Real estate income fund preferred shares rated 'AAA'

Real Estate Income FundÂ's auction-rate preferred shares Â'2,600 shares series MÂ' are rated Â'AAAÂ' by Fitch Ratings. The ratings are based on asset coverage and preferred share basic maintenance amount tests, as well as the quality of the asset manager.

Real Estate Income Fund is a closed-end management investment company that invests primarily in a portfolio of income-producing common shares, preferred shares, convertible preferred shares and debt securities issued by real estate companies, including real estate investment trusts (REITs).

The fund is registered under the Investment Company Act of 1940, which permits closed-end funds to borrow funds through the issuance of debt and preferred stock. Under the 1940 Act, closed-end funds may borrow up to 50% of the fundÂ's value through preferred share issuance; Real Estate Income FundÂ's current preferred share issuance equates to roughly 28% of its value.

The asset manager for the fund is Citi Fund Management Inc. The investment manager is an affiliate of Citigroup Inc. Citigroup businesses provide a broad range of financial services -- asset management, banking and consumer finance, credit and charge cards, insurance, investments, investment banking and trading. AEW Capital Management will be the fundÂ's sub-adviser. AEW is a wholly-owned subsidiary of CDC IXIS Asset Management North America. Founded in 1981, AEW Capital Management, L.P. is a real estate investment advisory firm, providing investment management and related services to institutional investors and other owners of commercial properties and portfolios.

Together with its affiliates, as of June 30, 2002, the sub-adviser managed nearly $7 billion of client capital, which is invested in $10 billion of property and securities.

(source: Business Wire, HooverÂ's and Fitch Ratings)

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