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<SEC-DOCUMENT>0000891092-03-001567.txt : 20030716
<SEC-HEADER>0000891092-03-001567.hdr.sgml : 20030716
<ACCEPTANCE-DATETIME>20030716164040
ACCESSION NUMBER:		0000891092-03-001567
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030825
FILED AS OF DATE:		20030716
EFFECTIVENESS DATE:		20030716

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CORPORATE HIGH YIELD FUND III INC
		CENTRAL INDEX KEY:			0001049549
		IRS NUMBER:				223560585
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-08497
		FILM NUMBER:		03789726

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

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

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MUNIASSETS FUND INC
		CENTRAL INDEX KEY:			0000901243
		IRS NUMBER:				223239638
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-07642
		FILM NUMBER:		03789725

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

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MUNIINCOME FUND INC
		DATE OF NAME CHANGE:	19930517

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CORPORATE HIGH YIELD FUND INC
		CENTRAL INDEX KEY:			0000900724
		IRS NUMBER:				223238901
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-07634
		FILM NUMBER:		03789724

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

	MAIL ADDRESS:	
		STREET 1:		800 SCUDDERS MILL ROAD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>e15065_def14a.htm
<DESCRIPTION>DEF 14A
<TEXT>
<html>
<head>
<title>DEFm14A</title>
</head>
<body>





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



<p><table width=600><tr>
    <td  align=center><font size=2><B>As filed with the Securities and Exchange
      Commission on July&nbsp;16, 2003</B></font></td>
  </tr></table>

<p><table width=600><tr>
    <td  align=center><font size=2><B><font size="3">SCHEDULE 14A <BR>
      Rule 14a-101</font></B></font></td>
  </tr></table>

<p><table width=600><tr>
    <td  align=center><font size=2><B><font size="3">INFORMATION REQUIRED IN PROXY
      STATEMENT <BR>
      SCHEDULE 14A INFORMATION <BR>
      PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES <BR>
      EXCHANGE ACT OF 1934 (AMENDMENT NO. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)</font></B></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2></font></td></tr></table>
<p>
<table width=600>
  <tr>
    <td width="257"><font size=2>Filed by the Registrant |X| </font></td>
    <td width="331" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td width="257">&nbsp;</td>
    <td width="331" align="right">&nbsp;</td>
  </tr>
  <tr>
    <td width="257"><font size=2>Filed by a party other than the Registrant |&nbsp;&nbsp;|</font></td>
    <td width="331" align="right">&nbsp;</td>
  </tr>
</table>

<p><table width=600><tr><td><font size=2>Check the appropriate box:</font></td></tr></table>

<br>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><font size="2">[&nbsp;&nbsp; ] Preliminary Proxy Statement</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2">[X] Definitive Proxy Statement</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2">[&nbsp;&nbsp; ] Definitive Additional Materials</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2">[&nbsp;&nbsp; ] Soliciting Material Pursuant to Rule 14a-12</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2">[&nbsp;&nbsp; ] Confidential, for Use of the Commission
      Only (as permitted by Rule 14a-6(e)(2))</font></td>
  </tr>
</table>
<p>
<p>
<p>
<p>
<p>
<p><table width=600><tr>
    <td  align=center><font size=3><B>CORPORATE HIGH YIELD FUND, INC. <BR>
      CORPORATE HIGH YIELD FUND III, INC. <BR>
      MUNIASSETS FUND, INC. <BR>
      P.O. Box 9011, Princeton, New Jersey 08543-9011</B></font>
      <hr size="1" noshade>
      <font size=2>(Name of Registrant as Specified in Its Charter)</font> </td>
  </tr></table>

<br>
<table width=600>
  <tr>
    <td align=center>
      <hr size="1" noshade>
      <font size=2>(Name of Person(s) Filing Proxy Statement if other than the
      Registrant)</font><font size=1></font></td>
  </tr>
</table>
<p><table width=600><tr><td><FONT SIZE="2">
Payment of filing fee (Check the appropriate
box):</FONT></td></tr></table>

<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> [X] </font></td>
    <td width=90% valign=top><font size="2">No fee required.</font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> [&nbsp; &nbsp;] </font></td>
    <td width=90% valign=top>
      <p><font size=2>Fee computed on table below per Exchange Act Rules 14a-6(i)(1)
        and 0-11.</font></p>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> (1) </font></td>
    <td width=90% valign=top><font size=2>Title of each class of securities to
      which transaction applies: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> (2) </font></td>
    <td width=90% valign=top><font size=2>Aggregate number of securities to which
      transaction applies: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> (3) </font></td>
    <td width=90% valign=top><font size=2>Per unit price or other underlying value
      of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the
      amount on which the filing fee is calculated and state how it was determined.):
      <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> (4) </font></td>
    <td width=90% valign=top><font size=2>Proposed maximum aggregate value of
      transaction: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<P>
<p></P>

<P>
<p></P>

<P>
<p></P>


<P>
<p></P>


<P>
<p></P>


<P>
<p></P>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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



<P>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> (5) </font></td>
    <td width=90% valign=top><font size=2>Total fee paid: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2>[&nbsp; &nbsp;]</font></td>
    <td width=90% valign=top><font size=2>Fee paid previously with preliminary
      materials: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2>[&nbsp; &nbsp;]</font></td>
    <td width=90% valign=top><font size=2>Check box if any part of the fee is
      offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing
      for which the offsetting fee was paid previously. Identify the previous
      filing by registration statement number, or the form or schedule and the
      date of its filing. <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> </font></td>
    <td width=90% valign=top><font size=2>(1) Amount previously paid: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> </font></td>
    <td width=90% valign=top><font size=2>(2) Form, Schedule or Registration Statement
      No.:<br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> </font></td>
    <td width=90% valign=top><font size=2>(3) Filing Party:<br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> </font></td>
    <td width=90% valign=top><font size=2>(4) Date Filed:<br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<br>
<p></P>


<P>
<p></P>


<P>
<p></P>

<P>
<p></P>


<P>
<p></P>


<P>
<p></P>


<P>
<p></P>


<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;












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

<p><table width=600><tr><td  align=center><font size=2><B>CORPORATE HIGH YIELD FUND, INC.<BR>
CORPORATE HIGH YIELD FUND III, INC. <BR> MUNIASSETS FUND, INC. <BR> P.O. Box 9011 <BR> Princeton, New
Jersey 08543-9011</B></font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>


<table width=600><tr><td  align=center><font size=2><B>NOTICE OF 2003 ANNUAL MEETINGS
OF STOCKHOLDERS</B></font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>


<table width=600><tr><td  align=center><font size=2><B>TO BE HELD ON AUGUST 25, 2003</B></font></td></tr></table>


<p><table width=600><tr><td><font size=2>TO THE STOCKHOLDERS OF  <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CORPORATE HIGH YIELD
FUND, INC.  <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CORPORATE HIGH YIELD FUND III, INC.  <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MUNIASSETS FUND, INC.:</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE IS HEREBY GIVEN that
      the 2003 Annual Meetings of Stockholders (each, a &#147;Meeting&#148; and,
      collectively, the &#147;Meetings&#148;) of each of Corporate High Yield
      Fund, Inc. (&#147;Corporate High Yield&#148;), Corporate High Yield Fund
      III, Inc. (&#147;Corporate High Yield III&#148;) and MuniAssets Fund, Inc.
      (&#147;MuniAssets&#148;) (each a &#147;Fund&#148; and, collectively, the
      &#147;Funds&#148;) will be held at the offices of Fund Asset Management,
      L.P. (&#147;FAM&#148;), 800 Scudders Mill Road, Plainsboro, New Jersey 08536,
      on Monday, August 25, 2003 at 10:30 a.m. for the stockholders of Corporate
      High Yield, 10:45 a.m. for the stockholders of Corporate High Yield III
      and 11:00 a.m. for the stockholders of MuniAssets, for the following purposes:</font></td>
  </tr></table>

