Neuberger Berman Real Estate Income Fund Inc. Settles Litigation with Lola Brown Trust

  
    
  
  
    
      Neuberger Berman Real Estate Income Fund Inc. (NYSE: NRL) announced 
      today that it has entered into a settlement agreement with the Lola 
      Brown Trust No. 1B (the "Trust") that fully resolves their ongoing 
      litigation over the Trust's existing tender offer. As part of the 
      settlement, the Trust amended its existing tender offer in a manner that 
      is acceptable to the NRL Board of Directors. Such a revised tender offer 
      includes the following material improvements: (1) the Trust is offering 
      to purchase in the tender offer all shares of NRL common stock that it 
      does not already own, subject to certain conditions to be stated in the 
      offer, including a minimum condition that after consummation of the 
      tender offer the Trust would own a majority of the outstanding NRL 
      shares and (2) the purchase price per share of NRL common stock is 
      changed to 99.0% of NRL's net asset value ("NAV") as determined at the 
      close of trading on the NYSE as of the expiration date of the Trust's 
      revised tender offer. NRL believes that tendering common stockholders 
      would receive payment for their shares of NRL common stock more quickly 
      under the Trust's revised tender offer than pursuant to a liquidation 
      and distribution of NRL's assets. Accordingly, the settlement provides 
      that NRL's takeover defenses will not apply to the revised tender offer. 
      NRL notes, however, that the revised offer is subject to a number of 
      conditions and urges each common stockholder of NRL to read the tender 
      offer statement filed by the Trust today with the Securities and 
      Exchange Commission.
    
    
      NRL intends to hold its special stockholders' meeting as previously 
      announced on Tuesday, August 28, 2007 at 11:00 a.m. at 605 Third Avenue, 
      New York, NY 10158. However, in accordance with the settlement, NRL 
      intends to postpone until September 27, 2007 any vote at the special 
      stockholders' meeting on the proposal to liquidate NRL's assets and 
      distribute the net proceeds to its stockholders. If the Trust's revised 
      tender offer closes before the postponed liquidation vote, NRL would 
      expect to withdraw the proposal to vote on liquidation. Conversely, if 
      the tender offer has not closed before the postponed liquidation vote, 
      the liquidation vote would be conducted on September 27, 2007 and the 
      Trust would vote its shares of NRL common stock in favor of the 
      liquidation proposal. The record date for determining stockholders 
      entitled to vote at the meeting on August 28, 2007 and, if necessary, at 
      any adjourned meeting on September 27, 2007, remains May 30, 2007.
    
    
      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 NRL's performance, a 
      general downturn in the economy, competition from other funds, changes 
      in government policy or regulation, inability of NRL's investment 
      advisor to attract or retain key employees, inability of NRL's 
      investment advisor to implement its investment strategy, inability of 
      NRL to manage unforeseen costs and other effects related to legal 
      proceedings or investigations of governmental and self-regulatory 
      organizations.