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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>/in/edgar/work/20000710/0000950130-00-003800/0000950130-00-003800.txt : 20000712
<SEC-HEADER>0000950130-00-003800.hdr.sgml : 20000712
ACCESSION NUMBER:		0000950130-00-003800
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20000823
FILED AS OF DATE:		20000710

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MUNIASSETS FUND INC
		CENTRAL INDEX KEY:			0000901243
		STANDARD INDUSTRIAL CLASSIFICATION:	 [0000
]		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231
</COMPANY-DATA>

		FILING VALUES:
			FORM TYPE:		DEF 14A
			SEC ACT:		
			SEC FILE NUMBER:	811-07642
			FILM NUMBER:		669995
</FILING-VALUES>

			BUSINESS ADDRESS:	
				STREET 1:		800 SCUDDERS MILL RD
				CITY:			PLAINSBORO
				STATE:			NJ
				ZIP:			08536
				BUSINESS PHONE:		6092822800
</BUSINESS-ADDRESS>
</FILER>
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>0001.htm
<DESCRIPTION>MERRILL LYNCH MUNIASSETS FUND, INC.
<TEXT>

<HTML>
<HEAD>
 <TITLE>MERRILL LYNCH MUNIASSETS FUND, INC.</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF">
 <HR SIZE=2 NOSHADE> <HR SIZE=1 NOSHADE> <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>AS FILED WITH THE
   SECURITIES AND EXCHANGE COMMISSION ON JULY 10, 2000</B></FONT></DIV>
 <DIV><FONT
 SIZE="5">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="4" COLOR="#000000" FACE="'Times New Roman', Times"><B>SCHEDULE
   14A</B></FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>(RULE
   14A-101)</B></FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>INFORMATION
   REQUIRED IN PROXY STATEMENT</B></FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>SCHEDULE 14A
   INFORMATION</B></FONT></DIV>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>PROXY STATEMENT
   PURSUANT TO SECTION 14(A) OF THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT
   NO. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)</B></FONT></DIV>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Filed by the
   Registrant&nbsp;&nbsp;</FONT><FONT
 SIZE="2" COLOR="#000000" FACE="Wingdings">&#120;</FONT><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Filed by a Party
   other than the Registrant&nbsp;&nbsp;</FONT><FONT
 SIZE="2" COLOR="#000000" FACE="Wingdings">&#168;</FONT><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Check the appropriate
   box:</FONT></DIV>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>

 <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT
   SIZE="2" COLOR="#000000" FACE="Wingdings">&#168;</FONT><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Preliminary Proxy
     Statement</FONT></DIV>
   </TD>
  </TR>
 </TABLE>

 <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT
   SIZE="2" COLOR="#000000" FACE="Wingdings">&#168;</FONT><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Confidential, for
     Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</FONT></DIV>
   </TD>
  </TR>
 </TABLE>

 <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT
   SIZE="2" COLOR="#000000" FACE="Wingdings">&#120;</FONT><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Definitive Proxy
     Statement</FONT></DIV>
   </TD>
  </TR>
 </TABLE>

 <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT
   SIZE="2" COLOR="#000000" FACE="Wingdings">&#168;</FONT><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Definitive
     Additional Materials</FONT></DIV>
   </TD>
  </TR>
 </TABLE>

 <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT
   SIZE="2" COLOR="#000000" FACE="Wingdings">&#168;</FONT><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Soliciting Material
     Pursuant to Rule 14a-11(c) or Rule 14a-12</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="5">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>MuniAssets Fund,
   Inc.</B></FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>P.O. Box
   9011</B></FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Princeton, New
   Jersey 08543-9011</B></FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>(Name of
   Registrant as Specified In Its Charter)</B></FONT></DIV>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="1" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(Name
   of Person(s) Filing Proxy Statement, if other than the
   Registrant)</B></FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Payment of Filing Fee
   (Check the appropriate box):</FONT></DIV>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>

 <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT
   SIZE="2" COLOR="#000000" FACE="Wingdings">&#120;</FONT><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">No fee
     required.</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>

 <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT
   SIZE="2" COLOR="#000000" FACE="Wingdings">&#168;</FONT><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Fee computed on
     table below per Exchange Act Rules 14a-6(i) (4) and 0-11.</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"></TD>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">(1)&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Title of each class
     of securities to which transaction applies:</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"></TD>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">(2)&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Aggregate number of
     securities to which transaction applies:</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"></TD>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">(3)&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Per unit price or
     other underlying value of transaction computed pursuant to Exchange Act
     Rule 0-11</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"></TD>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">(4)&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Proposed maximum
     aggregate value of transaction:</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"></TD>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">(5)&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Total fee
     paid:</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>

 <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT
   SIZE="2" COLOR="#000000" FACE="Wingdings">&#168;</FONT><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Fee paid previously
     with preliminary materials.</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>

 <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT
   SIZE="2" COLOR="#000000" FACE="Wingdings">&#168;</FONT><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">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></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"></TD>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">(1)&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Amount Previously
     Paid:</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"></TD>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">(2)&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Form, Schedule or
     Registration Statement No.:</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"></TD>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">(3)&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Filing
     Party:</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"></TD>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">(4)&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Date
     Filed:</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="3">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"></TD>
   <TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Notes:</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV ALIGN="left"><HR WIDTH="9%" SIZE="1" NOSHADE></DIV>

 <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">(1)&nbsp;&nbsp;</FONT></DIV>
   </TD>
   <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Set forth the
     amount on which the filing fee is calculated and state how it was
     determined.</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>
 <HR SIZE=1 NOSHADE> <HR SIZE=2 NOSHADE> <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>MUNIASSETS FUND,
   INC.</B></FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>P.O. Box
   9011</B></FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Princeton, New
   Jersey 08543-9011</B></FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><HR WIDTH="21%" SIZE="1" NOSHADE></DIV>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTICE OF 2000
   ANNUAL MEETING OF STOCKHOLDERS</B></FONT></DIV>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><HR WIDTH="21%" SIZE="1" NOSHADE></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>AUGUST 23,
   2000</B></FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TO THE
   STOCKHOLDERS OF</B></FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>MUNIASSETS FUND,
   INC.:</B></FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE IS
   HEREBY GIVEN that the 2000 Annual Meeting of Stockholders (the
   &#147;Meeting&#148;) of MuniAssets Fund, Inc. (the &#147;Fund&#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 Wednesday, August 23,
   2000 at 10:00 A.M. for the following purposes:</FONT></DIV>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
   <TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;To
     elect two Class III Directors for a term of three years;</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
   <TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;To
     consider and act upon a proposal to ratify the selection of Deloitte &amp;
     Touche LLP (&#147;D&amp;T&#148;) to serve as independent auditors of the
     Fund for its current fiscal year; and</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
   <TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;To
     transact such other business as may properly come before the Meeting or
     any adjournment thereof.</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board
   of Directors has fixed the close of business on June 27, 2000 as the record
   date for the determination of stockholders entitled to notice of and to vote
   at the Meeting or any adjournment thereof.</FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
   complete list of the stockholders of the Fund entitled to vote at the
   Meeting will be available and open to the examination of any stockholder of
   the Fund for any purpose germane to the Meeting during ordinary business
   hours from and after August 9, 2000, at the office of the Fund, 800 Scudders
   Mill Road, Plainsboro, New Jersey. You are cordially invited to attend the
   Meeting. <B>Stockholders who do not expect to attend the 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</B>. The
   enclosed proxy is being solicited on behalf of the Board of Directors of the
   Fund.</FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&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, Shareholder
   Communications Corporation at 1-877-504-5019.</FONT></DIV>
 <DIV><FONT
 SIZE="6">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
   <TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">By Order of the
     Board of Directors</FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="5">&nbsp;</FONT></DIV>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
   <TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">B<SMALL>RADLEY
     </SMALL>
   J. L<SMALL>UCIDO</SMALL>
   </FONT></DIV>
   </TD>
  </TR>
 </TABLE>

 <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
  <TR>
   <TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
   <TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman',
     Times"><I>Secretary</I></FONT></DIV>
   </TD>
  </TR>
 </TABLE>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Plainsboro, New
   Jersey</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Dated: July 10,
   2000</FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>PROXY
   STATEMENT</B></FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><HR WIDTH="21%" SIZE="1" NOSHADE></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>MUNIASSETS FUND,
   INC.</B></FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>P.O. BOX
   9011</B></FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>PRINCETON, NEW
   JERSEY 08543-9011</B></FONT></DIV>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><HR WIDTH="21%" SIZE="1" NOSHADE></DIV>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2000 ANNUAL
   MEETING OF STOCKHOLDERS</B></FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><HR WIDTH="21%" SIZE="1" NOSHADE></DIV>
 <DIV><FONT
 SIZE="1">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>AUGUST 23,
   2000</B></FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times"><B>INTRODUCTION</B></FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
   Proxy Statement is furnished in connection with the solicitation of proxies
   on behalf of the Board of Directors of MuniAssets Fund, Inc., a Maryland
   corporation (the &#147;Fund&#148;), to be voted at the 2000 Annual Meeting
   of Stockholders of the Fund (the &#147;Meeting&#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 Wednesday, August 23, 2000 at 10:00
   A.M. The approximate mailing date of this Proxy Statement is July 12,
   2000.</FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
   properly executed proxies received prior to the Meeting will be voted at the
   Meeting in accordance with the instructions marked thereon or otherwise as
   provided therein. Unless instructions to the contrary are marked, proxies
   will be voted FOR the election of the nominees for Directors, and FOR the
   ratification of the selection of independent auditors to serve for the
   Fund&#146;s current fiscal year. Any proxy may be revoked at any time prior
   to the exercise thereof by giving written notice to the Secretary of the
   Fund.</FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board
   of Directors has fixed the close of business on June 27, 2000 as the record
   date for the determination of stockholders entitled to notice of and to vote
   at the Meeting and at any adjournment thereof. Stockholders on the record
   date will be entitled to one vote for each share held, with no shares having
   cumulative voting rights. As of June 27, 2000, the Fund had outstanding
   10,432,191 shares of common stock, par value $.10 per share (&#147;Common
   Stock&#148;). To the knowledge of the Fund, as of June 30, 2000, no person
   is the beneficial owner of more than five percent of the outstanding shares
   of Common Stock.</FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approval
   of Proposals 1 and 2 below will require the affirmative vote of the holders
   of a majority of the Fund&#146;s shares of Common Stock, voting in person or
   by proxy, at a meeting in which a quorum is present and duly constituted.
   The Board of Directors of the Fund knows of no business other than that
   mentioned in Proposals 1 and 2 of the Notice of Meeting which will be
   presented for consideration at the Meeting. If any other matter is properly
   presented, it is the intention of the persons named in the enclosed proxy to
   vote in accordance with their best judgment.</FONT></DIV>
 <DIV><FONT
 SIZE="6">&nbsp;</FONT></DIV>
 <DIV ALIGN="center"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>PROPOSAL
   1.&nbsp;&nbsp;&nbsp;&nbsp;ELECTION OF DIRECTORS</B></FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the
   Meeting, two Class III Directors will be elected to serve for a term of
   three years and until their successors are elected and qualified. It is
   intended that all properly executed proxies will be voted (unless such
   authority has been withheld in the proxy) in favor of Melvin R. Seiden and
   Stephen B. Swensrud as Class III Directors. The Board of Directors of the
   Fund knows of no reason why any of these nominees will be unable to serve,
   but in the event of any such unavailability, the proxies received will be
   voted for such substitute nominee or nominees as the Board of Directors may
   recommend.</FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
   Pursuant to the Fund&#146;s By-Laws, the terms of office of the Directors
   are staggered. The Board of Directors is divided into three classes,
   designated Class I, Class II and Class III, with each class having a term of
   three years. Each year the term of one class expires. Class I consists of
   Arthur Zeikel and Robert S. Salomon, Jr. Class II consists of Joe Grills,
   Terry K. Glenn and Walter Mintz. Class III consists of Melvin R. Seiden and
   Stephen B. Swensrud. Only the Directors in Class III are being considered
   for election at this Meeting. All of the Directors have been members of the
   Board of Directors of the Fund since the Fund&#146;s initial public offering
   in 1993, except Joe Grills, who has been a member of the Board of Directors
   of the Fund since January 1994, Robert S. Salomon, Jr., who has been a
   member of the Board of Directors of the Fund since January 1996, and Terry
   K. Glenn, who has been a member of the Board of Directors of the Fund since
   March 1999.</FONT></DIV>
 <DIV><FONT
 SIZE="2">&nbsp;</FONT></DIV>
 <DIV ALIGN="left"><FONT
 SIZE="2" COLOR="#000000" FACE="'Times New Roman',
   Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
   information concerning the Directors (which includes the nominees) is set
   forth as follows:</FONT></DIV>

 <TABLE ALIGN="center" WIDTH="738" CELLSPACING=0 CELLPADDING=0>
  <TR>
   <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
   SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Name and Address
     of Director</B></FONT><FONT
   SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
   <TH><FONT
   SIZE="1">&nbsp;&nbsp;</FONT></TH>
   <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
   SIZE="1" COLOR="#000000" FACE="'Times New Roman',
     Times"><B>Age</B></FONT><FONT
   SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
   <TH><FONT
   SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
   <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
   SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Principal
     Occupation During Past
   <BR>
   Five Years and Public Directorships(1)</B></FONT><FONT
   SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
   <TH><FONT
   SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
   <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
   SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Director
   <BR>
   Since</B></FONT><FONT
   SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
   <TH><FONT
   SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
   <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
   SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Shares
   <BR>
   of Common
   <BR>
   Stock of the
   <BR>
   Fund
   <BR>
   Beneficially
   <BR>
   Owned at the
   <BR>
   Record Date</B></FONT><FONT
   SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
  </TR>
  <TR>
   <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Terry K. Glenn(1)(3)
   <BR>
   P.O. Box 9011
   <BR>
   Princeton, New Jersey
   <BR>
   08543-9011</FONT></TD>
   <TD><FONT
   SIZE="1">&nbsp;&nbsp;</FONT></TD>
   <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;59</FONT></TD>
   <TD><FONT
   SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
   <TD VALIGN="bottom" WIDTH="288" NOWRAP ALIGN="left"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Executive Vice
     President of Merrill Lynch
   <BR>
   Investment Managers L.P. (&#147;MLIM&#148;) and FAM
   <BR>
   since 1983; Executive Vice President and Director
   <BR>
   of Princeton Services since 1993; President of FAM
   <BR>
   Distributors, Inc. (&#147;FAMD&#148;) since 1983 and
   <BR>
   Director thereof since 1991; President of Princeton
   <BR>
   Administrators, L.P. since 1988.</FONT></TD>
   <TD><FONT
   SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
   <TD VALIGN="top" NOWRAP ALIGN="right"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1999</FONT></TD>
   <TD><FONT
   SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
   <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
   SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0</FONT></TD>
  </TR>
  <TR>
   <TD COLSPAN=9 VALIGN="bottom" ALIGN="left"></TD>
   <TD COLSPAN=9><FONT
   SIZE="1">&nbsp;</FONT></TD>
   <TR>
    <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
    SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Joe Grills(1)(2)
    <BR>
    P.O. Box 98
    <BR>
    Rapidan, Virginia 22733</FONT></TD>
    <TD><FONT
    SIZE="1">&nbsp;&nbsp;</FONT></TD>
    <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
    SIZE="2" COLOR="#000000" FACE="'Times New Roman',
      Times">&nbsp;65</FONT></TD>
    <TD><FONT
    SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD VALIGN="bottom" WIDTH="288" NOWRAP ALIGN="left"><FONT
    SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Member of the
      Committee of Investment of
    <BR>
    Employee Benefit Assets of the Association for
    <BR>
    Financial Professionals (&#147;CIEBA&#148;) since 1986;
    <BR>
    Member of CIEBA&#146;s Executive Committee since
    <BR>
    1988 and its Chairman from 1991 to 1992;
    <BR>
    Assistant Treasurer of International Business
    <BR>
    Machines Incorporated (&#147;IBM&#148;) and Chief
    <BR>
    Investment Officer of IBM Retirement Funds from
    <BR>
    1986 until 1993; Member of the Investment
    <BR>
    Advisory Committee of the State of New York
    <BR>
    Common Retirement Fund; Director, Duke
    <BR>
    Management Company since 1992, elected Vice
    <BR>
    Chairman in May 1998; Director, LaSalle Street
    <BR>
    Fund since 1995; Director of Hotchkis &amp; Wiley
    <BR>
    Mutual Funds since 1996; Director, Kimco Realty
    <BR>
    Corporation since January 1997; Member of the
    <BR>
    Investment Advisory Committee of the Howard
    <BR>
    Hughes Medical Institute since 1997; Member of
    <BR>
    the Investment Advisory Committee of the Virginia
    <BR>
    Retirement System since 1998; Director, Montpelier
    <BR>
    Foundation since 1998; Member of the Investment
    <BR>
    Committee of the Woodberry Forest School since
    <BR>
    April, 2000.</FONT></TD>
    <TD><FONT
    SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD VALIGN="top" NOWRAP ALIGN="right"><FONT
    SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1994</FONT></TD>
    <TD><FONT
    SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
    SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0</FONT></TD>
   </TR>
   <TR>
    <TD COLSPAN=9 VALIGN="bottom" ALIGN="left"></TD>
    <TD COLSPAN=9><FONT
    SIZE="1">&nbsp;</FONT></TD>
    <TR>
     <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
     SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Walter Mintz(1)(2)
     <BR>
     1114 Avenue of the Americas
     <BR>
     New York, New York 10036</FONT></TD>
     <TD><FONT
     SIZE="1">&nbsp;&nbsp;</FONT></TD>
     <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
     SIZE="2" COLOR="#000000" FACE="'Times New Roman',
       Times">&nbsp;71</FONT></TD>
     <TD><FONT
     SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
     <TD VALIGN="top" WIDTH="288" NOWRAP ALIGN="left"><FONT
     SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Special Limited
       Partner of Cumberland Associates
     <BR>
     (investment partnership) since 1982.</FONT></TD>
     <TD><FONT
     SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
     <TD VALIGN="top" NOWRAP ALIGN="right"><FONT
     SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1993</FONT></TD>
     <TD><FONT
     SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
     <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
     SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0</FONT></TD>
    </TR>
    <TR>
     <TD COLSPAN=9 VALIGN="bottom" ALIGN="left"></TD>
     <TD COLSPAN=9><FONT
     SIZE="1">&nbsp;</FONT></TD>
    </TABLE>

    <TABLE ALIGN="center" WIDTH="738" CELLSPACING=0 CELLPADDING=0>
     <TR>
      <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
      SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Name and
        Address of Director</B></FONT><FONT
      SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
      <TH><FONT
      SIZE="1">&nbsp;&nbsp;</FONT></TH>
      <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
      SIZE="1" COLOR="#000000" FACE="'Times New Roman',
        Times"><B>Age</B></FONT><FONT
      SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
      <TH><FONT
      SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
      <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
      SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Principal
        Occupation During Past
      <BR>
      Five Years and Public Directorships(1)</B></FONT><FONT
      SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
      <TH><FONT
      SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
      <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
      SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Director
      <BR>
      Since</B></FONT><FONT
      SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
      <TH><FONT
      SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
      <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
      SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Shares
      <BR>
      of Common
      <BR>
      Stock of the
      <BR>
      Fund
      <BR>
      Beneficially
      <BR>
      Owned at the
      <BR>
      Record Date</B></FONT><FONT
      SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
     </TR>
    </TR>
    <TR>
     <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
     SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Robert S.
       Salomon, Jr.(1)(2)
     <BR>
     106 Dolphin Cove Quay
     <BR>
     Stamford, Connecticut 06902</FONT></TD>
     <TD><FONT
     SIZE="1">&nbsp;&nbsp;</FONT></TD>
     <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
     SIZE="2" COLOR="#000000" FACE="'Times New Roman',
       Times">63&nbsp;</FONT></TD>
     <TD><FONT
     SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
     <TD VALIGN="bottom" WIDTH="288" NOWRAP ALIGN="left"><FONT
     SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Principal of STI
       Management (investment adviser)
     <BR>
     since 1994; Chairman and CEO of Salomon
     <BR>
     Brothers Asset Management from 1992 to 1995;
     <BR>
     Monthly columnist with Forbes Magazine since
     <BR>
     1992; Chairman of Salomon Brothers equity mutual
     <BR>
     funds from 1992 to 1995; Director of Stock
     <BR>
     Research and U.S. Equity Strategist at Salomon
     <BR>
     Brothers Inc. from 1975 to 1991; Trustee of
     <BR>
     Commonfund since 1980.</FONT></TD>
     <TD><FONT
     SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
     <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
     SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1996</FONT></TD>
     <TD><FONT
     SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
     <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
     SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0</FONT></TD>
    </TR>
    <TR>
     <TD COLSPAN=9 VALIGN="bottom" ALIGN="left"></TD>
     <TD COLSPAN=9><FONT
     SIZE="1">&nbsp;</FONT></TD>
     <TR>
      <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Melvin R.
        Seiden(1)(2)
      <BR>
      780 Third Avenue Ltd.
      <BR>
      Suite 2502
      <BR>
      New York, New York 10017</FONT></TD>
      <TD><FONT
      SIZE="1">&nbsp;&nbsp;</FONT></TD>
      <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman',
        Times">69&nbsp;</FONT></TD>
      <TD><FONT
      SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD VALIGN="bottom" WIDTH="288" NOWRAP ALIGN="left"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director of
        Silbanc Properties, Ltd. (real estate,
      <BR>
      investment and consulting) since 1987; Chairman
      <BR>
      and President of Seiden &amp; de Cuevas, Inc. (private
      <BR>
      investment firm) from 1964 to 1987.</FONT></TD>
      <TD><FONT
      SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1993</FONT></TD>
      <TD><FONT
      SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0</FONT></TD>
     </TR>
     <TR>
      <TD COLSPAN=9 VALIGN="bottom" ALIGN="left"></TD>
      <TD COLSPAN=9><FONT
      SIZE="1">&nbsp;</FONT></TD>
      <TR>
       <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
       SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Stephen B.
         Swensrud(1)(2)
       <BR>
       88 Broad Street, 2nd Floor
       <BR>
       Boston, Massachusetts 02110</FONT></TD>
       <TD><FONT
       SIZE="1">&nbsp;&nbsp;</FONT></TD>
       <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
       SIZE="2" COLOR="#000000" FACE="'Times New Roman',
         Times">67&nbsp;</FONT></TD>
       <TD><FONT
       SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
       <TD VALIGN="bottom" WIDTH="288" NOWRAP ALIGN="left"><FONT
       SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Chairman of
         Fernwood Advisors (investment
       <BR>
       adviser) since 1996; Principal of Fernwood
       <BR>
       Associates (financial consultants) since 1975;
       <BR>
       Chairman of RPP Corporation (manufacturing)
       <BR>
       since 1978; Director of International Mobile
       <BR>
       Communications, Inc. (telecommunication) since
       <BR>
       1998.</FONT></TD>
       <TD><FONT
       SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
       <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
       SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1993</FONT></TD>
       <TD><FONT
       SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
       <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
       SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0</FONT></TD>
      </TR>
      <TR>
       <TD COLSPAN=9 VALIGN="bottom" ALIGN="left"></TD>
       <TD COLSPAN=9><FONT
       SIZE="1">&nbsp;</FONT></TD>
       <TR>
        <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Arthur
          Zeikel(1)(3)
        <BR>
        300 Woodland Avenue
        <BR>
        Westfield, New Jersey 07090</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">68&nbsp;</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" WIDTH="288" NOWRAP ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Chairman of
          MLIM and FAM (which terms as used
        <BR>
        hereunder include their corporate predecessors)
        <BR>
        from 1997 to 1999; President of MLIM and FAM
        <BR>
        from 1977 to 1997; Chairman of Princeton Services,
        <BR>
        Inc. (&#147;Princeton Services&#148;) from 1997 to 1999 and
        <BR>
        Director thereof from 1993 to 1999; President of
        <BR>
        Princeton Services from 1993 to 1997; Executive
        <BR>
        Vice President of Merrill Lynch &amp; Co., Inc.
        <BR>
        (&#147;ML &amp; Co.&#148;) from 1990 to 1999.</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">1993</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0</FONT></TD>
       </TR>
      </TABLE>
      <DIV ALIGN="left"><HR WIDTH="9%" SIZE="1" NOSHADE></DIV>

      <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
       <TR>
        <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">(1)&nbsp;</FONT></DIV>
        </TD>
        <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Each of the
          directors is a director, trustee or member of an advisory board of
          certain other investment companies for which FAM or MLIM acts as
          investment adviser. See &#147;Compensation of Directors&#148;
          below.</FONT></DIV>
        </TD>
       </TR>
      </TABLE>

      <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
       <TR>
        <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">(2)&nbsp;</FONT></DIV>
        </TD>
        <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Member of
          Audit Committee of the Board of Directors.</FONT></DIV>
        </TD>
       </TR>
      </TABLE>

      <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
       <TR>
        <TD WIDTH="3%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">(3)&nbsp;</FONT></DIV>
        </TD>
        <TD WIDTH="97%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Interested
          person, as defined in the Investment Company Act of 1940, as amended
          (the &#147;Investment Company Act&#148;), of the Fund.</FONT></DIV>
        </TD>
       </TR>
      </TABLE>
      <DIV><FONT
      SIZE="2">&nbsp;</FONT></DIV>
      <DIV ALIGN="left"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman',
        Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;<I>Committees And Board Of Directors&#146;
        Meetings.</I>&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has a
        standing Audit Committee, which consists of the Directors who are not
        &#147;interested persons&#148; of the Fund within the meaning of the
        Investment Company Act. The principal purpose of the Audit Committee is
        to review the scope of the annual audit conducted by the Fund&#146;s
        independent auditors and the evaluation by such auditors of the
        accounting procedures followed by the Fund. The non-interested
        Directors have retained independent legal counsel to assist them in
        connection with these duties. The Board of Directors does not have a
        nominating committee.</FONT></DIV>
      <DIV><FONT
      SIZE="2">&nbsp;</FONT></DIV>
      <DIV ALIGN="left"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman',
        Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        During the fiscal year ended May 31, 2000, the Board of Directors held
        four meetings and the Audit Committee held four meetings. Each of the
        Directors attended at least 75% of the total number of meetings of the
        Board of Directors. Each member of the Audit Committee attended at
        least 75% of the total number of meetings of the Audit Committee held
        during such period.</FONT></DIV>
      <DIV><FONT
      SIZE="2">&nbsp;</FONT></DIV>
      <DIV ALIGN="left"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman',
        Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;<I>Compliance With Section 16(a) Of The Securities Exchange Act
        Of 1934.</I>&nbsp;&nbsp;&nbsp;&nbsp;Section 16(a) of the Securities
        Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;),
        requires the Fund&#146;s officers, directors 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 New York Stock Exchange. Officers, directors
        and greater than ten percent stockholders are required by SEC
        regulations to furnish the Fund with copies of all Forms 3, 4 and 5
        they file.</FONT></DIV>
      <DIV><FONT
      SIZE="2">&nbsp;</FONT></DIV>
      <DIV ALIGN="left"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman',
        Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;Based solely on the 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 a Form 5
        with respect to the most recent fiscal year, the Fund believes that all
        of its officers, directors, greater than ten percent beneficial owners
        and other persons subject to Section 16 of the Exchange Act because of
        the requirements of Section 30 of the Investment Company Act (<I>ie.,
        </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></DIV>
      <DIV><FONT
      SIZE="2">&nbsp;</FONT></DIV>
      <DIV ALIGN="left"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman',
        Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;<I>Interested Persons.&nbsp;&nbsp;&nbsp;&nbsp;</I>The Fund
        considers Mr. Zeikel and Mr. Glenn to be &#147;interested persons&#148;
        of the Fund within the meaning of Section 2(a)(19) of the Investment
        Company Act as a result of the positions they currently hold or have
        previously held with FAM and its affiliates. Mr. Zeikel has previously
        served as the President of the Fund and the Chairman and President of
        FAM and MLIM. Mr. Glenn is the President of the Fund and the Executive
        Vice President of FAM and MLIM.</FONT></DIV>
      <DIV><FONT
      SIZE="2">&nbsp;</FONT></DIV>
      <DIV ALIGN="left"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman',
        Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;<I>Compensation Of Directors.&nbsp;&nbsp;&nbsp;&nbsp;</I>FAM, the
        investment adviser, pays all compensation of all officers of the Fund
        and all Directors of the Fund who are affiliated with ML &amp; Co. or
        its subsidiaries. The Fund pays each Director not affiliated with the
        investment adviser a fee of $2,000 per year plus $500 per regular
        meeting attended, together with such Director&#146;s actual
        out-of-pocket expenses relating to attendance at meetings. The Fund
        also pays each member of its Audit Committee a fee of $2,000 per year
        plus $500 per meeting attended, together with such Director&#146;s
        out-of-pocket expenses relating to attendance at such meetings. These
        fees and expenses aggregated $40,534 for the fiscal year ended May 31,
        2000.</FONT></DIV>
      <DIV><FONT
      SIZE="2">&nbsp;</FONT></DIV>
      <DIV ALIGN="left"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman',
        Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        The following table sets forth for the fiscal year ended May 31, 2000,
        compensation paid by the Fund to the non-interested Directors and, for
        the calendar year ending December 31, 1999, the aggregate compensation
        paid by all investment companies advised by FAM and its affiliate, MLIM
        (&#147;FAM/MLIM Advised Funds&#148;), to the non-interested
        Directors.</FONT></DIV>
      <DIV><FONT
      SIZE="2">&nbsp;</FONT></DIV>

      <TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
       <TR>
        <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Name of
          Director</B></FONT><FONT
        SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
        <TH><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
        <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Compensation
        <BR>
        Accrued
        <BR>
        From Fund</B></FONT><FONT
        SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
        <TH><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
        <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Pension or
        <BR>
        Retirement Benefits
        <BR>
        as Part of
        <BR>
        Fund Expenses</B></FONT><FONT
        SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
        <TH><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
        <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Aggregate
        <BR>
        Compensation From
        <BR>
        Fund FAM/MLIM
        <BR>
        Advised Paid</B></FONT><FONT
        SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
       </TR>
       <TR>
        <TD VALIGN="bottom" WIDTH="308" NOWRAP ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Joe
          Grills(1)</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">$8,000</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">None</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">$245,250</FONT></TD>
       </TR>
       <TR>
        <TD VALIGN="bottom" WIDTH="308" NOWRAP ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Walter
          Mintz(1)</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">$8,000</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">None</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">$211,250</FONT></TD>
       </TR>
       <TR>
        <TD VALIGN="bottom" WIDTH="308" NOWRAP ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Robert S.
          Salomon, Jr.(1)</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">$8,000</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">None</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">$211,250</FONT></TD>
       </TR>
       <TR>
        <TD VALIGN="bottom" WIDTH="308" NOWRAP ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Melvin R.
          Seiden(1)</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">$8,000</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">None</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">$211,250</FONT></TD>
       </TR>
       <TR>
        <TD VALIGN="bottom" WIDTH="308" NOWRAP ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Stephen B.
          Swensrud(1)</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">$8,000</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">None</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">$232,250</FONT></TD>
       </TR>
      </TABLE>
      <DIV ALIGN="left"><HR WIDTH="10%" SIZE="1" NOSHADE></DIV>

      <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
       <TR>
        <TD WIDTH="4%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">(1)</FONT></DIV>
        </TD>
        <TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">The Directors
          serve on the boards of FAM/MLIM Advised Funds as follows: Mr. Grills
          (31 registered investment companies consisting of 47 portfolios); Mr.
          Mintz (21 registered investment companies consisting of 43
          portfolios); Mr. Salomon (21 registered investment companies
          consisting of 43 portfolios); Mr. Seiden (21 registered investment
          companies consisting of 43 portfolios); and Mr. Swensrud (30
          registered investment companies consisting of 67
          portfolios).</FONT></DIV>
        </TD>
       </TR>
      </TABLE>
      <DIV><FONT
      SIZE="2">&nbsp;</FONT></DIV>
      <DIV ALIGN="left"><FONT
      SIZE="2" COLOR="#000000" FACE="'Times New Roman',
        Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;<I>Officers Of The Fund.&nbsp;&nbsp;&nbsp;&nbsp;</I>The Board of
        Directors has elected seven officers of the Fund. The following sets
        forth information concerning each of these officers:</FONT></DIV>
      <DIV><FONT
      SIZE="2">&nbsp;</FONT></DIV>

      <TABLE ALIGN="center" WIDTH="550" CELLSPACING=0 CELLPADDING=0>
       <TR>
        <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Name and
          Principal Occupation</B></FONT><FONT
        SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
        <TH><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
        <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="1" COLOR="#000000" FACE="'Times New Roman',
          Times"><B>Office</B></FONT><FONT
        SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
        <TH><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
        <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="1" COLOR="#000000" FACE="'Times New Roman',
          Times"><B>Age</B></FONT><FONT
        SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
        <TH><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
        <TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT
        SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Officer
        <BR>
        Since</B></FONT><FONT
        SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
       </TR>
       <TR>
        <TD VALIGN="bottom" WIDTH="331" NOWRAP ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Terry K. Glenn
        <BR>
        Executive Vice President of FAM and MLIM since 1983;
        <BR>
        Executive President Vice President and Director of
        <BR>
        Princeton Services since 1993; President of FAMD since
        <BR>
        1983 and Director thereof since 1991; President of
        <BR>
        Princeton Administrators, L.P. since 1988.</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">President</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">59</FONT></TD>
        <TD><FONT
        SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman',
          Times">1993</FONT></TD>
        <TD VALIGN="top" ALIGN="left"><FONT
        SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">*</FONT></TD>
       </TR>
       <TR>
        <TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
        <TD COLSPAN=8><FONT
        SIZE="2">&nbsp;</FONT></TD>
        <TR>
         <TD VALIGN="bottom" WIDTH="331" NOWRAP ALIGN="left"><FONT
         SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Vincent R.
           Giordano
         <BR>
         Senior Vice President of FAM and MLIM since 1984;
         <BR>
         Senior Vice President of Princeton Services since 1993.</FONT></TD>
         <TD><FONT
         SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
         <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
         SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Senior Vice
         <BR>
         &nbsp;&nbsp;&nbsp;&nbsp;President</FONT></TD>
         <TD><FONT
         SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
         <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
         SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">55</FONT></TD>
         <TD><FONT
         SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
         <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
         SIZE="2" COLOR="#000000" FACE="'Times New Roman',
           Times">1993</FONT></TD>
         <TD><FONT
         SIZE="2" COLOR="#000000" FACE="'Times New Roman',
           Times">&nbsp;</FONT></TD>
        </TR>
        <TR>
         <TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
         <TD COLSPAN=8><FONT
         SIZE="2">&nbsp;</FONT></TD>
         <TR>
          <TD VALIGN="bottom" WIDTH="331" NOWRAP ALIGN="left"><FONT
          SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Kenneth A.
            Jacob
          <BR>
          First Vice President of MLIM since 1997; Vice President
          <BR>
          of MLIM from 1984 to 1997.</FONT></TD>
          <TD><FONT
          SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
          <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
          SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Vice
            President</FONT></TD>
          <TD><FONT
          SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
          <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
          SIZE="2" COLOR="#000000" FACE="'Times New Roman',
            Times">49</FONT></TD>
          <TD><FONT
          SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
          <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
          SIZE="2" COLOR="#000000" FACE="'Times New Roman',
            Times">1993</FONT></TD>
          <TD><FONT
          SIZE="2" COLOR="#000000" FACE="'Times New Roman',
            Times">&nbsp;</FONT></TD>
         </TR>
         <TR>
          <TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
          <TD COLSPAN=8><FONT
          SIZE="2">&nbsp;</FONT></TD>
          <TR>
           <TD VALIGN="bottom" WIDTH="331" NOWRAP ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Donald C.
             Burke
           <BR>
           Senior Vice President and Treasurer of FAM and MLIM
           <BR>
           since 1999; Senior Vice President and Treasurer of
           <BR>
           Princeton Services since 1999; Vice President of FAMD
           <BR>
           since 1999; First Vice President of MLIM from 1997 to
           <BR>
           1999; Vice President of MLIM from 1990 to 1997.</FONT></TD>
           <TD><FONT
           SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
           <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Vice
             President
           <BR>
           &nbsp;&nbsp;&nbsp;&nbsp;and Treasurer</FONT></TD>
           <TD><FONT
           SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
           <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">40</FONT></TD>
           <TD><FONT
           SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
           <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">1993</FONT></TD>
           <TD><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;</FONT></TD>
          </TR>
          <TR>
           <TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
           <TD COLSPAN=8><FONT
           SIZE="2">&nbsp;</FONT></TD>
          </TABLE>

          <TABLE ALIGN="center" WIDTH="550" CELLSPACING=0 CELLPADDING=0>
           <TR>
            <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
            SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Name
              and Principal Occupation</B></FONT><FONT
            SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1"
              NOSHADE></FONT></TH>
            <TH><FONT
            SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
            <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
            SIZE="1" COLOR="#000000" FACE="'Times New Roman',
              Times"><B>Office</B></FONT><FONT
            SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1"
              NOSHADE></FONT></TH>
            <TH><FONT
            SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
            <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
            SIZE="1" COLOR="#000000" FACE="'Times New Roman',
              Times"><B>Age</B></FONT><FONT
            SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1"
              NOSHADE></FONT></TH>
            <TH><FONT
            SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
            <TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT
            SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Officer
            <BR>
            Since</B></FONT><FONT
            SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1"
              NOSHADE></FONT></TH>
           </TR>
          </TR>
          <TR>
           <TD VALIGN="bottom" WIDTH="331" NOWRAP ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Theodore R.
             Jaeckel, Jr
           <BR>
           Director (Municipal Tax-Exempt) of MLIM since 1997;
           <BR>
           Vice President of MLIM from 1991 to 1997.</FONT></TD>
           <TD><FONT
           SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
           <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Vice
             President</FONT></TD>
           <TD><FONT
           SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
           <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">40</FONT></TD>
           <TD><FONT
           SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
           <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">1997</FONT></TD>
          </TR>
          <TR>
           <TD COLSPAN=7 VALIGN="bottom" ALIGN="left"></TD>
           <TD COLSPAN=7><FONT
           SIZE="2">&nbsp;</FONT></TD>
           <TR>
            <TD VALIGN="bottom" WIDTH="331" NOWRAP ALIGN="left"><FONT
            SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">John
              Loffredo, CFA
            <BR>
            First Vice President of MLIM since 1997; Vice President
            <BR>
            of MLIM since 1991.</FONT></TD>
            <TD><FONT
            SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
            <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
            SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Vice
              President</FONT></TD>
            <TD><FONT
            SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
            <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
            SIZE="2" COLOR="#000000" FACE="'Times New Roman',
              Times">36</FONT></TD>
            <TD><FONT
            SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
            <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
            SIZE="2" COLOR="#000000" FACE="'Times New Roman',
              Times">1998</FONT></TD>
           </TR>
           <TR>
            <TD COLSPAN=7 VALIGN="bottom" ALIGN="left"></TD>
            <TD COLSPAN=7><FONT
            SIZE="2">&nbsp;</FONT></TD>
            <TR>
             <TD VALIGN="bottom" WIDTH="331" NOWRAP ALIGN="left"><FONT
             SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Bradley
               J. Lucido
             <BR>
             Vice President of MLIM since 1999; Attorney with
             <BR>
             MLIM since 1995; Attorney in private practice from
             <BR>
             1991 to 1995.</FONT></TD>
             <TD><FONT
             SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
             <TD VALIGN="top" NOWRAP ALIGN="left"><FONT
             SIZE="2" COLOR="#000000" FACE="'Times New Roman',
               Times">Secretary</FONT></TD>
             <TD><FONT
             SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
             <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
             SIZE="2" COLOR="#000000" FACE="'Times New Roman',
               Times">34</FONT></TD>
             <TD><FONT
             SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
             <TD VALIGN="top" NOWRAP ALIGN="center"><FONT
             SIZE="2" COLOR="#000000" FACE="'Times New Roman',
               Times">1999</FONT></TD>
            </TR>
           </TABLE>
           <DIV ALIGN="left"><HR WIDTH="10%" SIZE="1" NOSHADE></DIV>

           <TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
            <TR>
             <TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT
             SIZE="2" COLOR="#000000" FACE="'Times New Roman',
               Times">*</FONT></DIV>
             </TD>
             <TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT
             SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Mr. Glenn
               was elected President of the Fund in 1999. Prior to that he
               served as Executive Vice President of the Fund.</FONT></DIV>
             </TD>
            </TR>
           </TABLE>
           <DIV><FONT
           SIZE="2">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
             &nbsp;<I>Stock Ownership.&nbsp;&nbsp;&nbsp;&nbsp;</I>As of the
             Record Date, the Directors and officers of the Fund as a group (12
             persons) owned an aggregate of less than 1% of the Common Stock of
             the Fund outstanding at such date. At such date, Messrs. Glenn and
             Zeikel, Directors of the Fund, and the other officers of the Fund
             owned an aggregate of less than 1% of the outstanding shares of
             common stock of ML &amp; Co.</FONT></DIV>
           <DIV><FONT
           SIZE="6">&nbsp;</FONT></DIV>
           <DIV ALIGN="center"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>PROPOSAL
             2.&nbsp;&nbsp;&nbsp;&nbsp;SELECTION OF INDEPENDENT
             AUDITORS</B></FONT></DIV>
           <DIV><FONT
           SIZE="2">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
             &nbsp;The Board of Directors of the Fund, including a majority of
             the Directors who are not interested persons of the Fund, has
             selected the firm of Deloitte &amp; Touche LLP
             (&#147;D&amp;T&#148;), independent auditors, to examine the
             financial statements of the Fund for the current fiscal year. The
             Fund knows of no direct or indirect financial interest of D&amp;T
             in the Fund. Such appointment is subject to ratification or
             rejection by the stockholders of the Fund. Unless a contrary
             specification is made, the accompanying proxy will be voted in
             favor of ratifying the selection of such auditors.</FONT></DIV>
           <DIV><FONT
           SIZE="2">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
             &nbsp;D&amp;T also acts as independent auditors for ML &amp; Co.
             and all of its subsidiaries and for substantially all of the other
             investment companies for which FAM or MLIM acts as investment
             adviser. The fees received by D&amp;T from these other entities
             are substantially greater, in the aggregate, than the total fees
             received by it from the Fund. The Board of Directors of the Fund
             considered the fact that D&amp;T has been retained as the
             independent auditors for ML &amp; Co. and the other entities
             described above in its evaluation of the independence of D&amp;T
             with respect to the Fund.</FONT></DIV>
           <DIV><FONT
           SIZE="2">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
             &nbsp;Representatives of D&amp;T are expected to be present at the
             Meeting and will have the opportunity to make a statement if they
             so desire and to respond to questions from
             stockholders.</FONT></DIV>
           <DIV><FONT
           SIZE="6">&nbsp;</FONT></DIV>
           <DIV ALIGN="center"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
             <B>ADDITIONAL INFORMATION</B></FONT></DIV>
           <DIV><FONT
           SIZE="2">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
             &nbsp;The expenses of preparation, printing and mailing of the
             enclosed form of proxy and accompanying Notice and Proxy Statement
             will be borne by the Fund. The Fund will reimburse banks, brokers
             and others for their reasonable expenses in forwarding proxy
             solicitation material to the beneficial owners of the shares of
             the Fund. The Fund may also hire proxy solicitors at the expense
             of the Fund.</FONT></DIV>
           <DIV><FONT
           SIZE="2">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
             &nbsp;In order to obtain the necessary quorum at the Meeting (i.
             e., a majority of the shares of the Fund entitled to vote at the
             Meeting, present in person or by proxy), supplementary
             solicitation may be made by mail, telephone, telegraph or personal
             interview by officers of the Fund. The Fund has retained
             Shareholder Communications Corporation, 17 State Street, New York,
             New York 10004, 1-877-504-5019, to assist in the solicitation of
             proxies at a cost to the Fund of approximately $3,500 plus
             out-of-pocket expenses estimated to be $200.</FONT></DIV>
           <DIV><FONT
           SIZE="2">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
             &nbsp;All shares represented by properly executed proxies, unless
             such proxies have previously been revoked, will be voted at the
             Meeting in accordance with the directions on the proxies; if no
             direction is indicated, the shares will be voted &#147;FOR&#148;
             the Director nominees, and &#147;FOR&#148; the ratification of
             D&amp;T as independent auditors for the Fund.</FONT></DIV>
           <DIV><FONT
           SIZE="2">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&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 Fund
             shares 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 Fund understands that, under the rules of
             the New York Stock Exchange, 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
             (Proposal 1) and ratification of the selection of independent
             auditors (Proposal 2) if no instructions have been received prior
             to the date specified in the broker-dealer firm&#146;s request for
             voting instructions. The Fund 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 votes present for purposes
             of determining whether the necessary quorum of stockholders
             exists. Proxies that are returned but that are marked
             &#147;abstain&#148; or on which a broker-dealer has declined to
             vote on any proposal (&#147;broker non-votes&#148;) will be
             counted as present for the purposes of a quorum. MLPF&amp;S has
             advised the Fund that, except as limited by agreement or
             applicable law, it intends to vote shares held in its name for
             which no instructions are received in the same proportion as the
             votes received from the beneficial owners of these shares for
             which instructions have been received, whether or not held in
             nominee name. Abstentions and broker non-votes will not be counted
             as votes cast. Abstentions and broker non-votes, therefore, will
             have no effect on the vote on Proposal 1 or Proposal
             2.</FONT></DIV>
           <DIV><FONT
           SIZE="5">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Address
             Of Investment Adviser</B></FONT></DIV>
           <DIV><FONT
           SIZE="1">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&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></DIV>
           <DIV><FONT
           SIZE="5">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Annual
             Report Delivery</B></FONT></DIV>
           <DIV><FONT
           SIZE="1">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
             &nbsp;The Fund will furnish, without charge, a copy of its annual
             report for the fiscal year ended May 31, 2000 to any stockholder
             upon request. Such requests should be directed to MuniAssets Fund,
             Inc., P.O. Box 9011, Princeton, New Jersey 08543-9011, Attention:
             Bradley J. Lucido, Secretary or to 1-800-456-4587 ext.
             123.</FONT></DIV>
           <DIV><FONT
           SIZE="5">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
             <B>Stockholder Proposals</B></FONT></DIV>
           <DIV><FONT
           SIZE="1">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
             &nbsp;If a stockholder intends to present a proposal at the 2001
             Annual Meeting of Stockholders of the Fund, which is anticipated
             to be held in August 2001, 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 Fund by March 14, 2001.</FONT></DIV>
           <DIV><FONT
           SIZE="2">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman',
             Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
             &nbsp;Any stockholder who intends to submit a proposal at the 2001
             Annual Meeting of Stockholders without including the proposal in
             the proxy statement for such Annual Meeting must notify the Fund
             of such proposal by May 27, 2001.</FONT></DIV>
           <DIV><FONT
           SIZE="6">&nbsp;</FONT></DIV>

           <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
            <TR>
             <TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
             <TD ALIGN="left" WIDTH="48%" VALIGN="top"> <DIV ALIGN="left"><FONT
             SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">By Order
               of the Board of Directors</FONT></DIV>
             </TD>
            </TR>
           </TABLE>
           <DIV><FONT
           SIZE="5">&nbsp;</FONT></DIV>

           <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
            <TR>
             <TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
             <TD ALIGN="left" WIDTH="48%" VALIGN="top"> <DIV ALIGN="left"><FONT
             SIZE="2" COLOR="#000000" FACE="'Times New Roman',
               Times">B<SMALL>RADLEY </SMALL>
             J. L<SMALL>UCIDO</SMALL>
             </FONT></DIV>
             </TD>
            </TR>
           </TABLE>

           <TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
            <TR>
             <TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
             <TD ALIGN="left" WIDTH="48%" VALIGN="top"> <DIV ALIGN="left"><FONT
             SIZE="2" COLOR="#000000" FACE="'Times New Roman',
               Times"><I>Secretary</I></FONT></DIV>
             </TD>
            </TR>
           </TABLE>
           <DIV><FONT
           SIZE="2">&nbsp;</FONT></DIV>
           <DIV ALIGN="left"><FONT
           SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Dated: July
             10, 2000</FONT></DIV>

           <TABLE WIDTH="100%" BORDER="0" CELLSPACING="0" CELLPADDING="0">
            <TR>
             <TD ALIGN="right" WIDTH="25%">&nbsp;</TD>
             <TD ALIGN="center" WIDTH="50%">MUNIASSETS FUND, INC.</TD>
             <TD ALIGN="right" WIDTH="25%">COMMON STOCK</TD>
            </TR>
           </TABLE>
           <P ALIGN="center">P.O. Box 9011
           <BR>
           Princeton, New Jersey 08543-9011</P>
           <P ALIGN="center">P&nbsp; R&nbsp; O&nbsp; X&nbsp; Y</P>
           <P ALIGN="center"> This proxy is solicited on behalf of the Board of
             Directors</P>
           <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
             undersigned hereby appoints Terry K. Glenn, Donald C. Burke and
             Bradley J. Lucido as proxies, each with the power to appoint his
             substitute, and authorizes each of them to represent and to vote,
             as designated on the reverse hereof, all the Common Stock of
             MuniAssets Fund, Inc. (the "Fund") held of record by the
             undersigned on June 27, 2000 at the Annual Meeting of Stockholders
             of the Fund to be held on August 23, 2000 or any adjournment
             thereof.</P>
           <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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" Proposals 1 and 2.</P>
           <P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
             signing and dating the reverse side of the card, you authorize the
             proxies to vote each proposal as marked, or if not marked, to vote
             "FOR" each proposal, 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.</P>
           <P ALIGN="right"> (Continued and to be signed on the reverse
             side)</P>

           <TABLE WIDTH="100%" BORDER="0" CELLPADDING="2" CELLSPACING="0">
            <TR ALIGN="left" VALIGN="top">
             <TD WIDTH="1%">1.</TD>
             <TD WIDTH="33%" CELLPADDING="6">To elect two Class III Directors
               for a term of three years </TD>
             <TD WIDTH="33%" CELLPADDING="6">FOR all nominees listed below
               (except as marked to the contrary below) [&nbsp; ]</TD>
             <TD WIDTH="33%">WITHHOLD AUTHORITY to vote for all nominees listed
               below [&nbsp; ] </TD>
            </TR>
            <TR ALIGN="left" VALIGN="top">
             <TD WIDTH="3%">&nbsp;</TD>
             <TD COLSPAN="3">&nbsp;</TD>
            </TR>
            <TR ALIGN="left" VALIGN="top">
             <TD WIDTH="3%">&nbsp;</TD>
             <TD COLSPAN="3">(INSTRUCTION: To withhold authority to vote for
               any individual nominee, strike a line through the nominee's name
               in the list below.)</TD>
            </TR>
            <TR ALIGN="left" VALIGN="top">
             <TD WIDTH="3%">&nbsp;</TD>
             <TD COLSPAN="3">&nbsp;</TD>
            </TR>
            <TR ALIGN="left" VALIGN="top">
             <TD WIDTH="3%">&nbsp;</TD>
             <TD COLSPAN="3">Class III Nominees: Melvin R. Seiden, Stephen B.
               Swensrud</TD>
            </TR>
            <TR ALIGN="left" VALIGN="top">
             <TD WIDTH="3%">&nbsp;</TD>
             <TD COLSPAN="3">&nbsp;</TD>
            </TR>
            <TR ALIGN="left" VALIGN="top">
             <TD WIDTH="3%">2.</TD>
             <TD COLSPAN="3">To consider and act upon a proposal to ratify the
               selection of Deloitte & Touche LLP ("D&T") as the independent
               auditors of the Fund to serve for the current fiscal year.</TD>
            </TR>
            <TR ALIGN="left" VALIGN="top">
             <TD WIDTH="3%">&nbsp;</TD>
             <TD COLSPAN="3">&nbsp;</TD>
            </TR>
            <TR ALIGN="left" VALIGN="top">
             <TD WIDTH="3%">&nbsp;</TD>
             <TD COLSPAN="3">FOR [&nbsp; ]
               &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AGAINST [ &nbsp;]
               &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ABSTAIN [ &nbsp;]</TD>
            </TR>
           </TABLE>
           <TABLE WIDTH="100%" BORDER="0" CELLSPACING="0" CELLPADDING="2">
            <TR>
             <TD WIDTH="50%">&nbsp;</TD>
             <TD WIDTH="50%">&nbsp;</TD>
            </TR>
            <TR>
             <TD WIDTH="50%">&nbsp;</TD>
             <TD WIDTH="50%">Please sign this proxy in the space provided
               below. Execution by stockholders who are not individuals must be
               made by an authorized signatory.</TD>
            </TR>
            <TR>
             <TD WIDTH="42%">&nbsp;</TD>
             <TD WIDTH="58%">&nbsp;</TD>
            </TR>
            <TR>
             <TD WIDTH="42%">&nbsp;</TD>
             <TD WIDTH="58%">Dated:_________________________, 2000</TD>
            </TR>
            <TR>
             <TD WIDTH="42%">&nbsp;</TD>
             <TD WIDTH="58%">&nbsp;</TD>
            </TR>
            <TR>
             <TD WIDTH="42%">&nbsp;</TD>
             <TD WIDTH="58%">X _________________________________</TD>
            </TR>
            <TR>
             <TD WIDTH="42%">&nbsp;</TD>
             <TD
               WIDTH="58%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp;&nbsp;&nbsp;Name of Stockholder</TD>
            </TR>
            <TR>
             <TD WIDTH="42%">&nbsp;</TD>
             <TD WIDTH="58%">&nbsp;</TD>
            </TR>
            <TR>
             <TD WIDTH="42%">&nbsp;</TD>
             <TD WIDTH="58%">X _________________________________</TD>
            </TR>
            <TR>
             <TD WIDTH="42%">&nbsp;</TD>
             <TD
               WIDTH="58%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp;Signature</TD>
            </TR>
            <TR>
             <TD WIDTH="42%">&nbsp;</TD>
             <TD WIDTH="58%">&nbsp;</TD>
            </TR>
            <TR>
             <TD COLSPAN="2">Please mark boxes [ ] or [X] in blue or black ink.
             <BR>
             Please sign, date and return this Proxy promptly using the
               enclosed envelope.</TD>
            </TR>
           </TABLE>
           <P>&nbsp;</P>
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