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<SEC-DOCUMENT>0000891092-05-001292.txt : 20050720
<SEC-HEADER>0000891092-05-001292.hdr.sgml : 20050720
<ACCEPTANCE-DATETIME>20050720162634
ACCESSION NUMBER:		0000891092-05-001292
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050823
FILED AS OF DATE:		20050720
DATE AS OF CHANGE:		20050720
EFFECTIVENESS DATE:		20050720

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CAPITAL & INCOME STRATEGIES FUND INC
		CENTRAL INDEX KEY:			0001278895
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-21506
		FILM NUMBER:		05964102

	BUSINESS ADDRESS:	
		STREET 1:		800 SCUDDERS MILL ROAD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
		BUSINESS PHONE:		6092822800

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EUROPE FUND INC
		CENTRAL INDEX KEY:			0000860510
		IRS NUMBER:				133567015
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-06042
		FILM NUMBER:		05964103

	BUSINESS ADDRESS:	
		STREET 1:		800 SCUDDERS MILL RD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
		BUSINESS PHONE:		6092820785

	MAIL ADDRESS:	
		STREET 1:		800 SCUDDERS MILL RD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PREFERRED & CORPORATE INCOME STRATEGIES FUND INC
		CENTRAL INDEX KEY:			0001229876
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-21341
		FILM NUMBER:		05964104

	BUSINESS ADDRESS:	
		STREET 1:		800 SCUDDERS MILL ROAD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
		BUSINESS PHONE:		6092822116

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PREFERRED INCOME STRATEGIES FUND II INC
		DATE OF NAME CHANGE:	20030430

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PREFERRED INCOME STRATEGIES FUND INC
		CENTRAL INDEX KEY:			0001215664
		IRS NUMBER:				371461533
		STATE OF INCORPORATION:			MD

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-21286
		FILM NUMBER:		05964105

	BUSINESS ADDRESS:	
		STREET 1:		800 SCUDDERS MILL ROAD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
		BUSINESS PHONE:		6092822116

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PREFERRED INCOME FUND INC
		DATE OF NAME CHANGE:	20030123
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>e21076def14a.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As filed with
  the Securities and Exchange Commission on July 20, 2005 </FONT></P>


<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SCHEDULE
  14A INFORMATION <BR>
  PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE <BR>
  SECURITIES EXCHANGE ACT OF 1934 <BR>
  (AMENDMENT NO.&nbsp;&nbsp;&nbsp; ) </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filed by the Registrant |X|</FONT><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --><br>
  <FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filed
  by a party other than the Registrant |_| </FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check the appropriate box: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_| </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Preliminary
Proxy Statement </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_| </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Confidential,
for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> |X| </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitive
Proxy Statement </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        |_|  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitive
Additional Materials </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 10" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        |_|  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Soliciting
Material Pursuant to Rule 14a-12 </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PREFERRED INCOME STRATEGIES FUND, INC. <br>
                                               CAPITAL AND INCOME STRATEGIES FUND, INC. <br>
                                         PREFERRED AND CORPORATE INCOME STRATEGIES FUND, INC. <br>
                                                         THE EUROPE FUND, INC. </FONT></P>


<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Name of Registrant as
Specified in Its Charter) </FONT></P>


<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Name of Person(s)
Filing Proxy Statement if other than the Registrant) </FONT></P>




<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payment of filing fee (Check the
appropriate box): </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang 10" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        |X|  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
fee required. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 10" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        |_|  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fee
computed on table below per Exchange Act Rules 14a-6(i)(1) and       0-11. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 15" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        (1)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title
of each class of securities to which transaction applies: </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        (2)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Aggregate
number of securities to which transaction applies: </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        (3)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Per
unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it
was determined.): </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        (4)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposed
maximum aggregate value of transaction: </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        (5)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total
fee paid: </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        |_|  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Fee
paid previously with preliminary materials:  </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        |_|  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check
box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the form or schedule and the date of
its filing. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        (1)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amount
previously paid: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 15" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       (2)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form,
Schedule or Registration Statement No.: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       (3)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filing
Party: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       (4)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date
Filed: </FONT></TD>
</TR>
</TABLE>
<BR>

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<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>








<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->









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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PREFERRED INCOME
STRATEGIES FUND, INC. <BR>                                      CAPITAL AND INCOME STRATEGIES
FUND, INC. <BR>                                PREFERRED AND CORPORATE INCOME STRATEGIES FUND,
INC. <BR>                                                THE EUROPE FUND, INC. <BR>
                                                   P.O. Box 9011 <BR> Princeton, New
                                         Jersey 08543-9011 </B></FONT></P>

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<HR SIZE=1 noshade ALIGN=CENTER WIDTH=150>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOTICE OF 2005
ANNUAL MEETINGS OF STOCKHOLDERS </B></FONT></P>

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<HR SIZE=1 noshade ALIGN=CENTER WIDTH=150>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>TO BE HELD ON AUGUST
23, 2005 </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>T<font size="1">O</font>
  <font size="1">THE</font> S<font size="1">TOCKHOLDERS OF</font> <BR>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P<font size="1">REFERRED</font> I<font size="1">NCOME</font>
  S<font size="1">TRATEGIES</font> F<font size="1">UND</font>, I<font size="1">NC</font>.
  <BR>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C<font size="1">APITAL AND</font> I<font size="1">NCOME</font>
  S<font size="1">TRATEGIES</font> F<font size="1">UND</font>, I<font size="1">NC</font>.
  <BR>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P<font size="1">REFERRED AND</font> C<font size="1">ORPORATE</font>
  I<font size="1">NCOME</font> S<font size="1">TRATEGIES</font> F<font size="1">UND</font>,
  I<font size="1">NC</font>. <BR>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T<font size="1">HE</font> E<font size="1">UROPE</font>
  F<font size="1">UND</font>, I<font size="1">NC</font>.: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE
IS HEREBY GIVEN that the 2005 Annual Meeting of Stockholders (each, a &#147;Meeting&#148; and,
collectively, the &#147;Meetings&#148;) of each of the above-listed investment companies (each a
&#147;Fund&#148; and, collectively, the &#147;Funds&#148;) will be held at the offices of Fund Asset
Management, L.P. (&#147;FAM&#148;), 800 Scudders Mill Road, Plainsboro, New Jersey 08536, on
Tuesday, August 23, 2005 at the time specified for each Fund in Exhibit A to the Combined
Proxy Statement for the following purposes: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;To
elect a Board of Directors of each Fund to serve for the ensuing            year or for
the specified term, as applicable, and until their            successors have been duly
elected and qualified or until their            earlier retirement, resignation or
removal;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;To
transact such other business as may properly come before the            Meetings or any
adjournment thereof.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Fund&#146;s Board has fixed the close of business on June 24, 2005 as the record date for the
determination of stockholders entitled to notice of and to vote at the applicable Fund&#146;s
Meeting or any adjournment thereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
are cordially invited to attend the Meeting for any Fund in which you own shares.
<B>Stockholders who do not expect to attend a Meeting in person are requested to complete,
date and sign the enclosed form of proxy and return it promptly in the envelope provided
for this purpose. If you have been provided with the opportunity on your proxy card or
voting instruction form to provide voting instructions via telephone or the Internet,
please take advantage of these prompt and efficient voting options. </B>The enclosed proxy is
being solicited on behalf of the Board of Directors of each Fund. </FONT> </P>

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<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>






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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you have any questions regarding the enclosed proxy material or need assistance in voting
your shares, please contact our proxy solicitor, Georgeson Shareholder, at (800) 645-4519. </FONT></P>


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<TABLE WIDTH=100%>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=25%>&nbsp;</TD>
    <TD WIDTH=4%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD colspan="2" align="left" width="41%"><font size=2>By Order of the Boards
      of Directors </font></TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=25%>&nbsp;</TD>
    <TD WIDTH=4%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=41% align="left" colspan="2">&nbsp;</TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=25%>&nbsp;</TD>
    <TD WIDTH=4%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD colspan="2" align="left" width="41%"><font size=2>A<font size="1">LICE</font>
      A. P<font size="1">ELLEGRINO </font> <br>
      <i>Secretary of Preferred Income Strategies Fund, Inc., <br>
      Capital and Income Strategies Fund, Inc., <br>
      Preferred and Corporate Income Strategies Fund, <br>
      Inc. and The Europe Fund, Inc. </i></font></TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=25%>&nbsp;</TD>
    <TD WIDTH=4%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=41% colspan="2">&nbsp;</TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=25% align="left"><font size=2>Plainsboro, New Jersey <br>
      Dated: July 20, 2005</font></TD>
    <TD WIDTH=4%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=41% colspan="2">&nbsp;</TD>
  </TR>
</TABLE>


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&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>





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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>COMBINED PROXY
STATEMENT </B></FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PREFERRED INCOME
STRATEGIES FUND, INC. <BR> CAPITAL AND INCOME STRATEGIES FUND, INC. <BR> PREFERRED AND CORPORATE
INCOME STRATEGIES FUND, INC. <BR> THE EUROPE FUND, INC. <BR> P.O. Box 9011 <BR> Princeton, New Jersey
08543-9011 </B></FONT></P>

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<HR SIZE=1 noshade ALIGN=CENTER WIDTH=150>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2005 ANNUAL MEETINGS
OF STOCKHOLDERS </B></FONT></P>

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<HR SIZE=1 noshade ALIGN=CENTER WIDTH=150>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>AUGUST 23, 2005 </B></FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Funds will be referred to throughout this Combined Proxy Statement as listed below: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT SIZE=1>Fund </FONT>
      <hr size="1" noshade width="50%">
    </TH>
    <TH><FONT SIZE=1>Term Used in this<BR>
      Combined Proxy Statement </FONT>
      <hr size="1" noshade width="70%">
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>Preferred Income Strategies Fund, Inc.</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>Preferred Income</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>Capital and Income Strategies Fund, Inc.</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>Capital and Income</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>Preferred and Corporate Income Strategies Fund,
      Inc.</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>Preferred and Corporate</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>The Europe Fund, Inc.</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>Europe</FONT></TD>
  </TR>
</TABLE>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>INTRODUCTION </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
  Combined Proxy Statement is furnished in connection with the solicitation of
  proxies on behalf of the Board of Directors of each of the above-listed funds
  (each a &#147;Fund&#148; and, collectively, the &#147;Funds&#148;), to be voted
  at the 2005 Annual Meeting of Stockholders of each Fund (each, a &#147;Meeting&#148;
  and, collectively, the &#147;Meetings&#148;), to be held at the offices of Fund
  Asset Management, L.P. (&#147;FAM&#148;), 800 Scudders Mill Road, Plainsboro,
  New Jersey 08536, on Tuesday, August 23, 2005, at the time specified in Exhibit
  A hereto. The approximate mailing date of this Combined Proxy Statement is July
  22, 2005. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
properly executed proxies received prior to a Fund&#146;s Meeting will be voted at that
Meeting in accordance with the instructions marked thereon or otherwise as provided
therein. Unless instructions to the contrary are marked, proxies will be voted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
&#147;FOR&#148; the election of the Director nominees of each Fund. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
proxy may be revoked at any time prior to the exercise thereof by giving written notice
to the Secretary of the applicable Fund at that Fund&#146;s address indicated above or by
voting in person at the Meeting. </FONT></P>

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<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors of each Fund has fixed the close of business on June 24, 2005 as the
record date (the &#147;Record Date&#148;) for the determination of stockholders entitled to notice
of and to vote at the Meetings and at any adjournments thereof. Stockholders on the
Record Date will be entitled to one vote for each share held, with no shares having
cumulative voting rights. As of the Record Date, each Fund had outstanding the number of
shares of Common Stock and Auction Market Preferred Stock (&#147;AMPS&#148;), if applicable,
indicated in Exhibit A. To the knowledge of each Fund, as of the Record Date, no person
is the beneficial owner of five percent or more of that Fund&#146;s outstanding shares of
Common Stock or five percent or more of the outstanding AMPS of such Fund, if applicable.
This Combined Proxy Statement is being provided to the holders of Common Stock and AMPS,
if applicable, of each Fund. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors of each Fund knows of no business other than what is mentioned in Item
1 of the Notice of Meeting that will be presented for consideration at its Meeting. If
any other matter is properly presented, it is the intention of the persons named in the
enclosed proxy to vote in accordance with their best judgment. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ITEM 1. ELECTION OF
DIRECTORS </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Meetings, the Directors of each Fund will be elected to serve until the next Annual
Meeting of Stockholders for such Fund and until their successors are elected and
qualified or until their earlier retirement, resignation or removal. The nominees are
David O. Beim, Robert C. Doll, Jr., James T. Flynn, W. Carl Kester and Karen P. Robards
(collectively, the &#147;Director Nominees&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
  is intended that all properly executed proxies of the holders of AMPS, voting
  separately as a class, will be voted (unless such authority has been withheld
  in the proxy or revoked as described herein) &#147;FOR&#148; the two (2) Director
  Nominees listed in the chart below under &#147;AMPS Director Nominees&#148;
  to be elected by the holders of AMPS and all properly executed proxies of the
  holders of shares of Common Stock and AMPS, voting together as a single class,
  will be voted &#147;FOR&#148; the Director Nominees listed in the chart below
  under &#147;Other Director Nominees&#148; to be elected by the holders of shares
  of Common Stock and AMPS. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=600>
  <TR VALIGN=Bottom>
    <TH align="left" width="236"><FONT SIZE=1>Fund </FONT>
      <hr size="1" noshade width="20%" align="left">
    </TH>
    <TH width="117"><FONT SIZE=1>AMPS <BR>
      Director Nominees </FONT>
      <hr size="1" noshade width="90%">
    </TH>
    <TH width="247"><FONT SIZE=1>Other <BR>
      Director Nominees </FONT>
      <hr size="1" noshade width="55%">
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT WIDTH=236><FONT SIZE=2>Preferred Income</FONT></TD>
    <TD ALIGN=LEFT WIDTH=117><FONT SIZE=2>Doll, Kester</FONT></TD>
    <TD ALIGN=LEFT WIDTH=247><FONT SIZE=2>Beim, Flynn, Robards</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="236"><FONT SIZE=2>Capital and Income</FONT></TD>
    <TD ALIGN=LEFT width="117"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="247"><FONT SIZE=2>Beim, Doll, Flynn, Kester, Robards</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="236"><FONT SIZE=2>Preferred and Corporate</FONT></TD>
    <TD ALIGN=LEFT width="117"><FONT SIZE=2>Doll, Kester</FONT></TD>
    <TD ALIGN=LEFT width="247"><FONT SIZE=2>Beim, Flynn, Robards</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="236"><FONT SIZE=2>Europe</FONT></TD>
    <TD ALIGN=LEFT width="117"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="247"><FONT SIZE=2>Beim, Doll, Flynn, Kester, Robards</FONT></TD>
  </TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
class of stockholder solicited and entitled to vote on the proposal is outlined below: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=600>
  <TR VALIGN=Bottom>

    <TH COLSPAN=2 align="left"><FONT SIZE=1>Fund</FONT>
      <hr size="1" noshade width="20%" align="left">
    </TH>
    <TH COLSPAN=2><FONT SIZE=1>Class of <BR>
      Stockholder </FONT>
      <hr size="1" noshade width="55%">
    </TH>

    <TH COLSPAN=2><FONT SIZE=1>Election of <BR>
      AMPS Directors </FONT>
      <hr size="1" noshade width="95%">
    </TH>

    <TH COLSPAN=2><FONT SIZE=1>Election of <BR>
      Other Directors </FONT>
      <hr size="1" noshade width="95%">
    </TH></TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT SIZE=2>Preferred Income</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Common Stock</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>No</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT SIZE=2>Preferred Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>AMPS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT SIZE=2>Capital and Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Common Stock</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT SIZE=2>Preferred and Corporate</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Common Stock</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>No</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT SIZE=2>Preferred and Corporate</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>AMPS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT SIZE=2>Europe</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Common Stock</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>

