds, unlike open-end funds, are not continuously offered. There is a one time public offering and, once issued, shares of common stock of closed-end funds are traded in the open market generally through a stock exchange. Common shares of closed-end funds frequently trade at a discount to net asset value. The price of common 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 common shares will trade at, below, or above net asset value.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of Fund securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

Certain statements contained in this release may be forward-looking in nature. These include all statements relating to plans, expectations, and other statements that are not historical facts and typically use words like "expect," "anticipate," "believe," and similar expressions. Such statements represent management's current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Management does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

The following factors, among others, could cause actual results to differ materially from forward-looking statements: (i) the ability of DWS Investments and the Fund to execute the proposed plan to make an additional partial redemption of the Fund's ARPS; (ii) the need to obtain any necessary regulatory approvals; (iii) the effects of changes in market and economic conditions; (iv) other legal and regulatory developments; and (v) other additional risks and uncertainties.

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-10095-1 02/09)