<P><table width=600><TR>
    <TD width=10% valign=top align="right"><font size=2> (1)&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD width=90% valign=top><font size=2> To
elect a Board of Directors of each Fund to serve for the ensuing  year or for the
specified term, as applicable, and until their  successors have been duly elected and
qualified or until their  earlier resignation or removal; and</font></TD></TR></TABLE><p></P>

<P><table width=600><TR>
    <TD width=10% valign=top align="right"><font size=2> (2) &nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width=90% valign=top><font size=2> To
transact such other business as may properly come before the  Meetings or any adjournment
thereof.</font></TD></TR></TABLE><p></P>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of each Fund has fixed the close of business on  June 26, 2003 as the record
date (the &#147;Record Date&#148;) for the determination of  stockholders entitled to
notice of and to vote at the applicable Meeting or any  adjournment thereof.</font></td></tr></table>

<p><table width=600><tr><td><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are cordially
invited to attend any Meeting at which you may vote shares. <B>Stockholders who do not
expect to attend a Meeting in person are requested to complete, date and sign the
enclosed form of proxy and return it promptly in the envelope provided for this purpose.
If you have been provided with the opportunity on your proxy card or voting instruction
form to provide voting instructions via telephone or the Internet, please take advantage
of these prompt and efficient voting options. </B>The enclosed proxy is being solicited on
behalf of the Board of Directors of each Fund.</FONT></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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




<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you have any
questions regarding the enclosed proxy material or need  assistance in voting your
shares, please contact our proxy solicitor, Georgeson  Shareholder at 1-800-645-4519.</font></td></tr></table>


<p>
<table width=600>
  <tr>
    <td width="264">&nbsp;</td>
    <td width="324"><font size=2>By Order of the Boards of Directors</font></td>
  </tr>
  <tr>
    <td width="264">&nbsp;</td>
    <td width="324">&nbsp;</td>
  </tr>
  <tr>
    <td width="264">&nbsp;</td>
    <td width="324"><font size=2>D<font size="1">AVID</font> W. C<font size="1">LAYTON
      </font><br>
      <i> Secretary of Corporate High Yield Fund, Inc. and Corporate High Yield
      Fund III, Inc.</i></font></td>
  </tr>
  <tr>
    <td width="264">&nbsp;</td>
    <td width="324">&nbsp;</td>
  </tr>
  <tr>
    <td width="264">&nbsp;</td>
    <td width="324"><font size=2>B<font size="1">RIAN </font>D. S<font size="1">TEWART
      </font><br>
      <i>Secretary of MuniAssets Fund, Inc.</i></font></td>
  </tr>
</table>

<p>
<p>
<p><table width=600><tr>
    <td><font size=2>Plainsboro, New Jersey <br>
      Dated: July 16, 2003</font></td>
  </tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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





<p><table width=600><tr><td  align=center><font size=2><B>COMBINED PROXY STATEMENT</B></font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>

<table width=600><tr><td  align=center><font size=2><B>CORPORATE HIGH YIELD FUND, INC. <BR>
CORPORATE HIGH YIELD FUND III, INC.  <BR>MUNIASSETS FUND, INC. <BR>  P.O. Box 9011 <BR> Princeton, New
Jersey 08543-9011</B></font></td></tr></table>


<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>

<table width=600><tr><td  align=center><font size=2><B>2003 ANNUAL MEETINGS OF
STOCKHOLDERS</B></font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>

<table width=600><tr><td  align=center><font size=2><B>August 25, 2003</B></font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>


<table width=600><tr><td  align=center><font size=2><B>INTRODUCTION</B></font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Combined Proxy Statement
      is furnished in connection with the solicitation of proxies on behalf of
      the Boards of Directors of Corporate High Yield Fund, Inc. (&#147;Corporate
      High Yield&#148;), Corporate High Yield Fund III, Inc. (&#147;Corporate
      High Yield III&#148;) and MuniAssets Fund, Inc. (&#147;MuniAssets&#148;)
      (each a &#147;Fund&#148; and, collectively, the &#147;Funds&#148;), to be
      voted at the 2003 Annual Meeting of Stockholders of each Fund (each, a &#147;Meeting&#148;
      and, collectively, the &#147;Meetings&#148;), to be held at the offices
      of Fund Asset Management, L.P. (&#147;FAM&#148;), 800 Scudders Mill Road,
      Plainsboro, New Jersey 08536, on Monday, August 25, 2003, at 10:30 a.m.
      for the stockholders of Corporate High Yield, 10:45 a.m. for the stockholders
      of Corporate High Yield III and 11:00 a.m. for the stockholders of MuniAssets.
      The approximate mailing date of this Combined Proxy Statement is July 21,
      2003.</font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All properly
executed proxies received prior to the Meetings will be voted  at the applicable 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 Director nominees of each Fund.  Any proxy may be revoked at any time prior to the
exercise thereof by giving  written notice to the Secretary of the applicable Fund at
that Fund&#146;s address  indicated above or by voting in person at the Meeting.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of each Fund has fixed the close of business on  June 26, 2003 as the record
date (the &#147;Record Date&#148;) for the determination of  stockholders entitled to
notice of and to vote at the applicable Meeting and at  any adjournment thereof.
Stockholders on the Record Date will be entitled to one  vote for each share held, with
no shares having cumulative voting rights. As of  the Record Date, Corporate High Yield
had outstanding 34,058,869 shares of  common stock, Corporate High Yield III had
outstanding 36,893,461 shares of  common stock and MuniAssets had outstanding 20,399,713
shares of common stock  (collectively, &#147;Common Stock&#148;). To the knowledge of
each Fund, as of the Record  Date, no person is the beneficial owner of five percent or
more of that Fund&#146;s  outstanding Common Stock.</font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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



<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of each Fund knows of no business other than the  election of Directors that
will be presented for consideration at its Meeting.  If any other matter is properly
presented, it is the intention of the persons  named in the enclosed proxy to vote in
accordance with their best judgment.</font></td></tr></table>


<p><table width=600><tr><td  align=center><font size=2><B>ITEM 1. ELECTION OF DIRECTORS</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Meetings of
Corporate High Yield and Corporate High Yield III (information for MuniAssets is provided
in the following  paragraph), the Directors will be elected to serve until the next
Annual Meeting of Stockholders for such Fund and until their  successors are elected and
qualified. The Director nominees are James H. Bodurtha, Terry K. Glenn, Joe Grills,
Herbert I. London,  Andre F. Perold, Roberta Cooper Ramo, Robert S. Salomon, Jr. and
Stephen B. Swensrud.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of MuniAssets, pursuant to the Fund&#146;s By-Laws, is  divided into three classes
designated Class I, Class II and Class III, with each  class having a term of three
years. The Class I Directors serving until 2004 are  Messrs. Bodurtha, Grills and
Salomon, and the Class II Directors serving until  2005 are Messrs. Glenn, London and
Perold. The Class III Director nominees for  MuniAssets are Roberta Cooper Ramo and
Stephen B. Swensrud to be elected to  serve until 2006. The Director nominees will be
elected to serve until the  expiration of the term of each nominee&#146;s designated class and
until their  successors are elected and qualified or until their earlier resignation or
removal.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is intended
that all properly executed proxies will be voted (unless  such authority has been
withheld in the proxy or revoked as described herein) as  set forth below:</font></td></tr></table>


<p><table width=600><tr><td><font size=2><B>For Corporate High Yield and Corporate High
Yield III:</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All properly
executed proxies will be voted &#147;FOR&#148; the eight (8) Director  nominees listed
above.</font></td></tr></table>