    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

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<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
2</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of each Fund knows of no reason why any of the Director Nominees listed above for
any Fund will be unable to serve, but in the event of any such unavailability, the
proxies received will be voted for such substitute nominee or nominees as that Fund&#146;s
Board of Directors may recommend. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
information concerning the Director Nominees is set forth below. Additional information
concerning the Director Nominees is set forth in Exhibit B to this Combined Proxy
Statement. </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Biographical
Information  </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
biographical and other information relating to the Director Nominee who is an &#147;interested
person,&#148; as defined in the Investment Company Act of 1940, as amended (the &#147;Investment
Company Act&#148;) of each Fund, is set forth below: </FONT></P>


<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
  <tr>
    <td valign=bottom align="left" width=121> <b><font size="1" face="Times New Roman, Times, serif">Name,
      Address&#134; and Age </font> </b>
      <hr size="1" noshade align="left" width="110">
    </td>
    <td valign=top width=18>&nbsp; </td>
    <td valign=bottom align="center" width=61><b><font size="1"> Position(s) Held
      with <br>
      Each Fund </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=14>&nbsp; </td>
    <td valign=bottom align="center" width=93> <b><font size="1">Term of Office
      <br>
      and Length of <br>
      Time Served </font> </b>
      <hr size="1" noshade width="75">
    </td>
    <td valign=bottom align="center" width=19>&nbsp; </td>
    <td valign=bottom align="center" width=209> <b><font size="1">Principal Occupation(s)
      <br>
      During Past Five Years </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=17>&nbsp; </td>
    <td valign=bottom align="center" width=76> <b><font size="1">Number of MLIM/FAM-Advised
      Funds** and Portfolios Overseen </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=12>&nbsp; </td>
    <td valign=bottom align="center" width=60><b><font size="1"> Public Directorships
      </font> </b>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="left">
    <td valign=top width=121><font size="1">Robert C. Doll, Jr. (50)&#134;&#134; </font></td>
    <td valign=top width=18><font size="1">&nbsp;&nbsp; </font></td>
    <td valign=top width=61><font size="1">President and Director </font></td>
    <td valign=top width=14><font size="1">&nbsp;&nbsp; </font></td>
    <td valign=top width=93><font size="1">President and Director* of each Fund
      since 2005. </font></td>
    <td valign=top width=19><font size="1">&nbsp;&nbsp; </font></td>
    <td valign=top width=209><font size="1">President of MLIM/FAM-advised funds
      since 2005; President of MLIM and FAM since 2001; Co-Head (Americas Region)
      thereof from 2000 to 2001 and Senior Vice President from 1999 to 2001; President
      and Director of Princeton Services, Inc. (&#147;Princeton Services&#148;) since 2001;
      President of Princeton Administrators, L.P. (&#147;Princeton Administrators&#148;)
      since 2001; Chief Investment Officer of Oppenheimer Funds, Inc. in 1999
      and Executive Vice President thereof from 1991 to 1999. </font></td>
    <td valign=top width=17><font size="1">&nbsp;&nbsp; </font></td>
    <td valign=top width=76><font size="1">125 registered investment companies
      consisting of <br>
      169 portfolios</font></td>
    <td valign=top width=12><font size="1">&nbsp;&nbsp; </font></td>
    <td valign=top width=60><font size="1">None </font></td>
  </tr>
</table>
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<HR SIZE=1 noshade ALIGN=left  WIDTH=75>

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<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> &#134; </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">P.O.
Box 9011, Princeton, New Jersey 08543-9011.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">&#134;&#134; </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Mr.
Doll is an &#147;interested person,&#148; as defined in the Investment Company       Act, of each
Fund based on his positions with Merrill Lynch Investment       Managers, L.P. (&#147;MLIM&#148;),
FAM, Princeton Services and Princeton       Administrators.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> * </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">As
a Director, Mr. Doll serves until his successor is elected and       qualified, or until
his death, resignation, or removal as provided in the       respective Fund&#146;s by-laws or
charter or by statute, or until December 31       of the year in which he turns 72.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">The
complex of funds advised by FAM and MLIM.</FONT></TD></TR></TABLE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
biographical and other information relating to the Director Nominees who are not
&#147;interested persons,&#148; as defined in the Investment Company Act, of any Fund and who are
&#147;independent&#148; as defined in the listing standards of the New York Stock Exchange (&#147;NYSE&#148;)
with respect to each Fund (sometimes </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>referred to herein as &#147;non-interested
  Directors&#148; or &#147;non-interested Director Nominees&#148;) is set forth
  below. Each non-interested Director Nominee is a member of each Fund&#146;s
  Audit Committee and each Fund&#146;s Nominating Committee. </FONT></P>


<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
  <tr>
    <td valign=bottom align="left" width=121> <b><font size="1">Name, Address&#134;
      and Age </font> </b>
      <hr size="1" noshade align="left" width="110">
    </td>
    <td valign=top width=18>&nbsp; </td>
    <td valign=bottom align="center" width=61><b><font size="1"> Position(s) Held
      with Each Fund </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=14>&nbsp; </td>
    <td valign=bottom align="center" width=93><b><font size="1"> Term of Office&#134;&#134;
      <br>
      and Length of <br>
      Time Served </font> </b>
      <hr size="1" noshade width="75">
    </td>
    <td valign=bottom align="center" width=19>&nbsp; </td>
    <td valign=bottom align="center" width=209><b><font size="1"> Principal Occupation(s)
      During Past Five Years </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=17>&nbsp; </td>
    <td valign=bottom align="center" width=76> <b><font size="1">Number of MLIM/FAM-Advised
      Funds and Portfolios Overseen </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=12>&nbsp; </td>
    <td valign=bottom align="center" width=60><b><font size="1">Public Directorships
      </font> </b>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="left">
    <td valign=top width=121><font size="1">David O. Beim (65)**</font></td>
    <td valign=top width=18><font size="1">&nbsp;&nbsp; </font></td>
    <td valign=top width=61><font size="1">Director</font></td>
    <td valign=top width=14><font size="1">&nbsp;&nbsp; </font></td>
    <td valign=top width=93><font size="1">Director of each Fund since the year
      listed in Exhibit B.</font></td>
    <td valign=top width=19><font size="1">&nbsp;&nbsp; </font></td>
    <td valign=top width=209><font size="1">Professor of Finance and Economics
      at the Columbia University Graduate School of Business since 1991; Chairman
      of Outward Bound U.S.A. from 1996 to 2001; Chairman of Wave Hill, Inc. since
      1990; Trustee of Phillips Exeter Academy since 2002.</font></td>
    <td valign=top width=17><font size="1">&nbsp;&nbsp; </font></td>
    <td valign=top width=76><font size="1">16 registered investment companies
      consisting of <br>
      21 portfolios</font></td>
    <td valign=top width=12><font size="1">&nbsp;&nbsp; </font></td>
    <td valign=top width=60><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=121><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=61>&nbsp;</td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top width=93>&nbsp;</td>
    <td valign=top width=19>&nbsp;</td>
    <td valign=top width=209>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top width=76>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=60>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=121><font size="1">James T. Flynn (65)</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=61><font size="1">Director</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top width=93><font size="1">Director of each Fund since the year
      listed in Exhibit B.</font></td>
    <td valign=top width=19>&nbsp;</td>
    <td valign=top width=209><font size="1">Chief Financial Officer of J.P. Morgan
      &amp; Co. Inc. from 1990 to 1995 and an employee of J.P. Morgan &amp; Co.
      Inc. in various capacities from 1967 to 1995.</font></td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top width=76><font size="1">16 registered investment companies
      consisting of <br>
      21 portfolios</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=60><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=121><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=61>&nbsp;</td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top width=93>&nbsp;</td>
    <td valign=top width=19>&nbsp;</td>
    <td valign=top width=209>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top width=76>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=60>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=121><font size="1">W. Carl Kester (53)</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=61><font size="1">Director</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top width=93><font size="1">Director of each Fund since the year
      listed in Exhibit B.</font></td>
    <td valign=top width=19>&nbsp;</td>
    <td valign=top width=209><font size="1">Mizuho Financial Group Professor of
      Finance, Senior Associate Dean and Chairman of the MBA Program of Harvard
      University Graduate School of Business Administration since 1999; James
      R. Williston Professor of Business Administration of Harvard University
      Graduate School of Business Administration from 1997 to 1999; MBA Class
      of 1958 Professor of Business Administration of Harvard University Graduate
      School of Business Administration from 1981 to 1997; Independent Consultant
      since 1978.</font></td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top width=76><font size="1">17 registered investment companies
      consisting of <br>
      22 portfolios</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=60><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=121><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=61>&nbsp;</td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top width=93>&nbsp;</td>
    <td valign=top width=19>&nbsp;</td>
    <td valign=top width=209>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top width=76>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=60>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=121><font size="1">Karen P. Robards (55)*</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=61><font size="1">Director</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top width=93><font size="1">Director of each Fund since the year
      listed in Exhibit B.</font></td>
    <td valign=top width=19>&nbsp;</td>
    <td valign=top width=209><font size="1">President of Robards &amp; Company, a
      financial advisory firm since 1987; formerly an investment banker with Morgan
      Stanley for more than ten years; Director of Enable Medical Corp. since
      1996; Director of AtriCure, Inc. since 2000; Director of CineMuse Inc. from
      1996 to 2000; Director of the Cooke Center for Learning and Development,
      a not-for-profit organization, since 1987.</font></td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top width=76><font size="1">16 registered investment companies
      consisting of <br>
      21 portfolios</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=60><font size="1">None</font></td>
  </tr>
</table>
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<HR SIZE=1 noshade ALIGN=left  WIDTH=75>


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<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> &#134; </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">The
address of each non-interested Director Nominee is P.O. Box 9095, Princeton, New Jersey
08543-9095.</FONT></TD></TR></TABLE>

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<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">&#134;&#134; </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Each
 Director  serves  until his or her  successor  is  elected  and  qualified,  or until
his or her death,       resignation or removal as provided in the Funds&#146; respective
by-laws or       charter or by statute, or until December 31 of the year in which he or
she       turns 72.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> * </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Chairman
of each Fund&#146;s Board.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Chairman
of each Fund&#146;s Audit Committee.</FONT></TD></TR></TABLE>

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<BR>&nbsp;
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<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Committees and Board
Meetings </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Board of each Fund maintains two standing board committees, the Audit Committee
  and the Nominating Committee. Currently all of the non-interested Directors
  are members of each Fund&#146;s Audit Committee and Nominating Committee. During
  each Fund&#146;s last fiscal year, each of the Directors then in office attended
  at least 75% of the aggregate of the total number of meetings of the Board of
  Directors of that Fund held during the fiscal year and, if a member, the total
  number of meetings of the Audit Committee held during the fiscal year. For information
  about the number of meetings of the Board, the Audit Committee and Nominating
  Committee held during each Fund&#146;s most recently completed fiscal year,
  see Exhibit A to the Combined Proxy Statement. </FONT></P>


<!-- MARKER FORMAT-SHEET="Left Head 2 Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Audit Committees </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
principal responsibilities of each Audit Committee are the appointment, compensation and
oversight of the Fund&#146;s independent registered public accounting firm, including the
resolution of disagreements regarding financial reporting between Fund management and
such independent registered public accounting firm. The Audit Committee&#146;s
responsibilities include, without limitation, to (i) review with the independent
registered public accounting firm the arrangements for and scope of annual and special
audits and any other services provided by the independent registered public accounting
firm to the Fund; (ii) discuss with the independent registered public accounting firm
certain matters relating to the Fund&#146;s financial statements, including any adjustment to
such financial statements recommended by such independent registered public accounting
firm or any other results of any audit; (iii) ensure that the independent registered
public accounting firm submits on a periodic basis a formal written statement with
respect to their independence, discuss with the independent registered public accounting
firm any relationships or services disclosed in the statement that may impact the
objectivity and independence of the Fund&#146;s independent registered public accounting firm
and recommend that the Board take appropriate action in response thereto to satisfy
itself of the independent registered public accounting firm&#146;s independence; and (iv)
consider the comments of the independent registered public accounting firm with respect
to the quality and adequacy of the Fund&#146;s accounting and financial reporting policies and
practices and internal controls and Fund management&#146;s responses thereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  Fund has adopted a written Charter for the Audit Committee, which is attached
  as Exhibit D to this Combined Proxy Statement. Each Fund&#146;s Audit Committee
  also has received written disclosures and the letter required by Independence
  Standards Board Standard No. 1, as may be modified or supplemented, from Deloitte
  &amp; Touche LLP (&#147;D&amp;T&#148;), independent registered public accounting
  firm for Capital and Income, and from Ernst &amp; Young LLP (&#147;E&amp;Y&#148;),
  independent registered public accounting firm for Preferred Income, Preferred
  and Corporate and Europe. Each Audit Committee has discussed with D&amp;T or
  E&amp;Y, as applicable, such firm&#146;s independence with respect to the Fund
  and certain matters required to be discussed by Statements on Auditing Standards
  No. 61. Each Audit Committee has considered whether the provision of non-audit
  services by the Fund&#146;s independent registered public accounting firm is
  compatible with maintaining the independence of those accountants. </FONT></P>
<P><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  Audit Committee also reviews and discusses the audit of the Fund&#146;s financial
  statements with Fund management and the independent registered public accounting
  firm. If any material concerns arise during the course of the audit and the
  preparation of the audited financial statements mailed to stockholders and included
  in the Fund&#146;s Annual Report to Stockholders, the Audit Committee would
  be notified by Fund management</font></P>

