Eaton Vance Corp. Reaches Agreement with Merrill Lynch to Terminate Additional Compensation Agreements

Eaton Vance Corp. Reaches Agreement with Merrill Lynch to Terminate Additional Compensation Agreements

Eaton Vance Corp. (NYSE: EV) today announced that it has agreed with Merrill Lynch, Pierce, Fenner and Smith Incorporated (”Merrill Lynch”) to terminate the additional compensation agreements entered into with Merrill Lynch in connection with all 22 of the closed-end funds for which these agreements are in place, including the recent November offering. The additional compensation agreements required Eaton Vance to make recurring payments over time based on the assets of the respective closed-end funds.

In exchange for the termination of these agreements, Eaton Vance Corp. will make a lump sum payment to Merrill Lynch in the amount of $45.7 million or approximately $0.21 per diluted share. The payment will be recorded as a distribution expense in the first fiscal quarter of 2007. The termination of these agreements is expected to result in annualized after-tax earnings accretion of $0.02 per diluted share.

Eaton Vance Corp., through its subsidiaries, is the investment adviser and distributor of over 160 mutual funds and also manages investments for individual and institutional clients. Eaton Vance had $128.9 billion in assets under management on October 31, 2006.

This news release contains statements that are not historical facts, referred to as “forward-looking statements.” The Company’s actual future results may differ significantly from those stated in any forward-looking statements, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and repurchases of fund shares, the continuation of investment advisory, administration, distribution and service contracts, and other risks discussed from time to time in the Company’s filings with the Securities and Exchange Commission.