<p><table width=600><tr><td><font size=2><B>For MuniAssets:</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All properly
executed proxies will be voted &#147;FOR&#148; the two (2) Class III  Director nominees,
Roberta Cooper Ramo and Stephen B. Swensrud, to serve until  the 2006 Annual Meeting of
Stockholders.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of each Fund knows of no reason why the 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 that  Fund&#146;s Board of Directors may recommend.</font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
2</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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



<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
biographical and other information relating to the nominee who is  an &#147;interested
person,&#148; as defined in the Investment Company Act of 1940, as  amended (the
&#147;Investment Company Act&#148;), of the Funds is set forth below:</font></td></tr></table>

















<br>
<table border=0 cellspacing=0 cellpadding=0 width="644">
  <tr valign="bottom" align="center">
    <td width="103"><font size="1"><b>Name, Address(1) <br>
      and Age of Nominee </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td width="13">&nbsp;&nbsp;&nbsp;</td>
    <td width="75"><font size="1"><b>Position(s) <br>
      Held with Each <br>
      Fund and Length <br>
      of Time Served </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td width="12">&nbsp;&nbsp;&nbsp;</td>
    <td width="257"><font size="1"><b>Principal Occupation(s) <br>
      During Past Five Years </b></font>
      <hr noshade size="1" width="50%">
    </td>
    <td width="12">&nbsp;&nbsp;&nbsp;</td>
    <td width="91"><font size="1"><b>Number of <br>
      MLIM/FAM- <br>
      Advised Funds(5) <br>
      and Portfolios <br>
      Overseen </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td width="12">&nbsp;&nbsp;&nbsp;</td>
    <td width="69"><font size="1"><b>Public <br>
      Directorships </b></font>
      <hr noshade size="1" width="100%">
    </td>
  </tr>
  <tr valign="top">
    <td width="103">
      <p><font size="1">Terry K. Glenn (62)(2)</font></p>
    </td>
    <td width="13">
      <p>&nbsp;</p>
    </td>
    <td width="75">
      <p><font size="1">President(3) and Director(4) of each Fund since 1999</font></p>
    </td>
    <td width="12">
      <p>&nbsp;</p>
    </td>
    <td width="257">
      <p><font size="1">President and Chairman of the MLIM/FAM-advised funds since
        1999; Chairman of MLIM (Americas Region) from 2000 to 2002; Executive
        Vice President of MLIM and FAM (which terms as used herein include their
        corporate predecessors) from 1983 to 2000; President of FAM Distributors,
        Inc. (&#147;FAMD&#148; or the &#147;Distributor&#148; ) from 1986 to 2002
        and Director thereof from 1991 to 2002; Executive Vice President and Director
        of Princeton Services, Inc. (&#147;Princeton Services&#148;) from 1993
        to 2002; President of Princeton Administrators, L.P. from 1988 to 2002;
        Director of Financial Data Services, Inc. from 1985 to 2002.</font></p>
    </td>
    <td width="12">
      <p>&nbsp;</p>
    </td>
    <td width="91">
      <p><font size="1">115 registered investment companies consisting of<br>
        160 portfolios</font></p>
    </td>
    <td width="12">
      <p>&nbsp;</p>
    </td>
    <td width="69">
      <p><font size="1">None</font></p>
    </td>
  </tr>
</table>
<table width=600>
  <tr>
    <td>
      <hr size=1 noshade align=left  width=75>
    </td>
  </tr>
</table>
<table width=600><tr><td width=4% valign=top><font size="1">(1) </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">The
address of Mr. Glenn is P.O. Box 9011, Princeton, NJ 08543-9011.</font></td></tr></table>

<table width=600><tr><td width=4% valign=top><font size="1">(2) </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">Mr.
Glenn is an &#147;interested person,&#148; as defined in the Investment Company  Act, of
each Fund based on his former positions with FAM, MLIM, FAMD,  Princeton Services and
Princeton Administrators, L.P. and/or his ownership of  securities issued by Merrill
Lynch &amp; Co., Inc. (&#147;ML &amp; Co.&#148;).</font></td></tr></table>

<table width=600><tr><td width=4% valign=top><font size="1">(3) </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">Elected
and serves at the pleasure of the Board of Directors of the Funds.</font></td></tr></table>

<table width=600><tr><td width=4% valign=top><font size="1">(4) </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">As
a Director, Mr. Glenn serves until his successor is elected and qualified,  or until his
death, resignation or removal as provided in the applicable  Fund&#146;s by-laws or charter or
by statute, or until December 31 of the year in  which he turns 72.</font></td></tr></table>


<table width=600><tr><td width=4% valign=top><font size="1">(5) </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">The
complex of funds advised by FAM and its affiliate, Merrill Lynch  Investment Managers,
L.P. (&#147;MLIM&#148;) (&#147;MLIM/FAM-Advised Funds&#148;).</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
biographical and other information relating to the nominees who  are not &#147;interested
persons,&#148; as defined in the Investment Company Act, of the  Funds is set forth below:</font></td></tr></table>





<br>
<table border=0 cellspacing=0 cellpadding=0 width="645">
  <tr align="center" valign="bottom">
    <td rowspan="2" width="67"><font size="1"><b>Name, Address* and Age of Nominee**
      </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td colspan="5"><font size="1"><b>Position(s) Held with Each Fund <br>
      and Length of Time Served&#134; </b></font>
      <hr noshade size="1" width="95%">
    </td>
    <td rowspan="2" width="9">&nbsp;</td>
    <td rowspan="2" width="238"><font size="1"><b>Principal Occupation(s) <br>
      During Past Five Years </b></font>
      <hr noshade size="1" width="45%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td rowspan="2" width="84"><font size="1"><b>Number of <br>
      MLIM/FAM- <br>
      Advised Funds <br>
      and Portfolios <br>
      Overseen </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td rowspan="2" width="64"><font size="1"><b>Public <br>
      Directorships </b></font>
      <hr noshade size="1" width="90%">
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td align="center" valign="bottom" width="48"><font size="1"><b>Corporate
      <br>
      High Yield </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td align="center" valign="bottom" width="8">&nbsp;&nbsp;</td>
    <td align="center" valign="bottom" width="49"><font size="1"><b>Corporate
      <br>
      High <br>
      Yield III </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td align="center" valign="bottom" width="5">&nbsp;</td>
    <td align="center" valign="bottom" width="49"><font size="1"><b>MuniAssets
      </b></font>
      <hr noshade size="1" width="90%">
      </td>
  </tr>
  <tr>
    <td valign=top width="67">
      <p><font size="1">James H. Bodurtha (59)</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="48">
      <p><font size="1">Director since 2002</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="49">
      <p><font size="1">Director<br>
        since 2002</font></p>
    </td>
    <td valign=top width="5">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="49">
      <p><font size="1">Director <br>
        since 2002</font></p>
    </td>
    <td valign=top width="9">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="238">
      <p><font size="1">Director and Executive Vice President, The China Business
        Group, Inc. since 1996; Chairman and Chief Executive Officer, China Enterprise
        Management Corporation from 1993 to 1996; Chairman, Berkshire Holdings
        Corporation since 1980; Partner, Squire, Sanders &amp; Dempsey from 1980
        to 1993.</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="84">
      <p><font size="1">40 registered investment companies consisting of 59 portfolios</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="64">
      <p><font size="1">None</font></p>
    </td>
  </tr>
</table>
<br>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><font size="1"><i><font size="1">(footnotes on page 6)</font></i></font></td>
  </tr>
</table>
<br>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
3</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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