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<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> or the independent registered
  public accounting firm. The Audit Committees received no such notifications
  for any of the Funds. Following each Audit Committee&#146;s review and discussion
  regarding the audit of the Fund&#146;s financial statements with Fund management
  and the independent registered public accounting firm, each Audit Committee
  recommended to the Directors that the Fund&#146;s audited financial statements
  for the 2005 fiscal year (each Fund&#146;s fiscal year end is set forth in Exhibit
  A) be included in each Fund&#146;s Annual Report to Stockholders. </FONT></P>
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><i>Nominating
  Committees </i></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  principal responsibilities of each Nominating Committee are to identify individuals
  qualified to serve as non-interested Directors of the Fund and to recommend
  its nominees for consideration by the full Board. While each Nominating Committee
  is solely responsible for the selection and nomination of the Fund&#146;s non-interested
  Directors, the Nominating Committee may consider nominations for the office
  of Director made by Fund stockholders as it deems appropriate. Stockholders
  who wish to recommend a nominee should send nominations to the applicable Fund&#146;s
  Secretary and include biographical information and set forth the qualifications
  of the proposed nominee. The Nominating Committee evaluates nominees from whatever
  source using the same standard. The Board of each Fund has adopted a written
  charter for the Nominating Committee, a copy of which is attached hereto as
  Exhibit E. </font></p>
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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  identifying and evaluating a potential nominee to serve as a non-interested
  Director of a Fund, the Nominating Committee will consider, among other factors,
  (i) the person&#146;s business and professional experience, education, character
  and integrity; (ii) whether the individual is an &#147;interested person&#148;
  as defined in the Investment Company Act and whether the person is otherwise
  qualified to serve as a Director under applicable laws and regulations; (iii)
  the nature of any business, charitable, financial or family relationships that
  might impair the individual&#146;s independence; (iv) whether the individual
  is financially literate pursuant to the listing standards of the NYSE; (v) whether
  the person serves on boards of, or is otherwise affiliated with, competing financial
  service organizations or their related investment company complexes; (vi) the
  person&#146;s willingness to serve and ability to commit the time necessary
  to perform the duties of a Fund Director; and (vii) whether the selection and
  nomination of the person is consistent with the Fund&#146;s retirement policy.
  </font></p>
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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Stockholder
Communications </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
  may send written communications to a Fund&#146;s Board of Directors or to an
  individual Director by mailing such correspondence to the Secretary of the applicable
  Fund (addressed to 800 Scudders Mill Road, Plainsboro, New Jersey 08536). Such
  communications must be signed by the stockholder and identify the class and
  number of shares held by the stockholder. Properly submitted stockholder communications
  will, as appropriate, be forwarded to the entire Board or to the individual
  Director. Any stockholder proposal submitted pursuant to Rule 14a-8 under the
  Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;),
  must continue to meet all the requirements of Rule 14a-8. See &#147;Additional
  Information&#151;Stockholder Proposals&#148; herein. </FONT></P>
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Director Attendance
  at Stockholder Meetings </b></font></p>
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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Funds have no formal policy regarding Director attendance at stockholder meetings.
  None of the Funds&#146; Directors attended the 2004 Annual Meetings of Stockholders.
  </font></p>
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&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
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<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Section 16(a)
  Beneficial Ownership Reporting Compliance </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
  16(a) of the Exchange Act requires the officers and Directors of each Fund and
  persons who own more than ten percent of a registered class of the Fund&#146;s
  equity securities to file reports of ownership and changes in ownership on Forms
  3, 4 and 5 with the Securities and Exchange Commission (&#147;SEC&#148;) and
  the NYSE. Officers, Directors and greater than ten percent stockholders of each
  Fund are required by SEC regulations to furnish the Fund with copies of all
  Forms 3, 4 and 5 they file. </font></p>
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<p><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
  solely on each Fund&#146;s review of the copies of such forms, and amendments
  thereto, furnished to it during or with respect to its most recent fiscal year,
  and written representations from certain reporting persons that they were not
  required to file Form 5 with respect to the most recent fiscal year, each Fund
  believes that all of its officers, Directors, greater than ten percent beneficial
  owners and other persons subject to Section 16 of the Exchange Act due to the
  requirements of Section 30 of the Investment Company Act (<i>i.e.</i>, any advisory
  board member, investment adviser or affiliated person of the Fund&#146;s investment
  adviser) have complied with all filing requirements applicable to them with
  respect to transactions during the Fund&#146;s most recent fiscal year except
  that James T. Flynn, a Director of each of the Funds, inadvertently made late
  Form 4 filings with respect to Preferred Income and Preferred and Corporate.
  </font></p>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Interested
  Persons </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  Fund considers Mr. Doll to be an &#147;interested person&#148; of the Fund within
  the meaning of Section 2(a)(19) of the Investment Company Act based on his current
  positions with FAM, MLIM, Princeton Services and Princeton Administrators. Effective
  January 1, 2005, Mr. Doll was elected the President of each Fund by the Board.
  </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Compensation of
Directors </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  non-interested Director receives an aggregate annual retainer of $108,750 for
  his or her services to the MLIM/FAM-advised funds. The portion of the annual
  retainer allocated to each MLIM/FAM-advised fund is determined quarterly based
  on the relative net assets of each fund. In addition, each non-interested Director
  receives a fee for each in-person Board meeting attended and each in-person
  Audit Committee meeting attended. The aggregate annual per-meeting fees paid
  to each non-interested Director total $46,000 for all MLIM/FAM-advised funds
  for which that Director serves and are allocated equally among those funds.
  The Chairman of the Board of Directors and the Chairman of the Audit Committee
  each receive an additional annual retainer in the amounts of $40,000 and $10,000,
  respectively, which is paid quarterly and allocated to each MLIM/FAM-advised
  fund for which such Director provides services, based on the relative net assets
  of each fund. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
  relating to (i) the aggregate fees and expenses paid by each Fund to its non-interested
  Directors during the Fund&#146;s most recently completed fiscal year is set
  forth in Exhibit A to this Combined Proxy Statement and (ii) the compensation
  received by each non-interested Director from each Fund and from all MLIM/FAM-advised
  funds is set forth in Exhibit B to this Combined Proxy Statement. </FONT></P>
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Officers of
  the Funds </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
  relating to the officers of each Fund is set forth in Exhibit C. Officers of
  the Funds are elected and appointed by the Board of Directors and hold office
  until they resign, are removed or are otherwise disqualified to serve. </font></p>
<p>&nbsp; </p>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
7</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 10; page: 10" --> <!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Stock Ownership
  </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
  forth in Exhibit B to this Combined Proxy Statement is the following information
  for each Director Nominee: (i) the number of shares of Common Stock and AMPS
  of each Fund owned; (ii) the aggregate dollar range such stock ownership represents;
  and (iii) the aggregate dollar range of equity securities owned in all MLIM/FAM-advised
  funds. </font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  of the Record Date, no non-interested Director or Nominee or his or her immediate
  family members, owned beneficially or of record any securities of ML &amp;Co.
  As of the Record Date, the Directors and officers of each Fund as a group owned
  an aggregate of less than 1% of the Fund&#146;s outstanding shares. At such
  date, Mr. Doll, President and a Director of each Fund, and the other officers
  of each Fund owned an aggregate of less than 1% of the outstanding shares of
  Common Stock of ML &amp; Co. </font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>The
  Board of Directors of each Fund recommends that the stockholders vote &#147;FOR&#148;
  each of the Director Nominees.</b> </font> <br>
</p>
<p align=CENTER><font face="Times New Roman, Times, Serif" size=2><b>ADDITIONAL
  INFORMATION </b></font></p>
<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Expenses and
  Methods of Proxy Solicitation </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  expenses of preparation, printing and mailing of the enclosed forms of proxy,
  the accompanying Notice and this Combined Proxy Statement will be borne by each
  Fund in proportion to its relative net assets. The Funds will reimburse banks,
  brokers and others for their reasonable expenses in forwarding proxy solicitation
  material to the beneficial owners of shares of Common Stock and AMPS of the
  Funds. </font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  order to obtain the necessary quorum at each Meeting, supplementary solicitation
  may be made by mail, telephone, telegraph or personal interview by officers
  of each Fund. Each Fund has retained Georgeson Shareholder, 17 State Street,
  New York, New York 10004, to assist in the solicitation of proxies at a cost
  of approximately $3,500 for each Fund, plus aggregate out-of-pocket expenses
  of approximately $750 for each Fund. </font></p>
<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Quorum </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
  Preferred Income and Preferred and Corporate, one-third of the Fund&#146;s shares
  of Common Stock and AMPS entitled to vote at the Meeting, present in person
  or by proxy, constitutes a quorum, for Europe, a majority of the Fund&#146;s
  shares of Common Stock entitled to vote at the Meeting, present in person or
  by proxy, constitutes a quorum and for Capital and Income, one-third of the
  Fund&#146;s shares of Common Stock entitled to vote at the Meeting, present
  in person or by proxy, constitutes a quorum. With respect to Preferred Income
  and Preferred and Corporate, the quorum requirements must be met with respect
  to each Fund&#146;s shares of Common Stock and AMPS, each voting separately
  as a class. </font></p>
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  order to obtain the necessary quorum at each Meeting, supplementary solicitation
  may be made by mail, telephone, telegraph or personal interview by officers
  of each Fund. If, by the time scheduled for a Meeting, a quorum of stockholders
  is not present or if a quorum is present but sufficient votes to allow action
  on the proposal are not received from the stockholders, the persons named as
  proxies may propose one or more adjournments of the Meeting to permit further
  solicitation of proxies from stockholders. Any such adjournment </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2><!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
  <br>
  &nbsp; </FONT></p>
<table width=100%>
  <tr>
    <td width=20% align=left><font size=1>&nbsp;</font></td>
    <td width=60% align=center><font size="2"> 8</font></td>
    <td width=20% align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<hr size=5 noshade width=100% align=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 10; page: 10" -->
<p><font face="Times New Roman, Times, Serif" size=2>will require the affirmative
  vote of a majority of the shares of Common Stock and AMPS, as applicable, of
  the Fund present in person or by proxy and entitled to vote at the time of the
  Meeting to be adjourned. The persons named as proxies will vote in favor of
  any such adjournment if they believe that adjournment and additional proxy solicitation
  are reasonable and in the best interests of the Fund&#146;s stockholders. </font></p>
<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Voting Requirement
  </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  the case of Preferred Income and Preferred and Corporate, holders of AMPS, voting
  separately as a class, are entitled to elect the two AMPS Directors designated
  herein and holders of shares of Common Stock and AMPS, voting together as a
  single class, are entitled to elect the remaining Directors. In the case of
  Capital and Income and Europe, holders of shares of Common Stock are entitled
  to elect all Directors.</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming
a quorum is present, approval of Item 1. Election of Directors will require the
affirmative vote of stockholders holding at least the percentage of shares of Common
Stock and AMPS indicated in the chart below. As used in the chart below, a &#147;plurality of
the votes&#148; cast means the candidate must receive more votes than any other candidate for
the same position, but not necessarily a majority of the votes cast. </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom align="left">
    <th colspan=2><font size=1>Fund</font></th>
    <th colspan=2><font size=1>Election of AMPS Directors</font></th>
    <th><font size=1>Election of Other Directors</font></th>
  </tr>
  <tr valign=top>
    <td width=98% align=LEFT colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign=top>
    <td width=22% align=LEFT><font size=2>Preferred Income</font></td>
    <td width=2% align=LEFT><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font></td>
    <td width=32% align=LEFT><font size=2>Affirmative vote of a plurality of</font><font size=2>the
      votes cast by the holders of</font><font size=2>AMPS, voting as a separate
      class</font></td>
    <td width=2% align=LEFT><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font></td>
    <td width=40% align=LEFT><font size=2>Affirmative vote of a plurality of</font><font size=2>the
      votes cast by the holders of shares</font><font size=2>of Common Stock and
      AMPS, voting together</font><font size=2>as a single class</font></td>
  </tr>
  <tr valign=top>
    <td align=LEFT colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign=top>
    <td align=LEFT rowspan="3"><font size=2>Capital and Income</font></td>
    <td align=LEFT rowspan="3"><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font></td>
    <td align=LEFT rowspan="3"><font size=2>N/A</font></td>
    <td align=LEFT rowspan="3"><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font></td>
    <td align=LEFT rowspan="3"><font size=2>Affirmative vote of a plurality of</font><font size=2>the
      votes cast by the holders of</font><font size=2>shares of Common Stock</font></td>
  </tr>
  <tr valign=top> </tr>
  <tr valign=top> </tr>
  <tr valign=top>
    <td align=LEFT colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign=top>
    <td align=LEFT rowspan="4"><font size=2>Preferred and Corporate</font></td>
    <td align=LEFT rowspan="4"><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font></td>
    <td align=LEFT rowspan="4"><font size=2>Affirmative vote of a plurality of</font><font size=2>the
      votes cast by the holders of</font><font size=2>AMPS, voting as a separate
      class</font></td>
    <td align=LEFT rowspan="4"><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font></td>
    <td align=LEFT rowspan="4"><font size=2>Affirmative vote of a plurality of</font><font size=2>the
      votes cast by the holders of shares of</font><font size=2>Common Stock and
      AMPS, voting together</font><font size=2>as a single class</font></td>
  </tr>
  <tr valign=top> </tr>
  <tr valign=top> </tr>
  <tr valign=top> </tr>
  <tr valign=top>
    <td align=LEFT colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign=top>
    <td align=LEFT><font size=2>Europe</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font size=2>N/A</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font size=2>Affirmative vote of a majority of the</font><font size=2>shares
      of Common Stock present in person</font><font size=2>or by proxy at the
      Meeting</font></td>
  </tr>
  <tr valign=top>
    <td align=LEFT colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
  shares of Common Stock and AMPS represented by properly executed proxies, unless
  such proxies have previously been revoked, will be voted at each Meeting in
  accordance with the directions on the proxies; if no direction is indicated,
  the shares of Common Stock and AMPS will be voted &#147;FOR&#148; the Director
  Nominees. </FONT></P>
<p align=LEFT>&nbsp;</p>
<table width=100%>
  <tr>
    <td width=20% align=left><font size=1>&nbsp;</font></td>
    <td width=60% align=center><font size="2"> 9</font></td>
    <td width=20% align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<hr size=5 noshade width=100% align=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 12; page: 12" --> <!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Broker Non-Votes
  and Abstentions </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broker-dealer
  firms, including Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated (&#147;MLPF&amp;S&#148;),
  holding shares of a Fund in &#147;street name&#148; for the benefit of their
  customers and clients, will request the instructions of such customers and clients
  on how to vote their shares on Item 1 before the Meeting. The Funds will include
  shares held of record by broker-dealers as to which such authority has been
  granted in its tabulation of the total number of shares present for purposes
  of determining whether the necessary quorum of stockholders of each Fund exists.
  The Funds understand that, under the rules of the NYSE, such broker-dealer firms
  may, without instructions from their customers and clients, grant authority
  to the proxies designated to vote on the election of Directors (Item 1) if no
  instructions have been received prior to the date specified in the broker-dealer
  firm&#146;s request for voting instructions. MLPF&amp;S has advised each Fund
  that if it votes shares held in its name for which no instructions have been
  received, except as limited by agreement or applicable law, with respect to
  the election of Directors (Item 1) it will do so with respect to shares of Common
  Stock </font><font face="Times New Roman, Times, Serif" size=2>and AMPS in the
  same proportion as the votes received from beneficial owners of those shares
  of Common Stock and AMPS, if applicable, for which instructions have been received,
  whether or not held in nominee name. </font><br>
<p>&nbsp;</p>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size=2>Proxies that are
  returned to a Fund but that are marked &#147;abstain&#148; will be counted as
  present for the purposes of determining a quorum. Abstentions and broker non-votes
  will not be counted as votes cast. Therefore, abstentions and broker non-votes
  will not have an effect on the vote on Item 1 for Preferred Income, Capital
  and Income and Preferred and Corporate, but will be counted as a vote against
  the Director Nominees for Europe. </font></P>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Other Matters
  </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
knows of no other matters to be presented at the Meetings. However, if other matters are
presented for a vote at a Meeting or any adjournments thereof, the proxy holders will
vote the shares of Common Stock and AMPS represented by properly executed proxies
according to their best judgment on those matters. </FONT></P>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Independent Registered
Public Accounting Firms&#146; Fees </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D&amp;T
  has been selected as the independent registered public accounting firm for Capital
  and Income. E&amp;Y has been selected as the independent registered public accounting
  firm for Preferred Income, Preferred and Corporate and Europe. D&amp;T and E&amp;Y,
  in accordance with Independence Standards Board Standard No. 1, have confirmed
  to each Fund&#146;s Audit Committee that they are the independent registered
  public accounting firms with respect to the Funds. The SEC&#146;s auditor independence
  rules require the Audit Committee of each Fund to pre-approve (a) all audit
  and permissible non-audit services provided by the Fund&#146;s independent registered
  public accounting firm directly to the Fund and (b) those permissible non-audit
  services provided by the Fund&#146;s independent registered public accounting
  firm to the Fund&#146;s investment adviser and any entity controlling, controlled
  by or under common control with the investment adviser that provides ongoing
  services to the Fund (the &#147;Affiliated Service Providers&#148;), if the
  services relate directly to the operations and financial reporting of the Fund.</FONT></P>
<P><font face="Times New Roman, Times, Serif" size=2> </font> </P>
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b><i></i></b></font>&nbsp;
</p>




