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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000891092-05-001248.txt : 20050712
<SEC-HEADER>0000891092-05-001248.hdr.sgml : 20050712
<ACCEPTANCE-DATETIME>20050712165519
ACCESSION NUMBER:		0000891092-05-001248
CONFORMED SUBMISSION TYPE:	PRE 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050823
FILED AS OF DATE:		20050712
DATE AS OF CHANGE:		20050712

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FLOATING RATE INCOME STRATEGIES FUND INC
		CENTRAL INDEX KEY:			0001259708
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-21413
		FILM NUMBER:		05950796

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

	FILING VALUES:
		FORM TYPE:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-07456
		FILM NUMBER:		05950800

	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:			DEBT STRATEGIES FUND
		CENTRAL INDEX KEY:			0001051003
		IRS NUMBER:				223564108
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-08603
		FILM NUMBER:		05950798

	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:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-08081
		FILM NUMBER:		05950797

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

	FILING VALUES:
		FORM TYPE:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-08707
		FILM NUMBER:		05950799

	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>PRE 14A
<SEQUENCE>1
<FILENAME>e21074pre14a.htm
<DESCRIPTION>PRELIMINARY PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As filed with
  the Securities and Exchange Commission on July 12, 2005 </FONT></P>


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


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

<!-- MARKER FORMAT-SHEET="Para Hang 10" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        |X|  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Preliminary
Proxy Statement </FONT></TD>
</TR>
</TABLE>
<BR>

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

<!-- MARKER FORMAT-SHEET="Para Hang 10" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        |_|  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitive
Proxy Statement </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 10" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        |_|  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitive
Additional Materials </FONT></TD>
</TR>
</TABLE>
<BR>

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



<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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. </FONT></P>


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


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




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

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

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

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


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


<!-- MARKER FORMAT-SHEET="Para Hang 15" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        (3)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Per
unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it
was determined.): </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang 15" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        (4)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposed
maximum aggregate value of transaction: </FONT></TD>
</TR>
</TABLE>
<BR>


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


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


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

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

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

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

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

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












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







<!-- 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 2005
ANNUAL MEETINGS OF STOCKHOLDERS </B></FONT></P>

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

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --> <font face="Times New Roman, Times, Serif" size="2">T<font size="1">O
THE</font> S<font size="1">TOCKHOLDERS</font> <font size="1">OF</font> <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M<font size="1">UNIHOLDINGS</font> F<font size="1">UND</font>,
I<font size="1">NC</font>. <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&nbsp; D<font size="1">EBT</font> S<font size="1">TRATEGIES</font>
F<font size="1">UND</font>, I<font size="1">NC</font>. <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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;&nbsp;&nbsp;&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>.: <BR>
</font><!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE
IS HEREBY GIVEN that the 2005 Annual Meeting of Stockholders (each, a &#147;Meeting&#148; and,
collectively, the &#147;Meetings&#148;) of each of the above-listed investment companies (each a
&#147;Fund&#148; and, collectively, the &#147;Funds&#148;) will be held at the offices of Fund Asset
Management, L.P. (&#147;FAM&#148;), 800 Scudders Mill Road, Plainsboro, New Jersey 08536, on
Tuesday, August 23, 2005 at the time specified for each Fund in Exhibit A to the Combined
Proxy Statement for the following purposes: </FONT></P>

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (2)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><b>For</b> <B>Senior
      High Income Portfolio, Inc.: </B>To consider and act upon a proposal to
      amend a fundamental investment restriction of the Fund with respect to investment
      in other investment companies; 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>      (3)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>For
all Funds: </B>To transact such other business as may properly come before the
Meetings 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 has fixed the close of business on June 24, 2005 as the record date for the
determination of stockholders entitled to notice of and to vote at the applicable Fund&#146;s
Meeting or any adjournment thereof. </FONT></P>

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






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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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><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>


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<TABLE WIDTH=100%>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=35% colspan="2" align="left"><font size=2>By Order of the Boards
      of Directors </font></TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=35% colspan="2" align="left"><font size=2>A<font size="1">LICE</font>
      A. P<font size="1">ELLEGRINO</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>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30% align="left"><font size=2>Plainsboro, New Jersey <br>
      Dated: July 12, 2005 </font></TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
  </TR>
</TABLE>


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





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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B>SUBJECT TO
COMPLETION <BR>                       PRELIMINARY COMBINED PROXY STATEMENT <BR>
  DATED JULY 12, 2005 </B></FONT></P>


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<hr size=1 noshade align=CENTER width=150>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><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><font size="3">2005
  ANNUAL MEETINGS OF STOCKHOLDERS </font></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=3><B>AUGUST 23, 2005 </B></FONT></P>

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




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2><FONT SIZE=1>Fund</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Term Used in this<BR>
      Combined Proxy Statement</FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER>
      <hr size="1" noshade width="60%">
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>
      <hr size="1" noshade width="85%">
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>MuniHoldings Fund, Inc.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>MuniHoldings Insured Fund, Inc.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>Debt Strategies Fund, Inc.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>Senior High Income Portfolio, Inc.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>Floating Rate Income Strategies Fund, Inc.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

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

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

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

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
&#147;FOR&#148; approval of the proposed amendment to the fundamental investment restriction for
SHIP. </FONT></P>

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





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

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

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
stockholders solicited and entitled to vote on Items 1 and 2 are outlined in the
following chart: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=600>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER height="16"><b><font size=1>Fund</font></b></TD>
    <TD ALIGN=LEFT height="16"><b></b></TD>
    <TD ALIGN=CENTER height="16"><b><font size=1>Item 1</font></b></TD>
    <TD ALIGN=LEFT height="16"><b></b></TD>
    <TD ALIGN=CENTER height="16"><b><font size=1>Item 2</font></b></TD>
    <TD ALIGN=LEFT height="16"><b></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER>
      <hr size="1" noshade width="55%">
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>
      <hr size="1" noshade width="70%">
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>
      <hr size="1" noshade width="70%">
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>Yes*</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>No</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>Yes*</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>No</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>No</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>No</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

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

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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="1">* </font></TD>
    <TD><font face="Times New Roman, Times, Serif" size="1">&nbsp; </font></TD>
    <TD WIDTH=95%><font face="Times New Roman, Times, Serif" size="1">Only holders
      of AMPS are entitled to vote on the election of the two AMPS Directors.
      The holders of Shares of Common Stock and AMPS are entitled to vote on the
      election of the remaining Directors. See &#147;Item 1. Election of Directors&#148;
      and &#147;Additional Information &#151; Quorum and Vote Required.&#148;
      </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><B>ITEM 1. ELECTION OF
DIRECTORS </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Meetings, the Directors of each Fund will be elected to serve until the next Annual
Meeting of Stockholders for such Fund and until their successors are elected and
qualified or until their earlier retirement, resignation or removal. The nominees are
Robert C. Doll, Jr., Ronald W. Forbes, Cynthia A. Montgomery, Jean Margo Reid, Roscoe S.
Suddarth, Richard R. West and Edward D. Zinbarg (collectively, the &#147;Director Nominees&#148;). </FONT></P>

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

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





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<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TD ALIGN=left width="128"><font size=1><b>Fund</b></font></TD>
    <TD ALIGN=LEFT width="10">&nbsp;</TD>
    <TD ALIGN=center width="76"><b><font size=1>AMPS<br>
      Director Nominees</font></b></TD>
    <TD ALIGN=LEFT width="64">&nbsp;</TD>
    <TD ALIGN=center width="317"><b><font size=1>Director Nominees to be Elected
      by <br>
      Holders of AMPS and Common Stock</font></b></TD>
    <TD ALIGN=LEFT width="5">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left width="128">
      <hr size="1" noshade width="40%" align="left">
    </TD>
    <TD ALIGN=LEFT width="10">&nbsp;</TD>
    <TD ALIGN=LEFT width="76">
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT width="64">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD ALIGN=LEFT width="317">
      <hr size="1" noshade width="55%" align="center">
    </TD>
    <TD ALIGN=LEFT width="5">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="128"><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT width="10"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="76"><FONT SIZE=2>Forbes, West</FONT></TD>
    <TD ALIGN=LEFT width="64"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="317"><FONT SIZE=2>Doll, Montgomery, Reid, Suddarth,
      Zinbarg</FONT></TD>
    <TD ALIGN=LEFT width="5"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="128"><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT width="10"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="76"><FONT SIZE=2>Forbes, West</FONT></TD>
    <TD ALIGN=LEFT width="64"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="317"><FONT SIZE=2>Doll, Montgomery, Reid, Suddarth,
      Zinbarg</FONT></TD>
    <TD ALIGN=LEFT width="5"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="128"><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT width="10"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="76"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="64"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="317"><FONT SIZE=2>Doll, Forbes, Montgomery, Reid, Suddarth,
      West, Zinbarg</FONT></TD>
    <TD ALIGN=LEFT width="5"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="128"><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT width="10"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="76"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="64"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="317"><FONT SIZE=2>Doll, Forbes, Montgomery, Reid, Suddarth,
      West, Zinbarg</FONT></TD>
    <TD ALIGN=LEFT width="5"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="128"><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT width="10"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="76"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="64"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="317"><FONT SIZE=2>Doll, Forbes, Montgomery, Reid, Suddarth,
      West, Zinbarg</FONT></TD>
    <TD ALIGN=LEFT width="5"><FONT SIZE=2>&nbsp;</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;The
Board of each Fund knows of no reason why any of the Director Nominees listed above for
any Fund will be unable to serve, but in the event of any such unavailability, the
proxies received will be voted for such substitute nominee or nominees as that Fund&#146;s
Board of Directors may recommend. </FONT></P>

<!-- 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;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>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Biographical
Information </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;Certain
biographical and other information relating to the Director Nominee who is an &#147;interested
person,&#148; as defined in the Investment Company Act of 1940, as amended (the &#147;Investment
Company Act&#148;) of each Fund, is set forth below: </FONT></P>



