Dividend Declaration Hyperion 1997 Term Trust, Inc. - December 9, 1994.

NEW YORK--(BUSINESS WIRE)--December 12, 1994--Dividend Declaration Hyperion 1997 Term Trust, Inc. - December 9, 1994

The Board of Directors of the Hyperion 1997 Term Trust, Inc. (NYSE:HTA) today declared a monthly dividend of $0.05 per share. The dividend is payable on December 29, 1994, to shareholders of record on December 19, 1994. This dividend represents a monthly return of 6.00% (an annualized rate) on the Trust's initial offering price of $10.00 per share. The current yield on shares of the Trust based on the NYSE closing price of $7.25 on December 8, 1994 is 8.28%, which is 62 basis points greater than the current yield on the 3-Year Treasury Note. The net asset (NAV) per share is currently $7.96.

The Hyperion 1997 Term Trust, Inc. is a diversified, closed-end management investment company. The Trust's investment objectives are to provide shareholders with a high level of current income consistent with investing in securities of the highest credit quality and to return at least $10.00 per share (the Trust's initial public offering price per share) to investors on or shortly before November 30, 1997. All securities in which the Trust invests will be either (i) issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities or (ii) at the time of investment, rated in the highest rating category by a nationally recognized agency (e.g., AAA by Standard & Poor's Corporation or Aaa by Moody's Investors Service, Inc.).

The Trust is actively managed to take advantage of relative value opportunities in various sectors of the mortgage market. The Trust is currently managed with an average duration of 1 to 3 years. Currently the average life of the securities in the portfolio is approximately 3.5 years.

                Portfolio Breakdown as of December 8, 1994:
                      As a percentage of investments
     Treasuries                                         3.50%
     Mortgage-Backed Securities                        16.80%
     Collateralized Mortgage Obligations (CMOs)        30.10%
     Municipal Securities                              15.40%
     Asset-Backed Securities                           22.30%
     Adjustable Rate Mortgages (ARMs)                   4.24%
     Interest-Only Securities (IOs)                     4.11%
     PAC IOs                                            1.50%
     PAC PO                                             2.05%

The Trust's investment adviser is Hyperion Capital Management, Inc., a registered investment adviser based in New York with approximately $4 billion in assets under management. Additional information on the Trust's assets and performance is available by calling Hyperion Fund Marketing at (800) HYPERION or by calling Prudential Mutual Fund Management, Inc. [phone].

CONTACT: Hyperion 1997 Term Trust Inc.

             Hyperion Fund Marketing, (800) HYPERION
              or
             Prudential Mutual Fund Management, Inc., [phone]