<table width=100%>
  <tr>
    <td width=20% align=left><font size=1>&nbsp;</font></td>
    <td width=60% align=center><font size="2"> 10</font></td>
    <td width=20% align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<hr size=5 noshade width=100% align=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 13; page: 13" --> <!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  first two tables below set forth for each Fund, for its two most recent fiscal
  years the fees billed by its independent registered public accounting firm for
  (a) all audit and non-audit services provided directly to the Fund and (b) those
  non-audit services provided to the Fund&#146;s Affiliated Service Providers
  that relate directly to the Fund&#146;s operations and financial reporting,
  and, therefore, require Audit Committee pre-approval. Services under the caption:
  </font></p>
<!-- MARKER FORMAT-SHEET="Bullet 10" FSL="Workstation" -->
<table width=100%>
  <tr>
    <td width=5%></td>
    <td width=2% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=90%><font size="2"><i>Audit Fees </i>are for the audit of the Fund&#146;s
      annual financial statements included in the Fund&#146;s reports to stockholders
      and in connection with statutory and regulatory filings or engagements;
      </font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Bullet 10" FSL="Workstation" -->
<table width=100%>
  <tr>
    <td width=5%></td>
    <td width=2% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=90%><font size="2">A<i>udit-Related Fees </i>include assurance and
      related services reasonably related to the performance of the audit of financial
      statements not included in Audit Fees; </font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Bullet 10" FSL="Workstation" -->
<table width=100%>
  <tr>
    <td width=5%></td>
    <td width=2% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=90%><font size="2"><i>Tax Fees </i>include tax compliance, tax advice
      and tax planning; and </font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Bullet 10" FSL="Workstation" -->
<table width=100%>
  <tr>
    <td width=5%></td>
    <td width=2% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=90%><font size="2"><i>All Other Fees </i>are for other products
      and services provided. </font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  Fund also is required to disclose the total non-audit fees paid to its independent
  registered public accounting firm for services rendered to the Fund and its
  Affiliated Service Providers regardless of whether those fees were pre-approved
  by the Audit Committee. </font></p>
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  fiscal year end for each Fund is set forth in Exhibit A to this Combined Proxy
  Statement.</font></p>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Fees for audit and
  non-audit services provided directly to the Fund: </I></B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=660>
  <TR VALIGN=Bottom align="center">
    <TD ALIGN=left rowspan="3" width="138"><b><font size=1>Fund</font></b>
      <hr size="1" noshade width="20%" align="left">
    </TD>
    <TD rowspan="3" width="75"><b><font size=1>Independent<br>
      Registered <br>
      Public <br>
      Accounting <br>
      Firm </font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD width="12">&nbsp;</TD>
    <TD colspan="3" ALIGN=center rowspan="2"><b><font size="1">Audit Fees ($)
      </font></b>
      <hr size="1" noshade width="100%">
    </TD>
    <TD ALIGN=center rowspan="2" width="15">&nbsp;</TD>
    <TD colspan="3" ALIGN=center rowspan="2"><b><font size="1">Audit-Related Fees
      ($)</font></b>
      <hr size="1" noshade width="100%">
    </TD>
    <TD ALIGN=center rowspan="2" width="21">&nbsp;</TD>
    <TD colspan="3" ALIGN=center rowspan="2"><b><font size="1">Tax Fees ($)</font></b>
      <hr size="1" noshade width="100%">
    </TD>
    <TD ALIGN=center rowspan="2" width="35">&nbsp;</TD>
    <TD colspan="3" ALIGN=center rowspan="2"><b><font size="1">All Other Fees
      ($) </font></b>
      <hr size="1" noshade width="100%">
    </TD>
  </TR>
  <TR VALIGN=Bottom align="center">
    <TD width="12">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom align="center">
    <TD width="12">&nbsp;</TD>
    <TD width="48"><b><font size=1>2004</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD width="9">&nbsp;</TD>
    <TD width="42"><b><font size=1>2003</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD width="15">&nbsp;</TD>
    <TD width="47"><b><font size=1>2004</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD width="9">&nbsp;</TD>
    <TD width="40"><b><font size=1>2003</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD width="21">&nbsp;</TD>
    <TD width="36"><b><font size=1>2004</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD width="19">&nbsp;</TD>
    <TD width="36"><b><font size=1>2003</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD width="35">&nbsp;</TD>
    <TD width="32"><b><font size=1>2004</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD width="4">&nbsp;</TD>
    <TD width="42"><b><font size=1>2003</font></b>
      <hr size="1" noshade width="92%">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="138"><FONT SIZE=2>Preferred Income</FONT></TD>
    <TD ALIGN=CENTER width="75"><FONT SIZE=2>E&amp;Y</FONT></TD>
    <TD ALIGN=LEFT width="12"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="48"><FONT SIZE=2>38,000</FONT></TD>
    <TD ALIGN=LEFT width="9"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="42"><FONT SIZE=2>35,550</FONT></TD>
    <TD ALIGN=LEFT width="15"><FONT SIZE=2>&#134;</FONT></TD>
    <TD ALIGN=RIGHT width="47"><FONT SIZE=2>3,000</FONT></TD>
    <TD ALIGN=LEFT width="9"><FONT SIZE=2>*</FONT></TD>
    <TD ALIGN=RIGHT width="40"><FONT SIZE=2>3,000</FONT></TD>
    <TD ALIGN=LEFT width="21"><FONT SIZE=2>&#134;*</FONT></TD>
    <TD ALIGN=RIGHT width="36"><FONT SIZE=2>5,200</FONT></TD>
    <TD ALIGN=LEFT width="19"><FONT SIZE=2>**</FONT></TD>
    <TD ALIGN=RIGHT width="36"><FONT SIZE=2>5,000</FONT></TD>
    <TD ALIGN=LEFT width="35"><FONT SIZE=2>&#134;**</FONT></TD>
    <TD ALIGN=RIGHT width="32"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="42"><FONT SIZE=2>0</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="138"><FONT SIZE=2>Capital and Income</FONT></TD>
    <TD ALIGN=CENTER width="75"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=LEFT width="12"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="48"><FONT SIZE=2>42,400</FONT></TD>
    <TD ALIGN=LEFT width="9"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="42"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="15"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="47"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="9"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="40"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="21"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="36"><FONT SIZE=2>5,200</FONT></TD>
    <TD ALIGN=LEFT width="19"><FONT SIZE=2>**</FONT></TD>
    <TD ALIGN=RIGHT width="36"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="35"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="32"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="42"><FONT SIZE=2>N/A</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="138"><FONT SIZE=2>Preferred and Corporate</FONT></TD>
    <TD ALIGN=CENTER width="75"><FONT SIZE=2>E&amp;Y</FONT></TD>
    <TD ALIGN=LEFT width="12"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="48"><FONT SIZE=2>36,000</FONT></TD>
    <TD ALIGN=LEFT width="9"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="42"><FONT SIZE=2>35,550</FONT></TD>
    <TD ALIGN=LEFT width="15"><FONT SIZE=2>&#134;&#134;</FONT></TD>
    <TD ALIGN=RIGHT width="47"><FONT SIZE=2>3,000</FONT></TD>
    <TD ALIGN=LEFT width="9"><FONT SIZE=2>*</FONT></TD>
    <TD ALIGN=RIGHT width="40"><FONT SIZE=2>3,000</FONT></TD>
    <TD ALIGN=LEFT width="21"><FONT SIZE=2>&#134;&#134;*</FONT></TD>
    <TD ALIGN=RIGHT width="36"><FONT SIZE=2>5,200</FONT></TD>
    <TD ALIGN=LEFT width="19"><FONT SIZE=2>**</FONT></TD>
    <TD ALIGN=RIGHT width="36"><FONT SIZE=2>5,000</FONT></TD>
    <TD ALIGN=LEFT width="35"><FONT SIZE=2>&#134;&#134;**</FONT></TD>
    <TD ALIGN=RIGHT width="32"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="42"><FONT SIZE=2>0</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="138"><FONT SIZE=2>Europe</FONT></TD>
    <TD ALIGN=CENTER width="75"><FONT SIZE=2>E&amp;Y</FONT></TD>
    <TD ALIGN=LEFT width="12"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="48"><FONT SIZE=2>34,000</FONT></TD>
    <TD ALIGN=LEFT width="9"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="42"><FONT SIZE=2>38,750</FONT></TD>
    <TD ALIGN=LEFT width="15"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="47"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="9"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="40"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="21"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="36"><FONT SIZE=2>5,200</FONT></TD>
    <TD ALIGN=LEFT width="19"><FONT SIZE=2>**</FONT></TD>
    <TD ALIGN=RIGHT width="36"><FONT SIZE=2>5,000</FONT></TD>
    <TD ALIGN=LEFT width="35"><FONT SIZE=2>**</FONT></TD>
    <TD ALIGN=RIGHT width="32"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="42"><FONT SIZE=2>0</FONT></TD>
  </TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" -->
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> &#134; </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">For
the fiscal period January 23, 2003 (commencement of operations) to October 31, 2003.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> &#134;&#134; </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">For
the fiscal period May 2, 2003 (commencement of operations) to October 31, 2003.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> * </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Agreed
upon compliance procedures with respect to the Fund&#146;s AMPS. </FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Tax
compliance services associated with reviewing the Fund&#146;s tax returns.</FONT></TD></TR></TABLE>


<br>
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b><i>Fees for
  non-audit services provided to the Fund&#146;s Affiliated Service Providers for which
  pre-approval by the Committee was required: </i></b></font></p>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 align="center">
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT rowspan="3" width="212"><font size=1><b>Fund</b></font>
      <hr size="1" noshade width="20%" align="left">
    </TD>
    <TD ALIGN=LEFT width="4">&nbsp;</TD>
    <TD ALIGN=center rowspan="3" width="82"><b><font size="1">Independent <br>
      Registered <br>
      Public <br>
      Accounting <br>
      Firm </font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD ALIGN=center rowspan="2" width="17">&nbsp;</TD>
    <td colspan="3" align=center rowspan="2"><b><font size="1">Audit-Related Fees
      ($)</font></b>
      <hr size="1" noshade width="100%">
    </td>
    <td align=center rowspan="2" width="4">&nbsp;</td>
    <td colspan="3" align=center rowspan="2"><b><font size="1">Tax Fees ($)</font></b>
      <hr size="1" noshade width="100%">
    </td>
    <td align=center rowspan="2" width="4">&nbsp;</td>
    <td colspan="3" align=center rowspan="2"><b><font size="1">All Other Fees
      ($) </font></b>
      <hr size="1" noshade width="100%">
    </td>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="4">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="4">&nbsp;</TD>
    <TD ALIGN=center width="17">&nbsp;</TD>
    <TD ALIGN=center width="49"><b><font size="1">2004</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD ALIGN=center width="22">&nbsp;</TD>
    <TD ALIGN=center width="38"><b><font size="1">2003</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD ALIGN=center width="4">&nbsp;</TD>
    <TD ALIGN=center width="38"><b><font size="1">2004</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD ALIGN=center width="4">&nbsp;</TD>
    <TD ALIGN=center width="38"><b><font size="1">2003</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD ALIGN=center width="4">&nbsp;</TD>
    <TD ALIGN=center width="38"><b><font size="1">2004</font></b>
      <hr size="1" noshade width="92%">
    </TD>
    <TD ALIGN=center width="4">&nbsp;</TD>
    <TD ALIGN=center width="46"><b><font size="1">2003</font></b>
      <hr size="1" noshade width="92%">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="212"><FONT SIZE=2>Preferred Income</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center width="82"><FONT SIZE=2>E&amp;Y</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="49"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="46"><FONT SIZE=2>0</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="212"><FONT SIZE=2>Capital and Income</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center width="82"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="49"><FONT SIZE=2>945,000</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>*</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="46"><FONT SIZE=2>N/A</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="212"><FONT SIZE=2>Preferred and Corporate </FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center width="82"><FONT SIZE=2>E&amp;Y</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="49"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="46"><FONT SIZE=2>0</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="212"><FONT SIZE=2>Europe</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center width="82"><FONT SIZE=2>E&amp;Y</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="49"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="46"><FONT SIZE=2>0</FONT></TD>
  </TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" -->
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">* </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Primarily
related to examinations of internal controls and investment       management performance
returns of Affiliated Service Providers.</FONT></TD></TR></TABLE>

<p align=LEFT>&nbsp;</p>
<table width=100%>
  <tr>
    <td width=20% align=left><font size=1>&nbsp;</font></td>
    <td width=60% align=center><font size="2"> 11</font></td>
    <td width=20% align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<hr size=5 noshade width=100% align=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 14; page: 14" --> <!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b><i>Aggregate
  non-audit fees for services provided to the Fund and its Affiliated Service
  Providers, regardless of whether pre-approval was required: </i></b></font></p>
<table cellpadding=0 cellspacing=0 border=0 align="center" width=600>
  <tr valign=Bottom>
    <td align=LEFT rowspan="3"><font size=1><b>Fund</b></font>
      <hr size="1" noshade width="20%" align="left">
    </td>
    <td align=LEFT rowspan="2">&nbsp;</td>
    <td align=center rowspan="3"><b><font size="1">Independent<br>
      Registered <br>
      Public <br>
      Accounting Firm </font></b>
      <hr size="1" noshade width="92%">
    </td>
    <td align=center rowspan="2">&nbsp;</td>
    <td align=center colspan="3" rowspan="2"><font size="1"><b>Aggregate Non-Audit
      Fees ($) </b></font>
      <hr size="1" noshade width="100%">
    </td>
    <td align=LEFT rowspan="2">&nbsp;</td>
  </tr>
  <tr valign=Bottom> </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td align=center><b><font size="1">2004</font></b>
      <hr size="1" noshade width="92%">
    </td>
    <td align=center>&nbsp;</td>
    <td align=center><b><font size="1">2003</font></b>
      <hr size="1" noshade width="92%">
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=2>Preferred Income</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=center><font size=2>E&amp;Y</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=RIGHT><font size=2>2,942,050</font></td>
    <td align=LEFT><font size=2>*</font></td>
    <td align=RIGHT><font size=2>2,729,000</font></td>
    <td align=LEFT><font size=2>*</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=2>Capital and Income</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=center><font size=2>D&amp;T</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=RIGHT><font size=2>12,876,555</font></td>
    <td align=LEFT><font size=2>**</font></td>
    <td align=RIGHT><font size=2>N/A</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=2>Preferred and Corporate</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=center><font size=2>E&amp;Y</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=RIGHT><font size=2>2,942,050</font></td>
    <td align=LEFT><font size=2>*</font></td>
    <td align=RIGHT><font size=2>2,729,000</font></td>
    <td align=LEFT><font size=2>*</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=2>Europe</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=center><font size=2>E&amp;Y</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=RIGHT><font size=2>2,942,050</font></td>
    <td align=LEFT><font size=2>*</font></td>
    <td align=RIGHT><font size=2>2,729,000</font></td>
    <td align=LEFT><font size=2>*</font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" -->
<hr size=1 noshade align=left  width=75>
<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<table width=100%>
  <tr>
    <td width=4% align=right valign=top><font size="1"> * </font></td>
    <td width=2%>&nbsp;</td>
    <td width=94% align=left valign=top><font size="1">Primarily associated with
      corporate tax consulting, cash flow analyses, and quality enhancement and
      education seminars for personnel of Affiliated Service Providers. Fees are
      also related to the performance of agreed upon compliance procedures associated
      with the Fund&#146;s AMPS and tax compliance services associated with reviewing
      the Fund&#146;s tax returns.</font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<table width=100%>
  <tr>
    <td width=4% align=right valign=top><font size="1">** </font></td>
    <td width=2%>&nbsp;</td>
    <td width=94% align=left valign=top><font size="1">Primarily associated with
      project management of non-financial service systems implementations, advisory
      and management consulting services, and examinations of internal controls
      and investment management performance returns for Affiliated Service Providers.
      Fees are also related to tax compliance services associated with reviewing
      the Fund&#146;s tax returns.</font></td>
  </tr>
</table>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Audit Committee of each Fund has reviewed the non-audit services provided by
  the Fund&#146;s independent registered public accounting firm to the Fund&#146;s
  Affiliated Service Providers that were not subject to the Audit Committee&#146;s
  pre-approval and has determined that the provision of such services is compatible
  with maintaining the independence of the independent registered public accounting
  firm. </FONT></P>




<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit
Committee&#146;s Pre-Approval Policies and Procedures. </I>The Audit Committee of each Fund has
adopted policies and procedures with regard to the pre-approval of services. Audit,
audit-related and tax compliance services provided to a Fund on an annual basis require
specific pre-approval by the Fund&#146;s Audit Committee. As noted above, the Audit Committee

services provided to the Fund&#146;s Affiliated Service Providers that relate directly to the
services provided to the Fund&#146;s Affiliated Service Providers that relate directly to the
operations and financial reporting of the Fund. Certain of these non-audit services that
the Audit Committee believes are (a) consistent with the SEC&#146;s auditor independence rules
and (b) routine and recurring services that will not impair the independence of the
independent registered public accounting firm may be approved by the Audit Committee
without consideration on a specific case-by-case basis (&#147;general pre-approval&#148;). However,
such services will only be deemed pre-approved provided that any individual project does
not exceed $5,000 attributable to the Fund or $50,000 for the project as a whole. Any
proposed services exceeding the pre-approved cost levels will require specific
pre-approval by the Audit Committee, as will any other services not subject to general
pre-approval (<I>e.g. </I>unanticipated but permissible services). The Audit Committee is
informed of each service approved subject to general pre-approval at the next regularly
scheduled in-person board meeting. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-audit
services provided to a Fund&#146;s Affiliated Service Providers that have a direct impact on
the operations or financial reporting of the Fund must be pre-approved by the Audit
Committee of ML &amp; Co. in addition to pre-approval by the Fund&#146;s Audit Committee. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
independent registered public accounting firm annually will provide the Audit Committee
with a detailed analysis of all fees paid by ML &amp; Co. and its affiliates. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Other</i>.
  Representatives of D&amp;T and E&amp;Y, as applicable, are expected to be present
  at the Meetings and will have an opportunity to make a statement if they so
  desire and to respond to questions from stockholders. </font> </p>
<p>&nbsp; </p>

