OFFER TO PURCHASE FOR CASH
            UP TO 943,704 OF THE OUTSTANDING SHARES OF COMMON STOCK
            (INCLUDING THE ASSOCIATED COMMON STOCK PURCHASE RIGHTS)

                                       OF

                 NEUBERGER BERMAN REAL ESTATE INCOME FUND INC.

                                       AT

                              $20.00 NET PER SHARE

                             ---------------------

                                                                 October 1, 2004

To Brokers, Dealers, Commercial Banks,
Trust Companies and Other Nominees:

    We have been appointed by Neuberger Berman Real Estate Income Fund Inc. (the
"Fund"), a Maryland corporation, to act as Depositary in connection with its
offer to purchase up to 943,704 of its outstanding shares of common stock, par
value $0.0001 per share (the "Common Shares"), at $20.00 per Common Share net to
the seller in cash, upon the terms and subject to the conditions set forth in
the Fund's Offer to Purchase dated October 1, 2004 and the related Letter of
Transmittal (which together constitute the "Fund Offer"). All Common Shares
tendered and purchased will include the tender and purchase of the associated
Common Share purchase rights issued pursuant to the Rights Agreement between the
Fund and The Bank of New York, as rights agent, dated September 23, 2004, and
unless the context otherwise requires, all references in this document to Common
Shares include the associated Common Share purchase rights.

    For your information and for forwarding to your clients for whom you hold
Common Shares registered in your name or in the name of your nominee, we are
enclosing the following documents:

        1.  Offer to Purchase dated October 1, 2004;

        2.  Letter of Transmittal for your use and for the information of your
    clients, together with GUIDELINES FOR CERTIFICATION OF TAXPAYER
    IDENTIFICATION NUMBER ON SUBSTITUTE FORM W-9 providing information relating
    to backup federal income tax withholding;

        3.  Notice of Guaranteed Delivery to be used to accept the Fund Offer if
    the Common Shares and all other required documents cannot be delivered to
    the Depositary by the Expiration Date (as defined in the Offer to Purchase);
    and

        4.  A form of letter which may be sent to your clients for whose
    accounts you hold Common Shares registered in your name or in the name of
    your nominee, with space provided for obtaining such clients' instructions
    with regard to the Fund Offer.

    WE URGE YOU TO CONTACT YOUR CLIENTS AS PROMPTLY AS POSSIBLE.

    THE FUND OFFER, PRORATION PERIOD AND WITHDRAWAL RIGHTS EXPIRE AT 12:00
MIDNIGHT, NEW YORK CITY TIME, ON FRIDAY, OCTOBER 29, 2004, UNLESS THE FUND OFFER
IS EXTENDED.

    The Fund will not pay any fees or commissions to any broker or dealer or
other person (other than the Information Agent or the Depositary as described in
the Offer to Purchase) for soliciting tenders of Common Shares pursuant to the
Fund Offer. The Fund will, however, upon request, reimburse brokers, dealers,
commercial banks and trust companies for reasonable and necessary costs and
expenses incurred by them in forwarding materials to their customers. The Fund
will pay all stock transfer taxes applicable to its purchase of Common Shares
pursuant to the Fund Offer, subject to Instruction 6 of the Letter of
Transmittal.
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    In order to accept the Fund Offer, a duly executed and properly completed
Letter of Transmittal and any required signature guarantees, or an Agent's
Message (as defined in the Offer to Purchase) in connection with a book-entry
delivery of Common Shares, and any other required documents, should be sent to
the Depositary by 12:00 Midnight, New York City time, on Friday, October 29,
2004.

    Any inquiries you may have with respect to the Fund Offer should be
addressed to, and additional copies of the enclosed materials may be obtained
from, the Information Agent or the undersigned at the addresses and telephone
numbers set forth on the back cover of the Offer to Purchase.

                                          Very truly yours,

                                          The Bank of New York

NOTHING CONTAINED HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL CONSTITUTE YOU THE
AGENT OF NEUBERGER BERMAN REAL ESTATE INCOME FUND INC., THE INFORMATION AGENT OR
THE DEPOSITARY, OR AUTHORIZE YOU OR ANY OTHER PERSON TO USE ANY DOCUMENT OR MAKE
ANY STATEMENT ON BEHALF OF ANY OF THEM IN CONNECTION WITH THE FUND OFFER OTHER
THAN THE DOCUMENTS ENCLOSED HEREWITH AND THE STATEMENTS CONTAINED THEREIN.