-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
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 QnaFdwbRwakvu+DIgD/+Bw==

<SEC-DOCUMENT>0000891092-04-003486.txt : 20040727
<SEC-HEADER>0000891092-04-003486.hdr.sgml : 20040727
<ACCEPTANCE-DATETIME>20040726170113
ACCESSION NUMBER:		0000891092-04-003486
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040625
FILED AS OF DATE:		20040726
EFFECTIVENESS DATE:		20040726

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FLOATING RATE INCOME STRATEGIES FUND INC
		CENTRAL INDEX KEY:			0001259708

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-21413
		FILM NUMBER:		04931332

	BUSINESS ADDRESS:	
		STREET 1:		MERRILL LYNCH ASSET MANAGEMENT
		STREET 2:		800 SCUDDERS MILL ROAD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
		BUSINESS PHONE:		6092822000

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DEBT STRATEGIES FUND
		CENTRAL INDEX KEY:			0001051003
		IRS NUMBER:				223564108
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-08603
		FILM NUMBER:		04931334

	BUSINESS ADDRESS:	
		STREET 1:		MERRILL LYNCH ASSET MANAGEMENT
		STREET 2:		PO BOX 9011
		CITY:			PRINCETON
		STATE:			NJ
		ZIP:			08543-9011
		BUSINESS PHONE:		6092823087

	MAIL ADDRESS:	
		STREET 1:		MERRILL LYNCH ASSET MANAGEMENT
		STREET 2:		PO BOX 9011 INFORMATION SYSTEMS SEC 2-B,
		CITY:			PRINCETON
		STATE:			NJ
		ZIP:			08543-9011

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DEBT STRATEGIES FUND II INC
		DATE OF NAME CHANGE:	19971208

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MUNIHOLDINGS FUND INC
		CENTRAL INDEX KEY:			0001034665
		IRS NUMBER:				223508039
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-08081
		FILM NUMBER:		04931331

	BUSINESS ADDRESS:	
		STREET 1:		800 SCUDDERS MILL RD
		STREET 2:		C/O MERRILL LYNCH ASSET MANAGEMENT
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
		BUSINESS PHONE:		6092823087

	MAIL ADDRESS:	
		STREET 1:		MERRILL LYNCH ASSET MANAGEMENT
		STREET 2:		INFO SYSTEMS SECT 2-B PO BOX 9011
		CITY:			PRINCETON
		STATE:			NJ
		ZIP:			08543-9011

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SENIOR HIGH INCOME PORTFOLIO INC
		CENTRAL INDEX KEY:			0000896665
		IRS NUMBER:				223226962
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-07456
		FILM NUMBER:		04931333

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

	MAIL ADDRESS:	
		STREET 1:		PO BOX 9011
		CITY:			PRINCETON
		STATE:			NJ
		ZIP:			08543-9011

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MUNIHOLDINGS INSURED FUND INC/NJ
		CENTRAL INDEX KEY:			0001058234
		IRS NUMBER:				223544348
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-08707
		FILM NUMBER:		04931335

	BUSINESS ADDRESS:	
		STREET 1:		C/O MERRILL LYNCH ASSET MANAGEMENT
		STREET 2:		800 SCUDDERS MILL RD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
		BUSINESS PHONE:		6092823087

	MAIL ADDRESS:	
		STREET 1:		C/O MERRILL LYNCH ASSET MANAGEMENT
		STREET 2:		P O BOX 9011, SECTION 2-B
		CITY:			PRINCETON
		STATE:			NJ
		ZIP:			08543-9011
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>e18233def_14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </font><font size=2><b>As
  filed with the Securities and Exchange Commission on July 26, 2004</b></font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  </font></P>

<hr size=5 noshade width=100% align=LEFT>
<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. ) </b></FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filed by the Registrant |<u>X</u>|
  <br>
  </FONT><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>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_| </FONT></TD>
    <TD width="1%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD WIDTH=34%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Preliminary
      Proxy Statement </FONT></TD>
    <TD WIDTH=3%><font face="Times New Roman, Times, Serif" size=2>|_| </font></TD>
    <TD WIDTH=59%><font size="2" face="Times New Roman, Times, serif">Confidential,
      for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) </font></TD>
  </TR>
</TABLE>
<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|<u>X</u>|  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=95%><font size="2" face="Times New Roman, Times, serif">Definitive
      Proxy Statement</font></TD>
</TR>
</TABLE>
<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<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=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitive Additional
      Materials </FONT></TD>
</TR>
</TABLE>
<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<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=95%><font face="Times New Roman, Times, serif" size="2">Soliciting
      Material Pursuant to Section 240.14a-11(c) or Section 240.14a-2.</font></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MUNIHOLDINGS
  FUND, INC.<br>
  MUNIHOLDINGS INSURED FUND, INC.<br>
  DEBT STRATEGIES FUND, INC.<br>
  SENIOR HIGH INCOME PORTFOLIO, INC.<br>
  FLOATING RATE INCOME STRATEGIES FUND, INC. <br>
  </FONT> <!-- MARKER FORMAT-SHEET="Center Head 2 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 Head 2 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 Level 2" FSL="Default" -->
<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>&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=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No fee required.
      </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 2" FSL="Default" -->
<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>&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=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fee computed
      on table below per Exchange Act Rules 14a-6(i)(4) and 0-12. </FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Hang Level 3" FSL="Default" -->
<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>&nbsp; </font></td>
    <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=80%><font face="Times New Roman, Times, serif" size="2">Title of
      each class of securities to which transaction applies:</font></td>
  </tr>
</table>
<br>
<!-- MARKER FORMAT-SHEET="Para Hang Level 3" FSL="Default" -->
<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>&nbsp; </FONT></TD>
<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=80%><font face="Times New Roman, Times, serif" size="2">Aggregate
      number of securities to which transaction applies:</font></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 3" FSL="Default" -->
<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>&nbsp; </FONT></TD>
<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>          (3)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=80%><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<br>
      (Set forth the amount on which the filing fee is calculated and state how
      it was determined):</font></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 3" FSL="Default" -->
<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>&nbsp; </FONT></TD>
<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>          (4)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=80%><font size="2" face="Times New Roman, Times, serif">Proposed
      maximum aggregate value of transaction:</font></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 3" FSL="Default" -->
<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>&nbsp; </FONT></TD>
<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>          (5)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=80%><font size="2" face="Times New Roman, Times, serif">Total fee
      paid:</font></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 2" FSL="Default" -->
<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>&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=85%><font size="2" face="Times New Roman, Times, serif">Fee paid
      previously with preliminary materials:</font></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 2" FSL="Default" -->
<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>&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=85%><font size="2" face="Times New Roman, Times, serif">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>

<!-- MARKER FORMAT-SHEET="Para Hang Level 3" FSL="Default" -->
<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">&nbsp; </font></TD>
    <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=80%><font face="Times New Roman, Times, serif" size="2">Amount previously
      paid:</font></TD>
  </TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Level 3" FSL="Default" -->
<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>&nbsp; </FONT></TD>
<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=80%><font size="2" face="Times New Roman, Times, serif">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=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>&nbsp; </FONT></TD>
<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>          (3)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=80%><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=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>&nbsp; </FONT></TD>
<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>          (4)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=80%><font face="Times New Roman, Times, Serif" size=2>Date Filed: </font></TD>
</TR>
</TABLE>
<BR>


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<P>&nbsp;<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<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><P>&nbsp;





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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>MUNIHOLDINGS FUND,
INC.                          <BR>MUNIHOLDINGS INSURED FUND, INC.
                           <BR>DEBT STRATEGIES FUND, INC.                        <BR>SENIOR HIGH
INCOME PORTFOLIO, INC.                    <BR>FLOATING RATE INCOME STRATEGIES 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 2004
ANNUAL MEETINGS OF STOCKHOLDERS </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>TO BE HELD ON AUGUST
25, 2004 </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 THE</font>
  S<font size="1">TOCKHOLDERS OF</font> <BR>
  &nbsp;&nbsp;M<font size="1">UNIHOLDINGS</font> F<font size="1">UND</font>, I<font size="1">NC</font>.
  <BR>
  &nbsp;&nbsp;M<font size="1">UNIHOLDINGS</font> I<font size="1">NSURED</font>
  F<font size="1">UND</font>, I<font size="1">NC</font>. <BR>
  &nbsp;&nbsp;D<font size="1">EBT</font> S<font size="1">TRATEGIES</font> <font size="1">FUND</font>,
  I<font size="1">NC</font>. <BR>
  &nbsp;&nbsp;S<font size="1">ENIOR</font> H<font size="1">IGH</font> I<font size="1">NCOME</font>
  P<font size="1">ORTFOLIO</font>, I<font size="1">NC</font>. <BR>
  &nbsp;&nbsp;F<font size="1">LOATING</font> R<font size="1">ATE</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>.:
  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE
IS HEREBY GIVEN that the 2004 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., 800 Scudders Mill Road, Plainsboro, New Jersey, on Wednesday, August
25, 2004 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 WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
elect a Board of Directors of each Fund to serve for the ensuing            year and
until their successors have been duly elected and qualified            or until their
earlier resignation or removal; 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>
      (2)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
transact such other business as may properly come before the            Meeting or any
adjournment thereof. </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;Each
Fund&#146;s Board of Directors has fixed the close of business on June 25, 2004 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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<P>&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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;





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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 1-800-645-4519. </FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="72%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="28%"><font face="Times New Roman, Times, Serif" size=2>By Order
      of the Boards of Directors</font></td>
  </tr>
  <tr>
    <td width="72%">&nbsp;</td>
    <td width="28%">&nbsp;</td>
  </tr>
  <tr>
    <td width="72%">&nbsp;</td>
    <td width="28%"><font face="Times New Roman, Times, Serif" size="2">P<font size="1">HILLIP</font>
      S. G<font size="1">ILLESPIE</font> <br>
      <i>Secretary of MuniHoldings Fund, Inc., <br>
      MuniHoldings Insured Fund, Inc., <br>
      Debt Strategies Fund, Inc., <br>
      Senior High Income Portfolio, Inc. and <br>
      Floating Rate Income Strategies Fund, Inc.</i></font></td>
  </tr>
</table>
<P><font size="2">P</font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>lainsboro,
  New Jersey <BR>
  Dated: July 26, 2004 </FONT></P>

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<P>&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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;





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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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<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>MUNIHOLDINGS FUND,
INC. <BR>MUNIHOLDINGS INSURED FUND, INC. <BR>DEBT STRATEGIES FUND, INC. <BR>SENIOR HIGH INCOME
PORTFOLIO, INC. <BR>FLOATING RATE INCOME STRATEGIES 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>2004 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 25, 2004 </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>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 MuniHoldings Fund, Inc.
  (&#147;MuniHoldings&#148;), MuniHoldings Insured Fund, Inc. (&#147;MuniHoldings
  Ins&#148;), Debt Strategies Fund, Inc. (&#147;Debt Strategies&#148;), Senior
  High Income Portfolio, Inc. (&#147;SHIP&#148;), and Floating Rate Income Strategies
  Fund, Inc. (&#147;FRIS&#148;) (each, a &#147;Fund&#148; and, collectively, the
  &#147;Funds&#148;) to be voted at the 2004 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; or
  the &#147;Investment Adviser&#148;), 800 Scudders Mill Road, Plainsboro, New
  Jersey, on Wednesday, August 28, 2004 at the time specified in Exhibit A hereto.
  The approximate mailing date of this Combined Proxy Statement is July 28, 2004.
  </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 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, such proxies will be voted for the election of
the Director nominees of the applicable Fund to serve for the ensuing year. Any proxy may
be revoked at any time prior to its exercise 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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<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 25, 2004 as the
record date (the &#147;Record Date&#148;) for the determination of stockholders entitled to notice
of and to vote at the applicable Fund&#146;s Meeting and at any adjournment 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, if applicable, shares of Auction Market
Preferred Stock (&#147;AMPS&#148;), indicated in Exhibit A. To the knowledge of each Fund, as of
the Record Date, no person is  </FONT></P>






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<P>&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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;







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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the beneficial owner of more than
five percent of the outstanding shares of Common Stock of any Fund or, with respect to
MuniHoldings and MuniHoldings Ins, five percent of the outstanding AMPS, of such Funds.
This Combined Proxy Statement is being provided to the holders of shares of Common Stock
and AMPS, as 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 the election of Directors
(Item 1) that will be presented for consideration at the 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>

<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<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 of that Fund and until their successors
  are elected and qualified or until their earlier resignation or removal. The
  nominees are Ronald W. Forbes, Terry K. Glenn, Cynthia A. Montgomery, Kevin
  A. Ryan, Roscoe S. Suddarth, Richard R. West and Edward D. Zinbarg (collectively,
  the &#147;Director-Nominees&#148;). It is intended that all properly executed
  proxies will be voted (unless such authority has been withheld in the proxy
  or revoked as described herein) for the Director-Nominees. </FONT></P>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
    <TR VALIGN=Bottom align="center">
      <TD WIDTH=19% align="left"><font face="Times New Roman, Times, serif"><b><font size="1">Fund
        </font></b></font>
        <hr size="1" noshade align="left" width="35">
        <font face="Times New Roman, Times, serif"><b><font size="1"> </font></b></font></TD>
      <TD colspan="2"><font face="Times New Roman, Times, serif"><b><font size="1">AMPS
        <br>
        Director-Nominees </font></b></font>
        <hr size="1" noshade width="85">
        <font face="Times New Roman, Times, serif"><b><font size="1"> </font></b></font></TD>
      <TD WIDTH=3%>&nbsp;</TD>
      <TD WIDTH=59%><font face="Times New Roman, Times, serif"><b><font size="1">Other
        <br>
        Director-Nominees </font></b></font>
        <hr size="1" noshade width="85">
      </TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD WIDTH=19% ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></TD>
      <TD WIDTH=4% ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD WIDTH=15% ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">Forbes,
        West</font></TD>
      <TD WIDTH=3% ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD WIDTH=59% ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">Glenn,
        Montgomery, Ryan, Suddarth, Zinbarg</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="19%"><font face="Times New Roman, Times, serif" size="2">MuniHoldings
        Ins</font></TD>
      <TD ALIGN=LEFT width="4%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=LEFT width="15%"><font face="Times New Roman, Times, serif" size="2">Forbes,
        West</font></TD>
      <TD ALIGN=LEFT width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=LEFT width="59%"><font face="Times New Roman, Times, serif" size="2">Glenn,
        Montgomery, Ryan, Suddarth, Zinbarg</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="19%"><font face="Times New Roman, Times, serif" size="2">Debt
        Strategies</font></TD>
      <TD ALIGN=LEFT width="4%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=LEFT width="15%"><font face="Times New Roman, Times, serif" size="2">N/A</font></TD>
      <TD ALIGN=LEFT width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=LEFT width="59%"><font face="Times New Roman, Times, serif" size="2">Forbes,
        Glenn, Montgomery, Ryan, Suddarth, West, Zinbarg</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="19%"><font face="Times New Roman, Times, serif" size="2">SHIP</font></TD>
      <TD ALIGN=LEFT width="4%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=LEFT width="15%"><font face="Times New Roman, Times, serif" size="2">N/A</font></TD>
      <TD ALIGN=LEFT width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=LEFT width="59%"><font face="Times New Roman, Times, serif" size="2">Forbes,
        Glenn, Montgomery, Ryan, Suddarth, West, Zinbarg</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="19%"><font face="Times New Roman, Times, serif" size="2">FRIS</font></TD>
      <TD ALIGN=LEFT width="4%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=LEFT width="15%"><font face="Times New Roman, Times, serif" size="2">N/A</font></TD>
      <TD ALIGN=LEFT width="3%"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=LEFT width="59%"><font face="Times New Roman, Times, serif" size="2">Forbes,
        Glenn, Montgomery, Ryan, Suddarth, West, Zinbarg</font></TD>
    </TR>
  </TABLE>
  <br>
</div>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  class of stockholders solicited and entitled to vote on the proposal are outlined
  in the following chart. </FONT></P>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
    <TR VALIGN=Bottom align="center">
      <TD ALIGN=left><font size="1"><b>Fund </b> </font>
        <hr size="1" noshade align="left" width="35">
      </TD>
      <TD><font size="1"><b>Class of <br>
        Stockholders </b> </font>
        <hr size="1" noshade width="75">
      </TD>
      <TD>&nbsp;</TD>
      <TD><font size="1"><b>Election of <br>
        AMPS Directors </b></font>
        <hr size="1" noshade width="75">
      </TD>
      <TD>&nbsp;</TD>
      <TD><font size="1"><b>Election of <br>
        Other Directors </b></font>
        <hr size="1" noshade width="75">
      </TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common
        Stock</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yes</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AMPS</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yes</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yes</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings
        Ins</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common
        Stock</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yes</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings
        Ins</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AMPS</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yes</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yes</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Debt Strategies</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common
        Stock</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>N/A</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yes</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SHIP</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common
        Stock</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>N/A</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yes</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FRIS</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common
        Stock</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>N/A</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Yes</FONT></TD>
    </TR>
  </TABLE>
  <br>
</div>
<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 reason why any of the Director-Nominees 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 the Board of Directors of such
Fund 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>&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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;






