Invesco Closed-End Funds Boards of Trustees Reject Demands and Provide Update Regarding Auction Rate Preferred Shares

HOUSTON, July 12, 2011 /PRNewswire/ -- Invesco Advisers, Inc. ("Invesco") and the Boards of Trustees (the "Board") of each of the Invesco closed-end funds identified below (the "Funds") today announced that the Board has determined to reject the demands contained in the demand letters received by each Fund related to the Fund's redemption of auction rate preferred shares ("ARPS").

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As previously announced on September 10, 2010 and April 15, 2011, each of the Funds listed below received a demand letter from a law firm on behalf of purported common shareholders of the Fund. The demand letters alleged breaches of fiduciary duties owed to the Fund's common shareholders as a result of redemptions at par of certain of the Funds' ARPS, and demanded that the Board take action to remedy those alleged breaches.  Some of the allegations made in the demand letters were repeated and expanded in complaints filed on July 22, 2010 and August 3, 2010 in the Supreme Court of the State of New York, New York County.

The Funds that received the demand letters are:

On June 24, 2010 the Board established a special committee (the "Special Committee") of certain independent Trustees to evaluate the claims made in the demand letters and complaints with the assistance of independent counsel. A subsequent demand letter was also referred to the Special Committee. Based upon its inquiry, the Special Committee recommended that the Board reject the demands specified in the demand letters. After reviewing the findings of the Special Committee, the independent Trustees for each Fund who were entitled to vote accepted the Special Committee's recommendation and voted to reject the demands and seek dismissal of related lawsuits.

Invesco is currently exploring potential alternative forms of leverage, including alternative preferred stock structures like variable rate demand preferred shares (VRDP) and variable municipal term preferred shares (VMTP) and the expanded use of tender option bonds (TOBs) and reverse repurchase agreements, in order to provide liquidity to ARPS holders for each Invesco closed-end fund with ARPS outstanding (the "Closed-End Funds"). The Board will consider recommendations from Invesco.  There is no guarantee that all or a portion of a particular Closed-End Fund's ARPS will be redeemed. The Board and Invesco will determine, based on the facts and circumstances applicable to each Closed-End Fund, whether such alternative forms of leverage would be appropriate and in the best interest of the respective Closed-End Fund as a whole and its shareholders.

Invesco will continue to keep market participants and shareholders informed of the progress to redeem ARPS via press releases and Invesco's website at www.invesco.com.

The Closed-End Funds covered by the Board and utilizing ARPS include:

About Invesco

Invesco is a leading independent global investment manager, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our retail, institutional and high net worth clients around the world. Operating in more than 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for its STIC Global Funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

SOURCE Invesco

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