Western Asset Variable Rate Strategic Fund Inc. as of September 30, 2011

NEW YORK--(BUSINESS WIRE)--Western Asset Variable Rate Strategic Fund Inc. (NYSE: GFY) announces its portfolio composition as of September 30, 2011.

Investment Objective: The Fund’s investment objective is to maintain a high level of current income.

Portfolio Composition*:

Asset Allocation
Mortgage-Backed Securities		39.7%
Investment Grade Corporate Bonds		20.1%
High Yield Corporate Bonds		9.8%
Bank Loans		9.4%
Emerging Market Debt		6.8%
Sovereign Debt External Currency		1.0%
Sovereign Debt Local Currency		2.3%
Corporates External Currency		3.5%
Asset-Backed Securities		6.7%
Municipal		1.7%
Cash & Other Securities		5.8%
Credit Quality Allocation^**
AAA		24.2%
AA		13.6%
A		12.4%
BBB		14.4%
BB		13.8%
B		11.4%
CCC		9.6%
CC		0.1%
C		0.3%
D		0.1%
Not Rated		0.1%
Top Five High Yield Industries
Energy		2.0%
Finance Companies		1.6%
Communications		1.6%
Consumer Cyclical		1.1%
Basic Industry		0.9%
Top Five Emerging Market Countries
Brazil		3.8%
Russia		0.8%
Thailand		0.6%
Mexico		0.6%
Venezuela		0.5%
Currency Allocation
US Dollar		97.7%
Brazilian Reals		2.3%
Average Life (years)		5.6
Effective Duration (years)		0.6
Average Coupon (%)	3.1
Portfolio Statistics:
Inception Date	October 26, 2004
Inception Price	$20.00
Total Assets***	$129,454,003
Net Assets	$111,893,702
Loans		0.00%
Preferred Shares		0.00%
Reverse Repos		15.12%
Market Price	$15.43
NAV	$16.80

(Daily NAV is available on market quotation systems using the symbol XGFYX.)

Distribution Rate	$0.0630 per share
Frequency	Monthly (Declared quarterly, paid monthly)

*	Portfolio holdings and weightings are historical and are presented here for informational purposes only. They are subject to change at any time.
**	Credit quality is a measure of a bond issuer's ability to repay interest and principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by Standard and Poor's, Moody's Investors Service and/or Fitch Ratings, Ltd. and typically range from AAA (highest) to D (lowest). For this purpose, if two or more of the agencies have assigned differing ratings to a security, the highest rating is used. Securities that are unrated by all three agencies are reflected as such. The credit quality of the investments in the Fund's portfolio does not apply to the stability or safety of the Fund. These ratings are updated monthly and may change over time. Please note, the Fund itself has not been rated by an independent rating agency.
***	The difference between total assets and net assets, if any, is due primarily to the Fund’s use of borrowings; net assets do not include borrowings. The Fund may employ leverage in the form of loans, preferred stock, reverse repurchase agreements and/or other instruments. When the Fund engages in transactions that have a leveraging effect on the Fund’s portfolio, the value of the Fund will be more volatile and all other risks will tend to be compounded.

Western Asset Variable Rate Strategic Fund Inc., a non-diversified closed-end investment management company traded on the New York Stock Exchange under the symbol “GFY”, is advised 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 advisor.

An investment in the Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Fixed income securities are subject to credit risk, inflation risk, call risk, and interest rate risks. As interest rates rise, bond prices fall, reducing the value of the Fund's share price. International investing is subject to additional risks. These risks are greater in emerging markets.

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.

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

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