<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr valign="bottom">
    <td width="120" align="center"> <b><font size="1">Name, Address&#134; and
      Age</font></b></td>
    <td width="20" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></td>
    <td width="63" align="center"> <b><font size="1">Position(s) Held with <br>
      Each Fund</font></b></td>
    <td width="20" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></td>
    <td width="82" align="center"> <b><font size="1">Term of Office and Length
      of Time Served</font></b></td>
    <td width="20" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></td>
    <td width="110" align="center"> <b><font size="1">Principal Occupation(s)
      <br>
      During Past Five Years </font></b></td>
    <td width="16" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></td>
    <td width="68" align="center"> <b><font size="1">Number of MLIM/FAM-Advised
      Funds** and Portfolios Overseen</font></b></td>
    <td width="20" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></td>
    <td width="101" align="center"> <b><font size="1">Public Directorships</font></b></td>
  </tr>
  <tr>
    <td valign=top width="120">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20">&nbsp;</td>
    <td valign=top width="63">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20">&nbsp;</td>
    <td valign=top width="82">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20">&nbsp;</td>
    <td valign=top width="110">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="16">&nbsp;</td>
    <td valign=top width="68">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20">&nbsp;</td>
    <td valign=top width="101">
      <hr width="95%" size="1" align="center" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Robert C. Doll, Jr. (50)&#134;&#134;</font></td>
    <td valign=top width="20">&nbsp; </td>
    <td valign=top width="63"><font size="1">President and Director </font></td>
    <td valign=top width="20">&nbsp; </td>
    <td valign=top width="82"><font size="1">President and Director* of each Fund
      since 2005. </font></td>
    <td valign=top width="20">&nbsp; </td>
    <td valign=top width="110"><font size="1">President of MLIM/FAM-advised funds
      since 2005; President of FAM and MLIM since 2001; Co-Head (Americas Region)
      of FAM and MLIM from 2000 to 2001 and Senior Vice President thereof from
      1999 to 2001; President and Director of Princeton Services, Inc. (&#147;Princeton
      Services&#148;) since 2001; President of Princeton Administrators, L.P. (&#147;Princeton
      Administrators&#148;) since 2001; Chief Investment Officer of Oppenheimer Funds,
      Inc. in 1999 and Executive Vice President thereof from 1991 to 1999. </font></td>
    <td valign=top width="16">&nbsp; </td>
    <td valign=top width="68"><font size="1">125 registered investment companies
      consisting of 169 portfolios </font></td>
    <td valign=top width="20">&nbsp; </td>
    <td valign=top width="101"><font size="1">None </font></td>
  </tr>
</table>
<br>


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

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

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

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

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





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




<!-- 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;Certain
biographical and other information relating to the Director Nominees who are not
&#147;interested persons,&#148; as defined in the Investment Company Act, of any Fund and who are
&#147;independent&#148; as defined in the listing standards of the New York Stock Exchange (&#147;NYSE&#148;)
with respect to each Fund (sometimes referred to herein as &#147;non-interested Directors&#148; or
&#147;non-interested Director Nominees&#148;) is set forth below. </FONT></P>

<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr valign="bottom">
    <td width="120" align="center"> <font size="1"><b>Name, Address&#134; and
      Age</b></font></td>
    <td width="20" align="center"><font size="1"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></font></td>
    <td width="63" align="center"> <font size="1"><b>Position(s) Held with <br>
      Each Fund</b></font></td>
    <td width="20" align="center"><font size="1"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></font></td>
    <td width="82" align="center"> <font size="1"><b>Term of Office&#134;&#134;
      and Length of <br>
      Time Served</b></font></td>
    <td width="20" align="center"><font size="1"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></font></td>
    <td width="110" align="center"> <font size="1"><b>Principal Occupation(s)
      <br>
      During Past Five Years </b></font></td>
    <td width="16" align="center"><font size="1"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></font></td>
    <td width="68" align="center"> <font size="1"><b>Number of MLIM/FAM-Advised
      Funds and Portfolios Overseen</b></font></td>
    <td width="20" align="center"><font size="1"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></font></td>
    <td width="101" align="center"> <font size="1"><b>Public Directorships</b></font></td>
  </tr>
  <tr>
    <td valign=top width="120">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20"><font size="1">&nbsp;</font></td>
    <td valign=top width="63">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20"><font size="1">&nbsp;</font></td>
    <td valign=top width="82">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20"><font size="1">&nbsp;</font></td>
    <td valign=top width="110">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="16"><font size="1">&nbsp;</font></td>
    <td valign=top width="68">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20"><font size="1">&nbsp;</font></td>
    <td valign=top width="101">
      <hr width="95%" size="1" align="center" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Ronald W. Forbes (64)*</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="63"><font size="1">Director</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="82"><font size="1">Director of each Fund since the year
      listed in Exhibit B.</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="110"><font 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 valign=top width="16"><font size="1"></font></td>
    <td valign=top width="68"><font size="1">48 registered investment companies
      consisting of 51 portfolios</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="101"><font size="1">None</font></td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">&nbsp;</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="63"><font size="1"></font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="82"><font size="1"></font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="110"><font size="1"></font></td>
    <td valign=top width="16"><font size="1"></font></td>
    <td valign=top width="68"><font size="1"></font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="101"><font size="1"></font></td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Cynthia A. Montgomery <br>
      (52)**</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="63"><font size="1">Director</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="82"><font size="1">Director of each Fund since the year
      listed in Exhibit B.</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="110"><font 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;
      Director, Harvard Business School of Publishing since 2005.</font></td>
    <td valign=top width="16"><font size="1"></font></td>
    <td valign=top width="68"><font size="1">48 registered investment companies
      consisting of 51 portfolios</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="101"><font size="1">Newell Rubbermaid, Inc. (manufacturing)</font></td>
  </tr>

  <tr>
    <td valign=top width="120"><font size="1">&nbsp;</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="63"><font size="1"></font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="82"><font size="1"></font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="110"><font size="1"></font></td>
    <td valign=top width="16"><font size="1"></font></td>
    <td valign=top width="68"><font size="1"></font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="101"><font size="1"></font></td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Jean Margo Reid (59)</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="63"><font size="1">Director</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="82"><font size="1">Director of each Fund since the year
      listed in Exhibit B.</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="110"><font size="1">Self-employed consultant since 2001;
      Counsel of Alliance Capital Management (investment adviser) in 2000; General
      Counsel, Director and Secretary of Sanford C. Bernstein &amp; Co., Inc.
      (investment adviser/broker-dealer) from 1997 to 2000; Secretary, Sanford
      C. Bernstein, Inc. from 1994 to 2000; Director and Secretary of SCB, Inc.
      since 1998; Director and Secretary of SCB Partners, Inc. since 2000; and
      Director of Covenant House from 2001 to 2004.</font></td>
    <td valign=top width="16"><font size="1"></font></td>
    <td valign=top width="68"><font size="1">48 registered investment companies
      consisting of 51 portfolios</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="101"><font size="1">None</font></td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">&nbsp;</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="63"><font size="1"></font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="82"><font size="1"></font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="110"><font size="1"></font></td>
    <td valign=top width="16"><font size="1"></font></td>
    <td valign=top width="68"><font size="1"></font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="101"><font size="1"></font></td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Roscoe S. Suddarth (69)</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="63"><font size="1">Director</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="82"><font size="1">Director of each Fund since the year
      listed in Exhibit B.</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="110"><font 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 valign=top width="16"><font size="1"></font></td>
    <td valign=top width="68"><font size="1">48 registered investment companies
      consisting of 51 portfolios</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="101"><font size="1">None</font></td>
  </tr>
</table>
<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
4</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 7; page: 7" -->
<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr valign="bottom">
    <td width="120" align="center"> <b><font size="1">Name, Address&#134; and
      Age</font></b></td>
    <td width="20" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></td>
    <td width="63" align="center"> <b><font size="1">Position(s) Held with <br>
      Each Fund</font></b></td>
    <td width="20" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></td>
    <td width="82" align="center"> <b><font size="1">Term of Office&#134;&#134;
      and Length of <br>
      Time Served</font></b></td>
    <td width="20" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></td>
    <td width="110" align="center"> <b><font size="1">Principal Occupation(s)
      <br>
      During Past Five Years </font></b></td>
    <td width="16" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></td>
    <td width="68" align="center"> <b><font size="1">Number of MLIM/FAM-Advised
      Funds and Portfolios Overseen</font></b></td>
    <td width="20" align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp; </b></td>
    <td width="101" align="center"> <b><font size="1">Public Directorships</font></b></td>
  </tr>
  <tr>
    <td valign=top width="120">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20"><font size="1">&nbsp;</font></td>
    <td valign=top width="63">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20"><font size="1">&nbsp;</font></td>
    <td valign=top width="82">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20"><font size="1">&nbsp;</font></td>
    <td valign=top width="110">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="16"><font size="1">&nbsp;</font></td>
    <td valign=top width="68">
      <hr width="95%" size="1" align="center" noshade>
    </td>
    <td valign=top width="20"><font size="1">&nbsp;</font></td>
    <td valign=top width="101">
      <hr width="95%" size="1" align="center" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Richard R. West (67)</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="63"><font size="1">Director</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="82"><font size="1">Director of each Fund since the year
      listed in Exhibit B.</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="110"><font size="1">Professor of Finance from 1984 to
      1995, Dean from 1984 to 1993 and since 1995 Dean Emeritus of New York University&#146;s
      Leonard N. Stern School of Business Administration.</font></td>
    <td valign=top width="16"><font size="1"></font></td>
    <td valign=top width="68"><font size="1">48 registered investment companies
      consisting of 51 portfolios</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="101"><font size="1">Bowne &amp; Co., Inc. (financial
      printers); Vornado Realty Trust (real estate company); Alexander&#146;s,
      Inc. (real estate company)</font></td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">&nbsp;</font></td>
    <td valign=top width="20"></td>
    <td valign=top width="63"></td>
    <td valign=top width="20"></td>
    <td valign=top width="82"></td>
    <td valign=top width="20"></td>
    <td valign=top width="110"></td>
    <td valign=top width="16"></td>
    <td valign=top width="68"></td>
    <td valign=top width="20"></td>
    <td valign=top width="101"></td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Edward D. Zinbarg (70)</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="63"><font size="1">Director</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="82"><font size="1">Director of each Fund since the year
      listed in Exhibit B.</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="110"><font 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 size="1"></font></td>
    <td valign=top width="68"><font size="1">48 registered investment companies
      consisting of 51 portfolios</font></td>
    <td valign=top width="20"><font size="1"></font></td>
    <td valign=top width="101"><font size="1">None</font></td>
  </tr>
</table>
<br>


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

<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">The
address of each non-interested Director Nominee is P.O. Box 9095, Princeton, New Jersey
08543-9095. </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">Each
Director serves until his or her successor is elected and qualified, or until his or her
death,       resignation or removal as provided in the Funds&#146; respective by-laws or
      charter or by statute, or until December 31 of the year in which he or she
      turns 72.</FONT></TD></TR></TABLE>

