DSU BlackRock Debt Strategies Fund Inc New

Certain BlackRock closed-end funds (the “Funds”) announced distributions today as detailed below.

January Monthly Dividends

Taxable Funds:

Declaration- 12/21/2009   Ex-Date- 12/29/2009   Record- 12/31/2009   Payable- 1/11/2010       Fund Ticker Dividend

Change FromPriorDividend

BlackRock Senior High Income Fund, Inc. ARK $0.025000 - BlackRock Floating Rate Income Trust* BGT $0.067500 - BlackRock Strategic Bond Trust BHD $0.069500 - BlackRock Core Bond Trust BHK $0.062000 - BlackRock Defined Opportunity Credit Trust BHL $0.054000 - The BlackRock High Yield Trust BHY $0.043500 - The BlackRock Income Trust, Inc. BKT $0.024000 - BlackRock Limited Duration Income Trust BLW $0.070000 - BlackRock Income Opportunity Trust, Inc. BNA $0.051000 - BlackRock Credit Allocation Income Trust III* BPP $0.072500 - BlackRock Credit Allocation Income Trust IV* BTZ $0.100000 - BlackRock Corporate High Yield Fund, Inc. COY $0.061000 - BlackRock Corporate High Yield Fund III, Inc. CYE $0.055000 - BlackRock Debt Strategies Fund, Inc.* DSU $0.031000 - BlackRock Diversified Income Strategies Fund, Inc. DVF $0.068500 - BlackRock Enhanced Government Fund, Inc.* EGF $0.105000 - BlackRock Floating Rate Income Strategies Fund, Inc. FRA $0.081500 - BlackRock Floating Rate Income Strategies Fund II, Inc. FRB $0.075000 - BlackRock High Income Shares HIS $0.013200 - BlackRock Corporate High Yield Fund VI, Inc. HYT $0.087500 - BlackRock Corporate High Yield Fund V, Inc. HYV $0.087500 - BlackRock Credit Allocation Income Trust I, Inc.* PSW $0.060000 - BlackRock Credit Allocation Income Trust II, Inc.* PSY $0.075000 -  

Special Dividends

Declaration- 12/21/2009   Ex-Date- 12/29/2009   Record- 12/31/2009   Payable- 1/11/2010     Fund Ticker

OrdinaryIncome

BlackRock Strategic Bond Trust BHD $0.034000 BlackRock Core Bond Trust BHK $0.226000 BlackRock Income Opportunity Trust, Inc. BNA $0.175000 BlackRock High Income Shares HIS $0.004600

* In order to comply with the requirements of Section 19 of the Investment Company Act of 1940, as amended, each of the Funds noted above posted to the DTC bulletin board and sent to their shareholders as of the applicable record date a Section 19 notice with the previous dividend payment. The Section 19 notice was provided not for tax reporting purposes but for informational purposes only. This information can be found in the “Closed-End Funds” section of www.blackrock.com. If applicable, the final determination of the source and tax characteristics of all distributions in 2009 will be made after the end of the year.

Among the Funds listed above, BlackRock Credit Allocation Income Trust IV (NYSE:BTZ) and BlackRock Enhanced Government Fund, Inc. (NYSE:EGF) (the “Trusts”) have each adopted a level distribution plan (the “Plan”) and employ either a managed distribution or an option over-write policy to support a level distribution of income, capital gains and/or return of capital. The fixed amounts distributed per share are subject to change at the discretion of each Trust’s Board. Under its Plan, each Trust will distribute all available investment income to its shareholders, consistent with its primary investment objectives and as required by the Internal Revenue Code of 1986, as amended (the “Code”). If sufficient investment income is not available on a quarterly/monthly basis, each Trust will distribute long-term capital gains and or return capital to its shareholders in order to maintain a level distribution.

The Trusts’ estimated sources of the distributions paid as of December 18, 2009 and for its current fiscal year through December 18, 2009 are as follows:

Estimated Allocations as of December 18, 2009 Trust   Distribution  

Net InvestmentIncome

 

Net RealizedShort-Term Gains

 

Net RealizedLong-Term Gains

  Return of Capital BTZ1   $0.100000   $0.0300 (30%)   $0.00 (0%)   $0.00 (0%)   $0.0700 (70%) EGF1,2   $0.272000   $0.0616 (23%)   $0.00 (0%)   $0.1670 (61%)   $0.0434 (16%)           Estimated Allocations for the fiscal year through December 18, 2009 Trust   Distribution  

Net InvestmentIncome

 

Net RealizedShort-Term Gains

 

Net RealizedLong-Term Gains

  Return of Capital BTZ1   $0.200000   $0.00777 (39%)   $0.00 (0%)   $0.00 (0%)   $0.1223 (61%) EGF1,2   $1.322000   $0.9467 (72%)   $0.00 (0%)   $0.2968 (22%)   $0.0785 (6%)

1 The Trust estimates that it has distributed more than their income and capital gains in the current fiscal year; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment is paid back to the shareholder. A return of capital distribution does not necessarily reflect a Trust's investment performance and should not be confused with ‘yield’ or ‘income’.

2 At December 14, 2009, and after giving effect to the distribution, the sum of the Fund's accumulated net realized losses and net unrealized depreciation of portfolio securities was approximately $(13.5) million. The amount of the Fund's unrealized depreciation of portfolio securities as of that date was $(13.6) million.

The amounts and sources of distributions reported are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Trust’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. Each Trust will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Trust Performance and Distribution Rate Information: Trust   Average annual total return (in relation to NAV) from inception to November 30, 2009   Annualized current distribution rate expressed as a percentage of NAV as of November 30, 2009   Cumulative total return (in relation to NAV) for the fiscal year through November 30, 2009   Cumulative fiscal year distributions as a percentage of NAV as of November 30, 2009 BTZ   (8.70)%   9.40%   1.87%   1.57% EGF   4.71%   19.21%   12.85%   7.78%

Shareholders should not draw any conclusions about each Trust’s investment performance from the amount of each Trust’s current distributions or from the terms of each Trust’s Plan.

About BlackRock

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. With approximately $3.2 trillion under management as of September 30, 2009 (pro forma), BlackRock offers products that span the risk spectrum to meet clients’ needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, the firm has over 8,500 employees in 24 countries. For additional information, please visit BlackRock’s website at www.blackrock.com.

Forward-Looking Statements

This press release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

With respect to each Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in the Fund’s net asset value; (2) the performance of the Fund’s investments; (3) the impact of increased competition; (4) the extent and timing of any distributions or share repurchases; (5) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or BlackRock, as applicable; and (6) BlackRock’s ability to attract and retain highly talented professionals.

The Annual and Semi-Annual Reports and other regulatory filings of the Funds with the Securities and Exchange Commission (“SEC”) are accessible on the SEC's website at www.sec.gov and on BlackRock’s website at www.blackrock.com, and may discuss these or other factors that affect the Funds. The information contained on our website is not a part of this press release.