<table width=100%>
  <tr>
    <td width=20% align=left><font size=1>&nbsp;</font></td>
    <td width=60% align=center><font size="2"> 12</font></td>
    <td width=20% align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<hr size=5 noshade width=100% align=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 15; page: 15" --> <!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Address of
  Investment Adviser </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  principal office of FAM is located at 800 Scudders Mill Road, Plainsboro, New
  Jersey 08536. </font></p>
<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Annual Report
  Delivery </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Each
  Fund will furnish, without charge, a copy of its Annual Report for the Fund&#146;s
  last fiscal year to any stockholder upon request</b>. Such requests should be
  directed to the applicable Fund, P.O. Box 9011, Princeton, New Jersey 08543-9011,
  Attention: Fund Secretary, or to 1-800-637-3863. </font> </p>
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Stockholder
  Proposals </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  Fund expects to hold its next Annual Meeting of Stockholders in August 2006.
  Proposals of Preferred Income, Capital and Income, and Preferred and Corporate
  stockholders intended to be presented at the meetings must be received by the
  applicable Fund by March 23, 2006 for inclusion in the Fund&#146;s proxy statement
  and form of proxy for the meeting. The By-laws of Preferred Income, Capital
  and Income, and Preferred and Corporate generally require that advance notice
  be given to the Fund in the event a stockholder desires to transact any business
  from the floor at an Annual Meeting of Stockholders. With respect to the 2006
  Annual Meetings, notice of such business must be in writing and received at
  the applicable Fund&#146;s principal executive office during the period from
  April 21, 2006 to May 22, 2006. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  a stockholder of Europe intends to present a proposal at the 2006 Annual Meeting
  of Stockholders, which is anticipated to be held in August 2006, and desires
  to have the proposal included in Europe&#146;s proxy statement and form of proxy
  for that meeting, the stockholder must deliver the proposal to Europe&#146;s
  offices by March 23, 2006. The persons named as proxies in the proxy materials
  for the 2006 Annual Meeting of Stockholders for Europe may exercise discretionary
  authority with respect to any stockholder proposal presented at such meeting
  if written notice of such proposal has not been received by Europe by June 6,
  2006. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written
proposals and notices should be sent to the Secretary of the applicable Fund, 800
Scudders Mill Road, Plainsboro, New Jersey 08536. </FONT></P>


<!-- MARKER FORMAT-SHEET="8K 3 col" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=33% align="left"><font size=2>By Order of the Boards of Directors</font></TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=33% align="left">&nbsp;</TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=33% align="left"><font size=2>A<font size="1">LICE</font> A. P<font size="1">ELLEGRINO</font>
      <br>
      <i>Secretary of Preferred Income Strategies <br>
      Fund, Inc., <br>
      Capital and Income Strategies <br>
      Fund, Inc., <br>
      Preferred and Corporate Income Strategies <br>
      Fund, Inc. and The Europe Fund, Inc. </i></font></TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=33%>&nbsp;</TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30% align="left"><font size=2>Dated: July 20, 2005 </font></TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=33%>&nbsp;</TD>
  </TR>
</TABLE>


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&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=60% ALIGN=center><FONT SIZE="2"> 13</FONT></TD>
    <TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>





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intentionally left blank) </FONT></P>

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<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined
terms used herein and not otherwise defined shall have the same meanings attributed
thereto in the Combined Proxy Statement to which these Exhibits are attached. </FONT></P>


<!-- MARKER FORMAT-SHEET="Right Head 2 Bold" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit A </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>INFORMATION
PERTAINING TO EACH FUND </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>General Information
Pertaining to the Funds </B></FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=600>
  <TR VALIGN=Bottom>
    <TH width="198">&nbsp;</TH>
    <TH width="106">&nbsp;</TH>
    <TH width="85">&nbsp;</TH>
    <TH width="71">&nbsp;</TH>
    <TH COLSPAN=3><FONT SIZE=1>Shares Outstanding as<BR>
      of the Record Date </FONT>
      <hr size="1" noshade width="90%">
    </TH>
  <TR VALIGN=Bottom>
    <TH align="left" width="198"><FONT SIZE=1>Fund </FONT>
      <hr size="1" noshade width="20%" align="left">
    </TH>
    <TH width="106"><FONT SIZE=1>Fiscal <BR>
      Year End </FONT>
      <hr size="1" noshade width="90%">
    </TH>
    <TH width="85"><FONT SIZE=1>State of <BR>
      Organization </FONT>
      <hr size="1" noshade width="90%">
    </TH>
    <TH width="71"><FONT SIZE=1>Meeting <BR>
      Time </FONT>
      <hr size="1" noshade width="90%">
    </TH>
    <TH width="84"><FONT SIZE=1>Common <BR>
      Stock </FONT>
      <hr size="1" noshade width="90%">
    </TH>
    <TH colspan="2"><FONT SIZE=1>AMPS </FONT>
      <hr size="1" noshade width="90%">
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="198"><FONT SIZE=2>Preferred Income</FONT></TD>
    <TD ALIGN=CENTER width="106"><FONT SIZE=2>October 31</FONT></TD>
    <TD ALIGN=CENTER width="85"><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=CENTER width="71"><FONT SIZE=2>11:30 am</FONT></TD>
    <TD ALIGN=center width="84"><FONT SIZE=2>40,593,070</FONT></TD>
    <TD ALIGN=RIGHT width="47"><FONT SIZE=2>22,000</FONT></TD>
    <TD ALIGN=RIGHT width="9">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="198"><FONT SIZE=2>Capital and Income</FONT></TD>
    <TD ALIGN=CENTER width="106"><FONT SIZE=2>December 31</FONT></TD>
    <TD ALIGN=CENTER width="85"><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=CENTER width="71"><FONT SIZE=2>11:45 am</FONT></TD>
    <TD ALIGN=center width="84"><FONT SIZE=2>12,830,236</FONT></TD>
    <TD ALIGN=RIGHT width="47"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=RIGHT width="9">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="198"><FONT SIZE=2>Preferred and Corporate</FONT></TD>
    <TD ALIGN=CENTER width="106"><FONT SIZE=2>October 31</FONT></TD>
    <TD ALIGN=CENTER width="85"><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=CENTER width="71"><FONT SIZE=2>12:00 pm</FONT></TD>
    <TD ALIGN=center width="84"><FONT SIZE=2>10,279,189</FONT></TD>
    <TD ALIGN=RIGHT width="47"><FONT SIZE=2>5,460</FONT></TD>
    <TD ALIGN=RIGHT width="9">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="198"><FONT SIZE=2>Europe</FONT></TD>
    <TD ALIGN=CENTER width="106"><FONT SIZE=2>December 31</FONT></TD>
    <TD ALIGN=CENTER width="85"><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=CENTER width="71"><FONT SIZE=2>12:15 pm</FONT></TD>
    <TD ALIGN=center width="84"><FONT SIZE=2>10,066,319</FONT></TD>
    <TD ALIGN=RIGHT width="47"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=RIGHT width="9">&nbsp;</TD>
  </TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Board and Committee
Meetings </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
  forth in the table below is information regarding Board, Audit Committee and
  Nominating Committee meetings held, current annual and per meeting fees paid
  to each non-interested Director and the aggregate fees and expenses paid by
  each Fund to the non-interested Directors during each Fund&#146;s most recently
  completed fiscal year. </FONT></P>







<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=700>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center colspan="5"><b><font size=1>Board </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center colspan="5"><b><font size=1>Audit Committee </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center colspan="3"><b><font size=1>Nominating <br>
      Committee </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left><b><font size="1">Fund </font></b>
      <hr size="1" noshade width="30%" align="left">
    </TD>
    <TD ALIGN=center><b><font size="1">No. of <br>
      Meeting <br>
      Held* </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size="1">Annual <br>
      Fee ($) </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size="1">Per <br>
      Meetings <br>
      Fee ($)** </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size="1">No. of <br>
      Meeting <br>
      Held* </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size="1">Annual <br>
      Fee ($)*** </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size="1">Per <br>
      Meetings <br>
      Fee ($)** </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size="1">No. of <br>
      Meetings <br>
      Held* </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;&nbsp;</TD>
    <TD ALIGN=center><b><font size="1">Per <br>
      Meetings <br>
      Fee ($)** </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;&nbsp;</TD>
    <TD ALIGN=center colspan="2"><b><font size="1">Aggregate <br>
      Fees and <br>
      Expenses($) </font></b>
      <hr size="1" noshade>
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred Income</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>500</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;</FONT></TD>
    <TD ALIGN=center><font size="2">0</font></TD>
    <TD ALIGN=center><font size="2"></font></TD>
    <TD ALIGN=center><font size="2">0</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>94,534</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Capital and&nbsp;Income</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>500</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><font size="2">0</font></TD>
    <TD ALIGN=center><font size="2"></font></TD>
    <TD ALIGN=center><font size="2">0</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>12,334</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&#134;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred and&nbsp;Corporate</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>500</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><font size="2">0</font></TD>
    <TD ALIGN=center><font size="2"></font></TD>
    <TD ALIGN=center><font size="2">0</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>30,533</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Europe</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>500</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><font size="2">0</font></TD>
    <TD ALIGN=center><font size="2"></font></TD>
    <TD ALIGN=center><font size="2">0</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>13,685</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

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<HR SIZE=1 noshade ALIGN=left  WIDTH=75>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">  * </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Includes
telephonic meetings.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> ** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">The
fee is payable for each meeting attended in person. A fee is not paid for telephonic
meetings. </FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">*** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Does
not include the additional fee paid to the Chairman of the Audit Committee.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR>
    <TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> &#134; </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">For the period April 30,
      2004 (commencement of operations) to December 31, 2004. </FONT></TD>
  </TR></TABLE>

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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
A-1</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>





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intentionally left blank) </FONT></P>

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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>





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<!-- MARKER FORMAT-SHEET="Right Head Bold" FSL="Workstation" -->
<P ALIGN=Right><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit B </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>INFORMATION
PERTAINING TO THE DIRECTOR NOMINEES </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Year in Which Each
Director Nominee of Each Fund Became a Director </B></FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=600>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center><font size="1"><b>Preferred <br>
      Income </b></font>
      <hr size="1" noshade width="70%">
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><font size="1"><b>Capital and <br>
      Income </b></font>
      <hr size="1" noshade width="70%">
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><font size="1"><b>Preferred and <br>
      Corporate </b></font>
      <hr size="1" noshade width="70%">
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><font size="1"><b>Europe </b></font>
      <hr size="1" noshade width="70%">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>David O. Beim</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2004</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1998</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Robert C. Doll, Jr.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2005</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>James T. Flynn</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2004</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1999</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>W. Carl Kester</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2004</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1998</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Karen P. Robards</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2004</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1998</FONT></TD>
  </TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Compensation of
Non-Interested Directors </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth in the table below is information regarding the compensation paid by each Fund to
the non-interested Directors for each Fund&#146;s most recently completed fiscal year and the
aggregate compensation paid by MLIM/FAM-advised funds to the non-interested Directors for
the calendar year ended December 31, 2004. </FONT></P>






<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=600>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH rowspan="4"><FONT SIZE=1>Aggregate <BR>
      Compensation <BR>
      from Funds <BR>
      and Other <BR>
      MLIM/FAM- <BR>
      Advised Funds($) </FONT>
      <hr size="1" noshade width="85%">
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4><FONT SIZE=1>Compensation from the Fund ($)***</FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH align="left">&nbsp;</TH>
    <TH COLSPAN=4>
      <hr size="1" noshade>
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH align="left"><FONT SIZE=1>Name </FONT>
      <hr size="1" noshade align="left" width="40">
    </TH>
    <TH><FONT SIZE=1>Preferred <BR>
      Income </FONT>
      <hr size="1" noshade width="85%">
    </TH>
    <TH><FONT SIZE=1>Capital and <BR>
      Income </FONT>
      <hr size="1" noshade width="85%">
    </TH>
    <TH><FONT SIZE=1>Preferred and <BR>
      Corporate </FONT>
      <hr size="1" noshade width="85%">
    </TH>
    <TH><FONT SIZE=1>Europe </FONT>
      <hr size="1" noshade width="85%">
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>David O. Beim*</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>20,865</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2,592</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>6,414</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2,889</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>113,083</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>James T. Flynn</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>21,365</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,092</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>6,914</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,389</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>121,583</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>W. Carl Kester</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>21,365</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,092</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>6,914</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,389</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>121,583</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Karen P. Robards**</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>23,459</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,263</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>7,445</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,539</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>131,583</FONT></TD>
  </TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" -->
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">  * </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Chairman of each Fund&#146;s
      Audit Committee.</FONT></TD>
  </TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> ** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Chairman
of each Fund&#146;s Board.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">*** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">No
pension or retirement benefits are accrued as part of Fund expenses.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
B-1</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 3; page: 3" -->





<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ownership of Shares of
Common Stock and AMPS by Director Nominees as of the Record Date </B></FONT></P>








<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=650>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><font size=1>Director-Nominee </font></b>
      <hr size="1" noshade width="55%" align="left">
    </TD>
    <TD ALIGN=center><b><font size=1>Fund </font></b>
      <hr size="1" noshade width="45%">
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size=1>Common <br>
      Stock </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size=1>AMPS </font></b>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size=1>Aggregate <br>
      Dollar <br>
      Range of <br>
      Equity <br>
      Securities <br>
      in the Fund </font></b>
      <hr size="1" noshade width="65%">
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size=1>Aggregate Dollar <br>
      Range of Equity <br>
      Securities in all <br>
      MLIM/FAM-Advised <br>
      Funds overseen by <br>
      each Director-Nominee </font></b>
      <hr size="1" noshade width="95%">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2><i>Interested Director:</i></FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;Robert C. Doll, Jr.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><font size=2>over $100,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Capital and Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred and Corporate</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Europe</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2><i>Non-Interested Directors:</i></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;David O. Beim</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <td align=CENTER><font size=2>over $100,000</font></td>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Capital and Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred and Corporate</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Europe</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;James T. Flynn</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>3,300</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>$50,001 - $100,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><font size=2>over $100,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Capital and Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred and Corporate</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2,200</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>$10,001 - $50,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Europe</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;W. Carl Kester</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>$10,001 - $50,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><font size=2>$50,001 - $100,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Capital and Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><font size=2>$10,001 - $50,000</font></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred and Corporate</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>$10,001 - $50,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Europe</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>$10,001 - $50,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;Karen P. Robards</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;&nbsp;690</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><font size=2>$10,001 - $50,000</font></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><font size=2>over $100,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Capital and Income</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;&nbsp;850</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><font size=2>$10,001 - $50,000</font></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Preferred and Corporate</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;&nbsp;675</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><font size=2>$10,001 - $50,000</font></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Europe</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2,350</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>$10,001 - $50,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
</TABLE>


<br>
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<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
B-2</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>






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<!-- MARKER PAGE="sheet: 4; page: 4" -->









<!-- MARKER FORMAT-SHEET="Right Head Bold" FSL="Workstation" -->
<P ALIGN=Right><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit C </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>INFORMATION
PERTAINING TO THE OFFICERS </B></FONT></P>


