SRO Dws Rreef

DWS RREEF Real Estate Fund, Inc. (AMEX:SRQ) (“DWS RREEF I”) and DWS RREEF Real Estate Fund II, Inc. (AMEX:SRO) (“DWS RREEF II”) (each, a “Fund,” and together, the “Funds”) announced today that the Board of Directors of each Fund has approved a series of measures designed to protect and enhance stockholder value:

1. In an effort to reduce operating costs, the Board has negotiated a new management fee for each Fund at a fixed rate of 0.55% of average daily managed assets. The new fee, which reflects a significant reduction, will take effect September 1, 2009.

2. In light of substantial stockholder support for the recent liquidation proposals, the Board has indicated its intention to give stockholders another opportunity to vote on the liquidation of the Funds at their annual meetings expected to be held later this year.

3. The Board has approved the adoption of a new rights dividend and a new Rights Agreement (each an “Agreement”) for each Fund.

Specifically, and subject to the terms of each Agreement, a dividend of one right (the “Right(s)”) will be issued for each outstanding share of a Fund’s common stock (the “Common Shares”). The dividend is payable on August 28, 2009 (the “Record Date”) to stockholders of record on that date. Common Shares issued after that date will be issued with an attached Right. If a person or group acquires beneficial ownership of 17% in the case of DWS RREEF I or 6% in the case of DWS RREEF II, or, if greater, such percentage that is equal to 0.01% more than the highest percent of outstanding Common Shares beneficially owned by any person as of the close of business on August 14, 2009, the Rights would become exercisable by record holders other than the stockholder or group of stockholders acquiring such beneficial ownership. In such event, each Right will entitle the record holder upon exercise to purchase from the applicable Fund four shares of common stock at a per share price equal to the par value of the Common Shares ($0.01). The Rights will expire on December 26, 2009, unless the Rights are earlier redeemed or exchanged by a Fund pursuant to the terms of the applicable Agreement.

The rights issued under the Funds’ current Rights Agreements, which are exercisable in similar circumstances for three Common Shares, will expire by their terms at 5:00 p.m. on August 18, 2009. The new Agreements will become effective immediately after the expiration of the existing rights.

The discussion above regarding the Rights and the Agreements is qualified in its entirety by the terms of each Agreement. Each Agreement and a summary thereof will be filed with the Securities and Exchange Commission on Form 8-A and will be publicly available on or about August 18, 2009. In addition, as soon as practicable after the Record Date, each Fund intends to mail to all shareholders of record as of the Record Date a copy of the Fund’s 2009 semi-annual report, which will contain additional information about the Rights and the Agreement.

Paul K. Freeman, the Independent Chair of the Board of each Fund, stated: “In response to the failure of the liquidation proposals to receive sufficient votes at recent special meetings of stockholders and the ongoing efforts of the Horejsi group to take control of the Funds, the Independent Directors have made a comprehensive review of the current circumstances and prospects of each Fund. While we are clearly disappointed with the performance of the Funds, we also believe that the Horejsi group has demonstrated a course of dealing with other closed-end funds that makes it clear that their primary motive is to seek personal financial gain by taking and operating them in a self-serving manner. We do not believe that they truly have the best interests of stockholders at heart, and we will continue to oppose their efforts to achieve control. Thus, we have taken steps to limit their ability to control the outcome of stockholder votes at the upcoming annual meetings.”

“At the same time, we have taken actions to position the Funds to operate more efficiently in light of current circumstances and are encouraged by recent improvement in the performance of the Funds. We are mindful that many stockholders supported the recent liquidation proposals. In light of the significant discounts that continue to be reflected in the trading price of each Fund's shares, we examined various ways of providing stockholders with liquidity opportunities at net asset value or close to net asset value. We concluded that the most cost-effective way of doing this would simply be to give stockholders another chance to vote on liquidation at the upcoming annual meetings.”

“If the liquidation proposals again fail to achieve the necessary vote, the Board intends to consider making a significant tender offer in early 2010 to give at least some stockholders the opportunity to exit the Fund at a price close to net asset value. We will, of course, have to evaluate the circumstances at the time before coming to a definitive decision in this regard.”

“For further details regarding the factors considered by the Board in connection with these measures, I invite stockholders to read my letter included with the Funds' semi-annual reports, which will be mailed in the coming weeks.”

IMPORTANT INFORMATION

Investments in funds involve risk. The fund involves additional risks due to its narrow focus. There are special risks associated with investment in real estate, including credit risk, interest rate fluctuations and the impact of varied economic conditions.

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 the Funds to obtain any required shareholder approvals; (ii) the need to obtain any necessary regulatory approvals; (iii) the effects of changes in market and economic conditions; (iv) other legal and regulatory developments; and (v) other additional risks and uncertainties.

DWS Investments is part of Deutsche Bank’s Asset Management division and, within the US, represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company. (R-13245-1 8/09)

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