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Western Asset Variable Rate Strategic Fund Inc. Announces Financial Position as of December 31, 2012

  Western Asset Variable Rate Strategic Fund Inc. Announces Financial Position
  as of December 31, 2012

Business Wire

NEW YORK -- February 12, 2013

Western Asset Variable Rate Strategic Fund Inc. (NYSE: GFY) today announced
the financial position of the Fund as of December 31, 2012.

                                                                    
                                  Current Q          Previous Q         Prior Yr Q
                                  December 31,       September 30,      December 31,
                                  2012               2012               2011
Total Assets (a)                  $ 131,118,014      $ 132,588,834      $ 128,299,778
Total Net Assets (a)              $ 124,521,315      $ 122,940,120      $ 111,870,334
NAV Per Share of Common Stock     $ 18.69            $ 18.46            $ 16.80
(b)
Market Price Per Share            $ 17.76            $ 18.45            $ 14.85
Premium / (Discount)                (4.98       )%     (0.05       )%     (11.61      )%
Outstanding Shares                  6,663,959          6,661,327          6,658,748
                                                                        
Total Net Investment Income (c)   $ 1,320,549        $ 1,514,982        $ 1,442,218
Total Net Realized/Unrealized     $ 1,662,064       $ 5,420,844       $ (194,204    )
Gain/(Loss) (c)
Net Increase (Decrease) in Net    $ 2,982,613       $ 6,935,826       $ 1,248,014   
Assets From Operations (c)
                                                                        
Earnings per Common Share
Outstanding
Total Net Investment Income (c)   $ 0.20             $ 0.23             $ 0.22
Total Net Realized/Unrealized     $ 0.25            $ 0.81            $ (0.03       )
Gain/(Loss) (c)
Net Increase (Decrease) in Net    $ 0.45            $ 1.04            $ 0.19        
Assets From Operations (c)
                                                                        
Undistributed/(Overdistributed)   $ 2,987,368        $ 3,116,039        $ 2,374,502
Net Investment Income (d)
Undistributed/(Overdistributed)
Net Investment Income
Per Share (d)                     $ 0.45             $ 0.47             $ 0.36
                                                                        
Loan Outstanding (d)                N/A                N/A                N/A
Preferred Shares Outstanding        N/A                N/A                N/A
(d)
Reverse Repurchase Agreements     $ 6,263,054        $ 6,263,054        $ 15,942,435
(d)
                                                                                      

Footnotes:

(a) The difference between total assets and total net assets is due primarily
to the Fund’s use of borrowings; total net assets do not include borrowings.

(b) NAVs are calculated as of the close of business on the last business day
in the periods indicated above.

(c) For the quarter indicated.

(d) 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.lmcef.com.

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.

Contact:

Western Asset Variable Rate Strategic Fund Inc.
Maria Rosati, 212-805-6036
mrosati@leggmason.com