Eaton Vance Short Duration Diversified Income Fund Report of Earnings

BOSTON, Oct. 9  /PRNewswire-FirstCall/ -- Eaton Vance Short Duration Diversified Income Fund (NYSE:EVG), a closed-end investment company, today announced the earnings of the Fund for the three months ended July 31, 2009 and the nine months ended July 31, 2009.  The Fund's fiscal year ends on October 31, 2009.

For the three months ended July 31, 2009, the Fund had net investment income of $5,399,656 ($0.286 per common share). For the nine months ended July 31, 2009, the Fund had net investment income of $15,243,579 ($0.807 per common share).  In comparison, for the three months ended July 31, 2008, the Fund had net investment income of $4,887,367 ($0.259 per common share).  For the nine months ended July 31, 2008, the Fund had net investment income of $16,049,374 ($0.850 per common share).

Net realized and unrealized gains for the three months ended July 31, 2009 were $25,429,333 ($1.349 per common share) and net realized and unrealized gains for the nine months ended July 31, 2009 were $36,783,904 ($1.948 per common share). In comparison, net realized and unrealized losses for the three months ended July 31, 2008 were $1,740,323 ($0.089 per common share) and net realized and unrealized losses for the nine months ended July 31, 2008 were $17,946,534 ($0.950 per common share).

On July 31, 2009, net assets of the Fund were $319,055,599.  The net asset value per share on July 31, 2009 was $16.89 based on 18,886,596 shares outstanding.  In comparison, on July 31, 2008, net assets of the Fund were $327,818,532.  The net asset value per share on July 31, 2008 was $17.36 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 $147.7 billion in assets as of August 31, 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    Nine Months Ended
                              July 31,             July 31,
                              --------             --------
                            2009     2008      2009         2008
                            ----     ----      ----         ----
  Gross investment
   income                 $6,661   $5,836   $18,686      $18,929
  Operating expenses      (1,261)    (949)   (3,442)      (2,880)
                          ------     ----    ------       ------
    Net investment
     income               $5,400   $4,887   $15,244      $16,049
  Net realized and
   unrealized gains
   (losses) on
   investments           $25,429  $(1,741)  $36,784     $(17,947)
                         -------  -------   -------     --------
    Net increase
     (decrease) in
     net assets
     from operations     $30,829   $3,146   $52,028      $(1,898)
                         =======   ======   =======      =======

  Earnings per Share Outstanding
  ------------------------------
  Gross investment
   income                 $0.353   $0.309    $0.989       $1.002
  Operating expenses      (0.067)  (0.050)   (0.182)      (0.152)
                          ------   ------    ------       ------
    Net investment
     income               $0.286   $0.259    $0.807(1)    $0.850(1)
  Net realized and
   unrealized gains
   (losses) on
   investments            $1.349  $(0.089)   $1.948      $(0.950)
                          ------  -------    ------      -------
    Net increase
    (decrease) in
    net assets
    from operations       $1.635   $0.170    $2.755      $(0.100)
                          ======   ======    ======      =======

  Net Asset Value at
   April 30 (Common Shares)
  -------------------------
    Net assets                             $319,056     $327,819
    Shares outstanding                       18,887       18,887
    Net asset value per
     share outstanding                       $16.89       $17.36

  Market Value Summary (Common Shares)
  ------------------------------------
    Market price on NYSE at July 31          $14.93       $14.89
    High market price (period ended
     July 31)                                $14.93       $16.93
    Low market price (period ended
     July 31)                                $10.37       $14.58

  (1)  For federal income tax purposes, estimated net investment
       income per share for the nine months ended July 31, 2009 and July 31,
       2008 were $0.65 and $1.019, respectively.


DATASOURCE: Eaton Vance Management



CONTACT:  Investor Contact of Eaton Vance Management, [phone]



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

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