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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>
<div align="center">
  <table border=0 cellspacing=0 cellpadding=0 width="700">
    <tr align="center" valign="bottom">
      <td width="123"> <b><font face="Times New Roman, Times, serif" size="1">Name,
        Address&#134; <br>
        and Age </font></b>
        <hr size="1" noshade>
      </td>
      <td width="10">&nbsp; </td>
      <td width="56"> <b><font face="Times New Roman, Times, serif" size="1">Position
        <br>
        Held with <br>
        Each Fund </font></b>
        <hr size="1" noshade>
      </td>
      <td width="10">&nbsp; </td>
      <td width="93"> <b><font face="Times New Roman, Times, serif" size="1">Term
        of <br>
        Office* and <br>
        Length of <br>
        Time Served </font></b>
        <hr size="1" noshade>
      </td>
      <td width="19">&nbsp; </td>
      <td width="222"> <b><font face="Times New Roman, Times, serif" size="1">Principal
        Occupation(s) <br>
        During Past Five Years </font></b>
        <hr size="1" noshade>
      </td>
      <td width="14">&nbsp; </td>
      <td width="71"> <b><font face="Times New Roman, Times, serif" size="1">Number
        of <br>
        FAM/MLIM- <br>
        Advised Funds <br>
        and Portfolios <br>
        Overseen </font></b>
        <hr size="1" noshade>
      </td>
      <td width="12">&nbsp; </td>
      <td width="70"> <b><font face="Times New Roman, Times, serif" size="1">Public
        <br>
        Directorships </font></b>
        <hr size="1" noshade>
      </td>
    </tr>
    <tr align="left" valign="top">
      <td width="129"><font face="Times New Roman, Times, serif" size="1">Terry
        K. Glenn&#134;&#134; (63) </font></td>
      <td width="14"><font size="1"></font></td>
      <td width="63"><font face="Times New Roman, Times, serif" size="1">President
        and Director</font></td>
      <td width="12"><font size="1"></font></td>
      <td width="79"><font face="Times New Roman, Times, serif" size="1">President**
        and Director* of each Fund since the year listed in Exhibit B.</font></td>
      <td width="14"><font size="1"></font></td>
      <td width="233"><font face="Times New Roman, Times, serif" size="1">President
        of the FAM/MLIM-advised funds since 1999; Chairman (Americas Region) of
        MLIM from 2000 to 2002; Executive Vice President of FAM and MLIM (which
        terms as used herein include their corporate predecessors) from 1983 to
        2002; President of FAM Distributors, Inc. (&#147;FAMD&#148; or the &#147;Distributor&#148;)
        from 1986 to 2002, and Director thereof from 1991 to 2002; Executive Vice
        President and Director of Princeton Services, Inc. (&#147;Princeton Services&#148;)
        from 1993 to 2002; President of Princeton Administrators, L.P. (&#147;Princeton
        Administrators&#148;) from 1988 to 2002; Director of Financial Data Services,
        Inc. from 1985 to 2002. </font></td>
      <td width="12"><font size="1"></font></td>
      <td width="71"><font face="Times New Roman, Times, serif" size="1">125 registered
        investment companies consisting of <br>
        160 portfolios </font></td>
      <td width="11"><font size="1"></font></td>
      <td width="62"><font face="Times New Roman, Times, serif" size="1">None</font></td>
    </tr>
  </table>
  <font face="Times New Roman, Times, serif" size="2"> <!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" -->
  </font> </div>
<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%><FONT SIZE="1"></FONT></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%><FONT SIZE="1"></FONT></TD>
<TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Mr.
Glenn is an &#147;interested person,&#148; as defined in the Investment Company       Act, of each
Fund based on his current and former positions with MLIM,       FAM, FAMD, Princeton
Services and Princeton Administrators, and/or his       ownership of securities issued by
Merrill Lynch &amp; Co., Inc.       (&#147;ML&amp;Co.&#148;).</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%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">As
a Director, Mr. Glenn serves until his successor is elected and       qualified, until
December 31 of the year in which he turns 72, or until       his death, resignation, or
removal as provided in each Fund&#146;s by-laws,       charter or by statute.</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%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Elected
by and serves at the pleasure of the Board of Directors of the applicable 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">*** </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">The
complex of funds advised by FAM and its affiliate, Merrill Lynch       Investment
Managers, L.P. (&#147;MLIM&#148;), (&#147;FAM/MLIM-Advised Funds&#148;).</FONT></TD></TR></TABLE>




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






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




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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 by the Investment Company Act
  (&#147;non-interested Directors&#148;), of each Fund is set forth below. Each
  non-interested Director is a member of each Fund&#146;s Audit Committee and
  each Fund&#146;s Nominating Committee.</FONT></P>
<div align="center">
  <table border=0 cellspacing=0 cellpadding=0 width="700">
    <tr align="center" valign="bottom">
      <td width="123"> <b><font face="Times New Roman, Times, serif" size="1">Name,
        Address&#134; <br>
        and Age </font></b>
        <hr size="1" noshade>
      </td>
      <td width="10">&nbsp; </td>
      <td width="56"> <b><font face="Times New Roman, Times, serif" size="1">Position
        <br>
        Held with <br>
        Each Fund </font></b>
        <hr size="1" noshade>
      </td>
      <td width="10">&nbsp; </td>
      <td width="93"> <b><font face="Times New Roman, Times, serif" size="1">Term
        of <br>
        Office* and <br>
        Length of <br>
        Time Served </font></b>
        <hr size="1" noshade>
      </td>
      <td width="19">&nbsp; </td>
      <td width="222"> <b><font face="Times New Roman, Times, serif" size="1">Principal
        Occupation(s) <br>
        During Past Five Years </font></b>
        <hr size="1" noshade>
      </td>
      <td width="14">&nbsp; </td>
      <td width="71"> <b><font face="Times New Roman, Times, serif" size="1">Number
        of <br>
        FAM/MLIM- <br>
        Advised Funds <br>
        and Portfolios <br>
        Overseen </font></b>
        <hr size="1" noshade>
      </td>
      <td width="12">&nbsp; </td>
      <td width="70"> <b><font face="Times New Roman, Times, serif" size="1">Public
        <br>
        Directorships </font></b>
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td width="123">&nbsp; </td>
      <td width="10">&nbsp; </td>
      <td width="56">&nbsp; </td>
      <td width="10">&nbsp; </td>
      <td width="93">&nbsp; </td>
      <td width="19">&nbsp; </td>
      <td width="222">&nbsp; </td>
      <td width="14">&nbsp; </td>
      <td width="71">&nbsp; </td>
      <td width="12">&nbsp; </td>
      <td width="70">&nbsp; </td>
    </tr>
    <tr align="left" valign="top">
      <td width="123"> <font face="Times New Roman, Times, serif" size="1">Ronald
        W. Forbes (63)</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;&nbsp;</font></td>
      <td width="56"> <font face="Times New Roman, Times, serif" size="1">Director</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;&nbsp;</font></td>
      <td width="93"> <font face="Times New Roman, Times, serif" size="1">Director
        of each Fund since the year listed in Exhibit B.</font></td>
      <td width="19"> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;&nbsp;</font></td>
      <td width="222"> <font face="Times New Roman, Times, serif" size="1">Professor
        Emeritus of Finance, School of Business, State University of New York
        at Albany since 2000 and Professor thereof from 1989 to 2000; International
        Consultant, Urban Institute, Washington, D.C. from 1995 to 1999.</font></td>
      <td width="14"> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;&nbsp;</font></td>
      <td width="71"> <font face="Times New Roman, Times, serif" size="1">49 registered
        investment companies consisting of <br>
        49 portfolios</font></td>
      <td width="12"> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;&nbsp;</font></td>
      <td width="70"> <font face="Times New Roman, Times, serif" size="1">None</font></td>
    </tr>
    <tr align="left" valign="top">
      <td width="123"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="56"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="93"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="19"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="222"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="14"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="71"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="12"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="70"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
    </tr>
    <tr align="left" valign="top">
      <td width="123"> <font face="Times New Roman, Times, serif" size="1">Cynthia
        A. Montgomery (51)</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="56"> <font face="Times New Roman, Times, serif" size="1">Director</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="93"> <font face="Times New Roman, Times, serif" size="1">Director
        of each Fund since the year listed in Exhibit B.</font></td>
      <td width="19"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="222"> <font face="Times New Roman, Times, serif" size="1">Professor,
        Harvard Business School since 1989; Associate Professor, J.L. Kellogg
        Graduate School of Management, Northwestern University from 1985 to 1989;
        Associate Professor, Graduate School of Business Administration, University
        of Michigan from 1979 to 1985.</font></td>
      <td width="14"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="71"> <font face="Times New Roman, Times, serif" size="1">49 registered
        investment companies consisting of <br>
        49 portfolios</font></td>
      <td width="12"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="70"> <font face="Times New Roman, Times, serif" size="1">Newell
        Rubbermaid Inc. (manufacturing)</font></td>
    </tr>
    <tr align="left" valign="top">
      <td width="123"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="56"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="93"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="19"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="222"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="14"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="71"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="12"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="70"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
    </tr>
    <tr align="left" valign="top">
      <td width="123"> <font face="Times New Roman, Times, serif" size="1">Kevin
        A. Ryan (71)</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="56"> <font face="Times New Roman, Times, serif" size="1">Director</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="93"> <font face="Times New Roman, Times, serif" size="1">Director
        of each Fund since the year listed in Exhibit B.</font></td>
      <td width="19"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="222"> <font face="Times New Roman, Times, serif" size="1">Founder
        and currently Director Emeritus of the Boston University Center for the
        Advancement of Ethics and Character and Director thereof from 1989 to
        1999; Professor from 1982 to 1999 and currently Professor Emeritus of
        Education, Boston University; formerly taught on the faculties of The
        University of Chicago, Stanford University and Ohio State University.</font></td>
      <td width="14"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="71"> <font face="Times New Roman, Times, serif" size="1">49 registered
        investment companies consisting of <br>
        49 portfolios</font></td>
      <td width="12"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="70"> <font face="Times New Roman, Times, serif" size="1">None</font></td>
    </tr>
    <tr align="left" valign="top">
      <td width="123"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="56"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="10"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="93"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="19"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="222"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="14"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="71"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="12"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td width="70"> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
    </tr>
    <tr align="left" valign="top">
      <td width="123"> <font face="Times New Roman, Times, serif" size="1">Roscoe
        S. Suddarth (68)</font></td>
      <td width="10">&nbsp; </td>
      <td width="56"> <font face="Times New Roman, Times, serif" size="1">Director</font></td>
      <td width="10">&nbsp; </td>
      <td width="93"> <font face="Times New Roman, Times, serif" size="1">Director
        of each Fund since the year listed in Exhibit B.</font></td>
      <td width="19">&nbsp; </td>
      <td width="222"> <font face="Times New Roman, Times, serif" size="1">President,
        Middle East Institute, from 1995 to 2001; Foreign Service Officer, United
        States Foreign Service, from 1961 to 1995; Career Minister, from 1989
        to 1995; Deputy Inspector General, U.S. Department of State, from 1991
        to 1994; U.S. Ambassador to the Hashemite Kingdom of Jordan, from 1987
        to 1990.</font></td>
      <td width="14">&nbsp; </td>
      <td width="71"> <font face="Times New Roman, Times, serif" size="1">49 registered
        investment companies consisting of <br>
        49 portfolios</font></td>
      <td width="12">&nbsp; </td>
      <td width="70"> <font face="Times New Roman, Times, serif" size="1">None</font></td>
    </tr>
  </table>
  <!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" --> </div>
<P>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
4</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade>
<P align="center">&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 9; page: 9" -->
<div align="center">
  <table border=0 cellspacing=0 cellpadding=0 width="700">
    <tr align="center" valign="bottom">
      <td width="101"> <b><font face="Times New Roman, Times, serif" size="1">Name,
        Address&#134; <br>
        and Age </font></b>
        <hr size="1" noshade>
      </td>
      <td width="13">&nbsp; </td>
      <td width="56"> <b><font face="Times New Roman, Times, serif" size="1">Position
        <br>
        Held with <br>
        Each Fund </font></b>
        <hr size="1" noshade>
      </td>
      <td width="12">&nbsp; </td>
      <td width="76"> <b><font face="Times New Roman, Times, serif" size="1">Term
        of <br>
        Office* and <br>
        Length of <br>
        Time Served </font></b>
        <hr size="1" noshade>
      </td>
      <td width="15">&nbsp; </td>
      <td width="180"> <b><font face="Times New Roman, Times, serif" size="1">Principal
        Occupation(s) <br>
        During Past Five Years </font></b>
        <hr size="1" noshade>
      </td>
      <td width="16">&nbsp; </td>
      <td width="82"> <b><font face="Times New Roman, Times, serif" size="1">Number
        of <br>
        FAM/MLIM- <br>
        Advised Funds <br>
        and Portfolios <br>
        Overseen </font></b>
        <hr size="1" noshade>
      </td>
      <td width="18">&nbsp; </td>
      <td width="131"> <b><font face="Times New Roman, Times, serif" size="1">Public
        <br>
        Directorships </font></b>
        <hr size="1" noshade>
      </td>
    </tr>
    <tr align="left">
      <td valign=top width=101> <font face="Times New Roman, Times, serif" size="1">Richard
        R. West (66)</font></td>
      <td valign=top width=13> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;&nbsp;</font></td>
      <td valign=top width=56> <font face="Times New Roman, Times, serif" size="1">Director</font></td>
      <td valign=top width=12> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;&nbsp;</font></td>
      <td valign=top width=76> <font face="Times New Roman, Times, serif" size="1">Director
        of each Fund since the year listed in Exhibit B.</font></td>
      <td valign=top width=15> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;&nbsp;</font></td>
      <td valign=top width=180> <font face="Times New Roman, Times, serif" size="1">Professor
        of Finance from 1984 to 1994, Dean from 1984 to 1993 and currently Dean
        Emeritus of New York University Leonard N. Stern School of Business Administration.</font></td>
      <td valign=top width=16> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;&nbsp;</font></td>
      <td valign=top width=82> <font face="Times New Roman, Times, serif" size="1">49
        registered investment companies consisting of<br>
        49 portfolios</font></td>
      <td valign=top width=18> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;&nbsp;</font></td>
      <td valign=top width=131> <font face="Times New Roman, Times, serif" size="1">Bowne
        &amp; Co., Inc. (financial printers); Vornado Operating Company (real
        estate company); Vornado Realty Trust, Inc. (real estate holding company);
        Alexander&#146;s, Inc. (real estate company)</font></td>
    </tr>
    <tr align="left">
      <td valign=top width=101>&nbsp;</td>
      <td valign=top width=13>&nbsp;</td>
      <td valign=top width=56>&nbsp;</td>
      <td valign=top width=12>&nbsp;</td>
      <td valign=top width=76>&nbsp;</td>
      <td valign=top width=15>&nbsp;</td>
      <td valign=top width=180>&nbsp;</td>
      <td valign=top width=16>&nbsp;</td>
      <td valign=top width=82>&nbsp;</td>
      <td valign=top width=18>&nbsp;</td>
      <td valign=top width=131>&nbsp;</td>
    </tr>
    <tr align="left">
      <td valign=top width=101> <font face="Times New Roman, Times, serif" size="1">Edward
        D. Zinbarg (69)</font></td>
      <td valign=top width=13> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=56> <font face="Times New Roman, Times, serif" size="1">Director</font></td>
      <td valign=top width=12> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=76> <font face="Times New Roman, Times, serif" size="1">Director
        of each Fund since the year listed in Exhibit B.</font></td>
      <td valign=top width=15> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=180> <font face="Times New Roman, Times, serif" size="1">Self-employed
        financial consultant since 1994; Executive Vice President of the Prudential
        Insurance Company of America from 1988 to 1994; Former Director of Prudential
        Reinsurance Company and former Trustee of the Prudential Foundation.</font></td>
      <td valign=top width=16> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=82> <font face="Times New Roman, Times, serif" size="1">&nbsp;49
        registered investment companies consisting of <br>
        49 portfolios</font></td>
      <td valign=top width=18> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=131> <font face="Times New Roman, Times, serif" size="1">&nbsp;None</font></td>
    </tr>
  </table>
  <!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" --> </div>
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>


