Neuberger Berman Real Estate Income Fund Inc. Announces Court Order Upholding Defenses against Unsolicited Tender Offer

  
    
  
  
    
      Neuberger Berman Real Estate Income Fund Inc. (NYSE: NRL) announced that 
      the federal district court for the District of Maryland issued a 
      Declaratory Judgment Order in the case Neuberger Berman Real Estate 
      Income Fund Inc. v. Lola Brown Trust No. 1B et al., 04-cv-03056 
      (AMD).
    
    
      Judge Andre M. Davis held that NRL’s adoption 
      of successive rights agreements “with the 
      purpose and effect of defeating the tender offer at issue in this case, 
      does not violate federal or state law or plaintiff’s 
      charter,” thus upholding NRL’s 
      “poison pill” 
      defense. The court also upheld NRL’s 
      interpretation of the scope of any exemption for Lola Brown Trust No. 1B 
      (the “Trust”) under 
      the Maryland Control Share Acquisition Act (the “MCSAA”), 
      ruling that the Trust could vote the NRL shares it held at the time NRL 
      opted into the MCSAA, but that the Trust “may 
      vote any shares it acquired after [NRL’s] 
      opt-in on September 23, 2004, or it hereafter acquires, only with the 
      approval of two-thirds of disinterested shareholders of (NRL), as 
      provided in that statute.” Finally, the court 
      held that “Lola Brown Trust No. 1B is not an 
      investment company and is not a constituent entity of an investment 
      company within the meaning of the Investment Company Act of 1940, as 
      amended, and is not prohibited by section 12(d) thereof from owning more 
      than 3% of the outstanding voting shares of a registered investment 
      company.”
    
    
      The Declaratory Judgment Order did not address all pending claims in the 
      litigation. The court stated that it would issue an opinion shortly.
    
    
      Forward-Looking Statements
    
    
      Statements made in this release that look forward in time involve risks 
      and uncertainties and are forward-looking statements within the meaning 
      of the Private Securities Litigation Reform Act of 1995. Such risks and 
      uncertainties include, without limitation, the adverse effect from a 
      decline in the securities markets or a decline in the Fund’s 
      performance, a general downturn in the economy, competition from other 
      funds, changes in government policy or regulation, inability of the Fund’s 
      investment advisor to attract or retain key employees, inability of the 
      Fund’s investment advisor to implement its 
      investment strategy, inability of the Fund to manage unforeseen costs 
      and other effects related to legal proceedings or investigations of 
      governmental and self-regulatory organizations.