Duff & Phelps Closed-End Funds Obtain $1.19 Billion in Credit Facilities to Provide Liquidity for Auction Market and Remarketed

CHICAGO, March 9  /PRNewswire-FirstCall/ -- Two closed-end funds advised by Duff & Phelps Investment Management Co. announced today that they have arranged for credit facilities totaling $1.19 billion to resolve auction market preferred securities (AMPS) and remarketed preferred securities (RP) liquidity issues arising from the auction and remarketing failures caused by last year's credit market dislocations.

"We have worked diligently for almost a year to resolve these very challenging AMPS and RP liquidity issues," said Nathan I. Partain, CFA, president and chief investment officer of Duff & Phelps Investment Management Co.  "The disruption of the auction-rate market clearly affected many shareholders, and the redemptions financed by these credit facilities should provide a meaningful solution to a very difficult industry wide problem."

Partain noted that the funds' boards and management sought a long-term solution that would not disadvantage common shareholders or restrict the funds' ability to benefit from the use of leverage.  "Throughout this process, the primary concern was always to find a solution that operated in the best interests of all shareholders.  We believe these credit facilities can achieve that objective."

The credit facilities, arranged with a commercial bank, will finance redemptions of up to $900 million of preferred shares of DNP Select Income Fund Inc. (NYSE:DNP) and up to $190 million of preferred shares of Duff & Phelps Utility and Corporate Bond Trust Inc. (NYSE:DUC).  The credit facility will also enable DNP Select Income Fund Inc. to replace with debt leverage the $100 million in leverage formerly represented by the 1,000 shares of its Series B Remarketed Preferred Stock that the fund redeemed earlier this month.

In the event of any redemption, the applicable fund will issue a notice specifying the redemption date, the number and series of shares to be redeemed, and other relevant information.  Although there is no assurance as to the amount or timing of redemptions, it is anticipated that initial redemptions will occur during March 2009.

All redemptions are dependent upon written confirmation from each of Moody's Investors Service, Inc. and Standard & Poor's Rating Services that entering into the credit facilities would not adversely affect the ratings currently assigned to the outstanding preferred stock of the funds. In addition, the funds are currently constrained in their ability to refinance all of their outstanding preferred stock with debt by the asset coverage requirements of the Investment Company Act of 1940. Therefore, the funds have applied to the U.S. Securities and Exchange Commission for an exemptive order enabling the funds, for a transitional period, to maintain 200% asset coverage with respect to debt leverage that is used to redeem preferred stock, rather than the 300% required by the Act. There is no assurance that such an exemptive order will be granted.

Duff & Phelps Investment Management Co. has more than 28 years of experience managing investment portfolios, including institutional separate accounts and open- and closed-end funds investing in utilities, infrastructure and real estate investment trusts (REITs).  For more information, visit http://www.dpimc.com/ or call [phone].

Duff & Phelps is a subsidiary of Virtus Investment Partners (NASDAQ: VRTS), an asset management company with $24.4 billion under management (as of November 30, 2008).  Virtus provides investment management products and services to individuals and institutions through a multi-manager asset management business, comprising a number of individual affiliated managers, each with a distinct investment style, autonomous investment process and individual brand.  Additional information can be found at http://www.virtus.com/.

DNP Select Income Fund Inc. (NYSE:DNP) is a closed-end diversified investment management company.

The Fund's primary investment objectives are current income and long-term growth of income.  The Fund seeks to achieve these objectives by investing primarily in a diversified portfolio of equity and fixed income securities of companies in the public utilities industry.  For more information, visit the Fund's website at http://www.dnpselectincome.com/ or call the Fund at [phone]. 

DATASOURCE: DNP Select Income Fund Inc.



CONTACT:  Joseph Curry, Dianna Wengler, or Timothy Riordan, all of DNP

Select Income Fund Inc., [phone]; or Joe Fazzino, Media Relations of

Virtus Investment Partners, [phone]



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

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