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

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Committees and Board
Meetings </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of each Fund maintains two standing board committees, the Audit Committee and the
Nominating Committee. Currently, all of the non-interested Directors are members of each
Fund&#146;s Audit Committee. The Nominating Committee currently consists of two of the
non-interested Directors, Ms. Montgomery and Mr. Zinbarg. 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 and Nominating
Committee held during the fiscal year. For information about the number of meetings of
the Board, the Audit Committee and the Nominating Committee held during each Fund&#146;s most
recently completed fiscal year, see Exhibit A to the Combined Proxy Statement. </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. The Audit Committee&#146;s
responsibilities include, without limitation, to (i) review with the independent  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>registered public accounting firm
the arrangements for and scope of annual and special audits and any other services
provided by the independent registered public accounting firm to the Fund; (ii) discuss
with the independent registered public accounting firm certain matters relating to the
Fund&#146;s financial statements, including any adjustment to such financial statements
recommended by such independent registered public accounting firm or any other results of
any audit; (iii) ensure that the independent registered public accounting firm submits on
a periodic basis a formal written statement with respect to their independence, discuss
with the independent registered public accounting firm any relationships or services
disclosed in the statement that may impact the objectivity and independence of the Fund&#146;s
independent registered public accounting firm and recommend that the Board take
appropriate action in response thereto to satisfy itself of the independent registered
public accounting firm&#146;s independence; and (iv) consider the comments of the independent
registered public accounting firm with respect to the quality and adequacy of the Fund&#146;s
accounting and financial reporting policies and practices and internal controls and Fund
management&#146;s responses thereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  Fund has adopted a written Charter for the Audit Committee, a copy of which
  was last filed as an exhibit to the Funds&#146; Combined Proxy Statement during
  the fiscal year ended in 2004. Each Fund&#146;s Audit Committee also has received
  written disclosures and the letter required by Independence Standards Board
  Standard No. 1, as may be modified or supplemented, from Deloitte &amp; Touche
  LLP (&#147;D&amp;T&#148;), independent registered public accounting firm for
  Debt Strategies, SHIP and FRIS, and from Ernst &amp; Young LLP (&#147;E&amp;Y&#148;),
  independent registered public accounting firm for MuniHoldings and MuniHoldings
  Insured. 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 2005 fiscal year (each Fund&#146;s fiscal year
end is set forth in Exhibit A) be included in each Fund&#146;s Annual Report to Stockholders. </FONT></P>


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<P><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  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>source using the same standard. The
Board of each Fund has adopted a written Charter for the Nominating Committee a copy of
which was last filed as an exhibit to the Funds&#146; Combined Proxy Statement during the
fiscal year ended in 2004. The nomination of Ms. Reid was recommended to the Nominating
Committee by a non-interested Director. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
identifying and evaluating a potential nominee to serve as a non-interested Director of a
Fund, the Nominating Committee will consider, among other factors, (i) the person&#146;s
business and professional experience, education, character and integrity; (ii) whether
the individual is an &#147;interested person&#148; as defined in the Investment Company Act and
whether the person is otherwise qualified to serve as a Director under applicable laws
and regulations; (iii) the nature of any business, charitable, financial or family
relationships that might impair the individual&#146;s independence; (iv) whether the
individual is financially literate pursuant to the listing standards of the NYSE; (v)
whether the person serves on boards of, or is otherwise affiliated with, competing
financial service organizations or their related investment company complexes; (vi) the
person&#146;s willingness to serve and ability to commit the time necessary to perform the
duties of a Fund Director; and (vii) whether the selection and nomination of the person
is consistent with the Fund&#146;s retirement policy. </FONT></P>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
  may send written communications to a Fund&#146;s Board of Directors or to an
  individual Director by mailing such correspondence to the Secretary of the applicable
  Fund (addressed to 800 Scudders Mill Road, Plainsboro, New Jersey 08536). Such
  communications must be signed by the stockholder and identify the class and
  number of shares held by the stockholder. Properly submitted stockholder communications
  will, as appropriate, be forwarded to the entire Board or to the individual
  Director. Any stockholder proposal submitted pursuant to Rule 14a-8 under the
  Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;),
  must continue to meet all the requirements of Rule 14a-8. See &#147;Additional
  Information &#151; Stockholder Proposals&#148; herein. </FONT></P>


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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 2004 Annual Meetings of Stockholders. </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Section 16(a)
Beneficial Ownership Reporting Compliance </B></FONT></P>

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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  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">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. Doll to be an &#147;interested person&#148; of the Fund within the meaning of
Section 2(a)(19) of the Investment Company Act based on his positions with FAM, MLIM,
Princeton Services and Princeton Administrators. Effective January 1, 2005, Mr. Doll was
elected the President of each Fund by the Fund&#146;s Board. </FONT></P>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAM,
  the investment adviser of each Fund, pays all compensation to all officers of
  each Fund and all Directors of each Fund who are affiliated with ML &amp; Co.
  or its subsidiaries. MuniHoldings and MuniHoldings Insured each pay each non-interested
  Director a combined fee of $3,800 per year plus a fee of $150 for each in-person
  Board meeting attended and $150 for each in person Audit Committee meeting attended,
  together with such Director&#146;s out-of-pocket expenses relating to attendance
  at such meetings. Debt Strategies, SHIP, and FRIS each pay each non-interested
  Director a combined fee of $4,400 per year plus a fee of $325 for each in person
  Board meeting attended and $325 for each in person Audit Committee meeting attended,
  together with such Director&#146;s out-of-pocket expenses relating to attendance
  at such meetings. The Chairman of each Fund&#146;s Audit Committee receives
  an additional annual fee of $1,429. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
relating to (i) the aggregate fees and expenses paid by each Fund to its non-interested
Directors during the Fund&#146;s most recently completed fiscal year is set forth in Exhibit A
to this Combined Proxy Statement and (ii) the compensation received by each
non-interested Director from each Fund and from all MLIM/FAM-advised funds. is set forth
in Exhibit B to this Combined Proxy Statement. </FONT></P>


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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 Exhibit B to this Combined Proxy Statement is the following information for each
Director Nominee: (i) the number of shares of Common Stock and AMPS of each Fund owned;
(ii) the aggregate dollar range such stock ownership represents; and (iii) the aggregate
dollar range of equity securities owned in all MLIM/FAM-advised funds. </FONT></P>

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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. Doll, President and a Director of each Fund, and the other officers
  of each Fund owned an aggregate of less than 1% of the outstanding shares of
  Common Stock of ML &amp; Co. </FONT></P>

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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 ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ITEM 2. APPROVAL
  OF CHANGE TO FUNDAMENTAL INVESTMENT RESTRICTION </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of SHIP has approved, and recommends that SHIP&#146;s stockholders approve, the
amendment to its investment restriction prohibiting investment in other investment
companies, except under certain circumstances. The investment restriction is a
fundamental policy of SHIP and may not be changed without stockholder approval. </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
investment restriction as proposed to be amended is set forth below. The language to be
added appears in bold face type. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund may not: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase
securities of other investment companies, except (i) in connection with a merger,
consolidation, acquisition or reorganization, <B>(ii) by purchase of shares of money market
funds advised by the Investment Adviser or its affiliates (as defined in the Investment
Company Act) to the extent permitted by an exemptive order issued to the Fund by the
Securities and Exchange Commission, or (iii) </B>by purchase in the open market of securities
of closed-end investment companies and only if immediately thereafter not more than 10%
of the Fund&#146;s total assets would be invested in such securities. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHIP
has adopted a fundamental investment restriction that provides that it may not invest in
other investment companies except under certain specified circumstances. You are being
asked to approve changes to that fundamental investment restriction that would allow SHIP
to invest in other investment companies by purchasing shares of money market funds
advised by the Investment Adviser and its affiliates as permitted by an exemptive order
issued to SHIP by the SEC (the &#147;SEC Order&#148;). This change will make it possible for SHIP,
in the future, to invest cash balances, including any cash collateral received in
securities lending activities and cash that is otherwise not invested in portfolio
securities, in affiliated money market funds pursuant to conditions imposed by the SEC
Order. Uninvested cash might arise from a variety of sources including dividend or
interest payments, unsettled securities transactions, reserves held for investment
strategy purposes, scheduled maturity of investments or liquidation of portfolio
securities. Any such investment will be on the same terms and on the same basis as other
stockholders in such money market funds, except that shares of money market funds sold to
and redeemed by SHIP will not be subject to a sales load, redemption fee, distribution
fee under a Rule 12b-1 plan or a service fee, and if the shares are subject to any such
fee, the Investment Adviser will waive its advisory fee in an amount necessary to offset
the amount of any such fees incurred. The SEC Order permits SHIP to invest up to 25% of
its total assets in an affiliated money market fund. If the proposed amendment is
adopted, SHIP will interpret the amended restriction in light of the existing SEC Order
or as it may be amended in the future. </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 SHIP believes that investment in affiliated money market funds would provide
SHIP with an efficient and cost-effective means of investing uninvested cash balances and
cash collateral. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
&#147;Additional Information&#151;Quorum and Vote Required&#148; for the required vote necessary for
the approval of the change to the fundamental investment restriction. </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 SHIP recommends that stockholders vote FOR the proposal to amend
the Fund&#146;s fundamental investment restriction regarding investing in other investment
companies.</B> </FONT> </P>

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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 </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 each Fund in
proportion to its relative net assets. The Funds will reimburse banks, brokers and others
for their reasonable expenses in forwarding proxy solicitation material to the beneficial
owners of shares of Common Stock and AMPS of the Funds. </FONT></P>

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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. Each Fund has retained Georgeson Shareholder, 17 State Street,
  New York, New York 10004, to assist in the solicitation of proxies at a cost
  of approximately $3,500 for each Fund, plus aggregate out-of-pocket expenses
  of approximately $750. </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>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;For
MuniHoldings, MuniHoldings Insured, 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 Insured, 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. </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;In
the case of MuniHoldings and MuniHoldings Insured, holders of AMPS, voting separately as
a class, are entitled to elect the two AMPS Directors designated herein and holders of
shares of Common Stock and AMPS, voting together as a single class, are entitled to elect
the remaining Directors. In the case of Debt Strategies, SHIP and FRIS, holders of shares
of Common Stock are entitled to elect all Directors. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming
a quorum is present, approval of Item 1. Election of Directors will require the
affirmative vote of stockholders holding at least the percentage of Shares of Common
Stock and AMPS indicated in the chart below. As used in the chart below, a &#147;plurality of
the votes&#148; cast means the candidate must receive more votes than any other candidate for the
same position, but not necessarily a majority of the votes cast. The vote required for
approval of Item 2 (applicable only to SHIP) is the affirmative vote of the lesser of (i)
67% of the shares represented at the Meeting at which more than 50% of the outstanding
shares are represented or (ii) more than 50% of the outstanding shares (an &#147;Investment
Company Act Majority&#148;). </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <td width=18% align=LEFT><font size="1"><b>Fund</b></font></td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td width=30% align=LEFT><font size="1"><b>Election of AMPS Directors</b></font></td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td width=46% align=LEFT><font size="1"><b>Election of Other Directors</b></font></td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=98% align=LEFT valign="top" colspan="5">
      <hr noshade color=#000000 size=1>
    </td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=18% align=LEFT valign="top"><font size=2>MuniHoldings</font></td>
    <td width=2% align=LEFT><font size=2>&nbsp;</font></td>
    <td width=30% align=LEFT valign="top"><font 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=2% align=LEFT valign="top"><font size=2>&nbsp;</font></td>
    <td width=46% align=LEFT valign="top"><font 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>
    <td width=2% align=LEFT><font size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT valign="top" colspan="5">
      <hr noshade color=#000000 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT valign="top"><font size=2>MuniHoldings Insured</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=LEFT valign="top"><font size=2>Affirmative vote of a plurality of
      the votes cast by the holders of AMPS, voting as a separate class</font></td>
    <td align=LEFT valign="top"><font size=2>&nbsp;</font></td>
    <td align=LEFT valign="top"><font 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>
    <td align=LEFT><font size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT valign="top" colspan="5">
      <hr noshade color=#000000 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT valign="top"><font size=2>Debt Strategies</font></td>
    <td align=LEFT valign="top"><font size=2>&nbsp;</font></td>
    <td align=LEFT valign="top"><font size=2>N/A</font></td>
    <td align=LEFT valign="top"><font size=2>&nbsp;</font></td>
    <td align=LEFT valign="top"><font size=2>Affirmative vote of a plurality of
      the votes cast by the holders of shares of Common Stock</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT valign="top" colspan="5">
      <hr noshade color=#000000 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT valign="top"><font size=2>SHIP</font></td>
    <td align=LEFT valign="top"><font size=2>&nbsp;</font></td>
    <td align=LEFT valign="top"><font size=2>N/A</font></td>
    <td align=LEFT valign="top"><font size=2>&nbsp;</font></td>
    <td align=LEFT valign="top"><font size=2>Affirmative vote of a plurality of
      the votes cast by the holders of shares of Common Stock</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="5">
      <hr noshade color=#000000 size=1>
    </td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
  </tr>
  <tr valign=top>
    <td align=LEFT><font size=2>FRIS</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=LEFT><font size=2>N/A</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=LEFT><font size=2>Affirmative vote of a plurality of the votes cast
      by the holders of shares of Common Stock</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
  </tr>
</table>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
shares of Common Stock and AMPS represented by properly executed proxies, unless such
proxies have previously been revoked, will be voted at each Meeting in accordance with
the directions on the proxies; if no direction is indicated, the shares of Common Stock
and AMPS will be voted: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
&#147;FOR&#148; the Director Nominees; and </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with
respect to properly executed proxies submitted by stockholders of SHIP: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
&#147;FOR&#148; the approval of an amendment to a fundamental investment restriction. </FONT></P>