<!-- MARKER FORMAT-SHEET="Footnote Left" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=left VALIGN=top><FONT SIZE="1"> &#134;</FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">The
address of each non-interested Director 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=left VALIGN=top><FONT SIZE="1"> * </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Each
Director serves until his or her successor is elected and qualified,       until December
31 of the year in which he or she turns 72, or until his or       her death, resignation,
or removal as provided in each Fund&#146;s by-laws,       charter or by statute.</FONT></TD></TR></TABLE>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Committees of the
Boards 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
Fund maintains two standing board committees, the Audit Committee and the Nominating
Committee, each consisting of the Directors who are not &#147;interested persons&#148; of the Fund,
as defined in the Investment Company Act and who are &#147;independent&#148; as defined in the
listing standards of the New York Stock Exchange (&#147;NYSE&#148;). Currently, Ms. Montgomery and
Messrs. Forbes, Ryan, Suddarth, West and Zinbarg are members of each Fund&#146;s Audit
Committee and Nominating Committee. </FONT></P>

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<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. </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 <font size="1">LLP</font> (&#147;D&amp;T&#148;), Independent Registered
  Public Accounting Firm for Debt Strategies, SHIP </FONT></P>



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<P>&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><FONT FACE="Times New Roman, Times, Serif" SIZE=2>and FRIS, and from Ernst
  &amp; Young <font size="1">LLP</font> (&#147;E&amp;Y&#148;), Independent Registered
  Public Accounting Firm for MuniHoldings and MuniHoldings Ins. 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>

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<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 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 2004 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>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Nominating 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 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. Each Fund adopted a
Charter of the Nominating Committee on January 21, 2004, 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 an 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>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
6</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;





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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Committee and Board of
Directors 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;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. Each Fund&#146;s Nominating Committee is newly formed
as a standing board committee and did not meet during each Fund&#146;s last fiscal year. See
Exhibit A for further information about Committee and Board meetings. </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>

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<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 2003 Annual Meetings of Stockholders. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Compliance with
Section 16(a) of the Exchange Act </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;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. </FONT></P>

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<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. Glenn 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 current and former positions he
held with FAM and its affiliates and/or due to his ownership of securities issued by ML
&amp; Co. Mr. Glenn is the President of each Fund. </FONT></P>



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<P>&nbsp;
<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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;





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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;Information
relating to the aggregate fees and expenses paid by each Fund to its non-interested
Directors during each Fund&#146;s most recently completed fiscal year is set forth in Exhibit
A. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Officers of the Funds </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;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>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Stock Ownership </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 Exhibits A and 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 securities owned in all FAM/MLIM-advised funds. </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
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. Glenn, 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>

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<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> </P>


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<P>&nbsp;
<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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;





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

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Expenses and Methods
of Proxy Solicitation; Quorum </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
expenses of preparation, printing and mailing of the enclosed forms of proxy, the
accompanying Notice and this Combined Proxy Statement will be borne by the Funds in
proportion to their 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 the shares of Common Stock or AMPS, as applicable, of the Funds. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
  MuniHoldings, MuniHoldings Ins, Debt Strategies and FRIS one-third of the Fund&#146;s
  shares of Common Stock and AMPS, as applicable, entitled to vote at the Meeting,
  present in person or by proxy, constitutes a quorum and for SHIP, 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. With respect to MuniHoldings and
  MuniHoldings Ins, the quorum requirements must be met for each Fund&#146;s shares
  of Common Stock and AMPS, each voting separately as a class. </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
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
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. 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
out-of-pocket expenses, which are estimated to be $500 for each Fund. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Voting Requirement </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;All
shares of Common Stock and AMPS, as applicable, 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, as applicable, will be voted &#147;FOR&#148; the Director-Nominees. In
the case of MuniHoldings and MuniHoldings Ins, holders of AMPS, voting separately as a
class, are entitled to elect the two 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 Debt Strategies, SHIP and FRIS, holders of shares of
Common Stock are entitled to elect all Directors. Assuming a quorum is present, approval
of Item 1 will require the affirmative vote of stockholders holding at least the
percentage of shares indicated below. &#147;Plurality of the votes&#148; 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>



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<P>&nbsp;
<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><div align="center">
  <hr align=LEFT width=100% size=5 noshade>
  <p>&nbsp; <!-- *************************************************************************** -->
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  <p><font face="Times New Roman, Times, Serif" size=2></font></p>

<table border=0 cellspacing=0 cellpadding=0 width="600">
    <tr align="left" valign="bottom">
      <td width=122> <b><font face="Times New Roman, Times, serif"><font size="1">Fund</font></font></b></td>
      <td width=14><b></b></td>
      <td width=198> <b><font face="Times New Roman, Times, serif"><font size="1">Election
        of AMPS Directors</font></font></b></td>
      <td width=19><b></b></td>
      <td width=247> <b><font face="Times New Roman, Times, serif"><font size="1">Election
        of Other Directors</font></font></b></td>
    </tr>
    <tr align="left" valign="top">
      <td colspan="5">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr align="left" valign="top">
      <td width=122> <font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></td>
      <td width=14>&nbsp;&nbsp;</td>
      <td width=198> <font face="Times New Roman, Times, serif" size="2">Affirmative
        vote of a plurality of the votes cast by the holders of AMPS, voting as
        a separate class</font></td>
      <td width=19>&nbsp;&nbsp;</td>
      <td width=247> <font face="Times New Roman, Times, serif" size="2">Affirmative
        vote of a plurality of the votes cast by the holders of shares of Common
        Stock and AMPS, voting together as a single class</font></td>
    </tr>
    <tr align="left" valign="top">
      <td colspan="5">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr align="left" valign="top">
      <td width=122> <font face="Times New Roman, Times, serif" size="2">MuniHoldings
        Ins.</font></td>
      <td width=14>&nbsp;</td>
      <td width=198> <font face="Times New Roman, Times, serif" size="2">Affirmative
        vote of a plurality of the votes cast by the holders of AMPS, voting as
        a separate class</font></td>
      <td width=19>&nbsp;</td>
      <td width=247> <font face="Times New Roman, Times, serif" size="2">Affirmative
        vote of a plurality of the votes cast by the holders of shares of Common
        Stock and AMPS, voting together as a single class</font></td>
    </tr>
    <tr align="left" valign="top">
      <td colspan="5">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr align="left" valign="top">
      <td width=122> <font face="Times New Roman, Times, serif" size="2">Debt
        Strategies</font></td>
      <td width=14>&nbsp;</td>
      <td width=198> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
      <td width=19>&nbsp;</td>
      <td width=247> <font face="Times New Roman, Times, serif" size="2">Affirmative
        vote of a plurality of the votes cast by the holders of shares of Common
        Stock</font></td>
    </tr>
    <tr align="left" valign="top">
      <td colspan="5">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr align="left" valign="top">
      <td width=122> <font face="Times New Roman, Times, serif" size="2">SHIP</font></td>
      <td width=14>&nbsp;</td>
      <td width=198> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
      <td width=19>&nbsp;</td>
      <td width=247> <font face="Times New Roman, Times, serif" size="2">Affirmative
        vote of a plurality of the total votes cast by the holders of shares of
        Common Stock</font></td>
    </tr>
    <tr align="left" valign="top">
      <td colspan="5">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr align="left" valign="top">
      <td width=122> <font face="Times New Roman, Times, serif" size="2">FRIS</font></td>
      <td width=14>&nbsp;</td>
      <td width=198> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
      <td width=19>&nbsp;</td>
      <td width=247> <font face="Times New Roman, Times, serif" size="2">Affirmative
        vote of a plurality of the total votes case by the holders of shares of
        Common Stock</font></td>
    </tr>
  </table>
</div>
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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Broker Non-Votes and
Abstentions </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;Broker-dealer
firms, including Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated (&#147;MLPF&amp;S&#148;),
holding shares of each 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 the election of Directors (Item 1) before each Meeting. 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. 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. Proxies
that are returned to a Fund but that are marked &#147;abstain&#148; or on which a broker-dealer has
declined to vote on any proposal (&#147;broker non-votes&#148;) will be counted as present for the
purposes of determining a quorum. MLPF&amp;S has advised each Fund that if it votes
shares held in its name for which no instructions are received, except as limited by
agreement or applicable law, it will do so 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. 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 any Fund. </FONT></P>



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<P>&nbsp;
<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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;






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<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 or AMPS, as applicable, represented by properly executed
proxies according to their judgment on those matters. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Independent Registered
Public Accounting Firms&#146; Fees </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
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 Registered Public
Accounting Firm directly to the Fund and (b) those permissible non-audit services
provided by the Fund&#146;s 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>

<!-- 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 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 filing 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"><I>Audit-Related Fees </I>include assurance and
      related services reasonably related to the performance of the audit of financial
      statements not included in <i>Audit Fees</i>; </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>

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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"><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>

<!-- 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
fiscal year end for each Fund is set forth in Exhibit A to this Combined Proxy Statement. </FONT></P>




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<P>&nbsp;
<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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;





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<!-- MARKER PAGE="sheet: 16; page: 16" -->





