Neuberger Berman Dividend Advantage Fund Inc. Announces Quarterly Distribution and Reduction in Distribution Rate

The Board of Directors of Neuberger Berman Dividend Advantage Fund Inc. (AMEX: NDD) (the “Fund” or “NDD”) has declared a quarterly distribution of $0.065 per share, which represents a $0.045 reduction per share. The $0.065 per share quarterly distribution rate is equivalent to 3.6011% of the Fund’s market closing price per share and 3.3248% of the Fund’s net asset value per share as of May 11, 2009, on an annualized basis. The quarterly distribution announced today is payable on June 15, 2009, has a record date of May 26, 2009 and an ex-date of May 21, 2009.

In determining that a reduction in the distribution rate was appropriate, the Board considered, among other things, recent and current market conditions, reduced levels of investment income earned by the Fund and the effects of a reduction in the Fund’s leverage. Specifically, within the universe of real estate investment trusts (REITs), a sizable number of REITs have announced reductions in their common share dividends and a somewhat smaller number have suspended preferred share dividends. This trend has impacted REITs in the Fund’s portfolio and has resulted in a reduction in the level of income earned and anticipated to be earned by the Fund. In addition, due in part to declines in the prices of REIT securities held by the Fund and the asset coverage requirements of the Investment Company Act of 1940, as amended, the Fund has reduced the absolute amount of its leverage, which has further reduced the Fund’s income generating capacity.

Under its level distribution policy, the Fund endeavors to establish a distribution rate that its Board believes is sustainable for a reasonable time period, subject to market conditions. 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 of only net investment income. The Fund’s continuing 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, distributions paid on preferred stock and interest paid on notes] and the level of Fund other expenses.

Due to an effort to maintain a stable distribution amount, the distributions 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. The 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, 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, 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.