NEW YORK--(BUSINESS WIRE)--DWS Scudder announced today further progress in the refinancing of the auction rate preferred shares (“ARPS”) issued by DWS RREEF Real Estate Fund, Inc. (AMEX: SRQ) (“RREEF I”) and DWS RREEF Real Estate Fund II, Inc. (AMEX: SRO) (“RREEF II”) (together, the “Fund(s)”), each a closed-end management investment company. The Funds have secured committed new financing from two major financial institutions, which, as discussed in more detail below, will be used to facilitate the redemption of the Funds’ ARPS.

The Funds’ Board of Directors has approved the basic terms and implementation of the proposed borrowing arrangements and the full redemption of the Funds’ ARPS. The Board and management believe that the proposed borrowing arrangements and ARPS redemption are appropriate and in the best interests of each Fund, taking into account the interests of both common and preferred shareholders. The new borrowing arrangements are expected to benefit the Funds’ common shareholders by reducing each Fund’s borrowing costs as compared to current dividend payments on the Fund’s ARPS at mandatory maximum rates. While the new borrowing arrangements are expected to have an initial term of 364 days (as is common for fund bank loan facilities), management has advised the Board that it will seek to renew the arrangements several months prior to expiration and take other steps to mitigate non-renewal risk well in advance of expiration.

The following ARPS are expected to be redeemed:

Auction Rate Preferred Shares		Total Shares		Par Value		Liquidation Preference of Shares Redeemed
DWS RREEF Real Estate Fund
DWS RREEF Real Estate Fund A		3,200		$25,000		$80,000,000
DWS RREEF Real Estate Fund B		3,200		$25,000		$80,000,000
RREEF I Total		6,400				$160,000,000
DWS RREEF Real Estate Fund II
DWS RREEF Real Estate Fund II A		2,800		$25,000		$70,000,000
DWS RREEF Real Estate Fund II B		2,800		$25,000		$70,000,000
DWS RREEF Real Estate Fund II C		2,800		$25,000		$70,000,000
DWS RREEF Real Estate Fund II D		2,800		$25,000		$70,000,000
DWS RREEF Real Estate Fund II E		2,800		$25,000		$70,000,000
RREEF II Total		14,000				$350,000,000

In the case of RREEF I, management anticipates that the Fund’s proposed borrowing arrangement will be used to redeem all of its outstanding ARPS. In the case of RREEF II, management anticipates that the Fund’s proposed borrowing arrangement will be used to redeem approximately 75% of its outstanding ARPS. The portion of the RREEF II ARPS not redeemed by using the proposed credit facility will be redeemed with the proceeds from asset sales, resulting in a reduction of the Fund’s overall leverage. The reduction in leverage is necessitated by a requirement under the Investment Company Act of 1940 to maintain higher asset coverage for debt than for preferred stock. Fund management believes that a reduction in RREEF II's outstanding leverage is appropriate given current market conditions.

Subject to, among other things, the successful negotiation and execution of appropriate credit agreements and the satisfaction of notice and other legal requirements applicable to the redemption of the Funds’ ARPS, management anticipates that the proposed refinancing and full ARPS redemption can be completed sometime during the third quarter of 2008. There is no assurance that the proposed refinancing will be successfully negotiated and completed. Moreover, the implementation of the proposed refinancing and ARPS redemption is subject to economic and market risks beyond the Funds’ and management’s control. Accordingly, it is possible the above-mentioned anticipated timeframe for completion could be delayed.

DWS Scudder continues to evaluate alternatives for restructuring the leverage of its other closed-end funds that have issued preferred shares: DWS Municipal Income Trust (NYSE: KTF) and DWS Strategic Municipal Income Trust (NYSE: KSM), which have $265 million and $70 million in preferred shares outstanding, respectively.

Management anticipates that further details on the ARPS redemption schedule for RREEF I and RREEF II will be provided in a future press release and will be posted on the DWS Scudder Funds web site, www.DWS-Scudder.com.

IMPORTANT INFORMATION

Shares of common stock of closed-end funds, unlike open-end funds, are not continuously offered. There is a one time public offering and, once issued, shares of common stock of closed-end funds are traded in the open market generally through a stock exchange. Common shares of closed-end funds frequently trade at a discount to net asset value. The price of common shares is determined by a number of factors, several of which are beyond the control of the fund. Therefore, the fund cannot predict whether its common shares will trade at, below, or above net asset value.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of fund securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

Certain statements contained in this release may be forward-looking in nature. These include all statements relating to plans, expectations, and other statements that are not historical facts and typically use words like “expect,” “anticipate,” “believe,” and similar expressions. Such statements represent management's current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Management does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

The following factors, among others, could cause actual results to differ materially from forward-looking statements: (i) the ability of DWS Scudder and RREEF I and RREEF II to finalize and execute the proposed plan to restructure the Funds’ existing leverage; (ii) the ability of DWS Scudder and the Funds to finalize acceptable credit agreements and other documents necessary to implement the proposed borrowing arrangements with the proposed lending institutions; (iii) the need to obtain any necessary regulatory approvals and/or any additional final Board approvals; (iv) the effects of changes in market and economic conditions; (v) other legal and regulatory developments; and (vi) other additional risks and uncertainties.

NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

DWS Scudder is part of Deutsche Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company. Copyright © 2008 DWS Scudder Distributors, Inc. (R-4542-1 6/08)

For DWS Scudder
Media:
Deutsche Bank Press Office, 212-250-7171
or
Investors:
DWS Closed-End Funds, 800-349-4281