Evergreen Investments Reduces Leverage of Two Closed-End Funds

March 6, 2009

BOSTON – Evergreen Investments announced that the Boards of Trustees for Evergreen Income Advantage Fund and Evergreen Multi-Sector Income Fund have approved a proposal to reduce the amount of leverage utilized by the Funds. The Funds are listed on the NYSE Alternext US Stock Exchange (previously the American Stock Exchange) under the tickers EAD and ERC, respectively. The leverage will be reduced by paying down debt financing provided by a multi-seller commercial paper conduit administered by a major financial institution. The paydown is expected to occur over the next several weeks. Evergreen Multi-Sector Income Fund also intends to replace some of its debt financing remaining after the paydown with leverage provided through reverse repurchase agreement transactions.

Following the reduction, the Funds are expected to have approximately the following amounts of leverage outstanding:

Evergreen Income Advantage Fund:
- APS: $196 million
- Debt: $50 million
Evergreen Multi-Sector Income Fund:
- APS: $80 million
- Debt/Reverse Repurchase Agreements: $155 million

Following the reductions in leverage described above, the percent of leverage employed by the Funds will be closer to historical norms.

About Evergreen Investments
Evergreen Investments is one of the brand names under which Wells Fargo & Company (NYSE:WFC) conducts its investment management business. Wells Fargo & Company is a diversified financial services company with $1.3 trillion in assets (as of December 31, 2008), providing banking, insurance, investments, mortgage and consumer finance through almost 11,000 stores and the Internet (WellsFargo.com) across North America and internationally. Wachovia Global Asset Management is the brand name under which Evergreen Investments conducts sales and distribution business outside of the United States. Combined, the groups serve more than four million individual and institutional investors through a broad range of investment products. Led by more than 300 investment professionals, Evergreen Investments strives to meet client investment objectives through disciplined, team-based asset management. Evergreen Investments manages more than $175 billion in assets (as of December 31, 2008).