Evergreen Closed End Fund Investment Update; Investment Data Presented is as of August 29, 2003. Performance and Yield Data Presented as of September 10, 2003.

Business Editors

BOSTON--(BUSINESS WIRE)--Sept. 11, 2003

Scott E. Couto, Director of Investment Product Management for Evergreen Investments, stated the following with respect to Evergreen's closed end funds:

Evergreen Income Advantage (EAD)

"We have declared five monthly dividends of $0.1375 per common share for an annualized yield based on initial offering price of 11%. At the price as of market close on September 10, 2003 the yield was 11.32%.

                                                            High Yield
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Gross Yield                                                      9.05
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Credit Quality                                                     B+
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Duration                                                         4.43
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Evergreen Managed Income Fund (ERC)

We have declared our first three monthly dividends of $0.13084 per common share, resulting in an annualized yield of 7.85% based on initial offering price and a yield of 8.7% based on the market price as of close of business on September 10, 2003.

Update on Income Advantage Fund

The Fund was introduced at $15.00 and currently has a market price of $14.58 and an NAV of $15.18, resulting in a 2.5% discount to its yield of about 11.32%.

Since February, the NAV of the Fund has provided a total return of 9.51%. The total return of the Fund has ranked within the bottom half of its Lipper category since inception for two reasons: (1). The Fund is invested in higher quality high yield bonds, and the largest returns within the high yield universe have come from the lower quality bonds, (2). After raising capital in the initial offering in February, the investment management team was investing in a rapidly rising market, creating somewhat of a cash lag. We continue to believe that our high quality approach within the high yield marketplace is a benefit to shareholder and EAD is a high yield offering that can be held throughout the high yield cycle, as our style has tended to offer respectable performance in both up and down markets.

As of June 30, 2003, 50% of our preferred share leverage had been hedged using a blend of 3- and 5- year interest rates swaps, which deliver the effect of turning variable rate into fixed rate borrowing for a stated period of time. We believe that our hedging policy provides a benefit to shareholders and it softens the impact of rising interest rates and higher borrowing costs on the portion of the fund that is leveraged.

Update on Evergreen Managed Income Fund

The Fund was introduced at $20 per common share on June 26th, 2003, and currently has a market price of $18.06 and a net asset value of $18.97.

The Fund has declared the first three dividends for the months of August, September and October at a rate of $0.13084 per common share for a yield of 7.85% based on the initial offer price of $20.00 per share. Based on the current market price of $18.06, the fund's market price yield is 8.694%.

Our investment management team has spent July and August investing the capital from our initial public offering, and has also recently completed the issuance of $400 million in preferred share leverage. An investment update as of 8/31 is as follows:

                  High Yield      International     Adjustable  Rate
                                                    Mo
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Allocation           50%              25%           25%
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Gross Yield on LT
 Holdings          8.18             5.42          4.32
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Credit Quality       B+              AA-           AAA
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Duration            4.5             3.01           0.8
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One of the advantages that ERC delivers to long-term shareholders is that each of the three investment disciplines has tended to react differently to changes in US interest rates. Therefore, an allocation that includes each of these three strategies may outperform other types of fixed income investments during a period of rising interest rates. This has been the case since inception. The months of July and August represented one of the worst treasury markets on record, with the 10-year yield increasing by nearly 100 bp during the period and up by 135 bp since its low on June 13th. As of August 29, 2003, the NAV of the Fund had declined approximately 1.6% since inception, compared to 7.9% for the 10-year treasury over the same period of time.

Markets Update - Opinion of Management Team

After a brief pause in July, where the Merrill Lynch High Yield Master Index was off 1.5%, August was a return to strength with the market up about 1.3% overall. Cash flows for the month were weak, responding to a weaker July return, but then set a record during the last week of the month with net flows of $3.3 billion, the prior record having been the $3.2 billion pace in May of this year. So investor interest appears to remain strong. And this makes sense, with a yield of 7-8% that represents a significant % of the return equities are likely to provide on a long-term basis. At the same point in time, new issuance was slower in August than it was in July, which helped the market from a technician's standpoint. Our team believes that as the economy improves, the operating environment for many of our issuers is likely to improve, as evidenced by the fact that second quarter reported EPS were up year-over-year 65%, the third highest one year jump since 1955. The investment team continues to find attractive high yield opportunities for on behalf of their shareholders in gaming (6.59%), chemical (5.57%) and telecom (5.06%).

Within the adjustable rate securities market, the bias has shifted from monitoring contraction risk to monitoring extension risk, as prepayments have come way down from their June highs. While the move in the 10-year treasury has been fairly significant, the securities within this market typically react much more in line with shorter rates, which have not moved in tandem (150 bp for the 10 year Treasury, and approximately 20 bp for the CMT 1-year.) With that said, the investment management team is of the belief that the sell-off in the 10-year Treasury has been a little bit overdone and expects calmer markets ahead. To react, our team has begun to emphasize a higher percentage of floating rate securities moving toward structures that would be faster to respond to a rising rate environment.

On the international front, during ERC's launch period the dollar was very weak, reaching a bottom of $1.16 to the Euro. Over the course of July and August, as our team expected the dollar strengthened somewhat, hitting a high of $1.10 against the Euro at the end of August. Of course, the strength of the dollar enabled our team to purchase European denominated bonds more efficiently during the months of July and August. The team believes that relatively modest growth and low inflationary backdrop will favor the corporate market, which as you recall was their largest weighting. The management team continues to emphasize those markets that are growth unfriendly, bond friendly with their largest country weights in UK, Netherlands, Denmark and Australia. Regionally, their largest weighting is in the Eurozone, where growth is likely to be positive, but weaker than anticipated over the next several quarters."

About Evergreen Investments

Evergreen Investments is the brand name under which Wachovia Corporation (NYSE: WB) conducts its investment management business and is a leading asset management firm serving more than four million individual and institutional investors through a broad range of investment products. Led by 350 investment professionals, Evergreen Investments strives to meet client investment objectives through disciplined, team-based asset management. Evergreen Investments manages more than $235 billion in assets (as of June 30, 2003).

The above referenced statements may contain statements that are not historical facts, referring to as "forward-looking statements." The Funds actually future results may differ significantly from those stated in any forward-looking statements, depending on factors such as changes in markets or general economic conditions, and other risks and other risks discussed from time to time in the Funds filings with the Securities and Exchange Commission.