DWS RREEF Real Estate Fund & DWS RREEF Real Estate Fund II Announce Redemptions of All Outstanding Auction Rate Preferred Shares

In connection with their pending liquidations, DWS RREEF Real Estate Fund, Inc. (NYSE Amex: SRQ) (“DWS RREEF I”) and DWS RREEF Real Estate Fund II, Inc. (NYSE Amex: SRO) (“DWS RREEF II”) (each, a “Fund,” and together, the “Funds”) announced today that they will be redeeming all of their respective outstanding auction rate preferred shares (“ARPS”). Each Fund’s Board of Directors has authorized the ARPS redemptions, which will be accomplished by the Fund in accordance with its charter documents. The redemptions will occur in advance of the Funds’ final liquidations.

DWS RREEF I intends to redeem all of its currently outstanding $22 million of ARPS. For DWS RREEF I, the table below lists, on a per series basis, the total number of ARPS to be redeemed, the total liquidation preference of the ARPS to be redeemed, and currently scheduled redemption dates:

DWS RREEF Real Estate FundARPS Series

CUSIP

Total Number ofShares Redeemed

Total AmountRedeemed

Redemption Dates

Series A

81119Q209

440

$ 11,000,000

May 20, 2010

        
      
      
        
          Series B
        
        
        
        
          81119Q308
        
        
        
        
          440
        
        
        
        
          $11,000,000
        
        
        
        
          May 17, 2010
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          $22,000,000
        
        
        
        
        
      
    
    

DWS RREEF II intends to redeem all of its currently outstanding $14 million of ARPS. For DWS RREEF II, the table below lists, on a per series basis, the total number of ARPS to be redeemed, the total liquidation preference of the ARPS to be redeemed, and currently scheduled redemption dates:

DWS RREEF Real Estate Fund IIARPS Series

CUSIP

Total Number ofShares Redeemed

Total AmountRedeemed

Redemption Dates

Series A

81119R207

112

$2,800,000

May 18, 2010

        
      
      
        
          Series B
        
        
        
        
          81119R306
        
        
        
        
          112
        
        
        
        
          $2,800,000
        
        
        
        
          May 19, 2010
        
      
      
        
          Series C
        
        
        
        
          81119R405
        
        
        
        
          112
        
        
        
        
          $2,800,000
        
        
        
        
          May 20, 2010
        
      
      
        
          Series D
        
        
        
        
          81119R504
        
        
        
        
          112
        
        
        
        
          $2,800,000
        
        
        
        
          May 21, 2010
        
      
      
        
          Series E
        
        
        
        
          81119R603
        
        
        
        
          112
        
        
        
        
          $2,800,000
        
        
        
        
          May 17, 2010
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          $14,000,000
        
        
        
        
        
      
    
    

For more information about DWS Investments closed-end funds, visit www.dws-investments.com or call [phone].

IMPORTANT INFORMATION

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.

The funds are subject to investment risks. Any fund that concentrates in a particular segment of the market will generally be more volatile than a fund that invests more broadly. There are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations and the impact of varied economic conditions.

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 Funds to execute the proposed plan to redeem all of the Funds’ respective ARPS; (ii) the effects of changes in market and economic conditions; (iii) legal and regulatory developments; and (iv) other additional risks and uncertainties.

NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

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-17126-1 4/09)