Three Neuberger Berman Closed-End Funds Announce Possible Future Reduction in Distribution Rates but Confirm Intention to Pay Previously Declared Distributions

NEW YORK--(BUSINESS WIRE)--Neuberger Berman Real Estate Securities Fund Inc. (AMEX: NRO), Neuberger Berman Income Opportunity Fund Inc. (AMEX: NOX) and Lehman Brothers/First Trust Income Opportunity Fund (NYSE: LBC) (each a “Fund” and collectively the “Funds”) announced today that their Boards of Directors/Trustees (the “Boards”) are considering reducing the Funds’ distribution rates in connection with the next declarations of regularly scheduled monthly distributions.

Recent market conditions have caused the values of each Fund’s assets to depreciate. Due to this decline and continued market volatility and economic uncertainty, the Funds’ investment manager believes that a lower level of leverage is appropriate and may provide greater stability to each Fund. Accordingly, NRO has reduced its leverage by approximately $333.3 million; LBC has reduced its leverage by approximately $31.8 million and NOX has reduced its leverage by approximately $68.2 million. The Funds may further reduce their leverage.

The Funds’ investment manager is keeping Board members apprised of market conditions and the effect that such conditions have had on each Fund and the ability of each Fund to continue to pay distributions at the current rates. In determining the appropriate level of distributions for each Fund, the respective Board will consider the continued challenges that Fund is experiencing in the markets for its portfolio securities, the lower level of leverage that Fund will have on a going forward basis, that Fund’s potential to earn net income and realize capital gains and the likelihood that the new distribution rate is sustainable, among others things.

Notwithstanding the potential reduction of future distributions that have not yet been declared, each Fund intends to pay the previously declared distributions for November and December. However, in light of current market conditions, the Funds anticipate that a substantial portion of the November and December distributions will be a return of capital.

Under its level distribution policy, each Fund endeavors to establish a distribution rate that its Board believes is sustainable for a reasonable period of time, subject to market conditions. Each Fund’s ability to maintain a stable distribution will depend on a number of factors, including the stability of income received from its investments, availability of capital gains, the degree of cost associated with its leverage and the level of other Fund expenses. There is no assurance that any Fund will always be able to pay a distribution of any particular rate or that a distribution will consist only of net investment income.

In compliance with Section 19 of the Investment Company Act of 1940, as amended, a notice would be provided for any distribution that does not consist solely of net investment income. The notice would be for informational purposes, and would disclose, amount other things, estimated portions of the distribution, if any consisting of net investment income, capital gains and return of capital.

Neuberger Berman Management LLC, the Funds’ investment manager, is a subsidiary of Neuberger Berman Holdings LLC, an investment advisory company serving individuals, families, and taxable and non-taxable institutions with a broad range of investment products, services and strategies. Neuberger Berman engages in wealth management services including private asset management, financial planning; and mutual funds, institutional management and alternative investments. For further information about Neuberger Berman please visit www.nb.com.

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 a Fund’s performance, the cost and effect of a Fund’s use of leverage, a general downturn in the economy, competition from other closed-end investment companies, changes in government policy or regulation, inability of a Fund’s investment adviser to attract or retain key employees, inability of a Fund to implement its investment strategy, inability of a Fund to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. These risks and uncertainties may cause the actual results, performance or achievements of a Fund, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. As a result, no assurance can be given as to future results, performance or achievements, and neither the Funds nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.