Eaton Vance Short Duration Diversified Income Fund Report of Earnings

BOSTON, Oct. 5 /PRNewswire-FirstCall/ -- Eaton Vance Short Duration Diversified Income Fund (NYSE: EVG) (the "Fund"), a closed-end management investment company, today announced the earnings of the Fund for the three and nine months ended July 31, 2010.  The Fund's fiscal year ends on October 31, 2010.

For the three months ended July 31, 2010, the Fund had net investment income of $4,514,083 ($0.239 per share). For the nine months ended July 31, 2010, the Fund had net investment income of $15,466,642 ($0.819 per share).  In comparison, for the three months ended July 31, 2009, the Fund had net investment income of $5,399,656 ($0.286 per share). For the nine months ended July 31, 2009, the Fund had net investment income of $15,243,579 ($0.807 per share).

Net realized and unrealized losses for the three months ended July 31, 2010 were $5,730,167 ($0.305 per share). Net realized and unrealized gains for the nine months ended July 31, 2010 were $7,841,317 ($0.415 per share). In comparison, net realized and unrealized gains for the three months ended July 31, 2009 were $25,429,333 ($1.349 per share). Net realized and unrealized gains for the nine months ended July 31, 2009 were $36,783,904 ($1.948 per share).

On July 31, 2010, net assets of the Fund were $341,550,097. The net asset value per share on July 31, 2010 was $18.08 based on 18,886,596 shares outstanding. In comparison, on July 31, 2009, net assets of the Fund were $319,055,599. The net asset value per share on July 31, 2009 was $16.89 based on 18,886,596 shares outstanding.

The Fund is managed by Eaton Vance Management, a subsidiary of Eaton Vance Corp. (NYSE: EV), based in Boston, one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $173.3 billion in assets as of July 31, 2010, offering individuals and institutions a broad array of investment strategies and wealth management solutions.  The Company's long record of providing exemplary service and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors.  For more information about Eaton Vance, visit www.eatonvance.com.

SOURCE Eaton Vance Management