<br>
<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr align="center" valign="bottom">
    <td rowspan="2" width="67"><font size="1"><b>Name, Address* and Age of Nominee**
      </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td colspan="5"><font size="1"><b>Position(s) Held with Each Fund <br>
      and Length of Time Served&#134; </b></font>
      <hr noshade size="1" width="95%">
    </td>
    <td rowspan="2" width="9">&nbsp;</td>
    <td rowspan="2" width="238"><font size="1"><b>Principal Occupation(s) <br>
      During Past Five Years </b></font>
      <hr noshade size="1" width="45%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td rowspan="2" width="84"><font size="1"><b>Number of <br>
      MLIM/FAM- <br>
      Advised Funds <br>
      and Portfolios <br>
      Overseen </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td rowspan="2" width="64"><font size="1"><b>Public <br>
      Directorships </b></font>
      <hr noshade size="1" width="90%">
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td align="center" valign="bottom" width="48"><font size="1"><b>Corporate
      <br>
      High Yield </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td align="center" valign="bottom" width="8">&nbsp;&nbsp;</td>
    <td align="center" valign="bottom" width="49"><font size="1"><b>Corporate
      <br>
      High <br>
      Yield III </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td align="center" valign="bottom" width="5">&nbsp;</td>
    <td align="center" valign="bottom" width="49"><font size="1"><b>MuniAssets
      </b></font>
      <hr noshade size="1" width="90%">
    </td>
  </tr>
  <tr>
    <td valign=top width="80">
      <p><font size="1">Joe Grills (68)</font></p>
    </td>
    <td valign=top width="10">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="42">
      <p><font size="1">Director since 1994</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="45">
      <p><font size="1">Director<br>
        since 1998</font></p>
    </td>
    <td valign=top width="9">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="51">
      <p><font size="1">Director since 1994</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="240">
      <p><font size="1">Member of the Committee of Investment of Employee Benefit
        Assets of the Association of Financial Professionals (&#147;CIEBA&#148;)
        since 1986; Member of CIEBA&#146;s Executive Committee since 1988 and
        its Chairman from 1991 to 1992; Assistant Treasurer of International Business
        Machines Corporation (&#147;IBM&#148;) and Chief Investment Officer of
        IBM Retirement Funds from 1986 to 1993; Member of the Investment Advisory
        Committee of the State of New York Common Retirement Fund since 1989;
        Member of the Investment Advisory Committee of the Howard Hughes Medical
        Institute from 1997 to 2000; Director, Duke Management Company since 1992
        and Vice Chairman thereof since 1998; Director, LaSalle Street Fund from
        1995 to 2001; Director, Kimco Realty Corporation since 1997; Member of
        the Investment Advisory Committee of the Virginia Retirement System since
        1998 and Vice Chairman thereof since 2002; Director, Montpelier Foundation
        since 1998 and its Vice Chairman since 2000; Member of the Investment
        Committee of the Woodberry Forest School since 2000; Member of the Investment
        Committee of the National Trust for Historic Preservation since 2000.</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="57">
      <p><font size="1">40 registered investment companies consisting of 59 portfolios</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="76">
      <p><font size="1">Kimco Realty Corporation</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width="80">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="10">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="42">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="45">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="9">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="51">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="240">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="57">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="76">
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td valign=top width="80">
      <p><font size="1">Herbert I. London (64)</font></p>
    </td>
    <td valign=top width="10">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="42">
      <p><font size="1">Director since 2002</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="45">
      <p><font size="1">Director since 2002</font></p>
    </td>
    <td valign=top width="9">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="51">
      <p><font size="1">Director since 2002</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="240">
      <p><font size="1">John M. Olin Professor of Humanities, New York University
        since 1993 and Professor thereof since 1980; President, Hudson Institute
        since 1997 and Trustee thereof since 1980; Dean, Gallatin Division of
        New York University from 1976 to 1993; Distinguished Fellow, Herman Kahn
        Chair, Hudson Institute from 1984 to 1985; Director, Damon Corp. from
        1991 to 1995; Overseer, Center for Naval Analyses from 1983 to 1993; Limited
        Partner, Hypertech LP since 1996.</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="57">
      <p><font size="1">40 registered investment companies consisting of 59 portfolios</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="76">
      <p><font size="1">None</font></p>
    </td>
  </tr>
</table>
<br>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><font size="2"><i><font size="1">(footnotes on page 6)</font></i></font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
4</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 7; page: 7" --> <br>
  <br>
<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr align="center" valign="bottom">
    <td rowspan="2" width="67"><font size="1"><b>Name, Address* and Age of Nominee**
      </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td colspan="5"><font size="1"><b>Position(s) Held with Each Fund <br>
      and Length of Time Served&#134; </b></font>
      <hr noshade size="1" width="95%">
    </td>
    <td rowspan="2" width="9">&nbsp;</td>
    <td rowspan="2" width="238"><font size="1"><b>Principal Occupation(s) <br>
      During Past Five Years </b></font>
      <hr noshade size="1" width="45%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td rowspan="2" width="84"><font size="1"><b>Number of <br>
      MLIM/FAM- <br>
      Advised Funds <br>
      and Portfolios <br>
      Overseen </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td rowspan="2" width="64"><font size="1"><b>Public <br>
      Directorships </b></font>
      <hr noshade size="1" width="90%">
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td align="center" valign="bottom" width="48"><font size="1"><b>Corporate
      <br>
      High Yield </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td align="center" valign="bottom" width="8">&nbsp;&nbsp;</td>
    <td align="center" valign="bottom" width="49"><font size="1"><b>Corporate
      <br>
      High <br>
      Yield III </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td align="center" valign="bottom" width="5">&nbsp;</td>
    <td align="center" valign="bottom" width="49"><font size="1"><b>MuniAssets
      </b></font>
      <hr noshade size="1" width="90%">
    </td>
  </tr>
  <tr>
    <td valign=top width="80">
      <p><font size="1">Andr&eacute; F. Perold (51)</font></p>
    </td>
    <td valign=top width="10">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="42">
      <p><font size="1">Director since 2002</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="45">
      <p><font size="1">Director since 2002</font></p>
    </td>
    <td valign=top width="9">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="51">
      <p><font size="1">Director since 2002</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="240">
      <p><font size="1">Harvard Business School: George Gund Professor of Finance
        and Banking since 2000; Senior Associate Dean, Director of Faculty Recruiting
        since 2001; Finance Area Chair from 1996 to 2001; Sylvan C. Coleman Professor
        of Financial Management from 1993 to 2000; Director, Genbel Securities
        Limited and Gensec Bank since 1999; Director, Stockback, Inc. since 2000;
        Director, Sanlam Limited since 2001; Trustee, Commonfund from 1989 to
        2001; Director, Sanlam Investment Management from 1999 to 2001; Director,
        Bulldogresearch.com from 2000 to 2001; Director, Quantec Limited from
        1991 to 1999; Director and Chairman of the Board of UNX, Inc. since 2003.</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="57">
      <p><font size="1">40 registered investment companies consisting of 59 portfolios</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="76">
      <p><font size="1">None</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width="80">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="10">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="42">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="45">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="9">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="51">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="240">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="57">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="76">
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td valign=top width="80">
      <p><font size="1">Roberta Cooper Ramo (60)</font></p>
    </td>
    <td valign=top width="10">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="42">
      <p><font size="1">Director since 2002</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="45">
      <p><font size="1">Director since 2002</font></p>
    </td>
    <td valign=top width="9">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="51">
      <p><font size="1">Director since 2002</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="240">
      <p><font size="1">Shareholder, Modrall, Sperling, Roehl, Harris &amp; Sisk,
        P.A. since 1993; President, American Bar Association from 1995 to 1996
        and Member of the Board of Governors thereof from 1994 to 1997; Partner,
        Poole, Kelly &amp; Ramo, Attorneys at Law, P.C. from 1977 to 1993; Director,
        Coopers, Inc. since 1999; Director of ECMC Group (service provider to
        students, schools and lenders) since 2001; Director, United New Mexico
        Bank (now Wells Fargo) from 1983 to 1988; Director, First National Bank
        of New Mexico (now Wells Fargo) from 1975 to 1976.</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="57">
      <p><font size="1">40 registered investment companies consisting of 59 portfolios</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="76">
      <p><font size="1">None</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width="80">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="10">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="42">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="45">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="9">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="51">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="240">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="57">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="76">
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td valign=top width="80">
      <p><font size="1">Robert S. Salomon, Jr. (66)</font></p>
    </td>
    <td valign=top width="10">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="42">
      <p><font size="1">Director since 1996</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="45">
      <p><font size="1">Director since 1998</font></p>
    </td>
    <td valign=top width="9">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="51">
      <p><font size="1">Director since 1996</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="240">
      <p><font size="1">Principal of STI Management (investment adviser) since
        1994; Chairman and CEO of Salomon Brothers Asset Management from 1992
        to 1995; Chairman of Salomon Brothers equity mutual funds from 1992 to
        1995; regular columnist with Forbes magazine from 1992 to 2001; Director
        of Stock Research and U.S. Equity Strategist at Salomon Brothers Inc.
        from 1975 to 1991; Trustee, Commonfund from 1980 to 2001.</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="57">
      <p><font size="1">40 registered investment companies consisting of 59 portfolios</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="76">
      <p><font size="1">None</font></p>
    </td>
  </tr>
</table>
<br>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr align="right">
    <td><font size="2"><i><font size="1">(footnotes on page 6)</font></i></font></td>
  </tr>
</table>
<br>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
5</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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





