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Wells Fargo Funds Management and Evergreen Investments Announce Mutual Fund Product Offering Changes

SAN FRANCISCO—Wells Fargo Funds Management, LLC, the advisor to the Wells Fargo Advantage Funds®, and its affiliate Evergreen Investment Management Company, LLC, the advisor to the Evergreen Funds, have announced plans to streamline and strengthen their mutual fund product offerings. The plans include a series of fund mergers, reorganizations, and liquidations which, following approval by fund shareholders, will result in a Wells Fargo Advantage Funds family offering 128 mutual funds, variable trust funds, and Wells Fargo Managed Account CoreBuilder® Shares, representing what we believe to be the best investment management talent from both firms.

“Uniting these two mutual fund families gives us a tremendous opportunity to better serve our clients by offering a powerful array of products that takes advantage of the strengths of both organizations,” said Karla Rabusch, president of Wells Fargo Advantage Funds. "We are thrilled with the quality, breadth and depth of the investment options that will be available to investors.”

The proposals are designed to both eliminate product overlap and reduce costs to shareholders, while making the resulting product lineup compelling, comprehensive, and easy to navigate. The proposals include the following:

  • 27 Evergreen Funds will be reorganized into new Wells Fargo Advantage Funds;
  • 53 mutual funds from both fund families will merge; and
  • Four Evergreen Funds and one Wells Fargo Advantage Fund will be liquidated.

These proposals have been unanimously approved by the Wells Fargo Advantage Funds and Evergreen Funds Boards of Trustees.

“Our goal has always been to offer investors access to the independent thinking of best-in-class asset managers with time-tested investment strategies,” said Andrew Owen, head of Wells Fargo Funds Management’s Marketing, Investments and Product group. “These actions enhance the overall quality of our investment offerings, while preserving the agility of our multi-boutique investment model.”

Following the fund mergers and reorganizations, Wells Fargo Funds Management will serve as investment advisor to all of the funds. Evergreen portfolio managers will continue to run Funds as part of Wells Capital Management, the institutional “multi-boutique” asset management firm within Wells Fargo’s Asset Management Group, which serves as subadvisor to many Wells Fargo Advantage Funds. Wells Capital Management is one of 17 distinct investment firms that Wells Fargo Funds Management currently engages to subadvise investment products across a variety of asset classes and styles, including equity, fixed-income, asset allocation, and money market.

“We recognize the importance of continuity for investors and are committed to ensuring a seamless integration experience throughout this process,” said Rabusch. “Our top priority remains our dedication to skillfully guiding clients through the investment terrain to help them reach their financial objectives.”

Following is a more comprehensive overview of the announced proposals. More information can be found at www.wellsfargo.com/advantagefunds or www.evergreeninvestments.com.

Reorganizations
Twenty-seven Evergreen Funds will each be reorganized into a new Wells Fargo Advantage Fund. These reorganizations are subject to shareholder approval and other closing conditions. In most cases, these reorganized funds will continue to receive investment advisory services from their current investment teams under Wells Capital Management. If the reorganizations are approved and the other closing conditions are met, the reorganizations are expected to occur in July 2010.

Current Evergreen Fund New Wells Fargo Advantage Fund Name
Evergreen Adjustable Rate Fund Wells Fargo Advantage Adjustable Rate Government Fund
Evergreen Asset Allocation Fund Wells Fargo Advantage Asset Allocation Fund
Evergreen Diversified Capital Builder Fund Wells Fargo Advantage Diversified Capital Builder Fund
Evergreen Diversified Income Builder Fund Wells Fargo Advantage Diversified Income Builder Fund
Evergreen Enhanced S&P 500 Fund Wells Fargo Advantage Disciplined U.S. Core Fund
Evergreen Fundamental Large Cap Fund Wells Fargo Advantage Core Equity Fund
Evergreen Global Large Cap Equity Fund Wells Fargo Advantage Disciplined Global Equity Fund
Evergreen Global Opportunities Fund Wells Fargo Advantage Global Opportunities Fund
Evergreen Golden Core Opportunities Fund Wells Fargo Advantage Small/Mid Cap Core Fund
Evergreen Growth Fund Wells Fargo Advantage Traditional Small Cap Growth Fund
Evergreen Health Care Fund Wells Fargo Advantage Health Care Fund
Evergreen High Income Fund Wells Fargo Advantage High Yield Bond Fund
Evergreen Institutional Municipal Money Market Fund Wells Fargo Advantage Municipal Cash Management Money Market Fund
Evergreen International Bond Fund Wells Fargo Advantage International Bond Fund
Evergreen Intrinsic Value Fund Wells Fargo Advantage Intrinsic Value Fund
Evergreen Intrinsic World Equity Fund Wells Fargo Advantage Intrinsic World Equity Fund
Evergreen New Jersey Municipal Money Market Fund Wells Fargo Advantage New Jersey Municipal Money Market Fund
Evergreen New York Municipal Money Market Fund Wells Fargo Advantage New York Municipal Money Market Fund
Evergreen North Carolina Municipal Bond Fund Wells Fargo Advantage North Carolina Tax-Free Fund
Evergreen Omega Fund Wells Fargo Advantage Omega Growth Fund
Evergreen Pennsylvania Municipal Bond Fund Wells Fargo Advantage Pennsylvania Tax-Free Fund
Evergreen Pennsylvania Municipal Money Market Fund Wells Fargo Advantage Pennsylvania Municipal Money Market Fund
Evergreen Precious Metals Fund Wells Fargo Advantage Precious Metals Fund
Evergreen Small-Mid Growth Fund Wells Fargo Advantage Growth Opportunities Fund
Evergreen Strategic Growth Fund Wells Fargo Advantage Strategic Large Cap Growth Fund
Evergreen Strategic Municipal Bond Fund Wells Fargo Advantage Strategic Municipal Bond Fund
Evergreen Utility and Telecommunications Fund Wells Fargo Advantage Utility and Telecommunications Fund


