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Two Nuveen Closed-End Funds Announce Pricing And Placement Of $741 Million Private Offering Of VRDP

Nuveen Investments, a leading global provider of investment services to institutions and high-net-worth investors, today announced that the Nuveen Insured Municipal Opportunity Fund, Inc. (NYSE: NIO) and Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NYSE: NCL) have completed private offerings of Variable Rate Demand Preferred (VRDP) shares placed with qualified institutional buyers of $667.2 million and $74 million respectively, as defined pursuant to Rule 144A under the Securities Act of 1933.

The proceeds from each offering will be used to redeem at par all of the funds’ outstanding auction-rate preferred shares (ARPS). The funds’ Board of Trustees has approved each redemption, which total more than $738 million. Each refinancing is expected to lower the relative costs of leverage for the funds over time while also providing liquidity at par for the holders the funds’ ARPS.

VRDP shares include a liquidity feature that allows holders of VRDP to have their shares purchased by a liquidity provider in the event that sell orders have not been matched with purchase orders and successfully settled in a remarketing. The liquidity feature for these funds’ VRDP is being provided by Citibank, N.A. The VRDP shares comply with the requirements of IRS Notice 2008-55, as extended by IRS Notice 2010-03, and qualify as equity for income tax purposes. This affords VRDP share dividends the same tax treatment as the income on the fund’s underlying investments, notwithstanding VRDP terms that require the fund to redeem VRDP shares still owned by the liquidity provider if there are six months of continuous, unsuccessful remarketing.

VRDP dividends will be set weekly at a rate established by Citigroup Global Markets Inc. as remarketing agent, subject to a maximum rate which will increase over time in the event of an extended period of unsuccessful remarketing.

This notice is being provided pursuant to Regulation FD (Fair Disclosure) to ensure that the fund’s common and preferred shareholders have been informed of the fund’s issuance of VRDP and its intention to redeem its outstanding ARPS, which may not occur as scheduled.

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