<br>
<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr align="center" valign="bottom">
    <td rowspan="2" width="67"><font size="1"><b>Name, Address* and Age of Nominee**
      </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td colspan="5"><font size="1"><b>Position(s) Held with Each Fund <br>
      and Length of Time Served&#134; </b></font>
      <hr noshade size="1" width="95%">
    </td>
    <td rowspan="2" width="9">&nbsp;</td>
    <td rowspan="2" width="238"><font size="1"><b>Principal Occupation(s) <br>
      During Past Five Years </b></font>
      <hr noshade size="1" width="45%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td rowspan="2" width="84"><font size="1"><b>Number of <br>
      MLIM/FAM- <br>
      Advised Funds <br>
      and Portfolios <br>
      Overseen </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td rowspan="2" width="8">&nbsp;&nbsp;</td>
    <td rowspan="2" width="64"><font size="1"><b>Public <br>
      Directorships </b></font>
      <hr noshade size="1" width="90%">
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td align="center" valign="bottom" width="48"><font size="1"><b>Corporate
      <br>
      High Yield </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td align="center" valign="bottom" width="8">&nbsp;&nbsp;</td>
    <td align="center" valign="bottom" width="49"><font size="1"><b>Corporate
      <br>
      High <br>
      Yield III </b></font>
      <hr noshade size="1" width="90%">
    </td>
    <td align="center" valign="bottom" width="5">&nbsp;</td>
    <td align="center" valign="bottom" width="49"><font size="1"><b>MuniAssets
      </b></font>
      <hr noshade size="1" width="90%">
    </td>
  </tr>
  <tr>
    <td valign=top width="80">
      <p><font size="1">Stephen B. Swensrud (70)</font></p>
    </td>
    <td valign=top width="10">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="42">
      <p><font size="1">Director since 1993</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="45">
      <p><font size="1">Director since 1998</font></p>
    </td>
    <td valign=top width="9">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="51">
      <p><font size="1">Director since 1993</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="240">
      <p><font size="1">Chairman of Fernwood Advisors (investment adviser) since
        1996; Principal of Fernwood Associates (financial consultant) since 1975;
        Chairman of RPP Corporation (manufacturing) since 1978; Director, International
        Mobile Communications, Inc. (telecommunications) since 1998.</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="57">
      <p><font size="1">41 registered investment companies consisting of 60 portfolios</font></p>
    </td>
    <td valign=top width="8">
      <p>&nbsp;</p>
    </td>
    <td valign=top width="76">
      <p><font size="1">None</font></p>
    </td>
  </tr>
</table>
<table width=600>
  <tr>
    <td>
      <hr size=1 noshade align=left  width=75>
    </td>
  </tr>
</table>
<table width=600><tr><td width=4% align=right valign=top><font size="1">* </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">The
address of each non-interested Director is P.O. Box 9095, Princeton, NJ  08543-9095.</font></td></tr></table>

<table width=600><tr><td width=4% align=right valign=top><font size="1">** </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">Each
of the Director nominees is a member of the Audit Committee of each  Fund.</font></td></tr></table>

<table width=600><tr><td width=4% align=right valign=top><font size="1">&#134; </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">Each
Director serves until his or her successor is elected and qualified, or  until his or her
death or resignation, or removal as provided in the Funds&#146;  respective by-laws or charter
or by statute, or until December 31 of the year  in which he or she turns 72.</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>Audit Committee Report</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of each Fund has a standing Audit Committee (each,  a &#147;Committee&#148;),
which consists of the Directors who are not &#147;interested persons&#148;  of the Fund
within the meaning of the Investment Company Act and who are  &#147;independent&#148; as
defined in the listing standards of the New York Stock Exchange  (the
&#147;non-interested Directors&#148;). Currently, Ms. Ramo and Messrs. Bodurtha,  Grills,
London, Perold, Salomon and Swensrud are non-interested Directors with  respect to each
Fund and members of each Committee. The principal  responsibilities of each Committee are
the appointment, compensation and  oversight of the Fund&#146;s independent accountants,
including the resolution of  disagreements regarding financial reporting between Fund
management and such  independent accountants.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund has
adopted a written Charter for the Committee, which is  attached as Exhibit A to this
Combined Proxy Statement. Each Fund&#146;s Committee  also has (a) received written
disclosures and the letter required by  Independence Standards Board Standard No. 1, as
may be modified or supplemented,  from Deloitte &amp; Touche LLP (&#147;D&amp;T&#148;),
independent accountants for each Fund, and  (b) discussed with D&amp;T certain matters
required to be discussed by Statements on  Auditing Standards No. 61. Each Committee has
considered whether the provision  of non-audit services by the Fund&#146;s independent
accountants is compatible with  maintaining the independence of those accountants.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committees also review
      and discuss the audit of each Fund&#146;s financial statements with Fund
      management and the independent accountants. Had any material concerns arisen
      during the course of the audit and the preparation of the audited financial
      statements mailed to stockholders and included in each Fund&#146;s Annual
      Report, the Committee would have been notified by Fund management or the
      independent accountants. The Committees received no such notifications for
      any of the Funds. Following each Committee&#146;s review and discussion
      regarding the audit of the Fund&#146;s financial statements with management
      and the independent accountants, each Committee recommended to the Board
      of Directors that the Fund&#146;s audited financial statements for the fiscal
      year ended May 31, 2003 be included in such Fund&#146;s Annual Report to
      Stockholders.</font></td>
  </tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
6</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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



<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the
above, each Fund&#146;s Committee also reviews and nominates  candidates to serve as
non-interested Directors. The Committees generally will  not consider nominees
recommended by stockholders of a Fund. The non-interested  Directors have retained
independent legal counsel to assist them in connection  with these duties.</font></td></tr></table>


<p><table width=600><tr><td><font size=2><B>Committee and Board of Directors Meetings</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During each Fund&#146;s
fiscal year ended May 31, 2003, each Board of Directors  held 8 meetings and each
Committee held 4 meetings. Each of the Directors then  in office attended at least 75% of
the aggregate of the total number of meetings  of the Board of Directors held during the
fiscal year and, if a member, the  total number of meetings of the Committee held during
such period.</font></td></tr></table>


