Closed-End Funds Announce that Franklin Resources, Inc. is to Acquire Legg Mason, Inc.

Franklin Resources, Inc. (“Franklin Resources”) and Legg Mason, Inc. (“Legg Mason”) announced today that they have entered into a definitive agreement for Franklin Resources to acquire Legg Mason.

The Funds’ investment managers, Western Asset Management Company, LLC, Western Asset Management Company Limited, Western Asset Management Company Pte. Ltd., and Western Asset Management Company Ltd (collectively, “Western Asset”), are all wholly-owned subsidiaries of Legg Mason and would become wholly-owned subsidiaries of Franklin Resources as a result of the transaction.

Under the Investment Company Act of 1940, consummation of the transaction will result in the automatic termination of each fund’s investment management arrangements with Western Asset. Therefore, each fund’s Board will be asked to approve new investment management arrangements with Western Asset. If approved by the Board, the funds’ new investment management arrangements will be presented to fund shareholders for their approval.

The transaction is subject to approval by Legg Mason’s shareholders and customary closing conditions, including receipt of applicable regulatory approvals. Subject to such approvals and the satisfaction of the other conditions, the transaction is expected to be consummated later this year.

An investment in a Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Any data and commentary provided in this press release are for informational purposes only.

For more information, please call Investor Relations: 1-888-777-0102, or consult the Funds’ web site at www.lmcef.com. The information contained on the Funds’ web site is not part of this press release. Hard copies of the Funds’ complete audited financial statements are available free of charge upon request.

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