FINAL
12/9/04

         FOR INTERNAL USE ONLY. NOT TO BE DISTRIBUTED OR SHOWN TO PUBLIC

                          EVERGREEN LIQUIDITY PLAN Q&A

What is the Evergreen Liquidity Plan?  What is it designed to do?

The Evergreen Liquidity Plan allows ERH shareholders to tender fund shares at
their full net asset value (NAV) through a tender offer process, provided that
fund shares are trading at a specific discount for a specified test period. The
tender offer is limited to 5% of the Fund's outstanding shares.

The provision is designed to give shareholders an alternative to selling fund
shares at only the market price, which may be lower than the NAV.

The tender offer:

o        Will take place for 8 consecutive quarters following the Fund's IPO
o        Is subject to approval by the Fund's Board of Trustees
o        Requires that the discount (market price relative to Fund NAV) exceeds
         5% each day of the test period (the 21st through 40th trading days of
         the calendar quarter)

It is important to note that the NAV that will be paid to shareholders who
tender shares will be the NAV on the day following the close of the tender offer
period. The tender offer for this quarter will close on January 24th. This means
that the NAV paid to tender offer participants will effectively "float" until
the NAV is struck at the close of business on January 25th. As a result, there
can be no assurance of the NAV the shareholder will receive.

What are the specifics of the plan & the relevant dates?

Discount Test Dates

The test for this quarter began on 10/29/04 and was completed 11/26/04.

Press Releases

Evergreen Investments issued a press release on 11/19/04 communicating the
status of the discount test and the intention to present the Board with the
tender offer proposal. On 12/9/04, Evergreen issued another releasing announcing
the approval of the tender for this quarter by the Board of Trustees.

Board of Trustees Approval

The tender offer requires approval by the Board of Trustees of the Fund.










NAV Paid as of

The NAV that will be paid to shareholders who tender shares will be the NAV on
the day following the close of the tender offer period. The tender offer will
close on January 24th. This means that the NAV paid to tender offer participants
will effectively "float" until the NAV is struck at the close of business on
January 25th.

Discount Test Requirements

The discount must exceed 5% on 15 of the 20 days of the test period based on
average volume-weighted daily price.

Who Qualifies

All Fund shareholders qualify for the tender offer. Because there is no record
date for a tender offer, any shareholder can tender shares back to the Fund
until the close of the tender offer period.

Shareholder Communication

Once the Board of Trustees approves the tender offer, materials will be mailed
to the Broker/Dealers. The Broker/Dealers are then responsible for mailing the
materials to individual shareholders. Shareholders will have 21 days to return
their materials to their brokerage firm.

10% Limitation

Evergreen had requested from the SEC the ability to limit the amount any one
shareholder could receive in the tender offer process to 10% of the amount
tendered by the fund. The SEC has not granted this request.

Over Subscription

The tender offer is limited to 5% of the Fund's outstanding shares. Should
requests exceed 5% of Fund shares, shareholder requests will be fulfilled on a
pro rata basis, meaning that each shareholder will receive the same percentage
amount of their request. EquiServe will conduct the proration calculation.









Tax Treatment of the Tender

A fund's redemption of a shareholder's shares is generally treated as a sale and
given cap gain or loss treatment. However, when multiple shareholders are
tendering shares for redemption there is a risk that the total share price of an
individual's redemption could be treated for tax purposes as a dividend, if that
shareholder's percentage interest in the fund does not go down. To avoid
dividend treatment, the redeeming shareholder's percentage interest in the fund
must go down.

To that end, Evergreen will require the tender of at least 20% of the
shareholder's interest in the fund. All redemptions will be reported as sales
for year-end tax reporting purposes.

Minimum Tender Amounts

Shareholders must tender a minimum of 20% of their interest in the fund.
Shareholders with fewer than 100 shares must tender all or none of their shares.

Odd Lot Provision

If a shareholder owns and tenders fewer than 100 shares, the fund will purchase
all shares tendered by that shareholder. These shareholders will not be subject
to the pro rata calculation.

Commissions & Fees

Tendering shareholders will not be obligated to pay brokerage commissions in
connection with their tender, but may have to pay transaction costs in
accordance with the policies of their brokerage firms.

Additional Information

We will provide additional information about the structure of the tender offer
as it becomes available and is approved for distribution.