Nuveen Dividend Advantage Municipal Fund 2 Announces Pricing and Placement of Private...

Nuveen Dividend Advantage Municipal Fund 2 Announces Pricing and Placement of Private Offering of VRDP Shares

CHICAGO--(Business Wire)--
Nuveen Investments:

-- $196 Million Offering Available only to Qualified
Institutional Buyers

-- Part of Plan to Redeem all the Fund's Outstanding ARPS

The Nuveen Dividend Advantage Municipal Fund 2, a diversified
closed-end management investment company registered under the
Investment Company Act of 1940 (AMEX: NXZ) today announced it has
priced and placed with investors the private offering of $196 million
of its Variable Rate Demand Preferred (VRDP) shares. The VRDP was
offered only to qualified institutional buyers, as defined pursuant to
Rule 144A under the Securities Act of 1933. The offering is expected
to close on August 7, 2008.

Proceeds from the offering are expected to be used, in conjunction
with proceeds from the creation of tender option bond (TOB) trusts by
the fund, to redeem all of the fund's outstanding auction-rate
preferred shares (ARPS) totaling $222 million. The fund intends to
announce a formal redemption notice for the ARPS in the coming days.

The VRDP shares will 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 in a remarketing. The liquidity feature is provided by Deutsche
Bank AG, acting through its New York Branch. VRDP dividends will be
set weekly at a rate established by a remarketing agent. Conditions to
the fund's issuance of VRDP will include the receipt of both
short-term and long-term credit ratings for the VRDP that are in the
highest rating category from two nationally recognized statistical
rating organizations.

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 intention to issue VRDP
and to redeem its outstanding ARPS. The completion of the VRDP
offering is subject to the normal conditions of closing, and there is
no certainty that the redemption of ARPS will occur as scheduled.

No VRDP shares or TOBs have been registered under the Securities
Act of 1933 (the Securities Act) or any state securities laws. Unless
so registered, no VRDP shares or TOBs may be offered or sold in the
United States except pursuant to an exemption from the registration
requirements of the Securities Act and applicable state securities
laws. This press release is neither an offer to sell nor a
solicitation of an offer to buy any of these securities.

FORWARD LOOKING STATEMENTS

Certain statements made in this release are forward-looking
statements. Actual future results or occurrences may differ
significantly from those anticipated in any forward-looking statements
due to numerous factors. These include, but are not limited to:

-- market developments;

-- legal and regulatory developments; and

-- other additional risks and uncertainties.

Nuveen and the closed-end funds managed by Nuveen and its
affiliates undertake no responsibility to update publicly or revise
any forward-looking statements.

Nuveen Investments
Media Contact:
Chris Allen
(312) 917-8331
christopher.allen@nuveen.com
or
Kathleen Cardoza
(312) 917-7813
kathleen.cardoza@nuveen.com
or
Investors Contact:
(877) 622-7530

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