<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><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>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=700>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="127">&nbsp;</TD>
      <TD ALIGN=center width="71"><font face="Times New Roman, Times, serif"><b><font size="1">Independent
        <br>
        Registered <br>
        Public <br>
        Accounting </font></b></font></TD>
      <TD ALIGN=center width="11">&nbsp;</TD>
      <td align=center colspan="3"><font face="Times New Roman, Times, serif"><b><font size="1">Audit
        Fees ($) </font></b> </font>
        <hr size="1" noshade>
      </td>
      <td align=center width="11">&nbsp;</td>
      <td align=center colspan="5"><font face="Times New Roman, Times, serif"><b><font size="1">Audit-Related
        <br>
        Fees ($) </font></b> </font>
        <hr size="1" noshade>
      </td>
      <td align=center width="10">&nbsp;</td>
      <td align=center colspan="4"><font face="Times New Roman, Times, serif"><b><font size="1">Tax
        Fees ($) </font></b> </font>
        <hr size="1" noshade>
      </td>
      <td align=center width="11">&nbsp;</td>
      <td align=center width="10">&nbsp;</td>
      <td align=center colspan="3"><font face="Times New Roman, Times, serif"><b><font size="1">All
        Other <br>
        Fees ($) </font></b> </font>
        <hr size="1" noshade>
      </td>
    </TR>
    <TR VALIGN=top>
      <TD ALIGN=LEFT width="127"><font face="Times New Roman, Times, serif"><b><font size="1">Fund
        </font></b> </font>
        <hr size="1" noshade width="24" align="left">
      </TD>
      <TD ALIGN=center width="71"><font face="Times New Roman, Times, serif"><b><font size="1">Firm
        </font></b> </font>
        <hr size="1" noshade width="55">
      </TD>
      <TD ALIGN=center width="11">&nbsp;</TD>
      <TD ALIGN=center width="45"><font face="Times New Roman, Times, serif"><b><font size="1">2004
        </font></b> </font>
        <hr size="1" noshade width="35">
      </TD>
      <TD ALIGN=center width="11">&nbsp;</TD>
      <TD ALIGN=center width="45"><font face="Times New Roman, Times, serif"><b><font size="1">2003
        </font></b> </font>
        <hr size="1" noshade width="35">
      </TD>
      <TD ALIGN=center width="11">&nbsp;</TD>
      <TD ALIGN=center colspan="2"><font face="Times New Roman, Times, serif"><b><font size="1">2004
        </font></b> </font>
        <hr size="1" noshade width="35">
      </TD>
      <TD ALIGN=center width="10">&nbsp;</TD>
      <TD ALIGN=center colspan="2"><font face="Times New Roman, Times, serif"><b><font size="1">2003
        </font></b> </font>
        <hr size="1" noshade width="35">
      </TD>
      <TD ALIGN=center width="10">&nbsp;</TD>
      <TD ALIGN=center width="45"><font face="Times New Roman, Times, serif"><b><font size="1">2004**
        </font></b> </font>
        <hr size="1" noshade width="35">
      </TD>
      <TD ALIGN=center width="11">&nbsp;</TD>
      <TD ALIGN=center width="10">&nbsp;</TD>
      <TD ALIGN=center width="45"><font face="Times New Roman, Times, serif"><b><font size="1">2003**
        </font></b> </font>
        <hr size="1" noshade width="35">
      </TD>
      <TD ALIGN=center width="11">&nbsp;</TD>
      <TD ALIGN=center width="10">&nbsp;</TD>
      <TD ALIGN=center width="45"><font face="Times New Roman, Times, serif"><b><font size="1">2004
        </font></b> </font>
        <hr size="1" noshade width="35">
      </TD>
      <TD ALIGN=center width="11">&nbsp;</TD>
      <TD ALIGN=center width="58"><font face="Times New Roman, Times, serif"><b><font size="1">2003
        </font></b> </font>
        <hr size="1" noshade width="35">
      </TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="127"><font face="Times New Roman, Times, serif"></font></TD>
      <TD ALIGN=LEFT width="71">&nbsp;</TD>
      <TD ALIGN=LEFT width="11">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45">&nbsp;</TD>
      <TD ALIGN=LEFT width="11">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45">&nbsp;</TD>
      <TD ALIGN=LEFT width="11">&nbsp;</TD>
      <TD ALIGN=RIGHT width="35"><font face="Times New Roman, Times, serif"></font></TD>
      <TD ALIGN=LEFT width="20">&nbsp;</TD>
      <TD ALIGN=RIGHT width="10"><font face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="46">&nbsp;</TD>
      <TD ALIGN=LEFT width="13">&nbsp;</TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45">&nbsp;</TD>
      <TD ALIGN=LEFT width="11">&nbsp;</TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45">&nbsp;</TD>
      <TD ALIGN=LEFT width="11">&nbsp;</TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45">&nbsp;</TD>
      <TD ALIGN=LEFT width="11">&nbsp;</TD>
      <TD ALIGN=RIGHT width="58">&nbsp;</TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="127"><font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></TD>
      <TD ALIGN=center width="71"><font face="Times New Roman, Times, serif" size="2">E&amp;Y</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">31,500</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">30,550</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="35"><font face="Times New Roman, Times, serif" size="2">3,000</font></TD>
      <TD ALIGN=LEFT width="20"><font face="Times New Roman, Times, serif" size="2">#&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="46"><font face="Times New Roman, Times, serif" size="2">3,000</font></TD>
      <TD ALIGN=LEFT width="13"><font face="Times New Roman, Times, serif" size="2">#&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10"><font face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">5,200</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10"><font face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">5,000</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10"><font face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
      <TD ALIGN=center width="45"><font face="Times New Roman, Times, serif" size="2">0</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=center width="58"><font face="Times New Roman, Times, serif" size="2">0</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="127"><font face="Times New Roman, Times, serif" size="2">MuniHoldings
        Ins</font></TD>
      <TD ALIGN=center width="71"><font face="Times New Roman, Times, serif" size="2">E&amp;Y</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">31,500</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">30,550</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="35"><font face="Times New Roman, Times, serif" size="2">3,000</font></TD>
      <TD ALIGN=LEFT width="20"><font face="Times New Roman, Times, serif" size="2">#&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="46"><font face="Times New Roman, Times, serif" size="2">3,000</font></TD>
      <TD ALIGN=LEFT width="13"><font face="Times New Roman, Times, serif" size="2">#&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">5,200</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">5,000</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=center width="45"><font face="Times New Roman, Times, serif" size="2">0</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center width="58"><font face="Times New Roman, Times, serif" size="2">0</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="127"><font face="Times New Roman, Times, serif" size="2">Debt
        Strategies</font></TD>
      <TD ALIGN=center width="71"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">38,900</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">38,000</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="35"><font face="Times New Roman, Times, serif" size="2">7,500</font></TD>
      <TD ALIGN=LEFT width="20"><font face="Times New Roman, Times, serif" size="2">*</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="46"><font face="Times New Roman, Times, serif" size="2">30,000</font></TD>
      <TD ALIGN=LEFT width="13"><font face="Times New Roman, Times, serif" size="2">*</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">5,200</font></TD>
      <TD ALIGN=LEFT width="11">&nbsp;</TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">4,800</font></TD>
      <TD ALIGN=LEFT width="11">&nbsp;</TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=center width="45"><font face="Times New Roman, Times, serif" size="2">0</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center width="58"><font face="Times New Roman, Times, serif" size="2">0</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="127"><font face="Times New Roman, Times, serif" size="2">SHIP</font></TD>
      <TD ALIGN=center width="71"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">35,900</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">35,000</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="35"><font face="Times New Roman, Times, serif" size="2">7,500</font></TD>
      <TD ALIGN=LEFT width="20"><font face="Times New Roman, Times, serif" size="2">*</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="46"><font face="Times New Roman, Times, serif" size="2">30,000</font></TD>
      <TD ALIGN=LEFT width="13"><font face="Times New Roman, Times, serif" size="2">*</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">5,200</font></TD>
      <TD ALIGN=LEFT width="11">&nbsp;</TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">4,800</font></TD>
      <TD ALIGN=LEFT width="11">&nbsp;</TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=center width="45"><font face="Times New Roman, Times, serif" size="2">0</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center width="58"><font face="Times New Roman, Times, serif" size="2">0</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="127"><font face="Times New Roman, Times, serif" size="2">FRIS</font></TD>
      <TD ALIGN=center width="71"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">8,100</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">N/A</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="35"><font face="Times New Roman, Times, serif" size="2">0</font></TD>
      <TD ALIGN=LEFT width="20"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="46"><font face="Times New Roman, Times, serif" size="2">N/A</font></TD>
      <TD ALIGN=LEFT width="13"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">0</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="45"><font face="Times New Roman, Times, serif" size="2">N/A</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT width="10">&nbsp;</TD>
      <TD ALIGN=center width="45"><font face="Times New Roman, Times, serif" size="2">0</font></TD>
      <TD ALIGN=LEFT width="11"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center width="58"><font face="Times New Roman, Times, serif" size="2">N/A&nbsp;&nbsp;&nbsp;&nbsp;</font></TD>
    </TR>
  </TABLE>
  <!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" --> </div>
<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%><font size="1"></font></td>
    <td width=94% align=left valign=top><font size="1">Agreed upon compliance
      procedures associated with the Fund&#146;s AMPS.</font></td>
  </tr>
  <TR>
    <TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> * </FONT></TD>
    <TD WIDTH=2%><FONT SIZE="1"></FONT></TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Agreed upon procedures
      associated with Monthly Sellers Reports for 2004 and 2003 and Schedule of
      Investments for 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%><FONT SIZE="1"></FONT></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>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<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>
<P ALIGN=center>&nbsp;</P>
<div align="center">
  <table border=0 cellspacing=0 cellpadding=0 width="640">
    <tr valign="bottom" align="center">
      <td width="133">
        <p>&nbsp;</p>
      </td>
      <td width="95"> <b><font face="Times New Roman, Times, serif" size="1">Independent
        <br>
        Registered <br>
        Public <br>
        Accounting </font></b></td>
      <td width="16">&nbsp; </td>
      <td colspan="4"> <b><font face="Times New Roman, Times, serif" size="1">Audit-Related
        <br>
        Fees ($) </font></b>
        <hr size="1" noshade width="75" align="center">
        <b></b> </td>
      <td width="16">&nbsp; </td>
      <td colspan="4"> <b><font face="Times New Roman, Times, serif" size="1">Tax
        Fees ($) </font></b>
        <hr size="1" noshade width="60" align="center">
        <b></b> </td>
      <td width="16">&nbsp; </td>
      <td colspan="4"> <b><font face="Times New Roman, Times, serif" size="1">All
        Other Fees ($) </font></b>
        <hr size="1" noshade width="85" align="center">
      </td>
    </tr>
    <tr valign="top" align="center">
      <td align="left" width="133"> <b><font face="Times New Roman, Times, serif" size="1">Fund
        </font></b>
        <hr size="1" noshade width="24" align="left">
      </td>
      <td width="95"> <b><font face="Times New Roman, Times, serif" size="1">Firm
        </font></b>
        <hr size="1" width="70">
      </td>
      <td width="16">&nbsp; </td>
      <td colspan="2"> <b><font face="Times New Roman, Times, serif" size="1">2004*
        </font></b>
        <hr size="1" noshade width="35" align="center">
      </td>
      <td width="10"><b><font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;</font></b></td>
      <td width="47"> <b><font face="Times New Roman, Times, serif" size="1">2003
        </font></b>
        <hr size="1" noshade width="35" align="center">
      </td>
      <td width="16"> <b><font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;</font></b></td>
      <td colspan="2"> <b><font face="Times New Roman, Times, serif" size="1">2004*
        </font></b>
        <hr size="1" noshade width="35" align="center">
      </td>
      <td width="10"><b><font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;</font></b></td>
      <td width="47"> <b><font face="Times New Roman, Times, serif" size="1">2003
        </font></b>
        <hr size="1" noshade width="35" align="center">
      </td>
      <td width="16"> <b><font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;</font></b></td>
      <td width="66" colspan="2"> <b><font face="Times New Roman, Times, serif" size="1">2004*
        </font></b>
        <hr size="1" noshade width="35" align="center">
      </td>
      <td width="10"><b><font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;</font></b></td>
      <td width="56"> <b><font face="Times New Roman, Times, serif" size="1">2003
        </font></b>
        <hr size="1" noshade width="35" align="center">
      </td>
    </tr>
    <tr valign="bottom">
      <td width="133"> <font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></td>
      <td align="center" width="95"> <font face="Times New Roman, Times, serif" size="2">E&amp;Y</font></td>
      <td width="16">&nbsp;&nbsp;&nbsp;</td>
      <td align="right" width="47"> <font face="Times New Roman, Times, serif" size="2">0</font></td>
      <td align="left" width="15">&nbsp; </td>
      <td width="10">&nbsp;&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
      <td width="16">&nbsp;&nbsp; </td>
      <td align="right" width="42"> <font face="Times New Roman, Times, serif" size="2">0</font></td>
      <td align="left" width="14">&nbsp; </td>
      <td width="10">&nbsp;&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
      <td width="16">&nbsp;&nbsp; </td>
      <td align="right" width="47"> <font face="Times New Roman, Times, serif" size="2">0</font></td>
      <td align="left" width="19">&nbsp; </td>
      <td width="10">&nbsp;&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
    </tr>
    <tr valign="bottom">
      <td width="133"> <font face="Times New Roman, Times, serif" size="2">MuniHoldings
        Ins</font></td>
      <td align="center" width="95"> <font face="Times New Roman, Times, serif" size="2">E&amp;Y</font></td>
      <td width="16">&nbsp;</td>
      <td align="right" width="47"> <font face="Times New Roman, Times, serif" size="2">0</font></td>
      <td align="left" width="15">&nbsp; </td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
      <td width="16">&nbsp; </td>
      <td align="right" width="42"> <font face="Times New Roman, Times, serif" size="2">0</font></td>
      <td align="left" width="14">&nbsp; </td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
      <td width="16">&nbsp; </td>
      <td align="right" width="47"> <font face="Times New Roman, Times, serif" size="2">0</font></td>
      <td align="left" width="19">&nbsp; </td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
    </tr>
    <tr valign="bottom">
      <td width="133"> <font face="Times New Roman, Times, serif" size="2">Debt
        Strategies</font></td>
      <td align="center" width="95"> <font face="Times New Roman, Times, serif" size="2">D&amp;T</font></td>
      <td width="16">&nbsp;</td>
      <td align="right" width="47"> <font size="2">485,500</font></td>
      <td align="left" width="15"><font face="Times New Roman, Times, serif" size="2">#</font></td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
      <td width="16">&nbsp; </td>
      <td align="right" width="42"> <font face="Times New Roman, Times, serif" size="2">0</font></td>
      <td align="left" width="14"> <font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
      <td width="16">&nbsp; </td>
      <td align="right" width="47"> <font face="Times New Roman, Times, serif" size="2">56,140</font></td>
      <td align="left" width="19"> <font face="Times New Roman, Times, serif" size="2">**</font></td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
    </tr>
    <tr valign="bottom">
      <td width="133"> <font face="Times New Roman, Times, serif" size="2">SHIP</font></td>
      <td align="center" width="95"> <font face="Times New Roman, Times, serif" size="2">D&amp;T</font></td>
      <td width="16">&nbsp;</td>
      <td align="right" width="47"> <font size="2">485,500</font></td>
      <td align="left" width="15"> <font face="Times New Roman, Times, serif" size="2">#</font></td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
      <td width="16">&nbsp; </td>
      <td align="right" width="42"> <font face="Times New Roman, Times, serif" size="2">0</font></td>
      <td align="left" width="14"> <font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
      <td width="16">&nbsp; </td>
      <td align="right" width="47"> <font face="Times New Roman, Times, serif" size="2">56,140</font></td>
      <td align="left" width="19"> <font face="Times New Roman, Times, serif" size="2">**</font></td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
    </tr>
    <tr valign="bottom">
      <td width="133"> <font face="Times New Roman, Times, serif" size="2">FRIS</font></td>
      <td align="center" width="95"> <font face="Times New Roman, Times, serif" size="2">D&amp;T</font></td>
      <td width="16">&nbsp;</td>
      <td align="right" width="47"> <font face="Times New Roman, Times, serif" size="2">485,500</font></td>
      <td align="left" width="15"> <font face="Times New Roman, Times, serif" size="2">#</font></td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
      <td width="16">&nbsp; </td>
      <td align="right" width="42"> <font face="Times New Roman, Times, serif" size="2">0</font></td>
      <td align="left" width="14">&nbsp; </td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
      <td width="16">&nbsp; </td>
      <td align="right" width="47"> <font face="Times New Roman, Times, serif" size="2">56,140</font></td>
      <td align="left" width="19"> <font face="Times New Roman, Times, serif" size="2">**</font></td>
      <td width="10">&nbsp;</td>
      <td width="47" align="center"><font size="2">N/A</font> </td>
    </tr>
  </table>
  <!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" --> </div>
<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%><FONT SIZE="1"></FONT></TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Primarily related to examinations
      of internal control.</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%><FONT SIZE="1"></FONT></TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Information is provided
      only for the 2004 fiscal year because the rules regarding pre-approval by
      the Audit Committee of services provided to Affiliated Service Providers
      were not in effect until the 2004 fiscal year of any 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">** </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Primarily
associated with project management of non-financial service systems implementations. </FONT></TD></TR></TABLE>



<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" 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>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT WIDTH=195>&nbsp;</TD>
      <TD ALIGN=LEFT WIDTH=5>&nbsp;</TD>
      <TD ALIGN=center WIDTH=149><b><font size="1" face="Times New Roman, Times, serif">Independent
        <br>
        Registered <br>
        Public </font></b></TD>
      <TD ALIGN=center WIDTH=17>&nbsp;</TD>
      <TD ALIGN=center colspan="5"><font size="1" face="Times New Roman, Times, serif"><b>Aggregate
        Non-Audit Fees ($) </b></font>
        <hr size="1" noshade width="200">
      </TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT valign="top" WIDTH=195><b><font size="1" face="Times New Roman, Times, serif">Fund
        </font></b>
        <hr size="1" noshade width="24" align="left">
</TD>
      <TD ALIGN=LEFT WIDTH=5><b></b></TD>
      <TD ALIGN=center valign="top" WIDTH=149><b><font size="1" face="Times New Roman, Times, serif">Accounting
        Firm </font></b>
        <hr size="1" noshade width="75">
      </TD>
      <TD ALIGN=center valign="top" WIDTH=17><b></b></TD>
      <TD ALIGN=center valign="top" colspan="2"><b><font size="1" face="Times New Roman, Times, serif">2004
        </font></b>
        <hr size="1" noshade width="35">
        <b></b></TD>
      <TD ALIGN=center valign="top" WIDTH=15>&nbsp;</TD>
      <TD ALIGN=center valign="top" colspan="2"><b><font size="1" face="Times New Roman, Times, serif">2003
        </font></b>
        <hr size="1" noshade width="35">
      </TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT WIDTH=195><font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></TD>
      <TD ALIGN=LEFT WIDTH=5><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center WIDTH=149><font face="Times New Roman, Times, serif" size="2">E&amp;Y</font></TD>
      <TD ALIGN=LEFT WIDTH=17><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=right WIDTH=89><font face="Times New Roman, Times, serif" size="2">2,942,050</font></TD>
      <TD ALIGN=LEFT WIDTH=37><font face="Times New Roman, Times, serif" size="2">*&nbsp;&nbsp;</font></TD>
      <TD ALIGN=right WIDTH=15>&nbsp;&nbsp;</TD>
      <TD ALIGN=right WIDTH=88><font face="Times New Roman, Times, serif" size="2">2,729,000</font></TD>
      <TD ALIGN=LEFT WIDTH=45><font face="Times New Roman, Times, serif" size="2">*</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="195"><font face="Times New Roman, Times, serif" size="2">MuniHoldings
        Ins</font></TD>
      <TD ALIGN=LEFT width="5"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center width="149"><font face="Times New Roman, Times, serif" size="2">E&amp;Y</font></TD>
      <TD ALIGN=LEFT width="17"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=right width="89"><font face="Times New Roman, Times, serif" size="2">2,942,050</font></TD>
      <TD ALIGN=LEFT width="37"><font face="Times New Roman, Times, serif" size="2">*</font></TD>
      <TD ALIGN=right width="15">&nbsp;</TD>
      <TD ALIGN=right width="88"><font face="Times New Roman, Times, serif" size="2">2,729,000</font></TD>
      <TD ALIGN=LEFT width="45"><font face="Times New Roman, Times, serif" size="2">*&nbsp;</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="195"><font face="Times New Roman, Times, serif" size="2">Debt
        Strategies</font></TD>
      <TD ALIGN=LEFT width="5"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center width="149"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></TD>
      <TD ALIGN=LEFT width="17"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=right width="89"><font face="Times New Roman, Times, serif" size="2">17,851,064</font></TD>
      <TD ALIGN=LEFT width="37"><font face="Times New Roman, Times, serif" size="2">&nbsp;#</font></TD>
      <TD ALIGN=right width="15">&nbsp;</TD>
      <TD ALIGN=right width="88"><font face="Times New Roman, Times, serif" size="2">17,291,137</font></TD>
      <TD ALIGN=LEFT width="45"><font face="Times New Roman, Times, serif" size="2">&nbsp;#</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="195"><font face="Times New Roman, Times, serif" size="2">SHIP</font></TD>
      <TD ALIGN=LEFT width="5"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center width="149"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></TD>
      <TD ALIGN=LEFT width="17"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=right width="89"><font face="Times New Roman, Times, serif" size="2">17,851,064</font></TD>
      <TD ALIGN=LEFT width="37"><font face="Times New Roman, Times, serif" size="2">&nbsp;#</font></TD>
      <TD ALIGN=right width="15">&nbsp;</TD>
      <TD ALIGN=right width="88"><font face="Times New Roman, Times, serif" size="2">17,291,137</font></TD>
      <TD ALIGN=LEFT width="45"><font face="Times New Roman, Times, serif" size="2">&nbsp;#</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="195"><font face="Times New Roman, Times, serif" size="2">FRIS</font></TD>
      <TD ALIGN=LEFT width="5"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center width="149"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></TD>
      <TD ALIGN=LEFT width="17"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=right width="89"><font face="Times New Roman, Times, serif" size="2">18,690,437</font></TD>
      <TD ALIGN=LEFT width="37"><font face="Times New Roman, Times, serif" size="2">&nbsp;#</font></TD>
      <TD ALIGN=right width="15">&nbsp;</TD>
      <TD ALIGN=right width="88"><font face="Times New Roman, Times, serif" size="2">17,012,158</font></TD>
      <TD ALIGN=LEFT width="45"><font face="Times New Roman, Times, serif" size="2">&nbsp;#</font></TD>
    </TR>
  </TABLE>
  <br>
  <!-- MARKER FORMAT-SHEET="Footnote Left" FSL="Workstation" -->
  <hr size=1 noshade align=left  width=75>
  <div align="left"><!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
  </div>
</div>
<TABLE WIDTH=100%>
  <tr>
    <td width=4% align=left valign=top><font size="1"> * </font></td>
    <td width=2%><font size="1"></font></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>
  <TR>
    <TD WIDTH=4% ALIGN=left VALIGN=top><FONT SIZE="1"> # </FONT></TD>
    <TD WIDTH=2%><FONT SIZE="1"></FONT></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 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 Left" FSL="Workstation" --> <!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<P>&nbsp;
<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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 17; page: 17" -->