<p><table width=600><tr><td><font size=2><B>Compliance with Section 16(a) of the
Securities Exchange Act of 1934</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 16(a) of
the Securities Exchange Act of 1934, as amended (the  &#147;Exchange Act&#148;), requires
the officers and Directors of each Fund and persons  who own more than ten percent of a
registered class of the Fund&#146;s equity  securities to file reports of ownership and
changes in ownership on Forms 3, 4  and 5 with the Securities and Exchange Commission
(&#147;SEC&#148;) and the New York Stock  Exchange (&#147;NYSE&#148;). Officers,
Directors and greater than ten percent stockholders  of each Fund are required by SEC
regulations to furnish the Fund with copies of  all Forms 3, 4 and 5 they file.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based solely on each Fund&#146;s
      review of the copies of such forms, and amendments thereto, furnished to
      it during or with respect to its most recent fiscal year, and written representations
      from certain reporting persons that they were not required to file Form
      5 with respect to the most recent fiscal year, each Fund believes that all
      of its officers, Directors, greater than ten percent beneficial owners and
      other persons subject to Section 16 of the Exchange Act due to the requirements
      of Section 30 of the Investment Company Act (i.e., any advisory board member,
      investment adviser or affiliated person of the Fund&#146;s investment adviser)
      have complied with all filing requirements applicable to them with respect
      to transactions during the Fund&#146;s most recent fiscal year, except that
      (i) FAM inadvertently made late Form 4 filings with respect to each of the
      Funds; (ii) William Bentley, Lawrence Haber, Jerry Miller, Frank Salerno,
      and Charles Winters, officers of the Funds&#146; investment advisor or its
      affiliate, inadvertently made late Form 3 filings; and (iii) James H. Bodurtha
      inadvertently made a late Form 5 filing with respect to Corporate High Yield.</font></td>
  </tr></table>


<p><table width=600><tr><td><font size=2><B>Interested Persons</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund
considers Mr. Glenn to be an &#147;interested person&#148; of that Fund within the
meaning of Section 2(a)(19) of the Investment  Company Act based on his former positions
with FAM and its affiliates and/or due to his ownership of securities issued by ML &amp; Co.
Mr. Glenn is the President of each Fund.</font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
7</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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





<p><table width=600><tr><td><font size=2><B>Compensation of Directors</B></font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAM, the investment adviser
      of each Fund, pays all compensation to all officers and Directors of each
      Fund who are affiliated with ML &amp; Co. or its subsidiaries. Each non-interested
      Director receives an annual retainer of $132,000 for his or her services
      to MLIM/FAM-Advised Funds, including the Funds. The portion of the annual
      retainer allocated to each MLIM/FAM-Advised Fund is determined quarterly
      based on the relative net assets of each such fund. In addition, each non-interested
      Director receives a fee per in-person Board meeting attended and per in-person
      Committee meeting attended. The annual per meeting fees paid to each non-interested
      Director aggregate $100,000 for all MLIM/FAM-Advised Funds for which that
      Director serves and are allocated equally among those funds. The Co-Chairmen
      of the Audit Committee, each receives an additional annual retainer in the
      amount of $20,000, which is paid quarterly and allocated to each MLIM/FAM-Advised
      Fund for which they provide services based on the relative net assets of
      each such fund. Information with respect to fees and expenses paid to the
      non-interested Directors for each Fund&#146;s most recently completed fiscal
      year is set forth in the following table:</font></td>
  </tr></table>


<br>
<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr valign="bottom">
    <td><b></b></td>
    <td><b></b></td>
    <td align="center" colspan="5"><b><font size="1">Board </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center"><b></b></td>
    <td align="center" colspan="5"><b><font size="1">Audit Committee </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b></b></td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><b><font size="1">Fund</font></b>
      <hr noshade align="left" size="1" width="20%">
    </td>
    <td>
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><b><font size="1"># Meetings <br>
        Held* </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><b><font size="1">Annual <br>
        Fee ($) </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><b><font size="1">Per Meeting <br>
        Fee ($)** </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><b><font size="1"># Meetings <br>
        Held* </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><b><font size="1">Annual <br>
        Fee ($) </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><b><font size="1">Per Meeting <br>
        Fee ($)** </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><b><font size="1">Aggregate <br>
        Fees and <br>
        Expenses ($) </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Corporate High Yield </font>
    </td>
    <td>
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">8</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$1,608</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$215.52</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">4</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font face="Times" size="2">$1,608</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font face="Times" size="2">$215.52</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font face="Times" size="2">$46,223</font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Corporate High Yield III</font></p>
    </td>
    <td>
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">8</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$2,082</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$215.52</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">4</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font face="Times" size="2">$2,082</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font face="Times" size="2">$215.52</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font face="Times" size="2">$54,683</font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">MuniAssets</font></p>
    </td>
    <td>
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">8</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$1,457</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$215.52</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">4</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font face="Times" size="2">$1,457</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font face="Times" size="2">$215.52</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font face="Times" size="2">$36,676</font></p>
    </td>
  </tr>
</table>
<table width=600><tr><td><hr size=1 noshade align=left  width=75></td></tr></table>
<table width=600><tr><td width=4% align=right valign=top><font size="1">* </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">Includes
meetings held via teleconferencing equipment.</font></td></tr></table>

<table width=600><tr><td width=4% align=right valign=top><font size="1">** </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">The
fee is payable for each meeting attended in person. A fee is not paid for  telephonic
meetings.</font></td></tr></table>


<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
8</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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



<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
tables set forth for the fiscal year ended May 31, 2003  compensation paid by each Fund
to its non-interested Directors and, for the  calendar year ended December 31, 2002, the
aggregate compensation paid by  MLIM/FAM-Advised Funds to each non-interested Director.</font></td></tr></table>


<p><table width=600><tr><td><font size=2><B>Corporate High Yield:</B></font></td></tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="600">
  <tr valign="bottom">
    <td><b><font size="1">Name of Director </font></b>
      <hr noshade align="left" size="1" width="55%">
    </td>
    <td align="center"><b><font size="1">Position <br>
      with Fund </font></b>
      <hr noshade align="center" size="1" width="80%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Compensation <br>
      from Fund </font></b>
      <hr noshade align="center" size="1" width="90%">
      <b><font size="1"> </font></b></td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Pension or <br>
      Retirement Benefits <br>
      Accrued as Part of <br>
      Fund Expense </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Estimated <br>
      Annual <br>
      Benefits upon <br>
      Retirement </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Aggregate <br>
      Compensation <br>
      from Fund and <br>
      Other MLIM/FAM- <br>
      Advised Funds </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">James H. Bodurtha* </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$2,797 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Joe Grills* </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$5,658 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$266,097 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Herbert I. London </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$2,797 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Andr&#233; F. Perold </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$2,797 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Roberta Cooper Ramo </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$2,797 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Robert S. Salomon, Jr. </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$5,658 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$255,647 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Stephen B. Swensrud </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$5,658 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$315,564 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Melvin R. Seiden** </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director</font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$5,108 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$255,647 </font></p>
    </td>
  </tr>
</table>
<table width=600><tr><td><hr size=1 noshade align=left  width=75></td></tr></table>
<table width=600><tr><td width=4% align=right valign=top><font size="1">* </font></td><td width=2%><font size="1"></font></td>
    <td width=94%><font size="1"> Co-Chairman of the Fund&#146;s Audit Committee.</font></td>
  </tr></table>

<table width=600><tr><td width=4% align=right valign=top><font size="1">** </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">Retired
effective 1/1/03.</font></td></tr></table>