<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
  <tr>
    <td valign=bottom align="left" width=112> <b><font size="1">Name, Address*
      and Age </font> </b>
      <hr size="1" noshade align="left" width="110">
    </td>
    <td valign=top width=6>&nbsp; </td>
    <td valign=bottom align="center" width=142><b><font size="1"> Positions Held
      With <br>
      Applicable Funds; <br>
      Term of Office** and <br>
      Length of Time Served </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=16>&nbsp; </td>
    <td valign=bottom align="center" width=207><b><font size="1">Principal Occupation(s)
      <br>
      During Past Five Years </font> </b>
      <hr size="1" noshade width="195">
    </td>
    <td valign=bottom align="center" width=12>&nbsp; </td>
    <td valign=bottom align="center" width=81><b><font size="1"> Number of MLIM/FAM-Advised
      Funds and Portfolios Overseen </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=15>&nbsp; </td>
    <td valign=bottom align="center" width=109><b><font size="1"> Public Directorships
      </font> </b>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">Robert C. Doll, Jr.&#134; (50)</font></td>
    <td valign=top width=6>&nbsp;</td>
    <td valign=top width=142><font size="1">President and Director of each Fund
      since 2005.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">President of MLIM/FAM-advised funds
      since 2005; President of MLIM and FAM since 2001; Co-Head (Americas Region)
      of MLIM and FAM from 2000 to 2001 and Senior Vice President from 1999 to
      2001; President and Director of Princeton Services, Inc. (&#147;Princeton Services&#148;)
      since 2001; President of Princeton Administrators, L.P. (&#147;Princeton Administrators&#148;)
      since 2001; Chief Investment Officer of OppenheimerFunds, Inc. in 1999 and
      Executive Vice President thereof from 1991 to 1999.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">125 registered investment companies
      consisting of <br>
      169 portfolios</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=112>&nbsp;</td>
    <td valign=top width=6>&nbsp;</td>
    <td valign=top width=142>&nbsp;</td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81>&nbsp;</td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">Donald C. Burke (45)</font></td>
    <td valign=top width=6>&nbsp;</td>
    <td valign=top width=142><font size="1">Vice President and Treasurer of Capital
      and Income since 2004; Vice President and Treasurer of Preferred and Preferred
      and Corporate since 2003; Vice President and Treasurer of Europe since 1999.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">.First Vice President of FAM and MLIM
      since 1997 and Treasurer thereof since 1999; Senior Vice President and Treasurer
      of Princeton Services since 1999 and Director since 2004; Vice President
      of FAM Distributors, Inc. (&#147;FAMD&#148;) FAMD since 1999; Vice President

      of FAM and MLIM from 1990 to 1997; Director of Taxation of MLIM from 1990
      to 2001; Vice President, Treasurer and Secretary of the IQ Funds since 2004.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">130 registered investment companies
      consisting of <br>
      174 portfolios</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=112>&nbsp;</td>
    <td valign=top width=6>&nbsp;</td>
    <td valign=top width=142>&nbsp;</td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81>&nbsp;</td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">John D. Burger (43)</font></td>
    <td valign=top width=6>&nbsp;</td>
    <td valign=top width=142><font size="1">Vice President and Co-Portfolio Manager
      of Preferred and Preferred and Corporate since 2003.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">Managing Director of MLIM since 2000;
      and Director (Global Fixed Income) of MLIM since 1998.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">11 registered investment companies
      consisting of <br>
      8 portfolios</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
</table>
<br>
<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
C-1</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 5; page: 5" -->
<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
  <tr>
    <td valign=bottom align="left" width=112> <b><font size="1">Name, Address*
      and Age </font> </b>
      <hr size="1" noshade align="left" width="110">
    </td>
    <td valign=top width=16>&nbsp; </td>
    <td valign=bottom align="center" width=132><b><font size="1"> Positions Held
      With <br>
      Applicable Funds; <br>
      Term of Office** and <br>
      Length of Time Served </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=16>&nbsp; </td>
    <td valign=bottom align="center" width=207><b><font size="1">Principal Occupation(s)
      <br>
      During Past Five Years </font> </b>
      <hr size="1" noshade width="195">
    </td>
    <td valign=bottom align="center" width=12>&nbsp; </td>
    <td valign=bottom align="center" width=81><b><font size="1"> Number of MLIM/FAM-Advised
      Funds and Portfolios Overseen </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=15>&nbsp; </td>
    <td valign=bottom align="center" width=109><b><font size="1">Public Directorships
      </font> </b>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">Thomas Musmanno (36)</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132><font size="1">Vice President and Co-Portfolio Manager
      of Preferred and Preferred and Corporate since 2003.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">Director (Global Fixed Income) of
      MLIM since 2004; Vice President of MLIM from 1997 to 2004.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">8 registered investment companies consisting
      of <br>
      6 portfolios</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">&nbsp;&nbsp;</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132>&nbsp;</td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81>&nbsp;</td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">Gavin Corr (37)</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132><font size="1">Vice President and Portfolio Manager
      of Europe since 2005.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">Managing Director of MLIM since 2005. Fund Manager
of Morley Fund Management from 2002 to 2004; Chief Investment Director of International Mutual Funds at
American Express Asset Management from 1995 to 2002.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">3 registered investment companies consisting
      of <br>
      1&nbsp;portfolio</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">&nbsp;&nbsp;</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132>&nbsp;</td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81>&nbsp;</td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">Kevin Rendino (38)</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132><font size="1">Vice President of Capital and Income
      since 2005.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">Managing Director of MLIM since 2000;
      First Vice President of MLIM from 1997 to 2000.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">8 registered investment companies consisting
      of <br>
      4 portfolios</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">&nbsp;&nbsp;</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132>&nbsp;</td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81>&nbsp;</td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">Robert Martorelli (48)</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132><font size="1">Vice President of Capital and Income
      since 2005.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">Managing Director of MLIM since 2000;
      First Vice President of MLIM from 1997 to 2000.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">5 registered investment companies consisting
      of <br>
      3 portfolios</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">&nbsp;&nbsp;</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132>&nbsp;</td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81>&nbsp;</td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">John Burger (43)</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132><font size="1">Vice President of Capital and Income
      since 2005.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">Managing Director of MLIM since 2004;
      Director (Global Fixed Income) of MLIM from 1998 to 2004; Vice President
      of MLIM from 1993 to 1998.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">11 registered investment companies
      consisting of <br>
      8 portfolios</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">&nbsp;&nbsp;</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132>&nbsp;</td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81>&nbsp;</td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">Romualdo Roldan (58)</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132><font size="1">Vice President of Capital and Income
      since 2005.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">Vice President of MLIM since 1998;
      Portfolio Manager of MLIM since 1999; Senior Vice President of Santander
      Investments from 1995 to 1998.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">2 registered investment companies consisting
      of <br>
      2 portfolios</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=112>&nbsp;</td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=132>&nbsp;</td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81>&nbsp;</td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">Patrick Maldari (43)</font></td>
    <td valign=top width=6>&nbsp;</td>
    <td valign=top width=142><font size="1">Vice President of Capital and Income
      since 2005.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">Managing Director of MLIM since 2000;
      Director (Global Fixed Income) of MLIM from 1997-2000.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">9 registered investment companies consisting
      of <br>
      5 portfolios</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
</table>
<br>
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<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
C-2</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>
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<!-- MARKER PAGE="sheet: 6; page: 6" -->
<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
  <tr>
    <td valign=bottom align="left" width=112> <b><font size="1">Name, Address*
      and Age </font> </b>
      <hr size="1" noshade align="left" width="110">
    </td>
    <td valign=top width=6>&nbsp; </td>
    <td valign=bottom align="center" width=142><b><font size="1"> Positions Held
      With <br>
      Applicable Funds; <br>
      Term of Office** and <br>
      Length of Time Served </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=16>&nbsp; </td>
    <td valign=bottom align="center" width=207><b><font size="1">Principal Occupation(s)
      <br>
      During Past Five Years </font> </b>
      <hr size="1" noshade width="195">
    </td>
    <td valign=bottom align="center" width=12>&nbsp; </td>
    <td valign=bottom align="center" width=81><b><font size="1"> Number of MLIM/FAM-Advised
      Funds and Portfolios Overseen </font> </b>
      <hr size="1" noshade>
    </td>
    <td valign=bottom align="center" width=15>&nbsp; </td>
    <td valign=bottom align="center" width=109><b><font size="1"> Public Directorships
      </font> </b>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">Jeffrey Hiller (53)</font></td>
    <td valign=top width=6>&nbsp;</td>
    <td valign=top width=142><font size="1">Chief Compliance Officer of each Fund
      since 2004.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">Chief Compliance Officer of the MLIM/FAM-advised
      funds and First Vice President and Chief Compliance Officer of MLIM (Americas
      Region) since 2004; Chief Compliance Officer of the IQ Funds since 2004;
      Global Director of Compliance at Morgan Stanley Investment Management from
      2002 to 2004; Managing Director and Global Director of Compliance at Citigroup
      Asset Management from 2000 to 2002; Chief Compliance Officer at Soros Fund
      Management in 2000; Chief Compliance Officer at Prudential Financial from
      1995 to 2000; Senior Counsel in the Securities and Exchange Commission&#146;s
      Division of Enforcement in Washington, D.C. from 1990 to 1995.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">131 registered investment companies
      consisting of <br>
      175 portfolios</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
  <tr align="left">
    <td valign=top width=112>&nbsp;</td>
    <td valign=top width=6>&nbsp;</td>
    <td valign=top width=142>&nbsp;</td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207>&nbsp;</td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81>&nbsp;</td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109>&nbsp;</td>
  </tr>
  <tr align="left">
    <td valign=top width=112><font size="1">Alice A. Pellegrino (45)</font></td>
    <td valign=top width=6>&nbsp;</td>
    <td valign=top width=142><font size="1">Secretary of each Fund since 2004.</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=207><font size="1">Director (Legal Advisory) of MLIM
      since 2002; Vice President of MLIM from 1999 to 2002; Attorney associated
      with MLIM since 1997; Secretary of MLIM, FAM, FAMD and Princeton Services
      since 2004.</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=81><font size="1">127 registered investment companies
      consisting of <br>
      171 portfolios</font></td>
    <td valign=top width=15>&nbsp;</td>
    <td valign=top width=109><font size="1">None</font></td>
  </tr>
</table>
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>

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<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> * </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">The
address of each officer listed above is P.O. Box 9011, Princeton, New Jersey 08543-9011. </FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Elected
by and serves at the pleasure of the Board of Directors of each Fund.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> &#134; </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Mr.
Doll is an &#147;interested person,&#148; as defined in the Investment Company       Act, of each
Fund based on his positions with FAM, MLIM, Princeton       Services and Princeton
Administrators.                                        </FONT></TD></TR></TABLE>


<br>
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C-3</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>





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<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>





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<P ALIGN=Right><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit D </B></FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>AUDIT COMMITTEE
CHARTER </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
document serves as the Charter for the Audit Committee of each fund (the &#147;Fund&#148;) advised
by Merrill Lynch Investment Managers, L.P., Fund Asset Management, L.P., or any
affiliated investment adviser (the &#147;investment adviser&#148;) listed on Appendix A hereto
(each such Charter being a separate Charter). The Board of Directors/Trustees of each
Fund (the &#147;Board&#148;) has adopted the following Audit Committee Charter (the &#147;Charter&#148;). </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>I. Composition of the
  Audit Committee </b></FONT></P>
<b><!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" --> </b>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee shall be composed of at least three Directors/Trustees: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (a)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>each
of whom shall not be an &#147;interested person&#148; of the Fund, as            defined in Section
2(a)(19) of the Investment Company Act of 1940            (the &#147;1940 Act&#148;) (each, an
&#147;Independent Director&#148;); </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (b)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>each
of whom shall not accept directly or indirectly any consulting,            advisory, or
other compensatory fee from the Fund (other than fees            for serving on the Board
or any committee thereof and fixed amounts            of compensation under a retirement
plan for prior service with a Fund            listed or quoted on a stock exchange or
market quotation system            (&#147;Listed Fund&#148;)); and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (c)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>each
of whom shall satisfy the independence and experience            requirements for any
stock exchange or market quotation system on            which Fund shares are or become
listed or quoted. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board shall use its best efforts to ensure that at least one of the members of the Audit
Committee is an &#147;audit committee financial expert,&#148; as defined in rules of the Securities
and Exchange Commission. For those Funds listed on the New York Stock Exchange, no member
of the Audit Committee may serve on more than three public company audit committees
unless the Board determines that such simultaneous service would not impair the ability
of such member to serve effectively on the Audit Committee. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>II. Purposes of the Audit
  Committee </b></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee shall be responsible for: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
    <TD WIDTH=5% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (1) </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>assisting
Board oversight of the  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           (a)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>integrity
of the Fund&#146;s financial statements; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           (b)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fund&#146;s
compliance with legal and regulatory requirements; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           (c)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>independent
accountants&#146; qualifications and independence; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           (d)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>performance
of the Fund&#146;s internal audit function and the Fund&#146;s independent accountants; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
    <TD WIDTH=5% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (2) </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[for
Listed Funds] preparation, or overseeing the preparation of, any            audit
committee report required by rules of the Securities and            Exchange Commission
to be included in the Fund&#146;s proxy statement for            its annual meeting of
shareholders. </FONT></TD>
</TR>
</TABLE>
<BR>

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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
D-1</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>III. Responsibilities
  and Duties of the Audit Committee </b></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund&#146;s independent accountants shall report directly to the Audit Committee. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
may be necessary or appropriate to carry out its purposes, or to comply with applicable
law or the requirements of any securities exchange or market quotation system on which
Fund shares are or may become listed or quoted, the Audit Committee shall have the
following responsibilities and duties: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (a)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
appointment, compensation, retention and oversight of the work of            the Fund&#146;s
independent accountants, including the resolution of            disagreements between
management and the independent accountants            regarding financial reporting;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (b)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
(i) select an accounting firm to (1) serve as the Fund&#146;s            independent
accountants, (2) audit the Fund&#146;s financial statements on            an annual basis, and
(3) provide an opinion on an annual basis with            respect to the Fund&#146;s financial

statements, and (ii) recommend that            the Independent Directors ratify such
selection; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (c)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
pre-approve (i) all audit and permissible non-audit services to be            provided to
the Fund by the Fund&#146;s independent accountants and (ii)            all permissible
non-audit services to be provided by the Fund&#146;s            independent accountants to the
Fund&#146;s investment adviser or any            entity controlling, controlled by, or under
common control with the            investment adviser (&#147;adviser affiliate&#148;) that provides
ongoing            services to the Fund, if the engagement by the adviser affiliate
           relates directly to the operations and financial reporting of the
           Fund; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (d)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>if
determined to be advisable, to develop policies and procedures for
           pre-approval of the engagement of the Fund&#146;s independent accountants
           to provide any of the audit or non-audit services described in
           Section III(c) above; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (e)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
consider whether each non-audit service provided by the Fund&#146;s            independent
accountants to the Fund and to the Fund&#146;s investment            adviser or any adviser
affiliate that provides ongoing services to            the Fund is compatible with
maintaining the independence of such            independent accountants; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (f)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
ensure that the Fund&#146;s independent accountants submit on a            periodic basis to
the Audit Committee a formal written statement            delineating all relationships
between such independent accountants            and the Fund, consistent with
Independence Standards Board Standard            No. 1, and to actively engage in a
dialogue with, and receive and            consider specific representations from, the
Fund&#146;s independent            accountants with respect to any disclosed relationships or
services            that may affect the objectivity and independence of such independent
           accountants; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (g)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
review the arrangements for annual and special audits and the            scope of such
audits with the Fund&#146;s independent accountants; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (h)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[for
Listed Funds] to meet to review and discuss the Fund&#146;s audited            financial
statements and, to the extent required by applicable law or            regulations, the
Fund&#146;s semi-annual financial statements with Fund            management and the Fund&#146;s
independent accountants, including the            Fund&#146;s disclosure of management&#146;s
discussion of Fund performance; </FONT></TD>
</TR>
</TABLE>
<BR>

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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
D-2</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>