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





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<P ALIGN=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 a Fund in &#147;street name&#148; for the benefit of their customers and clients,
will request the instructions of such customers and clients on how to vote their shares
on each Item before the Meeting. The Funds will include shares held of record by
broker-dealers as to which such authority has been granted in its tabulation of the total
number of shares present for purposes of determining whether the necessary quorum of
stockholders of each Fund exists. The Funds understand that, under the rules of the NYSE,
such broker-dealer firms may, without instructions from their customers and clients,
grant authority to the proxies designated to vote on the election of Directors
(Item 1) if no instructions have been received prior to the date specified in the
broker-dealer firm&#146;s request for voting instructions. With respect to the shares of
Common Stock of SHIP, broker-dealer firms, including MLPF&amp;S, will not be permitted to
grant voting authority without instructions with respect to the amendment to the
fundamental investment restriction (Item 2). MLPF&amp;S has advised each Fund that if it
votes shares held in its name for which no instructions have been received, except as
limited by agreement or applicable law, with respect to the election of Directors (Item
1) it will do so with respect to shares of Common Stock and AMPS in the same proportion
as the votes received from beneficial owners of those shares of Common Stock and AMPS, if
applicable, for which instructions have been received, whether or not held in nominee
name. 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 non-routine proposal (&#147;broker non-votes&#148;) will
be counted as present for the purposes of determining a quorum. Abstentions and broker
non-votes will not be counted as votes cast. Therefore, abstentions and broker non-votes
will not have an effect on the vote on Item 1 for any Fund. For SHIP, abstentions and
broker non-votes will have the same effect as a vote against Item 2. </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Other Matters </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;Management
knows of no other matters to be presented at the Meetings. However, if other matters are
presented for a vote at a Meeting or any adjournments thereof, the proxy holders will
vote the shares of Common Stock and AMPS represented by properly executed proxies
according to their best judgment on those matters. </FONT></P>


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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;D&amp;T
has been selected as the independent registered public accounting firm for Debt
Strategies, SHIP and FRIS. E&amp;Y has been selected as the independent registered public
accounting firm for MuniHoldings and MuniHoldings Insured. D&amp;T and E&amp;Y, in
accordance with Independence Standards Board Standard No. 1, have confirmed to each
Fund&#146;s Audit Committee that they are the independent registered public accounting firms
with respect to the Funds. The SEC&#146;s auditor independence rules require the Audit
Committee of each Fund to pre-approve (a) all audit and permissible non-audit services
provided by the Fund&#146;s independent registered public accounting firm directly to the Fund
and (b) those permissible non-audit services provided by the Fund&#146;s independent
registered public accounting firm to the Fund&#146;s investment adviser and any entity
controlling, controlled by or under common control with the investment adviser that
provides ongoing services to the Fund (the &#147;Affiliated Service Providers&#148;), if the
services relate directly to the operations and financial reporting of the Fund. </FONT></P>

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





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
first two tables below set forth for each Fund, for its two most recent fiscal years the
fees billed by its independent registered public accounting firm for (a) all audit and
non-audit services provided directly to the Fund and (b) those non-audit services
provided to the Fund&#146;s Affiliated Service Providers that relate directly to the Fund&#146;s
operations and financial reporting, and, therefore, require Audit Committee pre-approval.
Services under the caption: </FONT></P>

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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>Audit Fees </i>are for the audit of the Fund&#146;s
      annual financial statements included in the Fund&#146;s reports to stockholders
      and in connection with statutory and regulatory filings or engagements;
      </FONT> </TD>
  </TR></TABLE>

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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>Audit-Related
Fees </I>include assurance and related services reasonably related to the performance
of the audit of financial statements not included in Audit Fees; </FONT> </TD></TR></TABLE>

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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>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>

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<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>

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<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 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>


<table cellpadding=0 cellspacing=0 border=0 width=640>
  <tr valign=Bottom align="center">
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td rowspan="3"><b><font size=1>Independent<br>
      Registered<br>
      Public<br>
      Accounting<br>
      Firm</font></b></td>
    <td>&nbsp;</td>
    <td colspan="5"><b><font size=1>Audit Fees ($)</font></b></td>
    <td><b>&nbsp;&nbsp;</b></td>
    <td colspan="5"><b><font size=1>Audit-Related<br>
      Fees ($)</font></b><b></b></td>
    <td>&nbsp;&nbsp;</td>
    <td colspan="5"><b><font size=1>Tax Fees ($)</font></b><b></b></td>
    <td>&nbsp;&nbsp;</td>
    <td colspan="7"><b><font size=1>All Other<br>
      Fees ($)</font></b></td>
  </tr>
  <tr valign=Bottom align="center">
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="5">
      <hr size="1" noshade width="95%">
    </td>
    <td>&nbsp;</td>
    <td colspan="5">
      <hr size="1" noshade width="95%">
    </td>
    <td>&nbsp;</td>
    <td colspan="5">
      <hr size="1" noshade width="95%">
    </td>
    <td>&nbsp;</td>
    <td colspan="7">
      <hr size="1" noshade width="95%">
    </td>
  </tr>
  <tr valign=Bottom align="center">
    <td align=left><b><font size=1>Fund</font></b></td>
    <td><b></b></td>
    <td><b></b></td>
    <td><b><font size=1>2005</font></b></td>
    <td><b></b></td>
    <td><b><font size=1>2004</font></b></td>
    <td>&nbsp;</td>
    <td><b><font size="1">2003</font></b></td>
    <td><b></b></td>
    <td><b><font size=1>2005</font></b></td>
    <td><b></b></td>
    <td><b><font size=1>2004</font></b></td>
    <td><b></b></td>
    <td><b><font size="1">2003</font></b></td>
    <td>&nbsp;</td>
    <td><b><font size=1>2005</font></b></td>
    <td><b></b></td>
    <td><b><font size=1>2004</font></b></td>
    <td><b></b></td>
    <td><b><font size="1">2003</font></b></td>
    <td>&nbsp;</td>
    <td><b><font size=1>2005</font></b></td>
    <td><b></b></td>
    <td colspan="2"><b><font size=1>2004</font></b></td>
    <td><b></b></td>
    <td colspan="2"><b><font size="1">2003</font></b></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>
      <hr size="1" noshade align="left" width="25%">
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <hr size="1" noshade>
    </td>
    <td align=RIGHT>&nbsp; </td>
    <td align=RIGHT colspan="2">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1">MuniHoldings</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=center><font size="1">E&amp;Y</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">32,000</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">31,500</font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">3,500</font></td>
    <td align=LEFT><font size="1">#&nbsp;</font></td>
    <td align=RIGHT><font size="1">3,000</font></td>
    <td align=LEFT><font size="1">#&nbsp;</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1"></font></td>
    <td align=RIGHT><font size="1">5,700</font></td>
    <td align=LEFT><font size="1">**</font></td>
    <td align=RIGHT><font size="1">5,200</font></td>
    <td align=LEFT><font size="1">**</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1"></font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=RIGHT><font size="1"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1">MuniHoldings Insured</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=center><font size="1">E&amp;Y</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">32,000</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">31,500</font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">3,500</font></td>
    <td align=LEFT><font size="1">#&nbsp;</font></td>
    <td align=RIGHT><font size="1">3,000</font></td>
    <td align=LEFT><font size="1">#&nbsp;</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1"></font></td>
    <td align=RIGHT><font size="1">5,700</font></td>
    <td align=LEFT><font size="1">**</font></td>
    <td align=RIGHT><font size="1">5,200</font></td>
    <td align=LEFT><font size="1">**</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1"></font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=RIGHT><font size="1"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1">Debt Strategies</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=center><font size="1">D&amp;T</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">43,000</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">38,900</font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">7,500</font></td>
    <td align=LEFT><font size="1">*&nbsp;</font></td>
    <td align=RIGHT><font size="1">7,500</font></td>
    <td align=LEFT><font size="1">*</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1"></font></td>
    <td align=RIGHT><font size="1">5,700</font></td>
    <td align=LEFT><font size="1">**</font></td>
    <td align=RIGHT><font size="1">5,200</font></td>
    <td align=LEFT><font size="1">**</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1"></font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=RIGHT><font size="1"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1">SHIP</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=center><font size="1">D&amp;T</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">39,000</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">35,900</font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">7,500</font></td>
    <td align=LEFT><font size="1">**</font></td>
    <td align=RIGHT><font size="1">7,500</font></td>
    <td align=LEFT><font size="1">*</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1"></font></td>
    <td align=RIGHT><font size="1">5,700</font></td>
    <td align=LEFT><font size="1">**</font></td>
    <td align=RIGHT><font size="1">5,200</font></td>
    <td align=LEFT><font size="1">**</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1"></font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=RIGHT><font size="1"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1">FRIS</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=center><font size="1">D&amp;T</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">43,100</font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1"></font></td>
    <td align=RIGHT><font size="1">5,200</font></td>
    <td align=LEFT><font size="1">**</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1"></font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=RIGHT><font size="1"></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" -->
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>