Mergers
In an effort to achieve possible economies of scale and to eliminate redundancies among fund offerings, the following merger proposals of funds with similar investment objectives and strategies will be put before shareholders of the merging funds in a proxy solicitation. The table below highlights which surviving fund will acquire the merging fund(s). The merger proposals are subject to shareholder approval and other conditions; if approved and other conditions are met, these mergers are expected to occur in July 2010.

Merging (or Target) Fund(s) Acquiring Wells Fargo Advantage Fund (Surviving Fund)
Evergreen California Municipal Bond Fund Wells Fargo Advantage California Tax-Free Fund
Evergreen California Municipal Money Market Fund Wells Fargo Advantage California Municipal Money Market Fund
Evergreen Core Bond Fund
Evergreen Short Intermediate Bond Fund
Wells Fargo Advantage Diversified Bond Fund
Wells Fargo Advantage Total Return Bond Fund
Evergreen Core Plus Bond Fund Wells Fargo Advantage Income Plus Fund
Evergreen Disciplined Value Fund
Wells Fargo Advantage Equity Income Fund
Wells Fargo Advantage U.S. Value Fund
Wells Fargo Advantage Disciplined Value Fund1
Evergreen Emerging Markets Growth Fund
Wells Fargo Advantage Emerging Markets Equity Fund
Wells Fargo Advantage Emerging Markets Equity Fund1
Evergreen Equity Income Fund
Wells Fargo Advantage Specialized Financial Services Fund
Wells Fargo Advantage Classic Value Fund1
Evergreen Equity Index Fund Wells Fargo Advantage Index Fund
Evergreen Fundamental Mid Cap Value Fund Wells Fargo Advantage Mid Cap Disciplined Fund2
Evergreen Golden Large Cap Core Fund
Wells Fargo Advantage Large Company Core Fund
Wells Fargo Advantage Large Cap Core Fund1
Evergreen High Income Municipal Bond Fund
Evergreen Municipal Bond Fund
Wells Fargo Advantage Municipal Bond Fund
Evergreen Institutional 100% Treasury Money Market Fund Wells Fargo Advantage 100% Treasury Money Market Fund
Evergreen Institutional Money Market Fund
Evergreen Prime Cash Management Money Market Fund
Wells Fargo Advantage Heritage Money Market FundSM
Evergreen Institutional Treasury Money Market Fund
Evergreen Treasury Money Market Fund
Wells Fargo Advantage Treasury Plus Money Market Fund
Evergreen Institutional U.S. Government Money Market Fund
Evergreen U.S. Government Money Market Fund
Wells Fargo Advantage Government Money Market Fund
Evergreen Intermediate Municipal Bond Fund Wells Fargo Advantage Intermediate Tax/AMT-Free Fund
Evergreen International Equity Fund Wells Fargo Advantage International Core Fund3
Evergreen Large Company Growth Fund
Wells Fargo Advantage Large Company Growth Fund
Wells Fargo Advantage Premier Large Company Growth Fund1
Evergreen Mid Cap Growth Fund Wells Fargo Advantage Mid Cap Growth Fund
Evergreen Money Market Fund
Wells Fargo Advantage Overland Express Sweep Fund4
Wells Fargo Advantage Money Market Fund
Evergreen Municipal Money Market Fund Wells Fargo Advantage Municipal Money Market Fund
Evergreen Short-Intermediate Municipal Bond Fund Wells Fargo Advantage Short-Term Municipal Bond Fund
Evergreen Small Cap Value Fund
Evergreen Special Values Fund
Wells Fargo Advantage Special Small Cap Value Fund1
Evergreen U.S. Government Fund Wells Fargo Advantage Government Securities Fund
Evergreen VA Core Bond Fund Wells Fargo Advantage VT Total Return Bond Fund
Evergreen VA Growth Fund Wells Fargo Advantage VT Small Cap Growth Fund
Evergreen VA Fundamental Large Cap Fund
Wells Fargo Advantage VT Large Company Core Fund
Wells Fargo Advantage VT Core Equity Fund1
Evergreen VA International Equity Fund Wells Fargo Advantage VT International Core Fund5
Evergreen VA Omega Fund
Wells Fargo Advantage VT Large Company Growth Fund
Wells Fargo Advantage VT Omega Growth Fund1
Evergreen VA Special Values Fund Wells Fargo Advantage VT Small/Mid Cap Value Fund6
Wells Fargo Advantage Aggressive Allocation Fund Wells Fargo Advantage Growth Balanced Fund
Wells Fargo Advantage Growth Equity Fund Wells Fargo Advantage Diversified Equity Fund
Wells Fargo Advantage Large Cap Appreciation Fund Wells Fargo Advantage Capital Growth Fund
Wells Fargo Advantage Stable Income Fund Wells Fargo Advantage Ultra Short-Term Income Fund
Wells Fargo Advantage Strategic Income Fund Wells Fargo Advantage High Income Fund
Wells Fargo Advantage VT C&B Large Cap Value Fund
Wells Fargo Advantage VT Equity Income Fund
Wells Fargo Advantage VT Intrinsic Value Fund1


Liquidations
The Boards of Trustees of the Wells Fargo Advantage Funds and the Evergreen Funds also approved the liquidation of their respective funds listed below:

  • Evergreen Golden Mid Cap Core Fund
  • Evergreen VA Diversified Capital Builder Fund
  • Evergreen VA Diversified Income Builder Fund
  • Evergreen VA High Income Fund
  • Wells Fargo Advantage VT Money Market Fund

These proposals were based on the consideration that the funds’ small sizes make it unlikely that a shareholder would benefit from the lower expense ratios that larger funds may experience.

The Wells Fargo Advantage VT Money Market Fund was closed to new insurance companies as of December 31, 2009. As of January 29, 2010, shares of all four Evergreen Funds will no longer be available for purchase by new shareholders. The Evergreen Golden Mid Cap Core Fund will be liquidated on March 26, 2010. The four other funds will be liquidated on April 30, 2010.

Subadvisor Change
The Wells Fargo Advantage Funds Board of Trustees has approved a proposal to replace Wells Capital Management with Metropolitan West Capital Management, LLC as the subadvisor to the Wells Fargo Advantage Small Cap Disciplined Fund. The Fund will be renamed the Wells Fargo Advantage Intrinsic Small Cap Value Fund.

About Wells Fargo Funds Management
Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company (NYSE:WFC), provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company. The organization manages more than $179.1 billion in portfolio assets under management (as of December 31, 2009). The Wells Fargo Advantage Funds are a registered trademark of Wells Fargo Funds Management, LLC. For more information on Wells Fargo Advantage Funds, please visit http://www.wellsfargo.com/advantagefunds.

About Evergreen Investments
Evergreen Investments is one of the brand names under which Wells Fargo & Company conducts its investment management business. Evergreen Investments strives to meet client investment objectives through disciplined, teambased asset management and through a broad range of investment products. The organization manages more than $67.2 billion in portfolio assets under management (as of December 31, 2009). Evergreen mutual funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company. Evergreen InvestmentsSM is a service mark of Evergreen Investment Management Company, LLC. For more information on Evergreen Investments, please visit www.evergreeninvestments.com.

Stock fund values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. Some funds, including nondiversified funds and funds investing in foreign investments, high-yield bonds, small and mid cap stocks, and/or more volatile segments of the economy, entail additional risk and may not be appropriate for all investors. Consult a Fund's prospectus for additional information on these and other risks.

A portion of the municipal Funds’ income may be subject to federal, state, and/or local income taxes or the alternative minimum tax (AMT). Any capital gains distributions may be taxable. The U.S. government guarantee applies to certain underlying securities and not to shares of the Funds.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.

Carefully consider a fund’s investment objectives, risks, charges, and expenses before investing. For a current prospectus, containing this and other information, visit www.evergreeninvestments.com for Evergreen Funds and www.wellsfargo.com/advantagefunds for Wells Fargo Advantage Funds. Read the prospectus carefully before investing.

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