DCS Announces At-Par Redemption Notices for Auction Market Preferred Shares and Reduction of Quarterly Dividend Rate for Common Shares.

LISLE, Ill. -- Dreman/Claymore Dividend & Income Fund (the "Fund")(NYSE: DCS), a non-diversified closed-end management investment company, today announced a partial at-par redemption of its outstanding Auction Market Preferred Shares, liquidation preference $25,000 per share (the "Preferred Shares") and a prospective reduction of its quarterly dividend rate for common shares.

Redemption of Auction Market Preferred Shares

The Fund will redeem $150 million, or approximately 35%, of its outstanding Preferred Shares. The redemption price will be equal to the liquidation preference per share, plus accumulated but unpaid dividends as of the applicable redemption date (as noted in the tables below). This redemption will provide liquidity at par for the holders of at least some of the Fund's Preferred Shares.

Redemption Schedule

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With respect to this partial redemption, The Depository Trust Company (DTC), the holder of record of the Fund's Preferred Shares, will determine how the partial series redemptions will be allocated among each participant broker-dealer account. Each participant broker-dealer, as nominee for underlying beneficial owners (street name shareholders), in turn will determine how redeemed shares are to be allocated among its underlying beneficial owners. The procedures used by various broker-dealers to allocate redeemed shares among beneficial owners may differ from each other as well as from the procedures used by DTC.

Prospective Reduction of Quarterly Dividend Rate for Common Shares

The Fund also announced that its Board of Trustees has approved a prospective revision of its level rate dividend policy (the "Level Rate Dividend Policy") to reduce the rate at which it intends to make regular quarterly cash distributions on common shares of the Fund. Under the revised Level Rate Dividend Policy, the rate at which the Fund intends to make regular quarterly cash distributions on common shares of the Fund will be reduced from $0.325 per share to $0.10 per share. It is expected that the revised Level Rate Dividend Policy will take effect with the declaration and payment of the Fund's November 2008 quarterly distribution. Distributions on common shares of the Fund are payable only to the extent and at the rate declared by the Fund's Board of Trustees.

Claymore Advisors, LLC, an affiliate of Claymore Securities, Inc., serves as the Fund's Investment Adviser. Claymore Securities, Inc. is a privately-held financial services company offering unique investment solutions for financial advisors and their valued clients. Claymore entities have provided supervision, management, servicing and/or distribution on approximately $18.4 billion in assets, as of June 30, 2008. Claymore currently offers closed-end funds, unit investment trusts and exchange-traded funds. Registered investment products are sold by prospectus only and investors should read the prospectus carefully before investing. Additional information on Claymore's closed-end funds is available at www.claymore.com/cef.

Dreman Value Management, LLC, the Fund's Investment Manager, was founded by David N. Dreman in 1997, and its predecessor firms date back to 1977. The firm had approximately $14.3 billion in assets under management as of August 31, 2008, primarily across institutional accounts, separate account wrap-fee programs, high-net-worth individuals and various investment companies. Independently owned, the firm is a value-oriented contrarian equity manager and places its primary emphasis on common stocks with growing dividends. David Dreman is widely known for his association with Forbes where he has penned a column entitled "The Contrarian" since 1980 and for publishing four books on low P/E contrarian value investing and behavioral finance.

This information does not represent an offer to sell securities of the Fund and it is not soliciting an offer to buy securities of the Fund. There can be no assurance that the Fund will achieve its investment objectives. The net asset value of the Fund will fluctuate with the value of the underlying securities. It is important to note that closed-end funds trade on their market value, not net asset value, and closed-end funds often trade at a discount to their net asset value. Past performance is not indicative of future performance. An investment in the Fund is subject to certain risks and other considerations. Such risks and considerations include, but are not limited to: Investment Risk, Market Discount Risk, Interest Rate Risk, Credit Risk, Lower-Grade and Unrated Securities Risk, Leverage Risk, Issuer Risk, Country Risk, Prepayment Risk, Reinvestment Risk, Derivatives Risk, Inflation/Deflation Risk, Management Risk, Turnover Risk, Anti-Takeover Provisions, Smaller Company Risk, and Market Disruption and Geopolitical Risk.

Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Fund carefully before they invest. For this and more information, please contact a securities representative or Claymore Securities, Inc., 2455 Corporate West Drive, Lisle, Illinois 60532, 800-345-7999.

Member FINRA/SIPC (9/08)

(NYSE: DCS)

NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE