GFY Western Asset Variable Rate Strategic Fund Inc

Western Asset Variable Rate Strategic Fund Inc., which is listed on the New York Stock Exchange under the symbol “GFY”, today announced the financial position of the Fund as of December 31, 2010.

                                  Current Q Previous Q Prior Yr Q December 31, 2010 September 30, 2010 December 31, 2009 Total Assets $   116,674,137 $   119,283,466 $   132,509,339 Total Net Assets $ 116,348,120 $ 113,535,161 $ 130,565,436 NAV Per Share of Common Stock (a) $ 17.47 $ 17.05 $ 15.69 Market Price Per Share $ 16.99 $ 15.86 $ 14.14 Premium / (Discount) (2.75)% (6.98)% (9.88)% Outstanding Shares 6,658,748 6,658,748 8,323,434   Total Net Investment Income (b) $ 1,335,817 $ 1,366,123 $ 1,428,635 Total Net Realized/Unrealized Gain/(Loss) (b) $   2,595,812 $   4,657,565 $   4,149,875 Net Increase (Decrease) in Net Assets From Operations (b) $   3,931,629 $   6,023,688 $   5,578,510  

Earnings per Common Share Outstanding

Total Net Investment Income (b) $ 0.20 $ 0.21 $ 0.17 Total Net Realized/Unrealized Gain/(Loss) (b) $   0.39 $   0.70 $   0.50 Net Increase (Decrease) in Net Assets From Operations (b) $   0.59 $   0.91 $   0.67   Undistributed/(Overdistributed) Net Investment Income (c) $ 1,068,046 $ 584,548 $ 616,816 Undistributed/(Overdistributed) Net Investment Income Per Share (c) $ 0.16 $ 0.09 $ 0.07   Loan Outstanding (c) N/A N/A N/A Preferred Shares Outstanding (c) N/A N/A N/A Reverse Repurchase Agreements (c) N/A N/A N/A Footnotes: (a)   NAVs are calculated as of the close of business on the last business day in the periods indicated above. (b) For the quarter indicated. (c) As of the date indicated above.

This financial data is unaudited.

The Fund files its semi-annual and annual reports with the Securities and Exchange Commission, as well as its complete schedule of portfolio holdings for the first and third quarters of each fiscal year on Form N-Q. These reports are available on the Commission’s website at www.sec.gov. To obtain information on Form N-Q or a semi-annual or annual report from the Fund, shareholders can call 1-888-777-0102.

Western Asset Variable Rate Strategic Fund Inc., a non-diversified closed-end investment management company, is managed by Legg Mason Partners Fund Advisor, LLC, a wholly-owned subsidiary of Legg Mason, Inc. and is sub-advised by Western Asset Management Company and Western Asset Management Company Limited, affiliates of the investment manager.

For more information, please call 1-888-777-0102 or consult the Fund’s web site at www.leggmason.com/cef.

Data and commentary provided in this press release are for informational purposes only. Legg Mason and its affiliates do not engage in selling shares of the Fund.