Exhibit (a)(12)


        HOREJSI TRUSTS RESPOND TO OPPOSITION BY THE BOARD OF DIRECTORS TO
                      THEIR TENDER OFFER FOR SHARES OF THE
                 NEUBERGER BERMAN REAL ESTATE INCOME FUND INC.


BOULDER,  CO.,  October  1, 2004 - The Lola  Brown  Trust No. 1B and the  Ernest
Horejsi Trust No. 1B ("Horejsi  Trusts")  announced  today their response to the
decision by the Board of Directors of Neuberger  Berman Real Estate  Income Fund
Inc. (NYSE:  NRL) to oppose the Trusts' tender offer for shares of the Fund. The
Trusts initiated their tender offer on September 10, 2004,  offering to purchase
up to 1,825,000 shares of the Fund's common stock at a price of $19.89 per share
net to the seller in cash. On September 23, 2004 the Fund's Board  announced its
opposition to the Trusts' tender offer, and described a series of steps designed
to defeat the offer,  including issuing shares of the Fund's common stock to its
sub-adviser,  relying on that issuance to subject the Fund and the Trusts to two
anti-takeover   statutes  under  Maryland  law  (the  fund  is  incorporated  in
Maryland),  authorizing  a self  tender for up to  943,704  shares at a price of
$20.00 per share,  adopting a stockholder rights agreement  (commonly known as a
"poison  pill") and  authorizing  litigation  against  the Trusts to prevent the
consummation of the offer.

The Trusts  announced  today that they intend to  vigorously  defend the lawsuit
announced by the Fund's Board,  and that they are also currently  evaluating the
commencement  of litigation,  either in connection  with the Fund's suit against
the  Trusts  or in  separate  litigation,  against  the Fund,  its Board  and/or
potentially  other defendants to prevent the  implementation  of the poison pill
and to declare the Maryland  takeover  statutes  inapplicable  to the Trusts and
their tender offer. The Trusts noted that the adoption of the "poison pill" will
make it financially  impossible for the Trusts to consummate their tender offer,
and the  combination  of the sale of shares to the  Fund's  sub-adviser  and the
application  of one of the Maryland  anti-takeover  statutes  will  prohibit the
Trusts from voting Fund shares acquired in the offer absent subsequent  approval
of those voting rights by Fund  shareholders.  The Trusts announced that they do
not expect to consummate  their offer unless they are  successful in obtaining a
court ruling  against the poison pill and the  application  to the Trusts of the
Maryland  anti-takeover  statute. The Trusts also indicated that they may choose
to bring claims against the Fund's Board,  either in connection  with the Fund's
suit against the Trusts or in separate litigation, alleging that certain actions
taken by the Board in  response  to the  Trusts'  offer  constitute  a breach of
fiduciary  duty and/or a violation  of federal  securities  laws,  if the Trusts
determine that a sufficient basis exists to support those claims.

To provide  additional  time for the Trusts to  formulate  and  execute on their
response to the Board's actions and to provide Fund shareholders with additional
time to consider the Board's actions and the Trusts' response,  the Trusts today
extended the  expiration  date for the offer by one week, to Midnight on Friday,
October 15, 2004.

The Trusts intend to  supplement  their Offer to Purchase and amend their tender
offer  statement on file with the Securities and Exchange  Commission as soon as
practicable to reflect their response to the Board's opposition, their extension
of the expiration date for the offer and other relevant information.

Each security  holder of Neuberger  Berman Real Estate  Income Fund Inc.  should
read  the  tender  offer  statement  filed  with  the  Securities  and  Exchange
Commission  by the Lola Brown Trust No. 1B and the Ernest  Horejsi  Trust No. 1B
and other relevant  documents filed with the Securities and Exchange  Commission
because they contain  important  information  about the tender  offer.  Security
holders of Neuberger  Berman Real Estate  Income Fund Inc. can obtain the tender
offer  statement  and other  documents  that are filed with the  Securities  and
Exchange  Commission for free on the Securities  and Exchange  Commission's  web
site at http://www.sec.gov.