NZH Nuveen California Dividend Advantage Municipal Fund 3 of Beneficial Interest

Nuveen Investments, a leading global provider of investment services to institutions as well as individual investors, today announced that two municipal bond closed-end funds have issued Variable Rate Demand Preferred (VRDP) shares through private placements with qualified institutional buyers, as defined pursuant to Rule 144A under the Securities Act of 1933. The proceeds of the issuance will be used to redeem all of the outstanding MuniFund Term Preferred (MTP) shares of each of the funds as previously announced. In addition, as previously announced, one of the funds will redeem all of its outstanding Variable Rate MuniFund Term Preferred (VMTP) shares.

VRDP issuance details are as follow:

Fund       Ticker      

VRDP Description

      Shares      

VRDP Issuance Amount ($mm)

      Liquidity Provider     Nuveen Ohio Quality Income Municipal Fund       NUO       Series 1       1,480       $148.000       Royal Bank of Canada Nuveen California Dividend Advantage Municipal Fund 3       NZH       Series 1       1,600       $160.000       Barclays Bank PLC

VRDP shares 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 and successfully settled in a remarketing. These VRDP shares qualify as equity for income tax purposes. This affords VRDP share dividends the same tax treatment as the income on the fund’s underlying investments, notwithstanding VRDP terms that require the fund to redeem VRDP shares still owned by the liquidity provider if there are six months of continuous, unsuccessful remarketing.

VRDP dividends are set weekly at a rate established by the fund’s remarketing agent, subject to a maximum rate which will increase over time in the event of an extended period of unsuccessful remarketing.

The proceeds of the VRDP issuances were deposited in trust with an affiliate of Computershare, Inc., the Redemption and Paying Agent for the MTP and VMTP shares. This deposit will be held for the benefit of MTP and VMTP shareholders, as applicable, pending the redemption date of October 7, 2013. Official notification of the redemption will be delivered to MTP and VMTP shareholders through The Depository Trust Company (DTC). Upon redemption of the MTP shares, the funds intend to deregister and delist the MTP shares from the New York Stock Exchange.

No VRDP shares have been registered under the Securities Act of 1933 (the Securities Act) or any state securities laws. Unless so registered, no VRDP shares 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.

Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates—Nuveen Asset Management, LLC, Symphony Asset Management LLC, NWQ Investment Management Company, LLC, Santa Barbara Asset Management, LLC, Tradewinds Global Investors, LLC, Winslow Capital Management, LLC and Gresham Investment Management LLC, all of which are registered investment advisers and subsidiaries of Nuveen Investments, Inc. Funds distributed by Nuveen Securities, LLC, a subsidiary of Nuveen Investments, Inc. In total, Nuveen Investments managed approximately $216 billion as of June 30, 2013. For more information, please visit the Nuveen Investments website at www.nuveen.com.

FORWARD LOOKING STATEMENTS

Certain statements made in this release may be 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.

The Annual and Semi-Annual Reports and other regulatory filings of the Nuveen closed-end funds with the Securities and Exchange Commission ("SEC") are accessible on the SEC's web site at www.sec.gov and on Nuveen`s web site at www.nuveen.com and may discuss the above-mentioned or other factors that affect the Nuveen closed-end funds. The information contained on the SEC’s web site and our web site is not a part of this press release.

This notice is being provided pursuant to Regulation FD (Fair Disclosure) to ensure that the funds’ common and preferred shareholders have been informed of the funds’ issuance of VRDP.

Nuveen InvestmentsMedia Contact:Kristyna Munoz, (312) 917-8343kristyna.munoz@nuveen.com