<p><table width=600><tr><td><font size=2><B>Corporate High Yield III:</B></font></td></tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="600">
  <tr valign="bottom">
    <td><b><font size="1">Name of Director </font></b>
      <hr noshade align="left" size="1" width="55%">
    </td>
    <td align="center"><b><font size="1">Position <br>
      with Fund </font></b>
      <hr noshade align="center" size="1" width="80%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Compensation <br>
      from Fund </font></b>
      <hr noshade align="center" size="1" width="90%">
      <b><font size="1"> </font></b></td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Pension or <br>
      Retirement Benefits <br>
      Accrued as Part of <br>
      Fund Expense </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Estimated <br>
      Annual <br>
      Benefits upon <br>
      Retirement </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Aggregate <br>
      Compensation <br>
      from Fund and <br>
      Other MLIM/FAM- <br>
      Advised Funds </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">James H. Bodurtha* </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$4,345 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Joe Grills* </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$6,805 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$266,097 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Herbert I. London </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$4,345 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Andr&#233; F. Perold </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$4,345 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Roberta Cooper Ramo </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$4,345 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Robert S. Salomon, Jr. </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$6,805 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$255,647 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Stephen B. Swensrud </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$6,805 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$315,564 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Melvin R. Seiden** </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$6,285 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$255,647 </font></p>
    </td>
  </tr>
</table>
<table width=600><tr><td><hr size=1 noshade align=left  width=75></td></tr></table>
<table width=600><tr><td width=4% align=right valign=top><font size="1">* </font></td><td width=2%><font size="1"></font></td>
    <td width=94%><font size="1">Co-Chairman of the Fund&#146;s Audit Committee.</font></td>
  </tr></table>

<table width=600><tr><td width=4% align=right valign=top><font size="1">** </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">Retired
effective 1/1/03.</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>MuniAssets:</B></font></td></tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="600">
  <tr valign="bottom">
    <td><b><font size="1">Name of Director </font></b>
      <hr noshade align="left" size="1" width="55%">
    </td>
    <td align="center"><b><font size="1">Position <br>
      with Fund </font></b>
      <hr noshade align="center" size="1" width="80%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Compensation <br>
      from Fund </font></b>
      <hr noshade align="center" size="1" width="90%">
      <b><font size="1"> </font></b></td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Pension or <br>
      Retirement Benefits <br>
      Accrued as Part of <br>
      Fund Expense </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Estimated <br>
      Annual <br>
      Benefits upon <br>
      Retirement </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Aggregate <br>
      Compensation <br>
      from Fund and <br>
      Other MLIM/FAM- <br>
      Advised Funds </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">James H. Bodurtha* </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$3,315 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Joe Grills* </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$4,955 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$266,097 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Herbert I. London </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$3,315 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Andr&#233; F. Perold </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$3,315 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Roberta Cooper Ramo </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$3,315 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$276,150 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Robert S. Salomon, Jr. </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$4,955 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$255,647 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Stephen B. Swensrud </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$4,955 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$315,564 </font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <p><font size="2">Melvin R. Seiden** </font></p>
    </td>
    <td align="center">
      <p><font size="2">Director </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$4,190 </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">None </font></p>
    </td>
    <td align="center">
      <p>&nbsp;</p>
    </td>
    <td align="center">
      <p><font size="2">$255,647 </font></p>
    </td>
  </tr>
</table>
<table width=600><tr><td><hr size=1 noshade align=left  width=75></td></tr></table>
<table width=600><tr><td width=4% align=right valign=top><font size="1">* </font></td><td width=2%><font size="1"></font></td>
    <td width=94%><font size="1">Co-Chairman of the Fund&#146;s Audit Committee.</font></td>
  </tr></table>

<table width=600><tr><td width=4% align=right valign=top><font size="1">** </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">Retired
effective 1/1/03.</font></td></tr></table>


<p>
<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 9</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 11; page: 11" -->
<p><table width=600><tr><td><font size=2><B>Officers of the Funds</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund&#146;s Board
of Directors has elected several officers. The following  sets forth information
concerning each of these officers:</font></td></tr></table>






<br>
<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr valign="bottom">
    <td width=105><b></b></td>
    <td width=10><b></b></td>
    <td colspan="5" align="center"><b><font size="1">Position(s) Held and <br>
      Length of Time Served** </font></b>
      <hr noshade size="1" align="center" width="95%">
    </td>
    <td align="center" width=15><b></b></td>
    <td align="center" width=291><b></b></td>
  </tr>
  <tr valign="bottom">
    <td width=105><b><font size="1">Name, Address* and <br>
      Age of Nominee** </font></b>
      <hr noshade size="1" align="left" width="85%">
    </td>
    <td width=10><b>&nbsp;&nbsp;</b></td>
    <td align="center" width=68><b><font size="1">Corporate <br>
      High Yield </font></b>
      <hr noshade size="1" align="center" width="95%">
    </td>
    <td align="center" width=15><b>&nbsp;&nbsp;</b></td>
    <td align="center" width=62><b><font size="1">Corporate <br>
      High <br>
      Yield III </font></b>
      <hr noshade size="1" align="center" width="95%">
    </td>
    <td align="center" width=16><b>&nbsp;&nbsp;</b></td>
    <td align="center" width=59><b><font size="1">MuniAssets </font></b>
      <hr noshade size="1" align="center" width="95%">
    </td>
    <td align="center" width=15><b>&nbsp;&nbsp;</b></td>
    <td align="center" width=291><b><font size="1">Principal Occupation(s) <br>
      During Past Five Years </font></b>
      <hr noshade size="1" align="center" width="38%">
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p><font size="1">Terry K. Glenn (62) </font></p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p><font size="1">President since 1999&#134; </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p><font size="1">President since 1999&#134; </font></p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p><font size="1">President since 1999&#134; </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p><font size="1">President and Chairman of the MLIM/FAM-advised funds since
        1999; Chairman of MLIM (Americas Region) from 2000 to 2002; Executive
        Vice President of MLIM and FAM from 1983 to 2000; President of FAMD from
        1986 to 2002 and Director thereof from 1991 to 2002; Executive Vice President
        and Director of Princeton Services, from 1993 to 2002; President of Princeton
        Administrators, L.P. from 1988 to 2002; Director of Financial Data Services,
        Inc. from 1985 to 2002. </font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p><font size="1">Kenneth A. Jacob (52) </font></p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p><font size="1">N/A </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p><font size="1">N/A </font></p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p><font size="1">Senior Vice President since 1993 </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p><font size="1">First Vice President of MLIM since 1997; Vice President
        of MLIM from 1984 to 1997; Vice President of FAM since 1984. </font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p><font size="1">Elizabeth M. Phillips (53) </font></p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p><font size="1">Vice President since 1993 </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p><font size="1">Vice President since 1998 </font></p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p><font size="1">N/A </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p><font size="1">Director of MLIM since 2000; Vice President of MLIM from
        1990 to 2000. </font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p><font size="1">Donald C. Burke (42) </font></p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p><font size="1">Vice President since 1993 and Treasurer since 1999 </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p><font size="1">Vice President since 1998 and Treasurer since 1999 </font></p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p><font size="1">Vice President since 1993 and Treasurer since 1999 </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p><font size="1">First Vice President of FAM and MLIM since 1997 and the
        Treasurer thereof since 1999; Senior Vice President and Treasurer of Princeton
        Services since 1999; Vice President of FAMD since 1999; Vice President
        of FAM and MLIM from 1990 to 1997; Director of Taxation of MLIM since
        1990. </font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p><font size="1">Theodore R. Jaeckel, Jr. (43) </font></p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p><font size="1">N/A </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p><font size="1">N/A </font></p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p><font size="1">Vice President since 1997 </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p><font size="1">Director (Tax-Exempt Fund Management) of FAM and MLIM
        since 1997 and Vice President thereof from 1991 to 1997. </font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p><font size="1">John M. Loffredo (39) </font></p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p><font size="1">N/A </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p><font size="1">N/A </font></p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p><font size="1">Senior Vice President since 2003 </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p><font size="1">Managing Director of MLIM since 2000; First Vice President
        of MLIM from 1997 to 2000; Vice President of MLIM from 1991 to 1997; Portfolio
        Manager of FAM and MLIM since 1997. </font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p><font size="1">B. Daniel Evans (49) </font></p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p><font size="1">Vice President since 2002 </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p><font size="1">Vice President since 2002 </font></p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p><font size="1">N/A </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p><font size="1">Director of MLIM since 2000; Vice President of MLIM from
        1995 to 2000. </font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p><font size="1">Brian D. Stewart (34) </font></p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p><font size="1">N/A </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p><font size="1">N/A </font></p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p><font size="1">Secretary since 2002 </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p><font size="1">Vice President of MLIM since 2002; Attorney associated
        with Reed Smith LLP from 2001 to 2002; Attorney associated with Saul Ewing
        llp from 1999 to 2001. </font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td valign=top width=105>
      <p><font size="1">David W. Clayton (36) </font></p>
    </td>
    <td valign=top width=10>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=68>
      <p><font size="1">Secretary since 2002 </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=62>
      <p><font size="1">Secretary since 2002 </font></p>
    </td>
    <td valign=top width=16>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=59>
      <p><font size="1">N/A </font></p>
    </td>
    <td valign=top width=15>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=291>
      <p><font size="1">Vice President of MLIM since 2000; attorney in private
        practice from 1995 to 2000. </font></p>
    </td>
  </tr>
</table>
<table width=600><tr><td><hr size=1 noshade align=left  width=75></td></tr></table>
<table width=600><tr><td width=4% align=right valign=top><font size="1">* </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">The
address of each officer listed above is P.O. Box 9011, Princeton, New  Jersey 08543-9011. </font></td></tr></table>

