Nuveen Announces Investment Policy Changes and Mergers for Insured California Municipal Closed-End Funds

Nuveen Investments, a leading global provider of investment services to institutions as well as high-net-worth and affluent investors, today announced the Board of four insured California municipal bond closed-end funds has approved changes to each of the funds’ investment policies as well as the merger of the funds. These changes are subject to shareholder approval at the funds’ annual meeting on February 24, 2012. The four funds and their corresponding tickers are as follows:

Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC)Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL)Nuveen Insured California Dividend Advantage Municipal Fund (NKL)Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX)

Over the past few years, most municipal bond insurers have had their credit ratings downgraded and only one insurer is currently insuring new municipal bonds. As a result, the supply of insured municipal securities has decreased dramatically and the long-term viability of the municipal bond insurance market is uncertain.

In response, the Board approved proposed changes to each fund’s investment policies intended to increase the funds’ flexibility regarding the types of securities available for investment as well as the proposed reorganization of the funds into a single, larger fund, as outlined below.

The proposals provide that:

• Each fund will eliminate the investment policy requiring it, under normal circumstances, to invest at least 80 percent of its managed assets in municipal securities that are covered by insurance which currently guarantees the timely payment of principal and interest.
• Each fund will continue to invest substantially all (at least 80 percent) of its managed assets in investment grade quality municipal securities.
• Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC), Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) and Nuveen Insured California Dividend Advantage Municipal Fund (NKL) be reorganized into Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX).
• Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX) will change its name to Nuveen California AMT-Free Municipal Income Fund (NKX) upon shareholder approval of the investment policy changes.

More information on these and other Nuveen closed-end funds is posted on Nuveen’s web site at www.nuveen.com/cef.

Nuveen Investments provides high quality investment services designed to help secure the long-term goals of institutions, high net worth and affluent investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates - Nuveen Asset Management, NWQ, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments had more than $207 billion of assets under management as of October 31, 2011. For more information, please visit the Nuveen Investments website at www.nuveen.com.