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

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">* </FONT></TD><TD WIDTH=2%><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.</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>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center rowspan="4"><b><font size=1>Independent<br>
      Registered<br>
      Public<br>
      Accounting<br>
      Firm</font></b></TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center colspan="6">&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center colspan="5">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center colspan="5">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center colspan="6"><b><font size=1>Audit-Related Fees ($)</font></b></TD>
    <TD ALIGN=center>&nbsp;&nbsp;</TD>
    <TD ALIGN=center colspan="5"><b><font size=1>Tax Fees ($)</font></b></TD>
    <TD ALIGN=center>&nbsp;&nbsp;</TD>
    <TD ALIGN=center colspan="5"><b><font size=1>All Other Fees ($)</font></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center colspan="6">
      <hr size="1" noshade width="95%">
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center colspan="5">
      <hr size="1" noshade width="95%">
    </TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center colspan="5">
      <hr size="1" noshade width="100%">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><font size=1>Fund</font></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size=1>2005</font></b></TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size=1>2004</font></b></TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><font size="1"><b>2003</b></font></TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size=1>2005</font></b></TD>
    <TD ALIGN=center>&nbsp;&nbsp;</TD>
    <TD ALIGN=center><b><font size=1>2004</font></b></TD>
    <TD ALIGN=center>&nbsp;&nbsp;</TD>
    <td align=center><font size="1"><b>2003</b></font></td>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size=1>2005</font></b></TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center><b><font size=1>2004</font></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <td align=center><font size="1"><b>2003</b></font></td>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>
      <hr size="1" noshade align="left" width="25%">
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;&nbsp;</TD>
    <TD ALIGN=LEFT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <td align=LEFT>
      <hr size="1" noshade>
    </td>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <td align=LEFT>
      <hr size="1" noshade>
    </td>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1">MuniHoldings</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=center><font size="1">E&amp;Y</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1">0</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1">0</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=right><font size="1">N/A</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><font size="1">0</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1">0</font></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <td align=right><font size="1">N/A</font></td>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1">0</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1">0</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <td align=center><font size="1">N/A</font></td>
  </TR>
  <TR VALIGN=Bottom>
    <td align=LEFT><font size="1">MuniHoldings Insured</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=center><font size="1">E&amp;Y</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=right><font size="1">N/A</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=right><font size="1">N/A</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <td align=center><font size="1">N/A</font></td>
  </TR>
  <TR VALIGN=Bottom>
    <td align=LEFT><font size="1">Debt Strategies</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=center><font size="1">D&amp;T</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">945,000</font></td>
    <td align=LEFT><font size="1">*</font></td>
    <td align=RIGHT><font size="1">485,500</font></td>
    <td align=LEFT><font size="1">*</font></td>
    <td align=right><font size="1">N/A</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=right><font size="1">N/A</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT>&nbsp;</td>
    <TD ALIGN=RIGHT><font size="1">56,140</font></TD>
    <TD ALIGN=LEFT><font size="1">**</font></TD>
    <td align=center><font size="1">N/A</font></td>
  </TR>
  <TR VALIGN=Bottom>
    <td align=LEFT><font size="1">SHIP</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=center><font size="1">D&amp;T</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">945,000</font></td>
    <td align=LEFT><font size="1">*</font></td>
    <td align=RIGHT><font size="1">485,500</font></td>
    <td align=LEFT><font size="1">*</font></td>
    <td align=right><font size="1">N/A</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=right><font size="1">N/A</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT>&nbsp;</td>
    <TD ALIGN=RIGHT><font size="1">56,140</font></TD>
    <TD ALIGN=LEFT><font size="1">**</font></TD>
    <td align=center><font size="1">N/A</font></td>
  </TR>
  <TR VALIGN=Bottom>
    <td align=LEFT><font size="1">FRIS</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=center><font size="1">D&amp;T</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size="1">945,000</font></td>
    <td align=LEFT><font size="1">*</font></td>
    <td align=right><font size="1">485,500</font></td>
    <td align=LEFT><font size="1">*</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT><font size="1">0</font></td>
    <td align=LEFT><font size="1">&nbsp;</font></td>
    <td align=RIGHT><font size="1">N/A</font></td>
    <td align=LEFT>&nbsp;</td>
    <TD ALIGN=RIGHT><font size="1">0</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center><font size="1">56,140**</font></TD>
  </TR>
</TABLE>

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

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> * </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Primarily
related to examinations of internal control and investment       management performance
returns at Affiliated Service Providers.</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="Page Break CENTER" FSL="Workstation" -->
<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=60% ALIGN=center><FONT SIZE="2"> 13</FONT></TD>
    <TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>





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



<!-- 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>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=592>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="193">&nbsp;</TD>
    <TD ALIGN=LEFT width="4">&nbsp;</TD>
    <TD ALIGN=center rowspan="3" width="75"><b><font size=1>Independent<br>
      Registered<br>
      Public<br>
      Accounting<br>
      Firm</font></b></TD>
    <TD ALIGN=center width="4">&nbsp;</TD>
    <TD ALIGN=center colspan="6"><font size="1"><b>Aggregate Non-Audit Fees ($)</b></font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="193">&nbsp;</TD>
    <TD ALIGN=LEFT width="4">&nbsp;</TD>
    <TD ALIGN=center width="4">&nbsp;</TD>
    <TD ALIGN=center colspan="6">
      <hr size="1" noshade>
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="193"><b><font size=1>Fund</font></b></TD>
    <TD ALIGN=LEFT width="4">&nbsp;</TD>
    <TD ALIGN=center width="4">&nbsp;</TD>
    <TD ALIGN=center width="83"><b><font size=1>2005</font></b></TD>
    <TD ALIGN=center width="21">&nbsp;</TD>
    <TD ALIGN=center width="83"><b><font size=1>2004</font></b></TD>
    <TD ALIGN=center width="35">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><b><font size="1">2003</font></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="193">
      <hr size="1" noshade align="left" width="25%">
    </TD>
    <TD ALIGN=LEFT width="4">&nbsp;</TD>
    <TD ALIGN=LEFT width="75">
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT width="4">&nbsp;</TD>
    <TD ALIGN=RIGHT width="83">
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT width="21">&nbsp;</TD>
    <TD ALIGN=RIGHT width="83">
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT width="35">&nbsp;</TD>
    <TD ALIGN=LEFT colspan="2">
      <hr size="1" noshade>
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="193"><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center width="75"><FONT SIZE=2>E&amp;Y</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="83"><font size="2">2,948,450</font></TD>
    <TD ALIGN=LEFT width="21"><FONT SIZE=2>*&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="83"><FONT SIZE=2>2,942,050</FONT></TD>
    <TD ALIGN=LEFT width="35"><FONT SIZE=2>*</FONT></TD>
    <TD ALIGN=right width="69"><font size="2">N/A</font></TD>
    <TD ALIGN=LEFT width="25"><font size="2"></font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="193"><FONT SIZE=2>MuniHoldiding Insured</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center width="75"><FONT SIZE=2>E&amp;Y</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="83"><font size="2">2,948,450</font></TD>
    <TD ALIGN=LEFT width="21"><FONT SIZE=2>*&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="83"><FONT SIZE=2>2,942,050</FONT></TD>
    <TD ALIGN=LEFT width="35"><FONT SIZE=2>*</FONT></TD>
    <TD ALIGN=right width="69"><font size="2">N/A</font></TD>
    <TD ALIGN=LEFT width="25"><font size="2"></font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="193"><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center width="75"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="83"><FONT SIZE=2>12,004,727</FONT></TD>
    <TD ALIGN=LEFT width="21"><FONT SIZE=2>**</FONT></TD>
    <TD ALIGN=RIGHT width="83"><FONT SIZE=2>17,851,064</FONT></TD>
    <TD ALIGN=LEFT width="35"><FONT SIZE=2>**</FONT></TD>
    <TD ALIGN=right width="69"><font size="2">N/A</font></TD>
    <TD ALIGN=LEFT width="25"><font size="2"></font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="193"><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center width="75"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="83"><FONT SIZE=2>12,004,727</FONT></TD>
    <TD ALIGN=LEFT width="21"><FONT SIZE=2>**</FONT></TD>
    <TD ALIGN=RIGHT width="83"><FONT SIZE=2>17,851,064</FONT></TD>
    <TD ALIGN=LEFT width="35"><FONT SIZE=2>**</FONT></TD>
    <TD ALIGN=right width="69"><font size="2">N/A</font></TD>
    <TD ALIGN=LEFT width="25"><font size="2"></font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="193"><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center width="75"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="83"><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT width="21">&nbsp;</TD>
    <TD ALIGN=RIGHT width="83"><FONT SIZE=2>15,864,036</FONT></TD>
    <TD ALIGN=LEFT width="35"><FONT SIZE=2>**</FONT></TD>
    <TD ALIGN=right width="69"><font size="2">18,860,084</font></TD>
    <TD ALIGN=LEFT width="25"><font size="2">**</font></TD>
  </TR>
</TABLE>

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

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> * </FONT></TD><TD WIDTH=2%><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></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,
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="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 Audit Committee&#146;s pre-approval and has determined that the
provision of such services is compatible with maintaining the independence of the
independent registered public accounting firm. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit
Committee&#146;s Pre-Approval Policies and Procedures</I>. The Audit Committee of each Fund has
adopted policies and procedures with regard to the pre-approval of services. Audit,
audit-related and tax compliance services provided to a Fund on an annual basis require
specific pre-approval by the Fund&#146;s Audit Committee. As noted above, the Audit Committee
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 (<I>e.g. </I>unanticipated but permissible services). The Audit Committee is
informed of each service approved subject to general pre-approval at the next regularly
scheduled in-person board meeting. </FONT> </P>

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

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

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





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 18; page: 18" -->




<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&nbsp;&nbsp;Other</i>.
  Representatives of D&amp;T and E&amp;Y, as applicable, are expected to be present
  at the Meetings and will have an opportunity to make a statement if they so
  desire and to respond to questions from stockholders. </FONT></P>


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

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
principal office of FAM is located at 800 Scudders Mill Road, Plainsboro, New Jersey
08536. </FONT></P>


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

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;Each
  Fund will furnish, without charge, a copy of its Annual Report for the Fund&#146;s
  last fiscal year to any stockholder upon request.</b> Such requests should be
  directed to the applicable Fund, P.O. Box 9011, Princeton, New Jersey 08543-9011,
  Attention: Fund Secretary, or to 1-800-637-3863. </FONT></P>


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

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  a stockholder of any Fund (with the exception of FRIS and SHIP, for which information
  is provided in the next paragraph) intends to present a proposal at the 2006
  Annual Meeting of Stockholders of such Fund, each of which is anticipated to
  be held in August 2006, 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 15, 2006. The persons
  named as proxies in the proxy materials for the 2006 Annual Meeting of Stockholders
  for each of the Funds (except FRIS and SHIP) 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 8, 2006. Written
  proposals and notices should be sent to the Secretary of the respective Fund,
  800 Scudders Mill Road, Plainsboro, New Jersey 08536. </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;FRIS
  and SHIP each expects to hold its next Annual Meeting of Stockholders in August
  2006. Proposals of stockholders intended to be presented at the meetings must
  be received by the applicable Fund by March 15, 2006 for inclusion in the Fund&#146;s
  proxy statement and form of proxy for that meeting. The By-laws of FRIS and
  SHIP generally require that advance notice be given to the Fund in the event
  a stockholder desires to transact any business from the floor at an Annual Meeting
  of Stockholders. Notice of any such business must be in writing and received
  at the applicable Fund&#146;s principal executive office during the period from
  April 24, 2006 to May 24, 2006. </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;Written
proposals and notices should be sent to the Secretary of the applicable Fund, 800
Scudders Mill Road, Plainsboro, New Jersey 08536. </FONT></P>


<!-- MARKER FORMAT-SHEET="8K 3 col" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=35% colspan="2" align="left"><font size=2>By Order of the Boards
      of Directors </font></TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5% align="left">&nbsp;</TD>
    <TD WIDTH=30% align="left">&nbsp;</TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=35% colspan="2" align="left"><font size=2>ALICE A. PELLEGRINO <br>
      <i>Secretary of MuniHoldings Fund, Inc., <br>
      MuniHoldings Insured Fund, Inc., <br>
      Debt Strategies Fund, Inc., <br>
      Senior High Income Portfolio, Inc. <br>
      and Floating Rate Income Strategies Fund, Inc.</i></font></TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30% align="left"><font size=2>Dated: July 12, 2005 </font></TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
  </TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="8K 3 col" FSL="Workstation" --> <!-- MARKER FORMAT-SHEET="8K 3 col" FSL="Workstation" -->
<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" --> <BR>
&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=60% ALIGN=center><FONT SIZE="2"> 15</FONT></TD>
    <TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>





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








<!-- 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;Defined
terms used herein and not otherwise defined shall have the same meanings attributed
thereto in the Combined Proxy Statement to which these Exhibits are attached. </FONT></P>


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

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


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




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2><FONT SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1></FONT></TH>
    <TH COLSPAN=4><FONT SIZE=1>Shares Outstanding as<BR>
      of the Record Date</FONT></TH></tr>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH COLSPAN=4>
      <hr size="1" noshade>
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2 align="left"><FONT SIZE=1>Fund</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Fiscal<BR>
      Year End</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>State of<BR>
      Organization</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1><BR>
      Meeting<BR>
      Time</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Common<BR>
      Stock</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>AMPS</FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>
      <hr size="1" noshade align="left" width="25%">
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>April 30</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>9:30 A.M.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>13,816,625</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>4,400</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>April 30</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>9:45 A.M.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>12,867,541</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>5,360</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>February 28</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>10:00 A.M.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>105,570,363</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>February 28</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>10:15 A.M.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>55,740,573</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>August 31</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>10:30 A.M.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>18,298,439</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

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







<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2 align="left">&nbsp;</TH>
    <TH COLSPAN=6><font size=1>Board</font></TH>
    <TH COLSPAN=6><font size=1>Audit Committee</font></TH>
    <TH COLSPAN=4><font size=1>Nominating<br>
      Committee</font></TH>
    <TH COLSPAN=2>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2 align="left">&nbsp;</TH>
    <TH COLSPAN=6>
      <hr size="1" noshade width="95%">
    </TH>
    <TH COLSPAN=6>
      <hr size="1" noshade width="95%">
    </TH>
    <TH COLSPAN=4>
      <hr size="1" noshade width="95%">
    </TH>
    <TH COLSPAN=2>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2 align="left"><FONT SIZE=1>Fund</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>No. of<BR>
      Meetings<BR>
      Held*</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Annual<BR>
      Fee ($)</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Per<BR>
      Meeting<BR>
      Fee ($)**</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>No. of<BR>
      Meetings<BR>
      Held*</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Annual<BR>
      Fee ($)***</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Per<BR>
      Meeting<BR>
      Fee ($)**</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>No. of<BR>
      Meetings<BR>
      Held*</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Per<BR>
      Meeting<BR>
      Fee ($)**</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Aggregate<BR>
      Fees and<BR>
      Expenses ($)</FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT WIDTH=144>
      <hr size="1" noshade align="left" width="25%">
    </TD>
    <TD ALIGN=LEFT WIDTH=4>&nbsp;</TD>
    <TD ALIGN=RIGHT WIDTH=35>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT WIDTH=17>&nbsp;</TD>
    <TD ALIGN=RIGHT WIDTH=39>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT WIDTH=4>&nbsp;</TD>
    <TD ALIGN=RIGHT WIDTH=39>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT WIDTH=7>&nbsp;</TD>
    <TD ALIGN=RIGHT colspan="2">
      <hr size="1" noshade width="92%">
    </TD>
    <TD ALIGN=RIGHT WIDTH=39>
      <hr size="1" noshade width="92%">
    </TD>
    <TD ALIGN=LEFT WIDTH=4>&nbsp;</TD>
    <TD ALIGN=RIGHT WIDTH=39>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT WIDTH=7>&nbsp;</TD>
    <TD ALIGN=RIGHT WIDTH=6>&nbsp;</TD>
    <TD ALIGN=LEFT WIDTH=41>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT WIDTH=4>&nbsp;</TD>
    <TD ALIGN=LEFT WIDTH=47>
      <hr size="1" noshade width="95%">
    </TD>
    <TD ALIGN=RIGHT WIDTH=53>
      <hr size="1" noshade width="95%">
    </TD>
    <TD ALIGN=LEFT WIDTH=19>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT WIDTH=144><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT WIDTH=4><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=35><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT WIDTH=17><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=39><FONT SIZE=2>1,900</FONT></TD>
    <TD ALIGN=LEFT WIDTH=4><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=39><FONT SIZE=2>150</FONT></TD>
    <TD ALIGN=LEFT WIDTH=7><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=35><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT WIDTH=17><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=39><FONT SIZE=2>1,900</FONT></TD>
    <TD ALIGN=LEFT WIDTH=4><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=39><FONT SIZE=2>150</FONT></TD>
    <TD ALIGN=LEFT WIDTH=7><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=6>&nbsp;</TD>
    <TD ALIGN=center WIDTH=41><FONT SIZE=2>&nbsp;1</FONT></TD>
    <TD ALIGN=center WIDTH=4>&nbsp;</TD>
    <TD ALIGN=center WIDTH=47><FONT SIZE=2>&nbsp;0</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=53><FONT SIZE=2>33,276</FONT></TD>
    <TD ALIGN=LEFT WIDTH=19><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="144"><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="35"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>1,900</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>150</FONT></TD>
    <TD ALIGN=LEFT width="7"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="35"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>1,900</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>150</FONT></TD>
    <TD ALIGN=LEFT width="7"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="6">&nbsp;</TD>
    <TD ALIGN=center width="41"><font size="2">1</font></TD>
    <TD ALIGN=center width="4">&nbsp;</TD>
    <TD ALIGN=center width="47"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=RIGHT width="53"><FONT SIZE=2>33,276</FONT></TD>
    <TD ALIGN=LEFT width="19"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT height="16" width="144"><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT height="16" width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT height="16" width="35"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT height="16" width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT height="16" width="39"><FONT SIZE=2>2,200</FONT></TD>
    <TD ALIGN=LEFT height="16" width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT height="16" width="39"><FONT SIZE=2>325</FONT></TD>
    <TD ALIGN=LEFT height="16" width="7"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT height="16" width="35"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT height="16" width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT height="16" width="39"><FONT SIZE=2>2,200</FONT></TD>
    <TD ALIGN=LEFT height="16" width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT height="16" width="39"><FONT SIZE=2>325</FONT></TD>
    <TD ALIGN=LEFT height="16" width="7"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT height="16" width="6">&nbsp;</TD>
    <TD ALIGN=center height="16" width="41"><FONT SIZE=2>1</FONT></TD>
    <TD ALIGN=center height="16" width="4">&nbsp;</TD>
    <TD ALIGN=center height="16" width="47"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=RIGHT height="16" width="53"><FONT SIZE=2>45,853</FONT></TD>
    <TD ALIGN=LEFT height="16" width="19"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="144"><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="35"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>2,200</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>325</FONT></TD>
    <TD ALIGN=LEFT width="7"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="35"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>2,200</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>325</FONT></TD>
    <TD ALIGN=LEFT width="7"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="6">&nbsp;</TD>
    <TD ALIGN=center width="41"><FONT SIZE=2>1</FONT></TD>
    <TD ALIGN=center width="4">&nbsp;</TD>
    <TD ALIGN=center width="47"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=RIGHT width="53"><FONT SIZE=2>45,787</FONT></TD>
    <TD ALIGN=LEFT width="19"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="144"><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="35"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>2,200</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>325</FONT></TD>
    <TD ALIGN=LEFT width="7"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="35"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>2,200</FONT></TD>
    <TD ALIGN=LEFT width="4"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="39"><FONT SIZE=2>325</FONT></TD>
    <TD ALIGN=LEFT width="7"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="6">&nbsp;</TD>
    <TD ALIGN=center width="41"><FONT SIZE=2>1</FONT></TD>
    <TD ALIGN=center width="4">&nbsp;</TD>
    <TD ALIGN=center width="47"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=RIGHT width="53"><FONT SIZE=2>40,568</FONT></TD>
    <TD ALIGN=LEFT width="19"><FONT SIZE=2>&#134;</FONT></TD>
  </TR>
</TABLE>



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

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">* </FONT></TD><TD WIDTH=2%><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 fee paid to the Chairman of the Audit Committee. </FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">&#134; </FONT></TD><TD WIDTH=2%><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 August                                        31, 2004. </FONT></TD></TR></TABLE>

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





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 21; page: 21" -->



<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(This page
intentionally left blank) </FONT></P>

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





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 22; page: 22" -->



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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2><FONT SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>MuniHoldings</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>MuniHoldings Insured</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Debt Strategies</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>SHIP</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>FRIS</FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Doll</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Forbes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1997</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1998</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1997</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1993</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Montgomery</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1997</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1998</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1997</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1995</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Reid</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2004</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2004</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2004</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2004</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2004</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Suddarth</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>West</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1997</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1998</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1997</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>1993</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Zinbarg</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>2003</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

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

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH COLSPAN=10>&nbsp;</TH>
    <TH COLSPAN=2 rowspan="4"><FONT SIZE=1>Aggregate<br>
      Compensation<br>
      from Funds<br>
      and Other<br>
      MLIM/FAM-<br>
      Advised Funds($)</FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH COLSPAN=10><font size=1>Compensation from the Fund ($)#</font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH COLSPAN=10>
      <hr size="1" noshade>
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2 align="left"><font size=1>Name</font></TH>
    <TH COLSPAN=2><font size=1>MuniHoldings</font></TH>
    <TH COLSPAN=2><font size=1>MuniHoldings<br>
      Insured</font></TH>
    <TH COLSPAN=2><font size=1>Debt<br>
      Strategies</font></TH>
    <TH COLSPAN=2><font size=1>SHIP</font></TH>
    <TH COLSPAN=2><font size=1>FRIS</font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>
      <hr size="1" noshade align="left" width="25%">
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Ronald W. Forbes*</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>6,107</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>6,107</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>8,107</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>8,107</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>6,283</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>284,833</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Cynthia A. Montgomery</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>5,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>5,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>7,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>7,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>5,617</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>248,833</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Jean Margo Reid##</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,133</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,133</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,500</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>3,500</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>142,733</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Kevin A. Ryan**</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,433</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>3,433</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>5,617</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>5,617</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>5,617</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>181,317</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Roscoe S. Suddarth</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>5,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>5,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>7,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>7,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>5,617</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>248,833</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Richard R. West</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>5,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>5,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>7,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>7,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>5,617</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>248,833</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Edward D. Zinbarg</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>5,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>5,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>7,000</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>7,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>5,617</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>248,833</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

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

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> * </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Chairman of each Fund&#146;s
      Board and 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.
Ryan retired as a Director effective January 1, 2005.</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="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">Ms. Reid became a Director
      effective August 19, 2004.</FONT></TD>
  </TR></TABLE>

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





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




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

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=700>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2 align="left"><FONT SIZE=1>Director-Nominee</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Fund</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Common<BR>
      Stock</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>AMPS</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Aggregate<BR>
      Dollar<BR>
      Range of<BR>
      Equity <br>
      Securities <br>
      in the Fund</FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Aggregate Dollar <br>
      Range of Equity <br>
      Securities <br>
      in all MLIM/FAM-<BR>
      Advised Funds <br>
      overseen by each <br>
      Director Nominee </FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>
      <hr size="1" noshade align="left" width="65%">
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2><i>Interested Director:</i></FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Robert C. Doll, Jr.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>over $100,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2><i>Non-Interested Directors:</i></FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Ronald W. Forbes</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1,588</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>$10,001 - $50,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>over $100,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;1,855</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><font size=2>N/A</font></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><font size=2>$10,001 - $50,000</font></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;857</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><font size=2>N/A</font></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><font size=2>$1 - $10,000</font></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;575</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><font size=2>N/A</font></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><font size=2>$10,001 - $50,000</font></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Cynthia A. Montgomery</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>over $100,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Jean Margo Reid</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>over $100,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Roscoe S. Suddarth</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>over $100,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <td align=center><font size=2>638</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=center><font size=2>N/A</font></td>
    <td align=center><font size=2>&nbsp;</font></td>
    <td align=center><font size=2>$1 - $10,000</font></td>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <td align=center><font size=2>808</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=center><font size=2>N/A</font></td>
    <td align=center><font size=2>&nbsp;</font></td>
    <td align=center><font size=2>$1 - $10,000</font></td>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Richard R. West</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>over $100,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>638</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>$1 - $10,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>800</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>$1 - $10,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>24,650</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>over $100,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Edward D. Zinbarg</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>over $100,000</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniHoldings Insured</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Debt Strategies</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>SHIP</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>FRIS</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>N/A</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

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





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




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





<table align=center border=0 cellspacing=0 cellpadding=0 width="640">
  <tr align="center" valign="bottom">
    <td width="120"> <font size="1"><b>Name, Address* and Age</b> </font></td>
    <td width="9"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td colspan="3"> <font size="1"><b>Positions Held in Applicable Funds; Term
      of Office** and Length of Time Served </b> </font></td>
    <td width="11"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td width="183"> <font size="1"><b>Principal Occupation(s) <br>
      During Past Five Years </b> </font></td>
    <td width="15"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td width="97"> <font size="1"><b>Number of MLIM/FAM-Advised Funds and Portfolios
      Overseen</b> </font></td>
    <td width="9"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td width="70"> <font size="1"><b>Public Directorships</b> </font></td>
  </tr>
  <tr>
    <td valign=top width="120">
      <hr size="1" noshade>
    </td>
    <td valign=top width="9">&nbsp; </td>
    <td valign=top colspan="3">
      <hr size="1" noshade>
    </td>
    <td valign=top width="11">&nbsp; </td>
    <td valign=top width="183">
      <hr size="1" noshade>
    </td>
    <td valign=top width="15">&nbsp; </td>
    <td valign=top width="97">
      <hr size="1" noshade>
    </td>
    <td valign=top width="9">&nbsp; </td>
    <td valign=top width="70">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Robert C. Doll, Jr.&#134; (50) </font></td>
    <td valign=top width="9">&nbsp; </td>
    <td valign=top colspan="3"><font size="1">President and Director of each Fund
      since 2005. </font></td>
    <td valign=top width="11">&nbsp; </td>
    <td valign=top width="183"><font size="1">President of MLIM/FAM-advised funds
      since 2005; President of FAM and MLIM since 2001; Co-Head (Americas Region)
      of FAM and MLIM from 2000 to 2001 and Senior Vice President thereof from
      1999 to 2001; President and Director of Princeton Services, Inc. (&#147;Princeton
      Services&#148;) since 2001; President of Princeton Administrators, L.P.
      (&#147;Princeton Administrators&#148;) since 2001; Chief Investment Officer
      of OppenheimerFunds, Inc. in 1999 and Executive Vice President thereof from
      1991 to 1999. </font></td>
    <td valign=top width="15">&nbsp; </td>
    <td valign=top width="97"><font size="1">125 registered investment companies
      consisting of 169 portfolios </font></td>
    <td valign=top width="9">&nbsp; </td>
    <td valign=top width="70"><font size="1">None </font></td>
  </tr>
  <tr>
    <td valign=top width="120">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top colspan="3">&nbsp;</td>
    <td valign=top width="11">&nbsp;</td>
    <td valign=top width="183">&nbsp;</td>
    <td valign=top width="15">&nbsp;</td>
    <td valign=top width="97">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top width="70">&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Donald C. Burke (45)</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top colspan="3"><font 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 Insured since 1998; Debt Strategies
      since 1997; SHIP since 1994; and FRIS since 2003.</font></td>
    <td valign=top width="11"><font size="1"></font></td>
    <td valign=top width="183"><font size="1">First Vice President of FAM and
      MLIM since 1997 and Treasurer thereof since 1999; Senior Vice President
      and Treasurer of Princeton Services since 1999 and Director since 2004;
      Vice President of FAM Distributors, Inc. (&#147;FAMD&#148;) since 1999;
      Vice President of FAM and MLIM from 1990 to 1997; Director of Taxation of
      MLIM from 1990 to 2001; Vice President, Treasurer and Secretary of the IQ
      Funds since 2004.</font></td>
    <td valign=top width="15"><font size="1"></font></td>
    <td valign=top width="97"><font size="1">129 registered investment companies
      consisting of 173 portfolios</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top width="70"><font size="1">None</font></td>
  </tr>
  <tr>
    <td valign=top width="120">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top colspan="3">&nbsp;</td>
    <td valign=top width="11">&nbsp;</td>
    <td valign=top width="183">&nbsp;</td>
    <td valign=top width="15">&nbsp;</td>
    <td valign=top width="97">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top width="70">&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Kenneth A. Jacob (54)</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top colspan="3"><font size="1">Senior Vice President of MuniHoldings
      and MuniHoldings Insured since 2002.</font></td>
    <td valign=top width="11"><font size="1"></font></td>
    <td valign=top width="183"><font size="1">Managing Director of MLIM since
      2000; Director (Tax-Exempt Fund Management) of MLIM from 1997 to 2000.</font></td>
    <td valign=top width="15"><font size="1"></font></td>
    <td valign=top width="97"><font size="1">38 registered investment companies
      consisting of 50 portfolios</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top width="70"><font size="1">None</font></td>
  </tr>
</table>
<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
C-1</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 25; page: 25" -->
<table align=center border=0 cellspacing=0 cellpadding=0 width="640">
  <tr align="center" valign="bottom">
    <td width="120"><font size="1"><b> Name, Address* and Age</b></font></td>
    <td width="9"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td colspan="3"><font size="1"><b> Positions Held in Applicable Funds; Term
      of Office** and Length of Time Served </b></font></td>
    <td width="11"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td width="183"> <font size="1"><b>Principal Occupation(s) <br>
      During Past Five Years </b></font></td>
    <td width="15"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td width="97"><font size="1"><b> Number of MLIM/FAM-Advised Funds and Portfolios
      Overseen</b></font></td>
    <td width="9"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td width="70"><font size="1"><b> Public Directorships</b></font></td>
  </tr>
  <tr>
    <td valign=top width="120">
      <hr size="1" noshade>
    </td>
    <td valign=top width="9">&nbsp; </td>
    <td valign=top colspan="3">
      <hr size="1" noshade>
    </td>
    <td valign=top width="11">&nbsp; </td>
    <td valign=top width="183">
      <hr size="1" noshade>
    </td>
    <td valign=top width="15">&nbsp; </td>
    <td valign=top width="97">
      <hr size="1" noshade>
    </td>
    <td valign=top width="9">&nbsp; </td>
    <td valign=top width="70">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">John M. Loffredo (41)</font></td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top colspan="3"><font size="1">Senior Vice President of MuniHoldings
      and MuniHoldings Insured since 2002.</font></td>
    <td valign=top width="11">&nbsp;</td>
    <td valign=top width="183"><font size="1">Managing Director of MLIM since
      2000 and Director (Tax-Exempt Fund Management) of MLIM from 1997 to 2000.</font></td>
    <td valign=top width="15">&nbsp;</td>
    <td valign=top width="97"><font size="1">39 registered investment companies
      consisting of 51 portfolios</font></td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top width="70"><font size="1">None</font></td>
  </tr>
  <tr>
    <td valign=top width="120">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top colspan="3">&nbsp;</td>
    <td valign=top width="11">&nbsp;</td>
    <td valign=top width="183">&nbsp;</td>
    <td valign=top width="15">&nbsp;</td>
    <td valign=top width="97">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top width="70">&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Robert A. DiMella, CFA (38)</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top colspan="3"><font size="1">Vice President of MuniHoldings and
      MuniHoldings Insured since 1999.</font></td>
    <td valign=top width="11"><font size="1"></font></td>
    <td valign=top width="183"><font size="1">Managing Director of MLIM since
      2004; Director (Tax-Exempt Fund Management) of MLIM from 2002 to 2004; Vice
      President of MLIM from 1996 to 2001.</font></td>
    <td valign=top width="15"><font size="1"></font></td>
    <td valign=top width="97"><font size="1">6 registered investment companies
      consisting of 5 portfolios</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top width="70"><font size="1">None</font></td>
  </tr>
  <tr>
    <td valign=top width="120">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top colspan="3">&nbsp;</td>
    <td valign=top width="11">&nbsp;</td>
    <td valign=top width="183">&nbsp;</td>
    <td valign=top width="15">&nbsp;</td>
    <td valign=top width="97">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top width="70">&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Joseph Matteo (41)</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top colspan="3"><font size="1">Vice President and Portfolio Manager
      of FRIS since 2003.</font></td>
    <td valign=top width="11"><font size="1"></font></td>
    <td valign=top width="183"><font size="1">Director of MLIM since 2001; Vice
      President of MLIM from 1997 to 2001.</font></td>
    <td valign=top width="15"><font size="1"></font></td>
    <td valign=top width="97"><font size="1">6 registered investment companies
      consisting of 2 portfolios</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top width="70"><font size="1">None</font></td>
  </tr>
  <tr>
    <td valign=top width="120">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top colspan="3">&nbsp;</td>
    <td valign=top width="11">&nbsp;</td>
    <td valign=top width="183">&nbsp;</td>
    <td valign=top width="15">&nbsp;</td>
    <td valign=top width="97">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top width="70">&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Kevin Booth (51)</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top colspan="3"><font size="1">Vice President and Portfolio Manager
      of Debt Strategies and SHIP since 2001.</font></td>
    <td valign=top width="11"><font size="1"></font></td>
    <td valign=top width="183"><font size="1">Director of MLIM since 1998; Vice
      President of MLIM from 1991 to 1998.</font></td>
    <td valign=top width="15"><font size="1"></font></td>
    <td valign=top width="97"><font size="1">4 registered investment companies
      consisting of 4 portfolios</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top width="70"><font size="1">None</font></td>
  </tr>
  <tr>
    <td valign=top width="120">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top colspan="3">&nbsp;</td>
    <td valign=top width="11">&nbsp;</td>
    <td valign=top width="183">&nbsp;</td>
    <td valign=top width="15">&nbsp;</td>
    <td valign=top width="97">&nbsp;</td>
    <td valign=top width="9">&nbsp;</td>
    <td valign=top width="70">&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Jeffrey Hiller (53)</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top colspan="3"><font size="1">Chief Compliance Officer of each
      Fund since 2004.</font></td>
    <td valign=top width="11"><font size="1"></font></td>
    <td valign=top width="183"><font size="1">Chief Compliance Officer of the
      MLIM/FAM-advised funds and First Vice President and Chief Compliance Officer
      of MLIM (Americas Region) since 2004; Chief Compliance Officer of the IQ
      Funds since 2004; Global Director of Compliance at Morgan Stanley Investment
      Management from 2002 to 2004; Managing Director and Global Director of Compliance
      at Citigroup Asset Management from 2000 to 2002; Chief Compliance Officer
      at Soros Fund Management in 2000; Chief Compliance Officer at Prudential
      Financial from 1995 to 2000; Senior Counsel in the Commission&#146;s Division
      of Enforcement in Washington D.C. from 1990 to 1995.</font></td>
    <td valign=top width="15"><font size="1"></font></td>
    <td valign=top width="97"><font size="1">130 registered investment companies
      consisting of 174 portfolios</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top width="70"><font size="1">None</font></td>
  </tr>
</table>
<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
C-2</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 26; page: 26" -->
<table align=center border=0 cellspacing=0 cellpadding=0 width="640">
  <tr align="center" valign="bottom">
    <td width="120"><font size="1"><b> Name, Address* and Age</b></font></td>
    <td width="9"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td colspan="3"><font size="1"><b> Positions Held in Applicable Funds; Term
      of Office** and Length of Time Served </b></font></td>
    <td width="11"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td width="183"> <font size="1"><b>Principal Occupation(s) <br>
      During Past Five Years </b></font></td>
    <td width="15"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td width="97"><font size="1"><b> Number of MLIM/FAM-Advised Funds and Portfolios
      Overseen</b></font></td>
    <td width="9"> <font size="1"><b>&nbsp;&nbsp;</b></font></td>
    <td width="70"><font size="1"><b> Public Directorships</b></font></td>
  </tr>
  <tr>
    <td valign=top width="120">
      <hr size="1" noshade>
    </td>
    <td valign=top width="9">&nbsp; </td>
    <td valign=top colspan="3">
      <hr size="1" noshade>
    </td>
    <td valign=top width="11">&nbsp; </td>
    <td valign=top width="183">
      <hr size="1" noshade>
    </td>
    <td valign=top width="15">&nbsp; </td>
    <td valign=top width="97">
      <hr size="1" noshade>
    </td>
    <td valign=top width="9">&nbsp; </td>
    <td valign=top width="70">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width="120"><font size="1">Alice A. Pellegrino (45)</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top colspan="3"><font size="1">Secretary of each Fund since 2004.</font></td>
    <td valign=top width="11"><font size="1"></font></td>
    <td valign=top width="183"><font size="1">Director (Legal Advisory) of MLIM
      since 2002; Vice President of MLIM from 1999 to 2002; Attorney associated
      with MLIM since 1997; Secretary of MLIM, FAM, FAMD and Princeton Services
      since 2004.</font></td>
    <td valign=top width="15"><font size="1"></font></td>
    <td valign=top width="97"><font size="1">126 registered investment companies
      consisting of 170 portfolios</font></td>
    <td valign=top width="9"><font size="1"></font></td>
    <td valign=top width="70"><font size="1">None</font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" -->
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> * </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">The
address of each officer listed above is P.O. Box 9011, Princeton, New Jersey 08543-9011. </FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">** </FONT></TD><TD WIDTH=2%><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 each Fund.</FONT></TD></TR></TABLE>