<!-- 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 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 Committee&#146;s pre-approval and has determined that the
provision of such services is compatible with maintaining the Independent Registered
Public Accounting Firms&#146; independence. </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>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 also must
approve other non-audit services provided to a Fund and those non-audit 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 (e.g. 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 the 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 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 received from ML &amp;Co. and its affiliates. </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>Other.
</I>Representatives of E&amp;Y and D&amp;T, 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>

<!-- 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>

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<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
1-800-995-6526. </FONT> </P>




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<P>&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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;






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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Stockholder Proposals </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;If
  a stockholder of any Fund intends to present a proposal at the 2005 Annual Meeting
  of Stockholders of such Fund, each of which is anticipated to be held in August
  2005, and desires to have the proposal included in the Fund&#146;s proxy statement
  and form of proxy for that meeting, the stockholder must deliver the proposal
  to the offices of the appropriate Fund by March 29, 2005. The persons named
  as proxies in the proxy materials for each Fund&#146;s 2005 Annual Meetings
  of Stockholders 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 the Fund by June 24, 2005. Written proposals and notices should
  be sent to the Secretary of the applicable Fund (addressed to 800 Scudders Mill
  Road, Plainsboro, New Jersey 08536). </FONT></P>

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="72%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="28%"><font face="Times New Roman, Times, Serif" size=2>By Order
      of the Boards of Directors</font></td>
  </tr>
  <tr>
    <td width="72%">&nbsp;</td>
    <td width="28%">&nbsp;</td>
  </tr>
  <tr>
    <td width="72%">&nbsp;</td>
    <td width="28%"><font face="Times New Roman, Times, Serif" size="2">P<font size="1">HILLIP</font>
      S. G<font size="1">ILLESPIE</font> <br>
      <i>Secretary of MuniHoldings Fund, Inc., <br>
      MuniHoldings Insured Fund, Inc., <br>
      Debt Strategies Fund, Inc., <br>
      Senior High Income Portfolio, Inc. and <br>
      Floating Rate Income Strategies Fund, Inc.</i></font></td>
  </tr>
</table>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: July 26, 2004 </FONT></P>





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





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<!-- MARKER PAGE="sheet: 19; page: 19" -->





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<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit A </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;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="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>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640>
    <TR VALIGN=Bottom>
      <TH align="left" width="309"><font size="1" face="Times New Roman, Times, serif">Fund
        <br>
        </font>
        <hr size="1" noshade width="24" align="left">
 </TH>
      <TH width="108"><font size="1" face="Times New Roman, Times, serif">Defined <BR>
        Term </font>
        <hr size="1" noshade width="50">
      </TH>
      <TH width="89"><font size="1" face="Times New Roman, Times, serif">Fiscal <BR>
        Year End </font>
        <hr size="1" noshade width="50">
      </TH>
      <TH width="76"><font size="1" face="Times New Roman, Times, serif">State
        of <BR>
        Organization </font>
        <hr size="1" noshade width="60">
      </TH>
      <TH width="58"><font size="1" face="Times New Roman, Times, serif">Meeting <BR>
        Time </font>
        <hr size="1" noshade width="35">
      </TH>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT WIDTH=309><font face="Times New Roman, Times, serif" size="2">MuniHoldings
        Fund, Inc.</font></TD>
      <TD ALIGN=LEFT WIDTH=108><font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></TD>
      <TD ALIGN=center WIDTH=89><font face="Times New Roman, Times, serif" size="2">April
        30</font></TD>
      <TD ALIGN=center WIDTH=76><font face="Times New Roman, Times, serif" size="2">MD</font></TD>
      <TD ALIGN=center WIDTH=58><font face="Times New Roman, Times, serif" size="2">12:30</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="309"><font face="Times New Roman, Times, serif" size="2">MuniHoldings
        Insured Fund, Inc.</font></TD>
      <TD ALIGN=LEFT width="108"><font face="Times New Roman, Times, serif" size="2">MuniHoldings
        Ins</font></TD>
      <TD ALIGN=center width="89"><font face="Times New Roman, Times, serif" size="2">April
        30</font></TD>
      <TD ALIGN=center width="76"><font face="Times New Roman, Times, serif" size="2">MD</font></TD>
      <TD ALIGN=center width="58"><font face="Times New Roman, Times, serif" size="2">12:45</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="309"><font face="Times New Roman, Times, serif" size="2">Debt
        Strategies Fund, Inc.</font></TD>
      <TD ALIGN=LEFT width="108"><font face="Times New Roman, Times, serif" size="2">Debt
        Strategies</font></TD>
      <TD ALIGN=center width="89"><font face="Times New Roman, Times, serif" size="2">February
        28</font></TD>
      <TD ALIGN=center width="76"><font face="Times New Roman, Times, serif" size="2">MD</font></TD>
      <TD ALIGN=center width="58"><font face="Times New Roman, Times, serif" size="2">1:00</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="309"><font face="Times New Roman, Times, serif" size="2">Senior
        High Income Portfolio, Inc.</font></TD>
      <TD ALIGN=LEFT width="108"><font face="Times New Roman, Times, serif" size="2">SHIP</font></TD>
      <TD ALIGN=center width="89"><font face="Times New Roman, Times, serif" size="2">February
        28</font></TD>
      <TD ALIGN=center width="76"><font face="Times New Roman, Times, serif" size="2">MD</font></TD>
      <TD ALIGN=center width="58"><font face="Times New Roman, Times, serif" size="2">1:15</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="309"><font face="Times New Roman, Times, serif" size="2">Floating
        Rate Income <br>
        &nbsp;&nbsp;Strategies Fund, Inc. </font></TD>
      <TD ALIGN=LEFT width="108"><font face="Times New Roman, Times, serif" size="2">FRIS</font></TD>
      <TD ALIGN=center width="89"><font face="Times New Roman, Times, serif" size="2">August
        31</font></TD>
      <TD ALIGN=center width="76"><font face="Times New Roman, Times, serif" size="2">MD</font></TD>
      <TD ALIGN=center width="58"><font face="Times New Roman, Times, serif" size="2">1:30</font></TD>
    </TR>
  </TABLE>
  <br>
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640>
    <TR VALIGN=Bottom>
      <TH align="left" width="384">&nbsp;</TH>
      <TH COLSPAN=4><font face="Times New Roman, Times, serif"><b><font size="1">Shares
        Outstanding as <br>
        of the Record Date </font></b></font>
        <hr size="1" noshade width="200">
      </TH>
    </TR>
    <TR VALIGN=Bottom>
      <TH align="left" width="384"><font face="Times New Roman, Times, serif"><b><font size="1">Fund
        <br>
        </font></b></font>
        <hr size="1" noshade width="24" align="left">
</TH>
      <TH COLSPAN=2><font face="Times New Roman, Times, serif"><b><font size="1">Common
        Stock </font></b></font>
        <hr size="1" noshade width="75">
      </TH>
      <TH colspan="2"><font face="Times New Roman, Times, serif"><b><font size="1">AMPS </font></b></font>
        <hr size="1" noshade width="35">
      </TH>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT WIDTH=384><font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></TD>
      <TD ALIGN=RIGHT WIDTH=98><font face="Times New Roman, Times, serif" size="2">13,801,895</font></TD>
      <TD ALIGN=LEFT WIDTH=46><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=right WIDTH=72><font face="Times New Roman, Times, serif" size="2">4,400</font></TD>
      <TD ALIGN=LEFT WIDTH=40>&nbsp;&nbsp;</TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="384"><font face="Times New Roman, Times, serif" size="2">MuniHoldings
        Ins</font></TD>
      <TD ALIGN=RIGHT width="98"><font face="Times New Roman, Times, serif" size="2">12,867,541</font></TD>
      <TD ALIGN=LEFT width="46"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=right width="72"><font face="Times New Roman, Times, serif" size="2">5,360</font></TD>
      <TD ALIGN=LEFT width="40">&nbsp;</TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="384"><font face="Times New Roman, Times, serif" size="2">Debt
        Strategies</font></TD>
      <TD ALIGN=RIGHT width="98"><font face="Times New Roman, Times, serif" size="2">105,261,358</font></TD>
      <TD ALIGN=LEFT width="46"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=right width="72"><font face="Times New Roman, Times, serif" size="2">N/A</font></TD>
      <TD ALIGN=LEFT width="40">&nbsp;</TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="384"><font face="Times New Roman, Times, serif" size="2">SHIP</font></TD>
      <TD ALIGN=RIGHT width="98"><font face="Times New Roman, Times, serif" size="2">55,727,331</font></TD>
      <TD ALIGN=LEFT width="46"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=right width="72"><font face="Times New Roman, Times, serif" size="2">N/A</font></TD>
      <TD ALIGN=LEFT width="40">&nbsp;</TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="384"><font face="Times New Roman, Times, serif" size="2">FRIS</font></TD>
      <TD ALIGN=RIGHT width="98"><font face="Times New Roman, Times, serif" size="2">18,208,779</font></TD>
      <TD ALIGN=LEFT width="46"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=right width="72"><font face="Times New Roman, Times, serif" size="2">N/A</font></TD>
      <TD ALIGN=LEFT width="40">&nbsp;</TD>
    </TR>
  </TABLE>
  <br>
  <!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" --> </div>
<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 and Audit 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/period.
  </FONT></P>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><b></b></TD>
      <TD ALIGN=center colspan="5"><b><font size="1" face="Times New Roman, Times, serif">Board</font></b>
        <hr size="1" noshade>
        <b></b><b></b><b></b><b></b></TD>
      <TD ALIGN=center><b>&nbsp;&nbsp;</b></TD>
      <TD ALIGN=center colspan="5"><b><font size="1" face="Times New Roman, Times, serif">Audit
        Committee</font></b><b></b><b></b><b></b>
        <hr size="1" noshade>
        <b></b></TD>
      <TD ALIGN=LEFT><b></b></TD>
      <TD ALIGN=RIGHT colspan="2"><b></b><b></b></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><b><font size="1" face="Times New Roman, Times, serif">Fund</font></b>
        <br>
         <hr size="1" noshade width="24" align="left">
      </TD>
      <TD ALIGN=center><b><font size="1" face="Times New Roman, Times, serif">No.
        of<br>
        Meetings<br>
        Held*</font></b>
        <hr size="1" noshade>
      </TD>
      <TD ALIGN=center><b></b></TD>
      <TD ALIGN=center><b><font size="1" face="Times New Roman, Times, serif">Annual<br>
        Fee ($)</font></b>
        <hr size="1" noshade>
      </TD>
      <TD ALIGN=center><b></b></TD>
      <TD ALIGN=center><b><font size="1" face="Times New Roman, Times, serif">Per<br>
        Meeting<br>
        Fee ($)**</font></b>
        <hr size="1" noshade>
      </TD>
      <TD ALIGN=center><b></b></TD>
      <TD ALIGN=center><b><font size="1" face="Times New Roman, Times, serif">No.
        of<br>
        Meetings<br>
        Held*</font></b>
        <hr size="1" noshade>
      </TD>
      <TD ALIGN=center><b></b></TD>
      <TD ALIGN=center><b><font size="1" face="Times New Roman, Times, serif">Annual<br>
        Fee ($)***</font></b>
        <hr size="1" noshade>
      </TD>
      <TD ALIGN=center><b></b></TD>
      <TD ALIGN=center><b><font size="1" face="Times New Roman, Times, serif">Per<br>
        Meeting<br>
        Fee ($)**</font></b>
        <hr size="1" noshade>
      </TD>
      <TD ALIGN=center><b></b></TD>
      <TD ALIGN=center colspan="2"><b><font size="1" face="Times New Roman, Times, serif">Aggregate<br>
        Fees<br>
        and<br>
        Expenses ($)</font></b>
        <hr size="1" noshade>
      </TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">4</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">1,900</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">150</font></TD>
      <TD ALIGN=LEFT>&nbsp;&nbsp;</TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">4</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">1,900</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">150</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT><font face="Times New Roman, Times, serif" size="2">35,302</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">MuniHoldings
        Ins</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">4</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">1,900</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">150</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">4</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">1,900</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">150</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT><font face="Times New Roman, Times, serif" size="2">35,302</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">Debt
        Strategies</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">4</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">2,200</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">325</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">4</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">2,200</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">325</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT><font face="Times New Roman, Times, serif" size="2">49,861</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">SHIP</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">4</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">2,200</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">325</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">4</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">2,200</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">325</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT><font face="Times New Roman, Times, serif" size="2">49,902</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">FRIS</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">4</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">2,200</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">325</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">4</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">2,200</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=center><font face="Times New Roman, Times, serif" size="2">325</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></TD>
      <TD ALIGN=RIGHT><font face="Times New Roman, Times, serif" size="2">13,847</font></TD>
      <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">#</font></TD>
    </TR>
  </TABLE>
  <!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" --> </div>
<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%><FONT SIZE="1"></FONT></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%><FONT SIZE="1"></FONT></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%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Does
not include the additional $1,000 fee paid to the Chairmen of the Audit Committee.</FONT></TD></TR></TABLE>

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<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">  # </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">For
the period October 31, 2003 (commencement of operations) to February 29, 2004.</FONT></TD></TR></TABLE>


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<P>&nbsp;
<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><P>&nbsp;





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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(This page
intentionally left blank) </FONT></P>


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<P>&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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;





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<!-- MARKER FORMAT-SHEET="Left Head 2 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>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=center><b><font size="1">MuniHoldings</font></b>
        <hr size="1" noshade width="70">
      </TD>
      <TD ALIGN=center><b></b></TD>
      <TD ALIGN=center><b><font size="1">MuniHoldings Ins</font></b>
        <hr size="1" noshade width="85">
      </TD>
      <TD ALIGN=center><b></b></TD>
      <TD ALIGN=center><b><font size="1">Debt Strategies</font></b>
        <hr size="1" noshade width="70">
      </TD>
      <TD ALIGN=center><b></b></TD>
      <TD ALIGN=center><b><font size="1">SHIP</font></b>
        <hr size="1" noshade width="40">
      </TD>
      <TD ALIGN=center><b></b></TD>
      <TD ALIGN=center><b><font size="1">FRIS</font></b>
        <hr size="1" noshade width="40">
      </TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Forbes</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1997</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1998</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1997</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1993</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Glenn</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1999</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1999</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1999</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1999</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Montgomery</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1997</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1998</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1997</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1993</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ryan</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1997</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1998</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1997</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1993</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Suddarth</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>West</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1997</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1998</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1997</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1993</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Zinbarg</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003</FONT></TD>
    </TR>
  </TABLE>
  <br>
  <!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" --> </div>
<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 compensation paid by each
  Fund to the non-interested Directors during each Fund&#146;s most recently completed
  fiscal year. </FONT></P>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640>
    <TR VALIGN=Bottom align="center">
      <TD ALIGN=left>&nbsp;</TD>
      <TD colspan="8"><b><font size="1">Compensation from the Fund ($)# </font></b>
        <hr size="1" noshade>
      </TD>
      <TD>&nbsp;</TD>
      <TD>&nbsp;</TD>
      <TD><b><font size="1">Aggregate <br>
        Compensation <br>
        from Funds <br>
        and Other </font></b></TD>
    </TR>
    <TR VALIGN=Bottom align="center">
      <TD ALIGN=left><b><font size="1">Name </font></b></TD>
      <TD><b><font size="1">MuniHoldings </font></b></TD>
      <TD><b></b></TD>
      <TD><b><font size="1">MuniHoldings Ins. </font></b></TD>
      <TD><b></b></TD>
      <TD><b><font size="1">Debt <br>
        Strategies </font></b></TD>
      <TD><b></b></TD>
      <TD><b><font size="1">SHIP </font></b></TD>
      <TD><b></b></TD>
      <TD><b><font size="1">FRIS </font></b></TD>
      <TD><b></b></TD>
      <TD><b><font size="1">FAM/MLIM- <br>
        Advised Funds </font></b></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT colspan="12">
        <hr size="1" noshade>
      </TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ronald
        W. Forbes*</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,917</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,917</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$8,083</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$8,083</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$7,183</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$272,592</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cynthia
        A. Montgomery</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$7,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$7,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$6,267</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$251,925</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Charles
        C. Reilly**</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$4,100</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$4,100</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$6,450</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$6,450</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$1,550</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$206,617</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kevin A.
        Ryan</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$7,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$7,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$6,267</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$251,925</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Roscoe
        S. Suddarth</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$7,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$7,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$6,267</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$251,925</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Richard
        R. West</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$7,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$7,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$6,267</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$251,925</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Edward
        D. Zinbarg</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$7,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$7,000</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$6,267</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$251,925</FONT></TD>
    </TR>
  </TABLE>
  <!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" --> </div>
<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%><FONT SIZE="1"></FONT></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%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Mr.
Reilly retired as a Director effective January 1, 2004.</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%><FONT SIZE="1"></FONT></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" -->
<P>&nbsp;
<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><P>&nbsp;






