DWS Scudder Provides Information on Recent Auction Rate Securities Market Activity Involving DWS Strategic Municipal Income Trust (NYSE: KSM), DWS RRE

NEW YORK--(BUSINESS WIRE)--DWS Scudder announced today that it has posted to its website, www.cef.dws-scudder.com, a Question and Answer commentary (Q&A) addressing, generally, recent events in the auction rate securities market and, particularly, aspects of the auction process for preferred shares issued by DWS Strategic Municipal Income Trust, DWS RREEF Real Estate Fund, Inc., and DWS RREEF Real Estate Fund II, Inc.

Like many other closed-end funds throughout the industry, the above-mentioned three DWS closed-end funds have recently experienced failed auctions of their auction rate preferred shares. As further explained in the Q&A, such auction failures do not constitute a default—the preferred shares of affected DWS funds remain outstanding and continue to pay dividends, which, during a period of failed auctions, are at a “maximum rate” determined in accordance with the specific terms of each such security. Moreover, the preferred shares of the affected DWS funds continue to be triple-A rated by their respective rating agencies.^*

For more information, including a discussion of how these recent developments may affect fund preferred and common shareholders, please see DWS Scudder’s Q&A at www.cef.dws-scudder.com.

DWS Scudder Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606-5808

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.

DWS Scudder is part of Deutsche Asset Management, which represents the US asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company.

© 2008 DWS Scudder Distributors, Inc. All rights reserved. R-1264-1 (2/08)

^*Credit quality represents the lower rating of either Moody’s Investors Service, Inc. or Fitch Ratings and is their opinion as to the quality of the securities they rate. Credit quality does not remove market risk.

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