Wachovia Corporation is going to flat-out purchase the Lehman Brothers debt held in the Evergreen Money Market Fund, Evergreen Institutional Money Market Fund, and Evergreen Prime Cash Management Fund. Early in September, the firm said it would support the value of Lehman credit held in the Funds to prevent a decrease in NAV. Wachovia expects the purchase to complete on or about October 1, 2008.

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Company Press Release

BOSTON, Sept. 30 /PRNewswire/ -- Evergreen Investments today announced plans by the firm's parent company, Wachovia Corporation, to purchase the Lehman debt held in Evergreen Money Market Fund, Evergreen Institutional Money Market Fund, and Evergreen Prime Cash Management Fund. Evergreen anticipates the purchase would be complete on or about October 1, 2008. As of September 15, 2008, the Funds had combined total net assets of $29 billion and $494 million in total Lehman credit exposure.

Earlier this month, Wachovia announced that it had entered into support agreements with Evergreen Money Market Fund, Evergreen Institutional Money Market Fund, and Evergreen Prime Cash Management Fund in order to support the value of Lehman credit held in the Funds, and to prevent a decrease in the net asset value (NAV) of those Funds due to the Lehman debt. Wachovia has now decided to purchase the Lehman debt holdings out of the Funds.

In addition, Evergreen confirmed that it had submitted the necessary documentation and paid the required fee to participate in the Money Market Guarantee Program established by the U.S. Treasury Department. According to information published by the Treasury, the program will guarantee the share price of any publicly offered eligible money market mutual fund that applies for and pays a fee to participate in the program. Money market mutual funds that are regulated under Rule 2a-7 of the Investment Company Act of 1940, that maintain a stable share price of $1.00, and that are publicly offered and registered with the Securities and Exchange Commission are eligible to participate in the program. The Guarantee Program provides coverage to shareholders for amounts held in participating money market funds as of the close of business on September 19, 2008. For more details about the Guarantee Program, please refer to the information posted on the U.S. Department of Treasury website (http://treas.gov/press/releases/hp1163.htm ).

About Evergreen Investments

Evergreen Investments is the brand name under which Wachovia Corporation (NYSE: WB) conducts its investment management business. Wachovia Global Asset Management is the brand name under which Evergreen Investments conducts sales and distribution business outside of the United States. Evergreen serves more than four million individual and institutional investors through a broad range of investment products. Led by 300 investment professionals, Evergreen strives to meet client investment objectives through disciplined, team-based asset management. Evergreen manages more than $245 billion in assets (as of June 30, 2008). Please visit EvergreenInvestments.com for more information about Evergreen Investments.

SOURCE Evergreen Investments

 

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