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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ownership of Common
Stock and AMPS as of the Record Date </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;Information
relating to the share ownership, if any, by the Director Nominees as of the Record Date
is set forth in the chart below. </FONT></P>







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<table border=0 cellspacing=0 cellpadding=0 width="700">
  <tr align="center" valign="bottom">
    <td align="left" width=162> <b><font face="Times New Roman, Times, serif" size="1">Director-Nominee
      </font></b>
      <hr size="1" noshade width="85" align="left">
    </td>
    <td width=114> <b><font face="Times New Roman, Times, serif" size="1">Fund
      </font></b>
      <hr size="1" noshade width="50">
    </td>
    <td width=9>&nbsp;&nbsp;</td>
    <td width=58> <b><font face="Times New Roman, Times, serif" size="1">Common
      <br>
      Stock </font></b>
      <hr size="1" noshade width="50">
    </td>
    <td width=14>&nbsp;&nbsp;&nbsp;</td>
    <td width=49> <b><font face="Times New Roman, Times, serif" size="1">AMPS
      </font></b>
      <hr size="1" noshade width="35">
    </td>
    <td width=8>&nbsp;&nbsp;</td>
    <td width=96> <b><font face="Times New Roman, Times, serif" size="1">Aggregate
      <br>
      Dollar <br>
      Range of <br>
      Equity in <br>
      the Fund </font></b>
      <hr size="1" noshade width="50">
    </td>
    <td width=8>&nbsp;&nbsp;</td>
    <td width=161> <b><font face="Times New Roman, Times, serif" size="1">Aggregate
      Dollar Range of <br>
      Securities in all FAM/MLIM- <br>
      Advised Funds overseen by <br>
      each Director-Nominee in the <br>
      Merrill Lynch Family of Funds </font></b>
      <hr size="1" noshade width="140">
    </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162> <font face="Times New Roman, Times, serif" size="2"><i>Interested
      Director:</i></font></td>
    <td valign=top align="left" width=114>&nbsp; </td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="left" width=58>&nbsp; </td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top width=49>&nbsp; </td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=96>&nbsp; </td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162> <font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Terry
      K. Glenn</font></td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161> <font face="Times New Roman, Times, serif" size="2">Over
      $100,000</font></td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings
      Ins</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">Debt
      Strategies</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">SHIP</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">FRIS</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162> <font face="Times New Roman, Times, serif" size="2"><i>Non-Interested
      Directors:</i></font></td>
    <td valign=top align="left" width=114>&nbsp; </td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58>&nbsp; </td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49>&nbsp; </td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96>&nbsp; </td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162> <font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Ronald
      W. Forbes</font></td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">823</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">$10,001-$50,000</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161> <font face="Times New Roman, Times, serif" size="2">Over
      $100,000</font></td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings
      Ins</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">Debt
      Strategies</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">1,699</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">$10,001-$50,000</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">SHIP</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">788</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">$1-$10,000</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">FRIS</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp;</td>
    <td valign=top align="left" width=114>&nbsp;</td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58>&nbsp;</td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49>&nbsp;</td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96>&nbsp;</td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="left" width=162> <font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Cynthia
      A. Montgomery</font></td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161> <font face="Times New Roman, Times, serif" size="2">Over
      $100,000</font></td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings
      Ins</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">Debt
      Strategies</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">SHIP</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">FRIS</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp;</td>
    <td valign=top align="left" width=114>&nbsp;</td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58>&nbsp;</td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49>&nbsp;</td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96>&nbsp;</td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="left" width=162> <font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Kevin
      A. Ryan</font></td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161> <font face="Times New Roman, Times, serif" size="2">Over
      $100,000</font></td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings
      Ins</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">Debt
      Strategies</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">SHIP</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">FRIS</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp;</td>
    <td valign=top align="left" width=114>&nbsp;</td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58>&nbsp;</td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49>&nbsp;</td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96>&nbsp;</td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="left" width=162> <font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Roscoe
      S. Suddarth</font></td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161> <font face="Times New Roman, Times, serif" size="2">Over
      $100,000</font></td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings
      Ins</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">Debt
      Strategies</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">SHIP</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">FRIS</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp;</td>
    <td valign=top align="left" width=114>&nbsp;</td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58>&nbsp;</td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49>&nbsp;</td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96>&nbsp;</td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="left" width=162> <font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Richard
      R. West</font></td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161> <font face="Times New Roman, Times, serif" size="2">Over
      $100,000</font></td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings
      Ins</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">Debt
      Strategies</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">SHIP</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">FRIS</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp;</td>
    <td valign=top align="left" width=114>&nbsp;</td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58>&nbsp;</td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49>&nbsp;</td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96>&nbsp;</td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="left" width=162> <font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Edward
      D. Zinbarg</font></td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161> <font face="Times New Roman, Times, serif" size="2">Over
      $100,000</font></td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">MuniHoldings
      Ins</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">Debt
      Strategies</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">SHIP</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top align="left" width=162>&nbsp; </td>
    <td valign=top align="left" width=114> <font face="Times New Roman, Times, serif" size="2">FRIS</font></td>
    <td valign=top align="left" width=9>&nbsp;</td>
    <td valign=top align="center" width=58> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=14>&nbsp;</td>
    <td valign=top align="center" width=49> <font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=96> <font face="Times New Roman, Times, serif" size="2">None</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=161>&nbsp; </td>
  </tr>
</table>
<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">
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><P>&nbsp;






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<!-- MARKER PAGE="sheet: 23; page: 23" -->



<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(This page
intentionally left blank) </FONT></P>


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<P>&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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 24; page: 24" -->



<!-- MARKER FORMAT-SHEET="Left Head 2 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>
<div align="center">
  <table border=0 cellspacing=0 cellpadding=0 width="700">
    <tr align="center" valign="bottom">
      <td width=132> <b><font face="Times New Roman, Times, serif" size="1">Name,
        Address* and Age </font></b>
        <hr size="1" noshade>
      </td>
      <td width=53><b><font size="1">&nbsp;&nbsp; </font></b></td>
      <td width=177> <b><font face="Times New Roman, Times, serif" size="1">Position(s)
        Held with <br>
        Applicable Funds; <br>
        Term of Office** and <br>
        Length of Time Served </font></b>
        <hr size="1" noshade>
      </td>
      <td width=31><b><font size="1">&nbsp;&nbsp; </font></b></td>
      <td width=307> <b><font face="Times New Roman, Times, serif" size="1">Principal
        Occupation(s) <br>
        During Past Five Years </font></b>
        <hr size="1" noshade>
      </td>
    </tr>
    <tr align="left">
      <td valign=top width=132> <font face="Times New Roman, Times, serif" size="1">Terry
        K. Glenn (63)</font></td>
      <td valign=top width=53> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=177> <font face="Times New Roman, Times, serif" size="1">President&#134;
        and Director of each Fund, except FRIS, since 1999 and of FRIS since 2003.</font></td>
      <td valign=top width=31> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=307> <font face="Times New Roman, Times, serif" size="1">President
        of the FAM/MLIM-advised funds since 1999; Chairman (Americas Region) of
        MLIM from 2000 to 2002; Executive Vice President of FAM and MLIM (which
        terms as used herein include their corporate predecessors) from 1983 to
        2000; President of FAM Distributors, Inc. (&#147;FAMD&#148;) from 1986 to 2002 and
        Director thereof from 1991 to 2002; Executive Vice President and Director
        of Princeton Services, Inc. (&#147;Princeton Services&#148;) from 1993 to 2002;
        President of Princeton Administrators, L.P. from 1988 to 2002; Director
        of Financial Data Services, Inc. from 1985 to 2002.</font></td>
    </tr>
    <tr align="left">
      <td valign=top width=132>&nbsp;</td>
      <td valign=top width=53>&nbsp;</td>
      <td valign=top width=177>&nbsp;</td>
      <td valign=top width=31>&nbsp;</td>
      <td valign=top width=307>&nbsp;</td>
    </tr>
    <tr align="left">
      <td valign=top width=132> <font face="Times New Roman, Times, serif" size="1">Donald
        C. Burke (44)</font></td>
      <td valign=top width=53> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=177> <font face="Times New Roman, Times, serif" size="1">Treasurer
        of each Fund, except FRIS since 1999 and of FRIS since 2003; Vice President
        of each Fund as follows: MuniHoldings since 1997; MuniHoldings Ins since
        1998; Debt Strategies since 1997; SHIP since 1994; and FRIS since 2003.</font></td>
      <td valign=top width=31> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=307> <font face="Times New Roman, Times, serif" 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; Vice President of FAMD since 1999; Vice President of FAM and MLIM
        from 1990 to 1997; Director of Taxation of MLIM since 1990.</font></td>
    </tr>
    <tr align="left">
      <td valign=top width=132>&nbsp;</td>
      <td valign=top width=53>&nbsp;</td>
      <td valign=top width=177>&nbsp;</td>
      <td valign=top width=31>&nbsp;</td>
      <td valign=top width=307>&nbsp;</td>
    </tr>
    <tr align="left">
      <td valign=top width=132> <font face="Times New Roman, Times, serif" size="1">Kenneth
        A. Jacob (53)</font></td>
      <td valign=top width=53> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=177> <font face="Times New Roman, Times, serif" size="1">Senior
        Vice President of MuniHoldings and MuniHoldings Ins since 2002</font></td>
      <td valign=top width=31> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=307> <font face="Times New Roman, Times, serif" size="1">Managing
        Director of MLIM since 2000; Director (Municipal Tax-Exempt Fund Management)
        of MLIM from 1997 to 2000.</font></td>
    </tr>
    <tr align="left">
      <td valign=top width=132>&nbsp;</td>
      <td valign=top width=53>&nbsp;</td>
      <td valign=top width=177>&nbsp;</td>
      <td valign=top width=31>&nbsp;</td>
      <td valign=top width=307>&nbsp;</td>
    </tr>
    <tr align="left">
      <td valign=top width=132> <font face="Times New Roman, Times, serif" size="1">John
        M. Loffredo (40)</font></td>
      <td valign=top width=53> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=177> <font face="Times New Roman, Times, serif" size="1">Senior
        Vice President of MuniHoldings and MuniHoldings Ins since 2002</font></td>
      <td valign=top width=31> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=307> <font face="Times New Roman, Times, serif" size="1">Managing
        Director of MLIM since 2000 and Director (Municipal Tax-Exempt Fund Management)
        of MLIM from 1998 to 2000.</font></td>
    </tr>
    <tr align="left">
      <td valign=top width=132>&nbsp;</td>
      <td valign=top width=53>&nbsp;</td>
      <td valign=top width=177>&nbsp;</td>
      <td valign=top width=31>&nbsp;</td>
      <td valign=top width=307>&nbsp;</td>
    </tr>
    <tr align="left">
      <td valign=top width=132> <font face="Times New Roman, Times, serif" size="1">Robert
        A. DiMella, CFA (37)</font></td>
      <td valign=top width=53> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=177> <font face="Times New Roman, Times, serif" size="1">Vice
        President of MuniHoldings since 1997 and MuniHoldings Ins since 1999</font></td>
      <td valign=top width=31> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=307> <font face="Times New Roman, Times, serif" size="1">Managing
        Director of MLIM since 2004; Director (Municipal Tax-Exempt Fund Management)
        of MLIM from 2002 to 2003; Vice President of MLIM from 1996 to 2001.</font></td>
    </tr>
    <tr align="left">
      <td valign=top width=132>&nbsp;</td>
      <td valign=top width=53>&nbsp;</td>
      <td valign=top width=177>&nbsp;</td>
      <td valign=top width=31>&nbsp;</td>
      <td valign=top width=307>&nbsp;</td>
    </tr>
    <tr align="left">
      <td valign=top width=132> <font face="Times New Roman, Times, serif" size="1">Joseph
        Matteo (40)</font></td>
      <td valign=top width=53>&nbsp; </td>
      <td valign=top width=177> <font face="Times New Roman, Times, serif" size="1">Vice
        President and Portfolio Manager of Debt Strategies and SHIP since 2001
        and of FRIS since 2003.</font></td>
      <td valign=top width=31>&nbsp; </td>
      <td valign=top width=307> <font face="Times New Roman, Times, serif" size="1">Director
        (Global Fixed Income) of MLIM since 2001; Vice President of MLIM from
        1997 to 2001.</font></td>
    </tr>
  </table>
  <div align="right"><font face="Times New Roman, Times, serif" size="1"><i>(footnotes
    on following page)</i></font><br>
    <!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" --> </div>
</div>
<P>&nbsp;
<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>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 24; page: 24" --> <!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P align="left">&nbsp;
<div align="center">
  <table border=0 cellspacing=0 cellpadding=0 width="700">
    <tr align="center" valign="bottom">
      <td width=132> <b><font face="Times New Roman, Times, serif" size="1">Name,
        Address* and Age </font></b>
        <hr size="1" noshade>
      </td>
      <td width=53><b><font size="1">&nbsp;&nbsp; </font></b></td>
      <td width=177> <b><font face="Times New Roman, Times, serif" size="1">Position(s)
        Held with <br>
        Applicable Funds; <br>
        Term of Office** and <br>
        Length of Time Served </font></b>
        <hr size="1" noshade>
      </td>
      <td width=31><b><font size="1">&nbsp;&nbsp; </font></b></td>
      <td width=307> <b><font face="Times New Roman, Times, serif" size="1">Principal
        Occupation(s) <br>
        During Past Five Years </font></b>
        <hr size="1" noshade>
      </td>
    </tr>
    <tr align="left">
      <td valign=top width=132> <font face="Times New Roman, Times, serif" size="1">Kevin
        Booth (50)</font></td>
      <td valign=top width=53> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=177> <font face="Times New Roman, Times, serif" size="1">Vice
        President and Portfolio Manager of Debt Strategies and SHIP since 2001
        and of FRIS since 2003.</font></td>
      <td valign=top width=31> <font face="Times New Roman, Times, serif" size="1">&nbsp;</font></td>
      <td valign=top width=307> <font face="Times New Roman, Times, serif" size="1">Director
        (Global Fixed Income) of MLIM since 1998; Vice President of MLIM from
        1991 to 1998.</font></td>
    </tr>
    <tr align="left">
      <td valign=top width=132>&nbsp;</td>
      <td valign=top width=53>&nbsp;</td>
      <td valign=top width=177>&nbsp;</td>
      <td valign=top width=31>&nbsp;</td>
      <td valign=top width=307>&nbsp;</td>
    </tr>
    <tr align="left">
      <td valign=top width=132> <font face="Times New Roman, Times, serif" size="1">Phillip
        S. Gillespie (40)</font></td>
      <td valign=top width=53> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;</font></td>
      <td valign=top width=177> <font face="Times New Roman, Times, serif" size="1">Secretary
        of each Fund since 2004</font></td>
      <td valign=top width=31> <font face="Times New Roman, Times, serif" size="1">&nbsp;&nbsp;</font></td>
      <td valign=top width=307> <font face="Times New Roman, Times, serif" size="1">First
        Vice President of MLIM since 2001; Director of MLIM from 2000 to 2001;
        Vice President of MLIM from 1999 to 2000; Attorney associated with MLIM
        since 1998; Assistant General Counsel of Chancellor LGT Asset Management,
        Inc. from 1997 to 1998; Senior Counsel and Attorney in the Division of
        Investment Management and the Office of General Counsel at the U.S. Securities
        and Exchange Commission from 1993 to 1997.</font></td>
    </tr>
  </table>
</div>
<P> <!-- 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%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">The
address of each officer 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%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Elected
by and serves at the pleasure of the Board of Directors of the applicable 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%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Prior
to 1999 Mr. Glenn served as Executive Vice President of each Fund, except FRIS.</FONT></TD></TR></TABLE>


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<P>&nbsp;
<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><P>&nbsp;






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<!-- MARKER PAGE="sheet: 26; page: 26" -->




<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit D </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>CHARTER OF THE AUDIT
COMMITTEE                        <BR>OF THE BOARD OF DIRECTORS/TRUSTEES
                            <BR>FOR EXCHANGE LISTED 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;Although
the Audit Committee of an investment company also serves as a Nominating Committee, the
following charter pertains only to each Audit and Nominating Committee&#146;s duties as an
Audit Committee. The Board of Directors/Trustees of each investment company listed on
Appendix A hereto has adopted the following Audit Committee Charter. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>I.  Composition of the
Audit Committee </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 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> &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>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;); </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>
      (b)  </FONT></TD>
<TD WIDTH=90%><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
of Directors/Trustees or any committee            thereof); </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>
      (c)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>each
of whom shall be financially literate at the time of his or her            appointment to
the Audit Committee, as such qualification is            interpreted by the Board of
Directors/Trustees in its business            judgment, or shall become financially
literate within a reasonable            period of time after his or her appointment to
the Audit Committee; </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>
      (d)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>each
of whom shall otherwise satisfy the applicable independence            requirements for
any stock exchange or market quotation system on            which Fund shares are or
become listed or quoted; 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>
      (e)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>at
least one of whom shall have accounting or related financial            management
expertise as the Board of Directors/Trustees interprets            such qualification in
its business judgment. </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
Board of Directors/Trustees shall determine annually (i) whether at least one of the
members of the Audit Committee is an &#147;audit committee financial expert,&#148; as defined in
Item 3 of Form N-CSR, and (ii) whether simultaneous service on more than three public
company audit committees by a member of the Audit Committee would not impair the ability
of such member to serve on the Audit 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>II. Purposes of the
Audit Committee </B></FONT></P>


<font face="Times New Roman, Times, serif" size="2">The Audit Committee, in its
capacity as a committee of the Board of Directors/Trustees, shall be responsible
for: <br>
<br>
</font>
<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>overseeing
the accounting and financial reporting processes of the            Fund and the Fund&#146;s
internal control over financial reporting; </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>
      (b)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>overseeing
the integrity of the Fund&#146;s financial statements and the            independent audit
thereof; </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>
      (c)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>overseeing,
or, as appropriate, assisting Board oversight of, the            Fund&#146;s compliance with
legal and regulatory requirements that relate            to the Fund&#146;s accounting and
financial reporting, internal control            over financial reporting, and
independent audits; and </FONT></TD>
</TR>
</TABLE>
<BR>



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<P>&nbsp;
<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>
<P> <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 23; page: 23" --> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
  <br>
  <br>

<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>the
appointment, compensation, retention, and oversight of the Fund&#146;s            independent
accountants, including the resolution of disagreements            regarding financial
reporting between Fund management and such            independent accountants. </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 shall report regularly to the Board of Directors/Trustees with respect to
the matters described in this Audit Committee Charter and shall make such recommendations
to the Board of Directors/Trustees relating thereto as the Audit Committee deems
necessary or appropriate. The Fund&#146;s independent accountants shall report directly to the
Audit 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>III. Responsibilities
and Duties of the Audit Committee </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
policies and procedures of the Audit Committee shall remain flexible to facilitate its
ability to react to changing conditions and to generally discharge its functions. The
following listed responsibilities describe areas of attention in broad terms. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
carry out its purposes, 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>upon
submission of an application form by the Fund&#146;s independent            accountants to the
Public Company Accounting Oversight Board, to            request copies of: (i) such
application form; (ii) any material            amendments to such application form; and
(iii) the written findings            of the Public Company Accounting Oversight Board in
connection with            that Board&#146;s inspection of the Fund&#146;s independent accountants; </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>
      (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 members of the Board of
Directors/Trustees who are not            &#147;interested persons&#148; of the Fund, as defined in
Section 2(a)(19) of            the 1940 Act, ratify such selection; </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>
      (c)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
approve, prior to appointment, the engagement of the Fund&#146;s            independent
accountants to provide other audit services to the Fund            or non-audit services
to the Fund, 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>

<!-- 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>
      (d)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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>

<!-- 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>
      (e)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
consider whether: (i) the provision of each non-audit service to            the Fund by
the Fund&#146;s independent accountants is compatible with            maintaining the
independence of such independent accountants and (ii)            the provision of each
non-audit service 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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<P>&nbsp;
<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>
<P> <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 23; page: 23" --> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
  <br>
  <br>

<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, 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 and, if deemed appropriate by the Audit Committee, to
           recommend that the Board of Directors/Trustees take appropriate
           action in response to the report of such independent accountants to
           satisfy itself of the independence of such independent accountants; </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>
      (g)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
receive and consider specific representations from the Fund&#146;s            independent
accountants with respect to audit partner rotation and            conflicts of interest
as described in Section 10A(l) of the            Securities Exchange Act of 1934 (the
&#147;1934 Act&#148;); </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>
      (h)  </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>

<!-- 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>
      (i)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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; </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>
      (j)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
review and approve the fees proposed to be charged to the Fund by            the Fund&#146;s
independent accountants for each audit and non-audit            service; </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>
      (k)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
discuss with the Fund&#146;s independent accountants those matters            required by
Statement of Accounting Standards Nos. 61 and 90 relating            to the Fund&#146;s
financial statements, including, without limitation,            any adjustment to such
financial statements recommended by such            independent accountants, or any other
results of any audit; </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>
      (l)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
cause to be prepared and to review and submit any report,            including any
recommendation of the Audit Committee, required under            rules promulgated by the
Securities and Exchange Commission to be            included in any proxy statement used
by the Fund; </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>
      (m)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
review legal and regulatory matters presented by counsel and the            Fund&#146;s
independent accountants that may have a material impact on 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>
      (n)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
establish and administer policies and procedures relating to: (i)            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; and (ii) the resolution of any            disagreements between Fund
management and the Fund&#146;s independent            accountants regarding accounting and/or
financial reporting policies            and procedures; </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
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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<P>&nbsp;
<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>
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  <br>
<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
consider information and comments from the Fund&#146;s independent            accountants with
respect to, and meet with such independent            accountants to discuss any matters
of concern relating to, the Fund&#146;s            financial statements, including any
adjustments to such statements            recommended by such independent accountants,
and to review the            independent accountants&#146; opinion on 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>
      (q)  </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>
      (r)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
receive and consider reports from the Fund&#146;s independent            accountants
regarding: (i) all critical accounting policies and            practices to be used; (ii)
all alternative treatments of financial            information within generally accepted
accounting principles that have            been discussed with Fund management,
ramifications of the use of such            alternative disclosures and treatments, and
the treatment preferred            by the independent accountants; and (iii) other
material written            communications between the independent accountants and Fund
           management, 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>
      (s)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
receive reports from the Fund&#146;s principal executive officer and            principal
financial officer, or persons performing similar functions,            regarding: (i) all
significant deficiencies in the design or            operation of the Fund&#146;s internal
controls that could adversely affect            the Fund&#146;s ability to record, process,
summarize, and report            financial data and the identification for the Fund&#146;s
independent            accountants of any material weaknesses in internal controls; (ii)
any            fraud, whether or not material, that involves Fund management or
           other employees or employees of the investment adviser who have a
           significant role in the Fund&#146;s internal controls; and (iii) whether
           or not there were significant changes in the Fund&#146;s internal controls
           or in other factors that could significantly affect the Fund&#146;s
           internal controls subsequent to the date of their evaluation,
           including any corrective actions with regard to significant
           deficiencies and material weaknesses; </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>
      (t)  </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>
      (u)  </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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<P>&nbsp;
<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>
<P> <!-- *************************************************************************** -->
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  <br>
<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>
      (v)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
address reports received from the Fund&#146;s independent accountants            relating to
the possible violation of federal or state law and to            investigate or initiate
an investigation of reports of improprieties            or suspected improprieties in
connection with the Fund&#146;s accounting            or 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>
      (w)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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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<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 WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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>

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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>
      (y)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
review and reassess the adequacy of this Audit Committee Charter            on an annual
basis and recommend any changes to the Board of            Directors/Trustees and to
evaluate the performance of the Audit            Committee on an annual basis; 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>
      (z)  </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 Audit Committee 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 of
Directors/Trustees deems necessary or            appropriate. </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
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 1934 Act. 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>

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<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 Audit Committee 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>

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<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>





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<P>&nbsp;
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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>&nbsp;





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<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 Directors/Trustees reasonably believe to be reliable and competent in the matters
presented; (2) legal counsel, public accountants, or other persons as to matters the
Directors/Trustees reasonably believe are within the person&#146;s professional or expert
competence; or (3) a Board committee of which the Directors/Trustees are not members. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IV. 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
Audit Committee shall meet regularly with the Fund&#146;s independent accountants (outside the
presence of Fund management) and Fund management and at least once annually with the
representatives of Fund management responsible for the financial and accounting
operations of the Fund. The Audit Committee shall hold special meetings at such times as
the Audit Committee believes 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>

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<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>

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<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 of Directors/Trustees, for payment of: (i)
compensation to the Fund&#146;s independent accountants or any other independent accountants
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="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: May 23, 2000 <BR>Revised: April
5, 2001 <BR>Revised: December 4, 2002 <BR>Further Revised: November 13, 2003 </FONT></P>



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<P>&nbsp;
<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><P>&nbsp;





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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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Debt Strategies Fund, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Floating Rate Income Strategies
Fund, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Senior High Income Portfolio, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings Florida Insured Fund </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings Fund, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings Fund II, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings Insured Fund, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings New Jersey Insured
Fund, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings New York Insured Fund,
Inc. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniVest Fund, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniVest Fund II, Inc. </FONT></P>


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<P>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
D-7</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;





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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>(This page
intentionally left blank) </FONT></P>




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<P>&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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;






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<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit E </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>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 Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

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

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

<!-- 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
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>

<!-- 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 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" -->
<P>&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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade>
<P> <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 23; page: 23" --> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
  <br>
  <br>

<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 Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adopted:
January 21, 2004 </FONT></P>



<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<P>&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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 36; page: 36" -->



<!-- MARKER FORMAT-SHEET="Left 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="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings Fund, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MuniHoldings Insured Fund, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Debt Strategies Fund, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Senior High Income Portfolio, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Floating Rate Income Strategies
Fund, Inc. </FONT></P>





<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<P>&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-3</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR ALIGN=LEFT WIDTH=100% SIZE=5 noshade><P>&nbsp;




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 37; page: 37" -->




<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=right><font face="Times New Roman, Times, serif" size="2"><b>COMMON STOCK</b></font></P>
<P ALIGN=CENTER><b><font face="Times New Roman, Times, serif" size="2"> MUNIHOLDINGS
  INSURED FUND, INC.<br>
  P.O. BOX 9011<br>
  PRINCETON, NEW JERSEY 08543-9011 </font></b></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <b>PROXY</b></FONT></P>
<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 Donald C. Burke, Terry K. Glenn and Phillip S. Gillespie as proxies,
  each with the power to appoint his 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 MuniHoldings Insured Fund, Inc. (the &#147;Fund&#148;) held
  of record by the undersigned on June 25, 2004 at the annual meeting of stockholders
  of the Fund to be held on August 25, 2004 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; PROPOSAL
  1.</b></font></P>
<P ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">By signing and
  dating the reverse side of this card, you authorize the proxies to vote Proposal
  1 as marked, or if not marked, to vote &#147;FOR&#148; Proposal 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>
<font size="2" face="Times New Roman, Times, serif"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=right><font size="2" face="Times New Roman, Times, serif">(Continued
  and to be signed on the reverse side)</font></P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 noshade>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes /X/ or
  [X] in blue or black ink.<br>
  1. &nbsp;ELECTION OF DIRECTORS</FONT></P>

<table width=100%>
  <tr>
    <td width=44% align=left><font size=1>&nbsp;</font></td>
    <td width=6% align=left valign="top"><font size="2">For<br>
      All<br>
      |_| </font></td>
    <td width=8% align=left valign="top"><font size="2">Withhold<br>
      All<br>
      |_|</font></td>
    <td width=8% align=left valign="top"><font size="2">For All<br>
      Except<br>
      |_|</font></td>
    <td width=34% align=left valign="top"><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.&nbsp;</font></td>
  </tr>
  <tr>
    <td width=44% align=left><font face="Times New Roman, Times, Serif" size=2>01)
      &nbsp;Terry K. Glenn </font><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --><br>
      <font face="Times New Roman, Times, Serif" size=2>02) &nbsp;Cynthia A. Montgomery<br>
      </font><font face="Times New Roman, Times, Serif" size=2>03) &nbsp;Kevin
      A. Ryan </font><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --><br>
      <font face="Times New Roman, Times, Serif" size=2>04) &nbsp;Roscoe S. Suddarth<br>
      </font><font face="Times New Roman, Times, Serif" size=2>05) &nbsp;Edward
      D. Zinbarg</font></td>
    <td width=6% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=34% align=left valign="top"><br>
      <br>
      <br>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" --> </P>

<P>&nbsp;<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 24; page: 24" -->



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. In the discretion of such
  proxies, upon such other business as may properly come before the meeting or
  any adjournment thereof.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<TABLE WIDTH=100% 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.<br>
      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;, 2004</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>
      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>
      Signature, if held jointly</font></TD>
  </TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><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="Page Break CENTER" FSL="Workstation" -->
<P>&nbsp;<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 25; page: 25" -->



<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=right><b><font size="2" face="Times New Roman, Times, serif">AUCTION
  MARKET<br>
  PREFERRED STOCK</font></b></P>
<P ALIGN=center> <b><font face="Times New Roman, Times, serif" size="2">MUNIHOLDINGS
  INSURED FUND, INC.<br>
  P.O. BOX 9011<br>
  PRINCETON, NEW JERSEY 08543-9011</font></b></P>
<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>

<P><font face="Times New Roman, Times, serif" size="2">The undersigned hereby
  appoints Donald C. Burke, Terry K. Glenn and Phillip S. Gillespie as proxies,
  each with the power to appoint his substitute, and hereby authorizes each of
  them to represent and to vote, as designated on the reverse hereof, all the
  shares of Auction Market Preferred Stock of MuniHoldings Insured Fund, Inc.
  (the &#147;Fund&#148;) held of record by the undersigned on June 25, 2004 at the annual
  meeting of stockholders of the Fund to be held on August 25, 2004 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; PROPOSAL
  1.</b></font></P>
<P ALIGN=LEFT> <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
  Proposal 1 as marked, or if not marked, to vote &#147;FOR&#148; Proposal 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>
<P ALIGN=right><font face="Times New Roman, Times, serif" size="2">(Continued
  and to be signed on the reverse side)</font> </P>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes /X/ or
  [X] in blue or black ink.<br>
  </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. ELECTION OF DIRECTORS</FONT></P>
<table width=100%>
  <tr>
    <td width=44% align=left><font size=1>&nbsp;</font></td>
    <td width=6% align=left valign="top"><font size="2">For<br>
      All<br>
      |_| </font></td>
    <td width=8% align=left valign="top"><font size="2">Withhold<br>
      All<br>
      |_|</font></td>
    <td width=8% align=left valign="top"><font size="2">For All<br>
      Except<br>
      |_|</font></td>
    <td width=34% align=left valign="top"><font size="2" face="Times New Roman, Times, serif">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>
    <td width=44% align=left><font face="Times New Roman, Times, Serif" size=2>01)
      Ronald W. Forbes<br>
      </font><font face="Times New Roman, Times, Serif" size=2>02) Terry K. Glenn<br>
      </font><font face="Times New Roman, Times, Serif" size=2>03) Cynthia A.
      Montgomery<br>
      </font><font face="Times New Roman, Times, Serif" size=2>04) Kevin A. Ryan<br>
      </font><font face="Times New Roman, Times, Serif" size=2>05) Roscoe S. Suddarth
      <br>
      06) Richard R. West<br>
      </font><font face="Times New Roman, Times, Serif" size=2>07) Edward D. Zinbarg
      </font></td>
    <td width=6% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=34% align=left valign="bottom"><br>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT><!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
</P>