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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (i)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
review with the Fund&#146;s independent accountants any audit problems            or
difficulties the accountants may have encountered during or            relating to the
conduct of the audit, including any matters required            to be discussed pursuant
to Statement of Accounting Standards No. 61,            or any subsequent Statement, and
management&#146;s response; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (j)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
establish and administer policies and procedures relating to the            hiring by the
Fund, its investment adviser, or any administrator that            is an adviser
affiliate of employees or former employees of the            Fund&#146;s independent
accountants; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (k)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
consider information and comments from the Fund&#146;s independent            accountants with
respect to the Fund&#146;s accounting and financial            reporting policies, procedures
and internal control over financial            reporting (including the Fund&#146;s critical
accounting policies and            practices) and management&#146;s responses to any such
comments; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (l)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to

request, receive and/or review from the Fund&#146;s independent            accountants such
other materials as may be deemed necessary or            advisable in the discretion of
the Committee in the exercise of its            duties under this Charter; such materials
may (but are not required            to) include, without limitation, any other material
written            communications bearing on the Fund&#146;s financial statements, or
           internal or disclosure controls, between the independent accountants
           and the Fund, the investment adviser, the Fund&#146;s sub-adviser(s), if
           any, or other Fund service providers, such as any management letter
           or schedule of unadjusted differences; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (m)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>at
least annually, to obtain and review a report by the Fund&#146;s            independent
accountants describing: (i) such independent accountants&#146;            internal
quality-control procedures; (ii) any material issues raised            by the most recent
internal quality-control review, or peer review,            of such independent
accountants, or by any inquiry or investigation            by governmental or
professional authorities, within the preceding            five years, respecting one or
more independent audits carried out by            such firm, and any steps taken to deal
with any such issues; and            (iii) all relationships between the Fund&#146;s
independent accountants            and the Fund, the investment adviser and adviser
affiliates (to            assess the independence of the Fund&#146;s independent accountants); </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (n)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[for
Listed Funds] to discuss in general the Fund&#146;s earnings press            releases, as
well as any financial information and earnings guidance            provided to analysts
and rating agencies, if any (<I>e.g. </I>, the types of            information to be disclosed
and the type of presentation to be made); </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (o)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
establish procedures for: (i) the receipt, retention, and            treatment of
complaints received by the Fund regarding accounting,            internal accounting
controls, or auditing matters; and (ii) the            confidential, anonymous submission
of concerns by employees of the            Fund&#146;s investment adviser, manager,
administrator, principal            underwriter, or any other provider of accounting
related services for            the Fund regarding questionable accounting or auditing
matters; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (p)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
address reports received from attorneys in accordance with            procedures adopted
by the Fund&#146;s investment adviser relating to the            possible violation of federal
or state law or fiduciary duty; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (q)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[for
Listed Funds] to discuss with Fund management and the Fund&#146;s            independent
accountants policies with respect to risk assessment and            risk management; </FONT></TD>
</TR>
</TABLE>
<BR>

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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
D-3</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>





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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (r)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[for
Listed Funds] to assist the Fund, if necessary, in preparing any            written
affirmation or written certification required to be filed            with any stock
exchange or market quotation system on which Fund            shares are or become listed
or quoted; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 10" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (s)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>on
an annual basis, to review and reassess the adequacy of this            Charter,
recommend any changes to the Board, and evaluate the            performance of the Audit
Committee; and </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 10" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (t)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
perform such other functions and to have such other powers            consistent with
this Charter, the Fund&#146;s Articles of Incorporation or            Declaration of Trust, as
amended and supplemented, the Fund&#146;s            By-laws, as amended, and applicable law,
as the Audit Committee or            the Board deems necessary or appropriate. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee may delegate any portion of its authority, including the authority to
grant preapprovals of audit related services and permitted non-audit services, to a
subcommittee of one or more members of the Audit Committee pursuant to preapproval
policies and procedures established by the Audit Committee; provided, however, that the
Audit Committee may not delegate preapproval of the audit required by the Securities
Exchange Act of 1934. Any decision of such subcommittee of the Audit Committee to grant
preapprovals shall be presented to the full Audit Committee at its next regularly
scheduled meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
function of the Audit Committee is oversight; it is the responsibility of Fund management
to maintain appropriate systems for accounting and internal control over financial
reporting, and the responsibility of the Fund&#146;s independent accountants to plan and carry
out a proper audit. Specifically, Fund management is responsible for: (1) the
preparation, presentation and integrity of the Fund&#146;s financial statements; (2) the
maintenance of appropriate accounting and financial reporting principles and policies;
and (3) the maintenance of internal control over financial reporting and other procedures
designed to assure compliance with accounting standards and related laws and regulations.
The Fund&#146;s independent accountants are responsible for planning and carrying out an audit
consistent with applicable legal and professional standards and the terms of their
engagement letter. Nothing in this Charter shall be construed to reduce the
responsibilities or liabilities of the Fund&#146;s service providers, including the Fund&#146;s
independent accountants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
the Audit Committee is expected to review appropriately the matters that come before it,
such review of a Fund&#146;s financial statements by the Audit Committee is not an audit, nor
does the Committee&#146;s review substitute for the responsibilities of the Fund&#146;s management
for preparing, or the Fund&#146;s independent accountants for auditing, the financial
statements. Members of the Audit Committee are not full-time employees of the Fund and,
in serving on the Audit Committee, are not, and do not hold themselves out to be, acting
as accountants or auditors. As such, it is not the duty or responsibility of the Audit
Committee or its members to conduct &#147;field work&#148; or other types of auditing or accounting

reviews or procedures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
discharging their duties, the members of the Audit Committee are entitled to rely on
information, opinions, reports, or statements, including financial statements and other
financial data, if prepared or presented by: (1) one or more officers of the Fund whom
the Board reasonably believes to be reliable and competent in the matters presented; (2)
legal counsel, public accountants, or other persons as to matters the Board reasonably
believes are within the person&#146;s professional or expert competence; or (3) a committee of
the Board. </FONT></P>

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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
D-4</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>





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<!-- MARKER PAGE="sheet: 12; page: 12" -->







<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IV. Meetings </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee shall meet on a regular basis but no less frequently than annually. The
Audit Committee periodically shall meet separately with the Fund&#146;s independent
accountants, Fund management, and representatives of Fund management responsible for the
financial and accounting operations of the Fund. The Audit Committee may hold special
meetings at such times as the Audit Committee believes necessary or appropriate. Members
of the Audit Committee may participate in a meeting of the Audit Committee by means of
conference call or similar communications equipment by means of which all persons
participating in such meeting can hear each other. </FONT></P>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>V. Assistance from
Fund Management; Authority to Engage Advisers; Funding </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
appropriate officers of the Fund shall provide or arrange to provide such information,
data and services as the Audit Committee may request. The Audit Committee shall have the
power and authority to take all action it believes necessary or appropriate to discharge
its responsibilities, including the power and authority to retain independent counsel and
other advisers. The Fund shall provide for appropriate funding, as determined by the
Audit Committee as a committee of the Board, for payment of: (i) compensation to the
Fund&#146;s independent accountants or any other accounting firm engaged for the purpose of

preparing or issuing an audit report or performing other audit, review, or attest
services for the Fund, (ii) compensation to any advisers employed by the Audit Committee
under this Section V, and (iii) ordinary administrative expenses of the Audit Committee
that are necessary or appropriate in carrying out its responsibilities. </FONT></P>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>VI. Reporting </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Chairman or Chairwoman of the Audit Committee shall report to the Board on the results of
its deliberations and make such recommendations as deemed necessary or appropriate. </FONT></P>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>VII. Amendments </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Charter may be amended or modified from time to time by vote of the Board. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: February 25, 2005 (Cluster D) </FONT></P>






<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
D-5</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade>
<p><BR>
  <!-- *************************************************************************** -->
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<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>APPENDIX A  </B></FONT></P>



<table border=0 cellspacing=0 cellpadding=0 width="640" align="center">
  <tr valign="bottom">
    <td> <font size="1"><b>Closed-end Listed Funds</b> </font>
      <hr noshade size="1" width="120" align="left">
    </td>
    <td><font size="1"></font></td>
    <td> <font size="1"><b>Closed-end (non-listed) Funds</b> </font>
      <hr noshade size="1" width="140" align="left">
    </td>
    <td><font size="1"></font></td>
    <td> <font size="1"><b>Open-end funds</b> </font>
      <hr noshade size="1" width="80" align="left">
    </td>
  </tr>
  <tr valign="top">
    <td>
      <p><font size="1">Europe Fund, Inc. <br>
        <br>
        Capital and Income Strategies Fund, Inc. <br>
        <br>
        Preferred Income Strategies Fund, Inc. <br>
        <br>
        Preferred &amp; Corporate Income Strategies Fund, Inc. <br>
        <br>
        Enhanced Equity Yield Fund, Inc. <br>
        <br>
        Enhanced Equity Yield &amp; Premium Fund, Inc.</font></p>
    </td>
    <td><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td>
      <p><font size="1">Multi-Strategy Hedge Opportunities LLC <br>
        <br>
        Multi-Strategy Hedge Advantage LLC</font></p>
    </td>
    <td><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td>
      <p><font size="1">FDP Series, Inc. <br>
        &nbsp;&nbsp;&nbsp;MFS International FDP Fund <br>
        &nbsp;&nbsp;&nbsp;Marsico Growth FDP Fund <br>
        &nbsp;&nbsp;&nbsp;Van Kampen Value FDP Fund <br>
        &nbsp;&nbsp;&nbsp;Franklin Templeton Total Return FDP Fund <br>
        <br>
        Master Real Investment Trust <br>
        &nbsp;&nbsp;&nbsp;ML Real Investment Fund <br>
        <br>
        Master Inflation Protected Trust <br>
        &nbsp;&nbsp;&nbsp;ML Inflation Protected Fund <br>
        <br>
        GNMA Fund Investment Accumulation Program, Inc. <br>
        <br>
        ML Principal Protected Trust <br>
        &nbsp;&nbsp;&nbsp;ML Basic Value Principal Protected Fund <br>
        &nbsp;&nbsp;&nbsp;ML Fundamental Growth Principal Protected Fund <br>
        &nbsp;&nbsp;&nbsp;ML Core Principal Protected Fund <br>
        <br>
        Mercury Master Trust <br>
        &nbsp;&nbsp;&nbsp;Master International Portfolio <br>
        &nbsp;&nbsp;&nbsp;Master Small Cap Growth Portfolio <br>
        <br>
        Mercury Funds, Inc. <br>
        &nbsp;&nbsp;&nbsp;ML International Fund <br>
        &nbsp;&nbsp;&nbsp;ML Small Cap Growth Fund <br>
        <br>
        Master Institutional Money Market Trust <br>
        &nbsp;&nbsp;&nbsp;Master Premier Institutional Fund <br>
        &nbsp;&nbsp;&nbsp;Master Institutional Fund <br>
        &nbsp;&nbsp;&nbsp;Master Institutional Tax-Exempt Fund <br>
        &nbsp;&nbsp;&nbsp;Master Government Fund <br>
        &nbsp;&nbsp;&nbsp;Master Treasury Fund <br>
        <br>
        ML Funds for Institutions Series <br>
        &nbsp;&nbsp;&nbsp;ML Premier Institutional Fund <br>
        &nbsp;&nbsp;&nbsp;ML Institutional Fund <br>
        &nbsp;&nbsp;&nbsp;ML Institutional Tax-Exempt Fund <br>
        &nbsp;&nbsp;&nbsp;ML Government Fund <br>
        &nbsp;&nbsp;&nbsp;ML Treasury Fund </font></p>
    </td>
  </tr>
</table>
<p><BR>
</p>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
D-6</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade>
<BR>







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<!-- MARKER PAGE="sheet: 1; page: 1" -->





<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CHARTER OF THE
NOMINATING COMMITTEE </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ORGANIZATION </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Nominating Committee (the
&#147;Committee&#148;) of the Board of Directors/Trustees for the registered investment companies
(each a &#147;Fund&#148; and collectively, the &#147;Funds&#148;) listed on Exhibit A attached hereto shall
be composed solely of Directors/Trustees who are not &#147;interested persons&#148; of the Fund as
defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the &#147;1940
Act&#148;), and who are &#147;independent&#148; as defined in the New York Stock Exchange and the
American Stock Exchange (each, an &#147;Exchange&#148;) listing standards (if applicable)
(&#147;Independent Directors&#148;). The Board of Directors/Trustees of the Fund (the &#147;Board&#148;)
shall appoint the members of the Committee (which may or may not be all of the
Independent Directors) and shall designate the Chairman of the Committee. The Committee
shall have authority to retain outside counsel and other advisors the Committee deems
appropriate and shall have the sole authority to approve the compensation and other terms
of their retention. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>RESPONSIBILITIES </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Committee shall identify
individuals qualified to serve as Independent Directors of the Fund and shall recommend
its nominees for consideration by the full Board. </FONT></P>

<font size="2"><b>IDENTIFICATION AND EVALUATION OF POTENTIAL NOMINEES <!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</b> </font>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In identifying and evaluating a
person as a potential nominee to serve as an Independent Director of the Fund, the
Committee should consider among other factors it may deem relevant: </FONT></P>

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>the
contribution which the person can make to the Board, with       consideration being given
to the person&#146;s business and professional       experience, education and such other
factors as the Committee may consider       relevant;</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 10" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>the
character and integrity of the person;</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 10" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>whether
or not the person is an &#147;interested person&#148; as defined in the 1940       Act and whether
the person is otherwise qualified under applicable laws       and regulations to serve as
a Director or Independent Director of the       Fund;</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 10" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>whether
or not the person has any relationships that might impair his or       her independence,
such as any business, charitable, financial or family       relationships with Fund
management, the investment adviser or manager of       the Fund, Fund service providers
or their affiliates;</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 10" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>whether
or not the person is financially literate pursuant to the       applicable Exchange&#146;s
audit committee membership standards;</FONT></TD></TR></TABLE>



<table width=100%>
  <tr>
    <td width=5%></td>
    <td width=2% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=90%><font size=2>whether or not the person serves on boards of,
      or is otherwise affiliated with, competing financial service organizations
      or their related investment company complexes;</font></td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
E-1</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>





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<p> <!-- MARKER FORMAT-SHEET="Bullet 10" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>whether
or not the person is willing to serve, and willing and able to       commit the time
necessary for the performance of the duties of a Director       of the Fund;</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 10" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>whether
or not the selection and nomination of the person would be       consistent with the
requirements of the Fund&#146;s retirement policy.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>While the Committee is solely
responsible for the selection and nomination of the Fund&#146;s Independent Directors, the
Committee may consider nominations for the office of Director made by Fund stockholders
as it deems appropriate. Stockholders who wish to recommend a nominee should send
nominations to the Secretary of the Fund which include biographical information and set
forth the qualifications of the proposed nominee. The Secretary of the Fund will forward
all nominations received to the Committee. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>QUORUM </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A majority of the members of the
Committee shall constitute a quorum for the transaction of business, and the act of a
majority of the members of the Committee present at any meeting at which there is quorum
shall be the act of the Committee. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOMINATION OF DIRECTORS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>After a determination by the
Committee that a person should be nominated as an Independent Director of the Fund, the
Committee shall present its recommendation to the full Board for its consideration and,
where appropriate, to the Independent Directors. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>MEETINGS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Committee may meet either on its
own or in conjunction with meetings of the Board. Meetings of the Committee may be held
in person, video conference or by conference telephone. The Committee may take action by
unanimous written consent in lieu of a meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Adopted: February 18, 2004 </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
E-2</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>


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<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT A  </B></FONT></P>



