Eaton Vance Short Duration Diversified Income Fund Report of Earnings

BOSTON, Jan. 5 /PRNewswire-FirstCall/ -- Eaton Vance Short Duration Diversified Income Fund (NYSE: EVG), a closed-end investment company, today announced the earnings of the Fund for the three months ended October 31, 2009 and the year ended October 31, 2009. The Fund's fiscal year ended on October 31, 2009.

For the three months ended October 31, 2009, the Fund had net investment income of $6,097,320 ($0.323 per common share). For the year ended October 31, 2009, the Fund had net investment income of $21,340,899 ($1.130 per common share). In comparison, for the three months ended October 31, 2008, the Fund had net investment income of $5,613,624 ($0.297 per common share). For the year ended October 31, 2008, the Fund had net investment income of $21,662,998 ($1.147 per common share).

Net realized and unrealized gains for the three months ended October 31, 2009 were $13,587,875 ($0.721 per common share) and net realized and unrealized gains for the year ended October 31, 2009 were $50,371,779 ($2.670 per common share). In comparison, net realized and unrealized losses for the three months ended October 31, 2008 were $44,795,089 ($2.371 per common share) and net realized and unrealized losses for the year ended October 31, 2008 were $62,741,623 ($3.321 per common share).

On October 31, 2009, net assets of the Fund were $333,484,087. The net asset value per common share on October 31, 2009 was $17.66 based on 18,886,596 common shares outstanding. In comparison, on October 31, 2008, net assets of the Fund were $282,735,005. The net asset value common per share on October 31, 2008 was $14.97 based on 18,886,596 common shares outstanding.

The Fund is managed by Eaton Vance Management, a subsidiary of Eaton Vance Corp. (NYSE: EV), based in Boston, one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $154.9 billion in assets as of October 31, 2009, offering individuals and institutions a broad array of investment products and wealth management solutions. The Company's long record of providing exemplary service and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors. For more information about Eaton Vance, visit www.eatonvance.com.

                     EATON VANCE SHORT DURATION DIVERSIFIED INCOME FUND
                           SUMMARY OF RESULTS OF OPERATIONS
                       (in thousands, except per share amounts)

                                     Three Months Ended       Year Ended
                                        October 31,          October 31,
                                        -----------          -----------
                                       2009      2008      2009       2008
                                       ----      ----      ----       ----
    Gross investment income          $7,507    $6,750   $26,193    $25,679
    Operating expenses               (1,410)   (1,136)   (4,852)    (4,016)
                                     ------    ------    ------     ------
      Net investment income          $6,097    $5,614   $21,341    $21,663
    Net realized and unrealized
     gains (losses)on investments   $13,588  $(44,795)  $50,372   $(62,742)
                                    -------  --------   -------   --------
      Net increase (decrease) in
       net assets from operations   $19,685  $(39,181)  $71,713   $(41,079)
                                    =======  ========   =======   ========

    Earnings per Share Outstanding
    ------------------------------
    Gross investment income          $0.398    $0.358    $1.387     $1.360
    Operating expenses               (0.075)   (0.061)   (0.257)    (0.213)
                                     ------    ------    ------     ------
      Net investment income          $0.323    $0.297    $1.130 (1) $1.147 (1)
    Net realized and unrealized
     gains (losses) on investments   $0.721   $(2.371)   $2.670    $(3.321)
                                     ------   -------    ------     -------
      Net increase (decrease) in
       net assets from operations    $1.044   $(2.074)   $3.800     $(2.174)
                                     ======   =======    ======     =======


    Net Asset Value at October 31
     (Common Shares )
    ---------------------------
      Net assets                                       $333,484    $282,735
      Shares outstanding                                 18,887      18,887
      Net asset value per share
       outstanding                                       $17.66      $14.97

    Market Value Summary
     (Common Shares )
    ---------------------
      Market price on NYSE
       at October 31                                     $15.57      $12.62
      High market price
       (ended October 31)                                $16.23      $16.93
      Low market price
       (period ended October 31)                         $10.37      $10.09

    (1) For federal income tax purposes, estimated net investment income per
        share for the nine months ended October 31, 2009 and October 31, 2008
        were $0.956 and $1.394, respectively.

SOURCE Eaton Vance Management

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