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

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





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



<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(This page
intentionally left blank) </FONT></P>

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







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














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




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

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

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

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



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



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




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

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


<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left"><font face="Times New Roman, Times, Serif" size=2>01)
      Robert C. Doll, Jr. <br>
      02) Cynthia A. Montgomery <br>
      03) Jean Margo Reid <br>
      04) Roscoe S. Suddarth <br>
      05) Edward D. Zinbarg </font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>



<br>
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
<TD WIDTH=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=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the discretion of such proxies, upon such other business as may properly come before the
meeting or any adjournment thereof.  </FONT></TD>
</TR>
</TABLE>
<BR>



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

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


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


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

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

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



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


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




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




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

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

<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left"><font face="Times New Roman, Times, Serif" size=2>01)
      Robert C. Doll, Jr. <br>
      02) Ronald W. Forbes <br>
      03) Cynthia A. Montgomery <br>
      04) Jean Margo Reid <br>
      05) Roscoe S. Suddarth <br>
      06) Richard R. West <br>
      07) Edward D. Zinbarg </font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P>&nbsp;</P>




<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
<TD WIDTH=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=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the discretion of such proxies, upon such other business as may properly come before the
meeting or any adjournment thereof.  </FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:____________________________________</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<BR>

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

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




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




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



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

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

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


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

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

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

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




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




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




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

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


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

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
<TD WIDTH=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=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the discretion of such proxies, upon such other business as may properly come before the
meeting or any adjournment thereof.  </FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:____________________________________</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<BR>

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


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







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




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


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

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

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


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

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

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



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





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



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

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

<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left">
      <p><font face="Times New Roman, Times, Serif" size=2>01) Robert C. Doll,
        Jr. <br>
        02) Ronald W. Forbes <br>
        03) Cynthia A. Montgomery <br>
        04) Jean Margo Reid <br>
        05) Roscoe S. Suddarth <br>
        06) Richard R. West <br>
        07) Edward D. Zinbarg </font></p>
      <!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" --> </td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<br>
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
<TD WIDTH=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=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the discretion of such proxies, upon such other business as may properly come before the
meeting or any adjournment thereof.  </FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:____________________________________</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<BR>

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

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




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 9; page: 9" -->




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

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

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



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


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




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




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

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

<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left">
      <p><font face="Times New Roman, Times, Serif" size=2>01) Robert C. Doll,
        Jr. <br>
        02) Ronald W. Forbes <br>
        03) Cynthia A. Montgomery <br>
        04) Jean Margo Reid <br>
        05) Roscoe S. Suddarth <br>
        06) Richard R. West <br>
        07) Edward D. Zinbarg </font></p>
      <!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" --> </td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P>&nbsp;</P>




<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
<TD WIDTH=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=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the discretion of such proxies, upon such other business as may properly come before the
meeting or any adjournment thereof.  </FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:____________________________________</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<BR>

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

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





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 11; page: 11" -->





<!-- 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>P.O. BOX 9011
                        <BR>PRINCETON, NEW JERSEY 08543-9011 </B></FONT></P>

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

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


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

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS PROXY WHEN
PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED
STOCKHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED &#147;FOR&#148; ITEMS 1 AND 2. </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 Items 1 and 2 as
  marked, or if not marked, to vote &#147;FOR&#148; Items 1 and 2, and to use
  their discretion to vote for any other matter as may properly come before the
  meeting or any adjournment thereof. If you do not intend to personally attend
  the meeting, please complete and return this card at once in the enclosed envelope.
  </FONT></P>



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


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






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

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

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

<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left">
      <p><font face="Times New Roman, Times, Serif" size=2>01) Robert C. Doll,
        Jr. <br>
        02) Ronald W. Forbes <br>
        03) Cynthia A. Montgomery <br>
        04) Jean Margo Reid <br>
        05) Roscoe S. Suddarth <br>
        06) Richard R. West <br>
        07) Edward D. Zinbarg </font></p>
      <!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" --> </td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<br>
<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=1%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
    <TD width="0%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=53%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposal to
      approve an amendment to the Fund&#146;s fundamental investment restriction.
      </FONT></TD>
    <TD WIDTH=10% align="center"><font size="2"><b>FOR</b><br>
      |_|</font></TD>
    <TD WIDTH=12% align="center"><font size="2"><b>AGAINST</b><br>
      |_|</font></TD>
    <TD WIDTH=24% align="center"><font size="2"><b>ABSTAIN</b><br>
      |_| <!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" --> </font></TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=1%>&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD WIDTH=53%>&nbsp;</TD>
    <TD WIDTH=10% align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH=12% align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH=24% align="center">&nbsp;</TD>
  </TR>
  <TR VALIGN=TOP>
    <TD WIDTH=1%><font face="Times New Roman, Times, Serif" size=2>3.</font></TD>
    <TD width="0%">&nbsp;</TD>
    <TD colspan="4"><font face="Times New Roman, Times, Serif" size=2>In the discretion
      of such proxies, upon such other business as may properly come before the
      meeting or any adjournment thereof. </font></TD>
  </TR>
</TABLE>
<BR>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:____________________________________</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<BR>

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

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





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 13; page: 13" -->


<!-- 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>P.O. BOX 9011
                        <BR>PRINCETON, NEW JERSEY 08543-9011 </B></FONT></P>

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

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


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

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

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



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


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







<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 14; page: 14" -->

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

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

<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left">
      <p><font face="Times New Roman, Times, Serif" size=2>01) Robert C. Doll,
        Jr. <br>
        02) Ronald W. Forbes <br>
        03) Cynthia A. Montgomery <br>
        04) Jean Margo Reid <br>
        05) Roscoe S. Suddarth <br>
        06) Richard R. West <br>
        07) Edward D. Zinbarg </font></p>
      <!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" --> </td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<br>
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
<TD WIDTH=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=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the discretion of such proxies, upon such other business as may properly come before the
meeting or any adjournment thereof. </FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:____________________________________</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<BR>

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

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

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</HTML>


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