NRL Neuberger BM RE

The Board of Directors of Neuberger Berman Real Estate Income Fund Inc. (the "Fund"), which trades on the New York Stock Exchange under ticker symbol NRL, has declared monthly distributions of $0.115 per share payable on October 31, 2005, November 30, 2005, and December 30, 2005, to shareholders of record on October 14, 2005, November 14, 2005 and December 15, 2005, respectively. Under its level distribution policy, the Fund anticipates that it will make subsequent regular monthly distributions, subject to market conditions, of $0.115 per share unless further action is taken by the Fund's Board of Directors to determine another amount. There is no assurance that the Fund will always be able to pay a distribution of any particular size, or that a distribution will consist of only net investment income. The 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, distributions paid on preferred shares and the level of expenses. Based on earnings and portfolio activity as of a recent date, offset by significant estimated legal costs associated with the hostile tender offer initiated in 2004 by entities affiliated with Stewart R. Horejsi, the Fund estimates that a significant portion of the distributions declared today may consist of return of capital. However, the Fund is applying for reimbursement from its insurance carrier for attorneys' fees and costs incurred in defending claims asserted in two lawsuits related to the hostile tender offer, and has not included any potential future reimbursement of those expenses in its calculations for this press release. If the calculations included a reasonable estimate of potential future insurance reimbursement, based on insurance proceeds received to date and communications with the Fund's insurance carrier, then at least a portion of the distributions declared today could be deemed net investment income. There is, of course, no assurance that the Fund will receive any specific amount from its insurance carrier. In compliance with Section 19 of the Investment Company Act of 1940, as amended, a notice will accompany any distribution that does not consist solely of net investment income. The notice is for informational purposes, and will disclose, among other things, estimated portions of the distribution, if any, consisting of net investment income, capital gains and return of capital. Neuberger Berman Management Inc., the Fund's investment manager, is a subsidiary of Neuberger Berman Inc., an investment advisory company serving individuals, families, and taxable and non-taxable institutions with a broad range of investment products, services and strategies. A Lehman Brothers company, Neuberger Berman engages in wealth management services including private asset management, tax and financial planning, and personal and institutional trust services; mutual funds, institutional management and alternative investments; and professional securities services. For further information about Neuberger Berman please visit www.nb.com. Lehman Brothers (ticker symbol: LEH), an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, London and Tokyo and operates in a network of offices around the world. For further information about Lehman Brothers' services, products and recruitment opportunities, visit our Web site at www.lehman.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 the Fund's performance, a general downturn in the economy, competition from other closed-end investment companies, changes in government policy or regulation, inability of the Fund's investment adviser to attract or retain key employees, inability of the Fund to implement its investment strategy, inability of the Fund to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.