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DCS Announces New Lead Portfolio Manager and an At-Par Redemption of Auction Market Preferred Shares

^{Published on 2009-02-26 16:26:50, Last Modified on 2009-02-26 16:28:32 - Market Wire}
 

LISLE, Ill.--([ BUSINESS WIRE ])--[ Dreman/Claymore Dividend & Income Fund ] (NYSE: [ DCS ])(the "Fund"), a non-diversified closed-end management investment company, announces the appointment of a new lead portfolio manager. In addition, the Fund announces a partial at-par redemption of its outstanding auction market preferred shares ("AMPS"), liquidation preference $25,000 per share.

Portfolio Manager

E. Clifton Hoover will assume the lead portfolio manager responsibility for the Fund. David Dreman, Founder of Dreman Value Management, LLC ("DVM"), will continue to serve as a member of the Fund's portfolio management team. Mr. Hoover has over 20 years of experience in the investment management industry. He has built his career on the low P/E approach to investing, which is at the center of the DVM philosophy. Prior to joining DVM, Mr. Hoover was a Managing Director and Portfolio Manager at NFJ Investment Group. In this role, Mr. Hoover managed a dividend value portfolio and small-cap portfolio. In addition, he assisted with consultant relationship building and retail channel support for both mutual fund and wrap accounts. Mr. Hoover also has experience from Credit Lyonnais where he was responsible for the financial analysis and client servicing of a $5 billion diversified corporate portfolio, involving various debt instruments and equity investments. At Citibank Financial where he worked earlier in his career, Mr. Hoover gained experience as a financial analyst. In this position, he was responsible for the in-depth financial analysis of U.S. companies and their respective industries with regard to potential debt or equity transactions. At Republic Bank, where Mr. Hoover began his career in finance, he worked as a credit analyst and progressed up the ranks to Vice President of Corporate Banking. Mr. Hoover graduated from Texas Tech University in 1984 with his BBA in Finance. He then went on to complete his MS in Finance at Texas Tech the following year.

Redemption of Auction Market Preferred Shares

The Fund will redeem $35 million of its outstanding AMPS. The redemption price will be equal to the liquidation preference per share, plus accumulated but unpaid dividends as of the applicable redemption date (as noted in the table below). Following this redemption, the Fund will have $65 million of AMPS outstanding.

Redemption Schedule

With respect to this partial redemption, The Depository Trust Company (DTC), the holder of record of the Fund's AMPS, will determine how the partial series redemptions will be allocated among each participant broker-dealer account, which may include selecting AMPS to be redeemed by lot or such other method as DTC deems fair and equitable. Each participant broker-dealer, as nominee for underlying beneficial owners (street name shareholders), in turn will determine how redeemed shares are to be allocated among its underlying beneficial owners. The procedures used by various broker-dealers to allocate redeemed shares among beneficial owners may differ from each other as well as from the procedures used by DTC.

Claymore Advisors, LLC, an affiliate of [ Claymore Securities, Inc ]., serves as the Fund's Investment Adviser. Based in Lisle, Illinois, Claymore Securities, Inc. is a privately-held financial services company offering unique investment solutions for financial advisors and their valued clients. Claymore entities have provided supervision, management, servicing and/or distribution on approximately $10.4 billion in assets, as of December 31, 2008. Claymore currently offers closed-end funds, unit investment trusts and exchange-traded funds. Registered investment products are sold by prospectus only and investors should read the prospectus carefully before investing. Additional information on Claymore's closed-end funds is available at [ www.claymore.com/CEF ].

[ Dreman Value Management, LLC ], the Fund's Investment Manager, was founded by David N. Dreman in 1997, and its predecessor firms date back to 1977. The firm had approximately $14.3 billion in assets under management, as of August 31, 2008, primarily across institutional accounts, separate account wrap-fee programs, high-net-worth individuals and various investment companies. Independently owned, the firm is a value-oriented contrarian equity manager and places its primary emphasis on common stocks with growing dividends. David Dreman is widely known for his association with Forbes where he has penned a column entitled "The Contrarian" since 1980 and for publishing four books on low P/E contrarian value investing and behavioral finance.

This information does not represent an offer to sell securities of the Fund and it is not soliciting an offer to buy securities of the Fund. There can be no assurance that the Fund will achieve its investment objectives. The net asset value of the Fund will fluctuate with the value of the underlying securities. It is important to note that closed-end funds trade on their market value, not net asset value, and closed-end funds often trade at a discount to their net asset value. Past performance is not indicative of future performance. An investment in the Fund is subject to certain risks and other considerations. Such risks and considerations include, but are not limited to: Investment Risk, Market Discount Risk, Interest Rate Risk, Credit Risk, Lower-Grade and Unrated Securities Risk, Leverage Risk, Issuer Risk, Country Risk, Prepayment Risk, Reinvestment Risk, Derivatives Risk, Inflation/Deflation Risk, Management Risk, Turnover Risk, Anti-Takeover Provisions, Smaller Company Risk, and Market Disruption, Geopolitical Risk and AMPS Risk.

Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Fund carefully before they invest. For this and more information, please contact a securities representative or Claymore Securities, Inc., 2455 Corporate West Drive, Lisle, Illinois 60532, 800-345-7999.

Member FINRA/SIPC (2/09)

NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE