AEW Real Estate Income Fund as of December 31, 2002.

Business Editors

BOSTON--(BUSINESS WIRE)--Feb. 28, 2003

AEW Real Estate Income Fund (AMEX: RIF) had the following portfolio characteristics as of December 31, 2002:

Portfolio Composition:

--  Common shares - 72.4%
--  Preferred shares - 17.5%
--  Cash - 10.1%

Top 10 Holdings:

1. Apartment Investment and Management Company - 3.8%
2. Heritage Property Investment Trust, Inc. - 3.5%
3. Mack-Cali Realty Corporation - 3.4%
4. Health Care Property Investors, Inc. - 3.2%
5. Arden Realty, Inc. - 3.1%
6. CarrAmerica Realty Corporation - 3.0%
7. Gables Residential Trust - 3.0%
8. Highwoods Properties, Inc. - 2.9%
9. Camden Property Trust- 2.7%
10. HRPT Properties Trust - 2.7%

Percentage of Net Assets in Top 10 Holdings - 31.3%

Sector allocation (includes investments in common & preferred
shares):

Office & Industrial - 26.6%
Retail - 21.5%
Residential - 14.9%
Healthcare - 8.6%
Hotel - 8.6%
Net Lease - 6.6%
Other - 3.1%
Cash - 10.1%

Issuer Allocation (includes investments in common and preferred
shares):

--  40 Issuers/48 Securities
--  No single security represents over 3.8% of net assets
--  Only five securities represents over 3% of net assets

Portfolio Statistics:

Inception Date: November 29, 2002

Leverage:       The fund issued one series of auction market preferred
                shares. The preferred shares represented approximately
                35% of the Fund's capital immediately after their
                issuance. The preferred shares will leverage
                shareholders' investments in the common shares.

Total Net Assets: $54,060,719 (as of 12/31/02)
                  $53,202,458 (as of 2/25/03)

Initial Dividend: $0.115 per common share paid on January 31, 2003

Market Price:     $15.01 (as of 12/31/02)
                  $14.21 (as of 2/25/03)

NAV:              $14.35 (as of 12/31/02)
                  $13.88 (as of 2/25/03)

The AEW Real Estate Income Fund is advised by AEW Management and Advisors, a subsidiary of AEW Capital Management (AEW). The AEW Real Estate Income Fund's primary investment objective is high current income; its secondary investment objective is capital appreciation. The fund currently seeks to achieve its investment objectives by investing primarily in common and preferred stock issued by real estate investment trusts and other real estate companies. The fund's portfolio manager is Matthew A. Troxell, CFA.

AEW is a real estate investment manager, providing services to institutions, mutual funds and other investors in commercial property and real estate securities. Among AEW's clients are some of the nation's largest corporate, public and union pension funds, university endowments, and governmental entities. Operating from offices in Boston, Los Angeles, Washington, London and Paris, AEW managed approximately $6.7 billion of capital as of December 31, 2002. For further information, visit www.aew.com.