DWS RREEF Real Estate Fund, Inc. (SRQ) and DWS RREEF Real Estate Fund II, Inc. (SRO) Announce Change in Distribution Schedule from Monthly to Quarterly.

NEW YORK -- The Boards of Directors of DWS RREEF Real Estate Fund, Inc. (AMEX: SRQ) and DWS RREEF Real Estate Fund II, Inc. (AMEX: SRO), have approved a change in the Funds' distribution schedules from monthly to quarterly effective starting in the fourth quarter of 2007 and continuing thereafter. The next regular distribution payment will be paid to shareholders in November. The change in the distribution payment schedule will have no effect on the Funds' annual distribution rate. The Funds also anticipate that they will make another announcement in December announcing the Funds' capital gain distributions. The following dates apply for the November distributions:

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The Boards of Directors approved the change in the distribution schedule from monthly to quarterly in order to make it easier for the Funds to reclassify, if and as necessary, a larger amount of the Funds' distributions as capital gain distributions because the classification of the amounts received from real estate investment trusts (REITs) in the Funds' portfolios is not known until January, after the Funds have made their distributions for the previous year. Therefore the change to a quarterly distribution reflects, among other things, an endeavor to better allocate the Funds' distribution payments in an effort to help manage the Funds' asset base.

The Funds will hold a conference call on Wednesday, October 24th at 2 PM ET to discuss the Funds and answer questions by investors. The dial-in number is [phone] and the conference ID number is 1150171.

SRQ's current distribution rate represents an annualized yield of 8.90% based on the closing market price of $22.21 on October 18, 2007, and a 7.83% yield on a closing NAV of $24.99 as of the same date.

SRO's current distribution rate represents an annualized yield of 9.11% based on the closing market price of $16.72 on October 18, 2007, and a 8.03% yield on a closing NAV of $18.97 as of the same date.

For more information on SRQ and SRO please contact a representative at [phone] or visit us on the web at www.cef.dws-scudder.com for updated information on the Funds.

SRQ and SRO are non-diversified funds, which means they can invest in securities of relatively few issuers. This presents greater risk of loss of principal as the financial conditions or market assessments of such securities change. Each Fund has a level distribution rate that may be modified by the Board of Directors from time to time. It is anticipated that a portion of the aggregate distributions made by the Funds may constitute a return of capital. In addition, it is anticipated that any realized capital gains for a Fund's fiscal year will be paid to shareholders in a separate distribution at the end of such year. If the total distributions made in any calendar year exceed investment company taxable income, net tax-exempt income and net capital gain, such excess distributed amount would be treated as ordinary dividend income to the extent of each Fund's current and accumulated earnings and profits. Distributions in excess of the earnings and profits would first be a tax-free return of capital to the extent of a shareholder's adjusted tax basis in the shares. After such adjusted tax basis is reduced to zero, the distribution would constitute capital gain (assuming the shares are held as capital assets). A return of capital is not reflective of the Funds' investment performance and should not be confused with income or yield.

Estimated information on the Funds' net investment income and other distribution information for each payment and the preceding three payments will be available on the Funds' website (www.cef.dws-scudder.com) no later than the end of each quarter. The level distribution rate policy described above would result in the payment of approximately the same amount to the Funds' common shareholders each quarter. Section 19(a) of the Investment Company Act of 1940, as amended (the "1940 Act"), and Rule 19a-1 thereunder require the Funds to provide a written statement accompanying any payment that adequately discloses the source of such payments if not solely from investment income or capital gains. Shareholders should read any written disclosure provided by the Funds pursuant to Section 19(a) and Rule 19a-1 carefully and/or view the Funds' website, and should not assume that the source of any distribution from the Funds is net income. In addition, shareholders should not draw any conclusions about the Funds' investment performance from the amounts of such distributions or from the terms of the Funds' level distribution policy. The amounts and sources of distribution included in such written disclosures are estimates only and should not be reported for tax purposes. The actual amount and sources of the amounts for tax reporting purposes will depend upon the Funds' investment experience during the remainder of their fiscal years and may be subject to changes. The Funds will send shareholders a Form 1099-DIV for the calendar year that will tell shareholders how to report these distributions for federal income tax purposes. The annualized distribution rate is the latest distribution shown as an annualized percentage of net asset value/market prices. Annualized distribution rates simply measure the level of distributions and are not a measure of performance. REIT investments can be affected by interest rate moves, economic cycles, and tax and regulatory requirements. Market price, annualized distribution rates and net asset values are historical and will fluctuate and do not guarantee future results.

Past performance is no guarantee of future results. Annualized distribution yield is the latest quarterly dividend shown as an annualized percentage of net asset value/market price at quarter end. Annualized distribution yield simply measures the level of distributions and is not a complete measure of performance. Market price, annualized distribution yield, net asset value and returns are historical and will fluctuate and do not guarantee future results. Investments in funds involve risk. Some funds have more risk than others. These include funds that allow exposure to or otherwise concentrate investments in certain sectors, geographic regions, security types, market capitalization or foreign securities (e.g., political or economic instability, which can be accentuated in emerging market countries).

This announcement is not an offer to purchase or the solicitation of an offer to sell shares of the Funds or a prospectus, circular or representation intended for use in the purchase or sale of Fund shares.

NOT FDIC/ NCUA INSURED   --   MAY LOSE VALUE    --   NO BANK GUARANTEE
NOT A DEPOSIT     --      NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

DWS Scudder is part of Deutsche Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company. Copyright (c) 2007 DWS Scudder Distributors, Inc.