Eaton Vance Short Duration Diversified Income Fund Report of Earnings

BOSTON, July 1  /PRNewswire-FirstCall/ -- Eaton Vance Short Duration Diversified Fund (NYSE:EVG), a closed-end investment company, today announced the earnings of the Fund for the three months ended April 30, 2009 and the six months ended April 30, 2009.  The Fund's fiscal year ends on October 31, 2009.

For the three months ended April 30, 2009, the Fund had net investment income of $4,705,972 ($0.249 per common share). For the six months ended April 30, 2009, the Fund had net investment income of $9,843,923 ($0.521 per common share).  In comparison, for the three months ended April 30, 2008, the Fund had net investment income of $4,616,916 ($0.244 per common share).  For the six months ended April 30, 2008, the Fund had net investment income of $11,162,007 ($0.591 per common share).

Net realized and unrealized gains for the three months ended April 30, 2009 were $16,384,677 ($0.865 per common share) and net realized and unrealized gains for the six months ended April 30, 2009 were $11,354,571 ($0.599 per common share). In comparison, net realized and unrealized losses for the three months ended April 30, 2008 were $11,663,738 ($0.620 per common share) and net realized and unrealized losses for the six months ended April 30, 2008 were $16,206,211 ($0.861 per common share).

On April 30, 2009, net assets of the Fund were $293,168,139.  The net asset value per share on April 30, 2009 was $15.52 based on 18,886,596 shares outstanding.  In comparison, on April 30, 2008, net assets of the Fund were $331,170,365.  The net asset value per share on April 30, 2008 was $17.53 based on 18,886,596 shares outstanding.

The Fund is managed by Eaton Vance Management, a subsidiary of Eaton Vance Corp. (NYSE:EV), based in Boston, one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $127.2 billion in assets as of April 30, 2009, offering individuals and institutions a broad array of investment products and wealth management solutions.  The Company's long record of providing exemplary service and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors.  For more information about Eaton Vance, visit http://www.eatonvance.com/.

                EATON VANCE SHORT DURATION DIVERSIFIED INCOME FUND
                            SUMMARY OF RESULTS OF OPERATIONS
                        (in thousands, except per share amounts)

                               Three Months Ended        Six Months Ended
                                   April 30,                 April 30,
                               -----------------         -----------------
                              2009           2008      2009           2008
                              ----           ----      ----           ----
  Gross investment income    $5,917        $5,553   $12,025        $13,093
  Operating expenses         (1,211)         (936)   (2,181)        (1,931)
                             ------          ----    ------         ------
    Net investment income    $4,706        $4,617    $9,844        $11,162
  Net realized and
   unrealized gains (losses)
    on investments          $16,385      $(11,664)  $11,355       $(16,206)
                            -------      --------   -------       --------
    Net increase (decrease)
     in net assets from
      operations            $21,091       $(7,047)  $21,199        $(5,044)
                            =======       =======   =======        =======

  Earnings per Share
   Outstanding
  ------------------
  Gross investment income    $0.313        $0.294    $0.636         $0.693
  Operating expenses         (0.064)       (0.050)   (0.115)        (0.102)
                             ------        ------    ------         ------
    Net investment income    $0.249        $0.244   $0.521(1)      $0.591(1)
  Net realized and
   unrealized gains
    (losses) on investments  $0.865       $(0.620)   $0.599        $(0.861)
                             ------       -------    ------        -------
    Net increase (decrease)
     in net assets from
      operations             $1.114       $(0.376)   $1.120        $(0.270)
                             ======       =======    ======        =======


  Net Asset Value at April 30
   (Common Shares )
  ---------------------------
    Net assets                                     $293,168       $331,170
    Shares outstanding                               18,887         18,887
    Net asset value per share
     outstanding                                     $15.52         $17.53

  Market Value Summary
   (Common Shares )
  ---------------------
    Market price on NYSE at April 30                 $13.24         $15.85
    High market price (period ended
     April 30)                                       $13.27         $16.93
    Low market price (period ended
     April 30)                                       $10.37         $15.04

  (1) For federal income tax purposes, estimated net investment income per
      share for the six months ended April 30, 2009 and April 30, 2008
      were $0.33 and $0.72, respectively.


DATASOURCE: Eaton Vance Management



CONTACT:  Investors, [phone]



Web Site:  http://www.eatonvance.com/ 

Copyright