<table border=0 cellspacing=0 cellpadding=0 width="640" align="center">
  <tr valign="bottom">
    <td> <font size="1"><b>Closed-end Listed Funds</b> </font>
      <hr noshade size="1" width="120" align="left">
    </td>
    <td><font size="1"></font></td>
    <td> <font size="1"><b>Closed-end (non-listed) Funds</b> </font>
      <hr noshade size="1" width="140" align="left">
    </td>
    <td><font size="1"></font></td>
    <td> <font size="1"><b>Open-end funds</b> </font>
      <hr noshade size="1" width="80" align="left">
    </td>
  </tr>
  <tr valign="top">
    <td>
      <p><font size="1">Europe Fund, Inc. <br>
        <br>
        Capital and Income Strategies Fund, Inc. <br>
        <br>
        Preferred Income Strategies Fund, Inc. <br>
        <br>
        Preferred &amp; Corporate Income Strategies Fund, Inc. <br>
        <br>
        Enhanced Equity Yield Fund, Inc. <br>
        <br>
        Enhanced Equity Yield &amp; Premium Fund, Inc.</font></p>
    </td>
    <td><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td>
      <p><font size="1">Multi-Strategy Hedge Opportunities LLC <br>
        <br>
        Multi-Strategy Hedge Advantage LLC</font></p>
    </td>
    <td><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td>
      <p><font size="1">FDP Series, Inc. <br>
        &nbsp;&nbsp;&nbsp;MFS International FDP Fund <br>
        &nbsp;&nbsp;&nbsp;Marsico Growth FDP Fund <br>
        &nbsp;&nbsp;&nbsp;Van Kampen Value FDP Fund <br>
        &nbsp;&nbsp;&nbsp;Franklin Templeton Total Return FDP Fund <br>
        <br>
        Master Real Investment Trust <br>
        &nbsp;&nbsp;&nbsp;ML Real Investment Fund <br>
        <br>
        Master Inflation Protected Trust <br>
        &nbsp;&nbsp;&nbsp;ML Inflation Protected Fund <br>
        <br>
        GNMA Fund Investment Accumulation Program, Inc. <br>
        <br>
        ML Principal Protected Trust <br>
        &nbsp;&nbsp;&nbsp;ML Basic Value Principal Protected Fund <br>
        &nbsp;&nbsp;&nbsp;ML Fundamental Growth Principal Protected Fund <br>
        &nbsp;&nbsp;&nbsp;ML Core Principal Protected Fund <br>
        <br>
        Mercury Master Trust <br>
        &nbsp;&nbsp;&nbsp;Master International Portfolio <br>
        &nbsp;&nbsp;&nbsp;Master Small Cap Growth Portfolio <br>
        <br>
        Mercury Funds, Inc. <br>
        &nbsp;&nbsp;&nbsp;ML International Fund <br>
        &nbsp;&nbsp;&nbsp;ML Small Cap Growth Fund <br>
        <br>
        Master Institutional Money Market Trust <br>
        &nbsp;&nbsp;&nbsp;Master Premier Institutional Fund <br>
        &nbsp;&nbsp;&nbsp;Master Institutional Fund <br>
        &nbsp;&nbsp;&nbsp;Master Institutional Tax-Exempt Fund <br>
        &nbsp;&nbsp;&nbsp;Master Government Fund <br>
        &nbsp;&nbsp;&nbsp;Master Treasury Fund <br>
        <br>
        ML Funds for Institutions Series <br>
        &nbsp;&nbsp;&nbsp;ML Premier Institutional Fund <br>
        &nbsp;&nbsp;&nbsp;ML Institutional Fund <br>
        &nbsp;&nbsp;&nbsp;ML Institutional Tax-Exempt Fund <br>
        &nbsp;&nbsp;&nbsp;ML Government Fund <br>
        &nbsp;&nbsp;&nbsp;ML Treasury Fund </font></p>
    </td>
  </tr>
</table>
<p><BR>
</p>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
E-3</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 2; page: 2" -->





<!-- MARKER FORMAT-SHEET="Right Head 2 Bold" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>COMMON STOCK </B></FONT></P>




<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
PREFERRED INCOME STRATEGIES FUND, INC. <BR>
P.O. BOX 9011                      <BR>PRINCETON,
NEW JERSEY 08543-9011 </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PROXY </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY IS
SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned hereby appoints Andrew J. Donohue, Donald C. Burke and Alice A. Pellegrino, as proxies, each with the power
to appoint his or her substitute, and hereby authorizes each of them to represent and to vote, as designated on the reverse hereof,
all of the shares of Common Stock of Preferred Income Strategies Fund, Inc. (the &#147;Fund&#148;) held of record by the undersigned on June
24, 2005, at the annual meeting of stockholders of the Fund to be held on August 23, 2005 or any adjournment thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY
  WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED
  STOCKHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED &#147;FOR&#148;
  ITEM 1. </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By signing and dating the
  reverse side of this card, you authorize the proxies to vote Item 1 as marked,
  or if not marked, to vote &#147;FOR&#148; Item 1, and to use their discretion
  to vote for any other matter as may properly come before the meeting or any
  adjournment thereof. If you do not intend to personally attend the meeting,
  please complete and return this card at once in the enclosed envelope. </FONT></P>

<!-- MARKER FORMAT-SHEET="Right Head 2 Bold" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Continued and to be
signed on the reverse side) </FONT> </P>



<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>



<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 2; page: 2" -->




<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes |_| or |X| in blue or black ink. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. ELECTION OF DIRECTORS </FONT></P>


<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left"><font face="Times New Roman, Times, Serif" size=2>01) David O. Beim <br>
02) James T. Flynn <br>
03) Karen P. Robards </font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>



<br>
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=100% colspan="3"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.
      </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
      the discretion of such proxies, upon such other business as may properly
      come before the meeting or any adjournment thereof. </FONT></TD>
  </TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=46%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=54%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </FONT></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%><font face="Times New Roman, Times, Serif" size=2>Dated:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
      2005 </font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></TD>
  </TR>
</TABLE>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" --> <BR>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGN, DATE AND RETURN THE PROXY CARD
PROMPTLY USING THE ENCLOSED ENVELOPE. </FONT></P>


<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 3; page: 3" --> <!-- MARKER FORMAT-SHEET="Right Head 2 Bold" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>AUCTION MARKET
                                                                                                    <BR>PREFERRED
STOCK </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PREFERRED
  INCOME STRATEGIES FUND, INC.<BR>
  P.O. BOX 9011 <BR>
  PRINCETON, NEW JERSEY 08543-9011 </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PROXY </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY IS
SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned hereby appoints Andrew J. Donohue, Donald C. Burke and Alice A. Pellegrino, as proxies, each with the power to appoint his or her substitute, and hereby authorizes each of them to represent and to vote, as designated on the reverse hereof,
all of the shares of Auction Market Preferred Stock of Preferred Income Strategies Fund, Inc. (the &#147;Fund&#148;) held of record by the undersigned on June 24, 2005, at the annual meeting of stockholders of the Fund to be held on August 23, 2005 or any adjournment thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY
  WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED
  STOCKHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED &#147;FOR&#148;
  ITEM 1. </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By signing and dating the
  reverse side of this card, you authorize the proxies to vote Item 1 as marked,
  or if not marked, to vote &#147;FOR&#148; Item 1, and to use their discretion
  to vote for any other matter as may properly come before the meeting or any
  adjournment thereof. If you do not intend to personally attend the meeting,
  please complete and return this card at once in the enclosed envelope. </FONT></P>



<!-- MARKER FORMAT-SHEET="Right Head 2 Bold" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Continued and to be
signed on the reverse side) </FONT> </P>


<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 4; page: 4" -->




<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes |_| or |X| in blue or black ink. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. ELECTION OF DIRECTORS </FONT></P>

<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left"><font face="Times New Roman, Times, Serif" size=2>01) David O. Beim <br>
02) Robert C. Doll, Jr. <br>
03) James T. Flynn <br>
04) W. Carl Kester <br>
05) Karen P. Robards </font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P>&nbsp;</P>




<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=100% colspan="3"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.
      </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
      the discretion of such proxies, upon such other business as may properly
      come before the meeting or any adjournment thereof. </FONT></TD>
  </TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
      2005 </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGN, DATE AND RETURN THE PROXY CARD
PROMPTLY USING THE ENCLOSED ENVELOPE. </FONT></P>

<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 5; page: 5" -->







<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CAPITAL AND INCOME STRATEGIES FUND, INC. <BR>P.O. BOX 9011
                        <BR>PRINCETON, NEW JERSEY 08543-9011 </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PROXY </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY IS
SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned hereby appoints Andrew J. Donohue, Donald C. Burke and Alice A. Pellegrino, as proxies, each with the power
to appoint his or her substitute, and hereby authorizes each of them to represent and to vote, as designated on the reverse hereof, all of the shares of Common Stock of Capital and Income Strategies Fund, Inc. (the &#147;Fund&#148;) held of record by the undersigned on June 24, 2005, at the annual meeting of stockholders of the Fund to be held on August 23, 2005 or any adjournment thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY
  WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED
  STOCKHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED &#147;FOR&#148;
  ITEM 1. </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By signing and dating the
  reverse side of this card, you authorize the proxies to vote Item 1 as marked,
  or if not marked, to vote &#147;FOR&#148; Item 1, and to use their discretion
  to vote for any other matter as may properly come before the meeting or any
  adjournment thereof. If you do not intend to personally attend the meeting,
  please complete and return this card at once in the enclosed envelope. </FONT></P>

<!-- MARKER FORMAT-SHEET="Right Head 2 Bold" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Continued
  and to be signed on the reverse side) </FONT> </P>




<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 6; page: 6" -->




<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes |_| or |X| in blue
or black ink. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. ELECTION OF DIRECTORS </FONT></P>


<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left"><font face="Times New Roman, Times, Serif" size=2>01) David O. Beim <br>
02) Robert C. Doll, Jr. <br>
03) James T. Flynn  <br>
04) W. Carl Kester <br>
05) Karen P. Robards </font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P>&nbsp;</P>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=100% colspan="3"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.
      </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
      the discretion of such proxies, upon such other business as may properly
      come before the meeting or any adjournment thereof. </FONT></TD>
  </TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
      2005</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGN, DATE AND RETURN THE PROXY CARD
PROMPTLY USING THE ENCLOSED ENVELOPE. </FONT></P>


<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 7; page: 7" -->

<!-- MARKER FORMAT-SHEET="Right Head 2 Bold" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>COMMON STOCK </B></FONT></P>




<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
PREFERRED AND CORPORATE <BR>
INCOME STRATEGIES FUND, INC. <BR>
P.O. BOX 9011 <BR>
PRINCETON, NEW JERSEY 08543-9011 </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PROXY </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY IS
SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned hereby appoints Andrew J. Donohue, Donald C. Burke and Alice A. Pellegrino, as proxies, each with the power
to appoint his or her substitute, and hereby authorizes each of them to represent and to vote, as designated on the reverse hereof,
all of the shares of Common Stock of Preferred and Corporate Income Strategies Fund, Inc. (the &#147;Fund&#148;) held of record by the
undersigned on June 24, 2005, at the annual meeting of stockholders of the Fund to be held on August 23, 2005 or any adjournment
thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY
  WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED
  STOCKHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED &#147;FOR&#148;
  ITEM 1. </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By signing and dating the
  reverse side of this card, you authorize the proxies to vote Item 1 as marked,
  or if not marked, to vote &#147;FOR&#148; Item 1, and to use their discretion
  to vote for any other matter as may properly come before the meeting or any
  adjournment thereof. If you do not intend to personally attend the meeting,
  please complete and return this card at once in the enclosed envelope. </FONT></P>

<!-- MARKER FORMAT-SHEET="Right Head 2 Bold" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Continued and to be signed on the reverse side) </FONT> </P>



<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>



<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 7; page: 7" -->




<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes |_| or |X| in blue or black ink. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. ELECTION OF DIRECTORS </FONT></P>


<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left"><font face="Times New Roman, Times, Serif" size=2>01) David O. Beim <br>
02) James T. Flynn <br>
03) Karen P. Robards </font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>



<br>
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=100% colspan="3"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.
      </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
      the discretion of such proxies, upon such other business as may properly
      come before the meeting or any adjournment thereof. </FONT></TD>
  </TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=46%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=54%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </FONT></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%><font face="Times New Roman, Times, Serif" size=2>Dated:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
      2005 </font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=46%>&nbsp;</TD>
    <TD WIDTH=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></TD>
  </TR>
</TABLE>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" --> <BR>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGN, DATE AND RETURN THE PROXY CARD
PROMPTLY USING THE ENCLOSED ENVELOPE. </FONT></P>


<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>






















<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 7; page: 7" -->




<!-- MARKER FORMAT-SHEET="Right Head 2 Bold" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>AUCTION MARKET
                                                                                                    <BR>PREFERRED
STOCK </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PREFERRED
  AND CORPORATE <br>
  INCOME STRATEGIES FUND, INC. <BR>
  P.O. BOX 9011 <BR>
  PRINCETON, NEW JERSEY 08543-9011 </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PROXY </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY IS
SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned hereby appoints
  Andrew J. Donohue, Donald C. Burke and Alice A. Pellegrino, as proxies, each
  with the power to appoint his or her substitute, and hereby authorizes each
  of them to represent and to vote, as designated on the reverse hereof, all of
  the shares of Auction Market Preferred Stock of Preferred and Corporate Income
  Strategies Fund, Inc. (the &#147;Fund&#148;) held of record by the undersigned on June
  24, 2005, at the annual meeting of stockholders of the Fund to be held on August
  23, 2005 or any adjournment thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY
  WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED
  STOCKHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED &#147;FOR&#148;
  ITEM 1. </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By signing and dating the
  reverse side of this card, you authorize the proxies to vote Item 1 as marked,
  or if not marked, to vote &#147;FOR&#148; Item 1, and to use their discretion
  to vote for any other matter as may properly come before the meeting or any
  adjournment thereof. If you do not intend to personally attend the meeting,
  please complete and return this card at once in the enclosed envelope. </FONT></P>



<!-- MARKER FORMAT-SHEET="Right Head 2 Bold" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Continued
  and to be signed on the reverse side) </FONT> </P>
<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 8; page: 8" -->



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes |_| or |X| in blue
or black ink. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. ELECTION OF DIRECTORS </FONT></P>

<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left">
      <p><font face="Times New Roman, Times, Serif" size=2>01) David O. Beim <br>
        02) Robert C. Doll, Jr. <br>
        03) James T. Flynn <br>
        04) W. Carl Kester <br>
        05) Karen P. Robards </font></p>
      <!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" --> </td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<br>
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=100% colspan="3"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.
      </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
      the discretion of such proxies, upon such other business as may properly
      come before the meeting or any adjournment thereof. </FONT></TD>
  </TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
      2005</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGN, DATE AND RETURN THE PROXY CARD
PROMPTLY USING THE ENCLOSED ENVELOPE. </FONT></P>

<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 9; page: 9" --> <!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THE EUROPE
  FUND, INC. <BR>
  P.O. BOX 9011 <BR>
  PRINCETON, NEW JERSEY 08543-9011 </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PROXY </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY IS
SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned hereby appoints
  Andrew J. Donohue, Donald C. Burke and Alice A. Pellegrino, as proxies, each
  with the power to appoint his or her substitute, and hereby authorizes each
  of them to represent and to vote, as designated on the reverse hereof, all of
  the shares of Common Stock of The Europe Fund, Inc. (the &#147;Fund&#148;) held of record
  by the undersigned on June 24, 2005, at the annual meeting of stockholders of
  the Fund to be held on August 23, 2005 or any adjournment thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY
  WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED
  STOCKHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED &#147;FOR&#148;
  ITEM 1. </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By signing and dating the
  reverse side of this card, you authorize the proxies to vote Item 1 as marked,
  or if not marked, to vote &#147;FOR&#148; Item 1, and to use their discretion
  to vote for any other matter as may properly come before the meeting or any
  adjournment thereof. If you do not intend to personally attend the meeting,
  please complete and return this card at once in the enclosed envelope. </FONT></P>



<!-- MARKER FORMAT-SHEET="Right Head 2 Bold" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Continued and to be
signed on the reverse side) </FONT> </P>


<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 10; page: 10" -->




<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes |_| or |X| in blue
or black ink. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. ELECTION OF DIRECTORS </FONT></P>

<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left">
      <p><font face="Times New Roman, Times, Serif" size=2>01) David O. Beim <br>
        02) Robert C. Doll, Jr. <br>
        03) James T. Flynn <br>
        04) W. Carl Kester <br>
        05) Karen P. Robards </font></p>
      <!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" --> </td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P>&nbsp;</P>




<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=100% colspan="3"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.
      </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
      the discretion of such proxies, upon such other business as may properly
      come before the meeting or any adjournment thereof. </FONT></TD>
  </TR>
</TABLE>
<BR>
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<table width=600 cellpadding=0 cellspacing=0>
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    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
      2005</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGN, DATE AND RETURN THE PROXY CARD
PROMPTLY USING THE ENCLOSED ENVELOPE. </FONT></P>

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