<P>&nbsp;<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 26; page: 26" -->



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. In the discretion of such
  proxies, upon such other business as may properly come before the meeting or
  any adjournment thereof.</FONT> </P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=44%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=56%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Please sign
      exactly as name appears hereon.<br>
      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=44%>&nbsp;</TD>
    <TD WIDTH=56%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&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;, 2004</font></td>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <td width=54%>&nbsp;</td>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature </font></td>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <td width=54%>&nbsp;</td>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature, if held jointly </font></td>
  </TR>
</TABLE>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" --> <BR>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> SIGN, DATE
  AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE.</FONT></P>


<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 27; page: 27" -->



<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=right><font size="2" face="Times New Roman, Times, serif"><b>COMMON STOCK</b></font>
</P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <b>MUNIHOLDINGS
  FUND, INC.<br>
  P.O. BOX 9011<br>
  PRINCETON, NEW JERSEY 08543-9011</b></FONT></P>
<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>
<P ALIGN=left><font face="Times New Roman, Times, serif" size="2">The undersigned
  hereby appoints Donald C. Burke, Terry K. Glenn and Phillip S. Gillespie as
  proxies, each with the power to appoint his 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 MuniHoldings Fund, Inc. (the &#147;Fund&#148;) held
  of record by the undersigned on June 25, 2004 at the annual meeting of stockholders
  of the Fund to be held on August 25, 2004 or any adjournment thereof.</font></P>
<P ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"><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 FOR PROPOSAL
  1.</b></font></P>
<P ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">By signing and
  dating the reverse side of this card, you authorize the proxies to vote Proposal
  1 as marked, or if not marked, to vote &#147;FOR&#148; Proposal 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>
<P ALIGN=right><font size="2" face="Times New Roman, Times, serif">(Continued
  and to be signed on the reverse side)</font></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes /X/ or
  [X] in blue or black ink.<br>
  </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. ELECTION OF DIRECTORS
  </FONT></P>

<table width=100%>
  <tr>
    <td width=44% align=left><font size=1>&nbsp;</font></td>
    <td width=6% align=left valign="top"><font size="2">For<br>
      All<br>
      |_| </font></td>
    <td width=8% align=left valign="top"><font size="2">Withhold<br>
      All<br>
      |_|</font></td>
    <td width=8% align=left valign="top"><font size="2">For All<br>
      Except<br>
      |_|</font></td>
    <td width=34% align=left valign="top"><font size="2" face="Times New Roman, Times, serif">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>
    <td width=44% align=left>
      <p><font face="Times New Roman, Times, Serif" size=2>01) Terry K. Glenn
        </font><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --><br>
        <font face="Times New Roman, Times, Serif" size=2>02) </font><font face="Times New Roman, Times, Serif" size=2>Cynthia
        A. Montgomery<br>
        03) Kevin A. Ryan</font><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --><br>
        <font face="Times New Roman, Times, Serif" size=2>04) Roscoe S. Suddarth<br>
        </font><font face="Times New Roman, Times, Serif" size=2>05) </font><font face="Times New Roman, Times, Serif" size=2>Edward
        D. Zinbarg </font></p>
      </td>
    <td width=6% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=34% align=left valign="bottom"><br>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<P><!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" --> </P>

<P>&nbsp;<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 28; page: 28" -->



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. In the discretion of such
  proxies, upon such other business as may properly come before the meeting or
  any adjournment thereof.</FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=43%>&nbsp;</TD>
    <TD WIDTH=57%><font size="2" face="Times New Roman, Times, serif">Please sign
      exactly as name appears hereon.<br>
      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=43%>&nbsp;</TD>
    <TD WIDTH=57%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=43%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=57%><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;, 2004 </FONT></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=43%>&nbsp;</TD>
    <TD WIDTH=57%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=43%>&nbsp;</TD>
    <TD WIDTH=57%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature</font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=43%>&nbsp;</TD>
    <TD WIDTH=57%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=43%>&nbsp;</TD>
    <TD WIDTH=57%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature, if held jointly</font></TD>
  </TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" --> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> SIGN, DATE
  AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE.</FONT> </P>

<P>&nbsp;<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 29; page: 29" -->



<!-- MARKER FORMAT-SHEET="Left 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>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>MUNIHOLDINGS
  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
  Donald C. Burke, Terry K. Glenn and Phillip S. Gillespie as proxies, each with
  the power to appoint his substitute, and hereby authorizes each of them to represent
  and to vote, as designated on the reverse hereof, all the Auction Market Preferred
  Stock of MuniHoldings Fund, Inc. (the &#147;Fund&#148;) held of record by the undersigned
  on June 25, 2004 at the annual meeting of stockholders of the Fund to be held
  on August 25, 2004 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; PROPOSAL
  1. </B></FONT></P>

<font size="2">By signing and dating the reverse side of this card, you authorize
the proxies to vote Proposal 1 as marked, or if not marked, to vote &#147;FOR&#148; Proposal
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> <!-- MARKER FORMAT-SHEET="Left 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>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 noshade>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes /X/ or
  [X] in blue or black ink. <br>
  </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. ELECTION OF DIRECTORS
  </FONT></P>
<table width=100%>
  <tr>
    <td width=44% align=left><font size=1>&nbsp;</font></td>
    <td width=6% align=left valign="top"><font size="2">For<br>
      All<br>
      |_| </font></td>
    <td width=8% align=left valign="top"><font size="2">Withhold<br>
      All<br>
      |_|</font></td>
    <td width=8% align=left valign="top"><font size="2">For All<br>
      Except<br>
      |_|</font></td>
    <td width=34% align=left valign="top"><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><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td width=44% align=left>
      <p><font face="Times New Roman, Times, Serif" size=2>01) Ronald W. Forbes
        </font><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --><br>
        <font face="Times New Roman, Times, Serif" size=2>02) Terry K. Glenn<br>
        </font><font face="Times New Roman, Times, Serif" size=2>03) Cynthia A.
        Montgomery </font><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --><br>
        <font face="Times New Roman, Times, Serif" size=2>04) Kevin A. Ryan<br>
        </font><font face="Times New Roman, Times, Serif" size=2>05) Roscoe S.
        Suddarth <br>
        06) Richard R. West </font><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --><br>
        <font face="Times New Roman, Times, Serif" size=2>07) Edward D. Zinbarg
        </font></p>
      <font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=6% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=34% align=left valign="bottom"><br>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<P>&nbsp;<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 31; page: 31" -->



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. In the discretion of such
  proxies, upon such other business as may properly come before the meeting or
  any adjournment thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=44%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=56%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Please sign
      exactly as name appears hereon.<br>
      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=44%>&nbsp;</TD>
    <TD WIDTH=56%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%><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;, 2004 </font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature </font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature, if held jointly </font></TD>
  </TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" --> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><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="Page Break CENTER" FSL="Workstation" -->
<P>&nbsp;<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 32; page: 32" -->




<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>DEBT 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
  Donald C. Burke, Terry K. Glenn and Phillip S. Gillespie as proxies, each with
  the power to appoint his 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 Debt Strategies Fund, Inc. (the &#147;Fund&#148;) held of record by the undersigned
  on June 25, 2004 at the annual meeting of stockholders of the Fund to be held
  on August 25, 2004 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; PROPOSAL
  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 Proposal 1 as marked,
  or if not marked, to vote &#147;FOR&#148; Proposal 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="Left 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="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes /X/ or
  [X] in blue or black ink. <br>
  </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. ELECTION OF DIRECTORS
  </FONT></P>

<table width=100%>
  <tr>
    <td width=44% align=left><font size=1>&nbsp;</font></td>
    <td width=6% align=left valign="top"><font size="2">For<br>
      All<br>
      |_| </font></td>
    <td width=8% align=left valign="top"><font size="2">Withhold<br>
      All<br>
      |_|</font></td>
    <td width=8% align=left valign="top"><font size="2">For All<br>
      Except<br>
      |_|</font></td>
    <td width=34% align=left valign="top"><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><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td width=44% align=left><font face="Times New Roman, Times, Serif" size=2>01)
      Ronald W. Forbes<br>
      </font><font face="Times New Roman, Times, Serif" size=2>02) Terry K. Glenn<br>
      </font><font face="Times New Roman, Times, Serif" size=2>03) Cynthia A.
      Montgomery<br>
      </font><font face="Times New Roman, Times, Serif" size=2>04) Kevin A. Ryan<br>
      </font><font face="Times New Roman, Times, Serif" size=2>05) Roscoe S. Suddarth
      <br>
      06) Richard R. West<br>
      </font><font face="Times New Roman, Times, Serif" size=2>07) Edward D. Zinbarg
      </font></td>
    <td width=6% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=34% align=left valign="bottom"><br>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" --> </P>

<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 33; page: 33" -->



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. In the discretion of such
  proxies, upon such other business as may properly come before the meeting or
  any adjournment thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=44%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=56%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Please sign
      exactly as name appears hereon.<br>
      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=44%>&nbsp;</TD>
    <TD WIDTH=56%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%><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;, 2004 </font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature </font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature, if held jointly </font></TD>
  </TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" --> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><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="Page Break CENTER" FSL="Workstation" -->
<P>&nbsp;<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 34; page: 34" --> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<p align=CENTER><font face="Times New Roman, Times, Serif" size=2> <b>SENIOR HIGH
  INCOME PORTFOLIO, INC.<br>
  PO 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 align="left"><font face="Times New Roman, Times, Serif" size=2>The undersigned
  hereby appoints Donald C. Burke, Terry K. Glenn and Phillip S. Gillespie as
  proxies, each with the power to appoint his 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 Senior High Income Portfolio, Inc. (the
  &#147;Fund&#148;) held of record by the undersigned on June 25, 2004 at the annual meeting
  of stockholders of the Fund to be held on August 25, 2004 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; PROPOSAL
  1. </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p align="left"><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
  Proposal 1 as marked, or if not marked, to vote &#147;FOR&#148; Proposal 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>
<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="Para Flush 00" FSL="Workstation" -->
<p align="left"><font face="Times New Roman, Times, Serif" size=2>Please mark
  boxes /X/ or [X] in blue or black ink. <br>
  </font><font face="Times New Roman, Times, Serif" size=2>1. ELECTION OF DIRECTORS
  </font></p>
<table width=100%>
  <tr>
    <td width=44% align=left><font size=1>&nbsp;</font></td>
    <td width=6% align=left valign="top"><font size="2">For<br>
      All<br>
      |_| </font></td>
    <td width=8% align=left valign="top"><font size="2">Withhold<br>
      All<br>
      |_|</font></td>
    <td width=8% align=left valign="top"><font size="2">For All<br>
      Except<br>
      |_|</font></td>
    <td width=34% align=left valign="top"><font face="Times New Roman, Times, Serif" size=2>
      </font><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><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td width=44% align=left><font face="Times New Roman, Times, Serif" size=2>01)
      Ronald W. Forbes<br>
      </font><font face="Times New Roman, Times, Serif" size=2>02) Terry K. Glenn<br>
      </font><font face="Times New Roman, Times, Serif" size=2>03) Cynthia A.
      Montgomery<br>
      </font><font face="Times New Roman, Times, Serif" size=2>04) Kevin A. Ryan<br>
      </font><font face="Times New Roman, Times, Serif" size=2>05) Roscoe S. Suddarth
      <br>
      06) Richard R. West<br>
      </font><font face="Times New Roman, Times, Serif" size=2>07) Edward D. Zinbarg
      </font></td>
    <td width=6% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=34% align=left valign="bottom"><br>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<p>&nbsp;
<hr size=5 noshade width=100% align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 35; page: 35" --> <!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p align="left"><font face="Times New Roman, Times, Serif" size=2>2. In the discretion
  of such proxies, upon such other business as may properly come before the meeting
  or any adjournment thereof.</font></p>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=44%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=56%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon.<br>
      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=44%>&nbsp;</td>
    <td width=56%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=44%>&nbsp;</td>
    <td width=56%><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;, 2004 </font></td>
  </tr>
  <tr valign=TOP>
    <td width=44%>&nbsp;</td>
    <td width=56%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=44%>&nbsp;</td>
    <td width=56%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature </font></td>
  </tr>
  <tr valign=TOP>
    <td width=44%>&nbsp;</td>
    <td width=56%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=44%>&nbsp;</td>
    <td width=56%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature, if held jointly </font></td>
  </tr>
</table>
<div align="center">
  <p><br>
    <!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" --> <br>
    <font face="Times New Roman, Times, serif" size="2">SIGN, DATE AND RETURN
    THE PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE.</font></p>
  <hr size=5 noshade width=100% align=LEFT>
</div>
<P><!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 34; page: 34" --> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B> FLOATING
  RATE INCOME STRATEGIES FUND, INC.<br>
  PO 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
  Donald C. Burke, Terry K. Glenn and Phillip S. Gillespie as proxies, each with
  the power to appoint his 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 Floating Rate Income Strategies Fund, Inc. (the &#147;Fund&#148;) held of record
  by the undersigned on June 25, 2004 at the annual meeting of stockholders of
  the Fund to be held on August 25, 2004 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; PROPOSAL
  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 Proposal 1 as marked,
  or if not marked, to vote &#147;FOR&#148; Proposal 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="Left 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="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark boxes /X/ or
  [X] in blue or black ink. <br>
  </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. ELECTION OF DIRECTORS
  </FONT></P>

<table width=100%>
  <tr>
    <td width=44% align=left><font size=1>&nbsp;</font></td>
    <td width=6% align=left valign="top"><font size="2">For<br>
      All<br>
      |_| </font></td>
    <td width=8% align=left valign="top"><font size="2">Withhold<br>
      All <br>
      |_|</font></td>
    <td width=8% align=left valign="top"><font size="2">For All<br>
      Except<br>
      |_|</font></td>
    <td width=34% align=left valign="top"><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><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td width=44% align=left><font face="Times New Roman, Times, Serif" size=2>01)
      Ronald W. Forbes<br>
      </font><font face="Times New Roman, Times, Serif" size=2>02) Terry K. Glenn<br>
      </font><font face="Times New Roman, Times, Serif" size=2>03) </font><font face="Times New Roman, Times, Serif" size=2>Cynthia
      A. Montgomery<br>
      04) Kevin A. Ryan<br>
      </font><font face="Times New Roman, Times, Serif" size=2>05) Roscoe S. Suddarth
      <br>
      06) Richard R. West<br>
      </font><font face="Times New Roman, Times, Serif" size=2>07) Edward D. Zinbarg
      </font></td>
    <td width=6% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=8% align=left valign="top">&nbsp;</td>
    <td width=34% align=left valign="bottom"><br>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<P>&nbsp;<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 35; page: 35" -->



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. In the discretion of such
  proxies, upon such other business as may properly come before the meeting or
  any adjournment thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=44%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=56%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Please sign
      exactly as name appears hereon.<br>
      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=44%>&nbsp;</TD>
    <TD WIDTH=56%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%><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;, 2004 </font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature </font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%>&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=44%>&nbsp;</TD>
    <TD WIDTH=56%><font face="Times New Roman, Times, Serif" size=2>X <br>
      Signature, if held jointly </font></TD>
  </TR>
</TABLE>
<div align="center">
  <p><BR>
    <!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" --> <BR>
    <font face="Times New Roman, Times, serif" size="2">SIGN, DATE AND RETURN
    THE PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE.</font></p>
  <HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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