GFY Western Asset Variable Rate Strategic Fund Inc

Western Asset Variable Rate Strategic Fund Inc. (NYSE: GFY) announced today monthly distributions of $0.0650 per common share for December 2011, and January and February 2012. The Fund had previously paid a monthly distribution of $0.0630 per share.

The distribution schedule appears below:

Month

   

Ex Date

   

Record Date

   

Payable Date

   

Amount

   

Type

December 12/14/2011 12/16/2011 12/23/2011 $0.0650 Income January 01/18/2012 01/20/2012 01/27/2012 $0.0650 Income February 02/15/2012 02/17/2012 02/24/2012 $0.0650 Income

The Fund has increased its distributions to a level that better approximates the current level of net investment income generated by its investment portfolio.

This press release is not for tax reporting purposes but is being provided to announce the amount of the Fund's distribution that has been declared by the Board of Directors. In early 2012 and early 2013, after definitive information is available, the Fund will send shareholders a Form 1099-DIV, if applicable, specifying how the distributions paid by the Fund during the prior calendar year should be characterized for purposes of reporting the distributions on a shareholder’s tax return (e.g., ordinary income, long-term capital gain or return of capital).

Western Asset Variable Rate Strategic Fund Inc., a non-diversified, closed-end management investment 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, an affiliate of the investment manager.

Contact the Fund at 1-888-777-0102 for additional information, 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.