Scudder Strategic Municipal Income Trust -KSM- Declares a Monthly Distribution.

NEW YORK -- Scudder Strategic Municipal Income Trust (NYSE symbol: KSM) declared a monthly dividend of $0.075 per common share, payable on January 31, 2005 to shareholders of record on January 18, 2005. The Ex-date is January 13, 2005. The previous monthly dividend was $0.075 per share. The Fund's initial offering was April 21, 1988.

The current distribution rate represents a 7.21% annualized dividend yield based on the closing market price of $12.49 on January 6, 2005 and a 7.24% annualized dividend yield on a closing NAV of $12.43 on the same date.

For more information on KSM please contact a representative at [phone] or visit us on the web at http://cef.scudder.com (do not use www) for updated information on the Fund.

Past performance is no guarantee of future results.

Annualized dividend yield is the latest monthly dividend shown as an annualized percentage of net asset value/market price at month end. Annualized dividend yield simply measures the level of dividends and is not a complete measure of performance. Market price, annualized dividend yield, net asset value 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).

Not FDIC Insured. Not Guaranteed. May Lose Value.

Scudder Investments 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 Asset Management Inc., Deutsche Asset Management Investment Services Ltd., Deutsche Investment Management Americas Inc. and Scudder Trust Company.