<table width=600><tr><td width=4% align=right valign=top><font size="1">** </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">Elected
by and serves at the pleasure of the Board of  Directors of each Fund.</font></td></tr></table>


<table width=600><tr><td width=4% align=right valign=top><font size="1">&#134; </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">Mr.
Glenn was elected President of each Fund in 1999. Prior to that he served  as Executive
Vice President of each Fund.</font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
10</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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



<p><table width=600><tr><td><font size=2><B>Stock Ownership</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
relating to the stock ownership of each nominee and each  Director of the Funds and in
all registered MLIM/FAM-Advised Funds overseen by  such nominee or Director is set forth
below:</font></td></tr></table>




<br>
<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr valign="bottom" align="center">
    <td width=277 rowspan="3"><b></b></td>
    <td width=5 rowspan="3"><b></b></td>
    <td colspan="2">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td width=119 rowspan="3"><b><font size="1">Aggregate Dollar Range <br>
      of Securities in All <br>
      MLIM/FAM-<br>
      Advised Funds <br>
      Overseen by Each <br>
      Director or Nominee in <br>
      the Merrill Lynch <br>
      Family of Funds </font></b>
      <hr noshade align="center" size="1" width="98%">
    </td>
    <td width=4 rowspan="3">&nbsp;</td>
  </tr>
  <tr valign="bottom" align="center">
    <td colspan="6"><b><font size="1">Aggregate Dollar Range of Equity in the
      Funds </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
  </tr>
  <tr valign="bottom" align="center">
    <td colspan="2" align="center" valign="bottom"><b><font size="1">Corporate
      <br>
      High Yield </font></b>
      <hr noshade align="center" size="1" width="90%">
      <b></b></td>
    <td colspan="2" align="center" valign="bottom"><b><font size="1">Corporate
      High <br>
      Yield III </font></b>
      <hr noshade align="center" size="1" width="90%">
      <b></b></td>
    <td colspan="2" align="center" valign="bottom"><b><font size="1">MuniAssets
      </font></b>
      <hr noshade align="center" size="1" width="90%">
    </td>
  </tr>
  <tr>
    <td valign=top width=277>
      <p><font size="2"><i>Interested Director:</i> </font></p>
    </td>
    <td valign=top width=5>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=73>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=9>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=47>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=90>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=119>
      <p>&nbsp;</p>
    </td>
    <td valign=top width=4>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=277>
      <p><font face="Times" size="2">Terry K. Glenn </font></p>
    </td>
    <td valign=top width=5>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=73>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=9>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=47>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=90>
      <p><font face="Times" size="2">Over $100,000 </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=119>
      <p><font face="Times" size="2">Over $100,000 </font></p>
    </td>
    <td valign=top align="right" width=4>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=277>
      <p><font size="2"><i>Non-Interested Directors and Nominees:</i>
        </font></p>
    </td>
    <td valign=top width=5>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=73>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=9>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=47>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=90>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=119>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=4>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=277>
      <p><font face="Times" size="2">James H. Bodurtha </font></p>
    </td>
    <td valign=top width=5>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=73>
      <p><font face="Times" size="2">$1 - $10,000 </font></p>
    </td>
    <td valign=top align="right" width=9>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=47>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=90>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=119>
      <p><font face="Times" size="2">$50,001 - $100,000 </font></p>
    </td>
    <td valign=top align="right" width=4>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=277>
      <p><font face="Times" size="2">Joe Grills </font></p>
    </td>
    <td valign=top width=5>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=73>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=9>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=47>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=90>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=119>
      <p><font face="Times" size="2">Over $100,000 </font></p>
    </td>
    <td valign=top align="right" width=4>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=277>
      <p><font face="Times" size="2">Herbert I. London </font></p>
    </td>
    <td valign=top width=5>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=73>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=9>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=47>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=90>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=119>
      <p><font face="Times" size="2">Over $100,000 </font></p>
    </td>
    <td valign=top align="right" width=4>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=277>
      <p><font face="Times" size="2">Andr&#233; F. Perold </font></p>
    </td>
    <td valign=top width=5>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=73>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=9>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=47>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=90>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=119>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=4>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=277>
      <p><font face="Times" size="2">Roberta Cooper Ramo </font></p>
    </td>
    <td valign=top width=5>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=73>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=9>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=47>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=90>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=119>
      <p><font face="Times" size="2">$50,001 - $100,000 </font></p>
    </td>
    <td valign=top align="right" width=4>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=277>
      <p><font face="Times" size="2">Robert S. Salomon, Jr. </font></p>
    </td>
    <td valign=top width=5>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=73>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=9>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=47>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=90>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=119>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=4>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=277>
      <p><font face="Times" size="2">Stephen B. Swensrud </font></p>
    </td>
    <td valign=top width=5>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=73>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=9>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=47>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=90>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=8>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="right" width=119>
      <p><font face="Times" size="2">None </font></p>
    </td>
    <td valign=top align="right" width=4>&nbsp;</td>
  </tr>
</table>
<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the Record
Date, no non-interested Director or nominee or his or her  immediate family members,
owned beneficially or of record any securities of ML &amp; Co. As of the Record Date, the
Directors and officers of each Fund as a group  owned an aggregate of less than 1% of any
Fund&#146;s outstanding shares. At such  date, Mr. Glenn, President and a Director of each
Fund, and the other officers  of each Fund owned an aggregate of less than 1% of the
outstanding shares of  common stock of ML &amp; Co.</font></td></tr></table>

<p><table width=600><tr><td><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of
Directors of each Fund recommends that the stockholders vote OFORO each of the nominees
for Director.</B></FONT></td></tr></table>


<p><table width=600><tr><td  align=center><font size=2><B>ADDITIONAL INFORMATION</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>Expenses and Methods of Proxy Solicitation;
Vote Required</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The expenses of
preparation, printing and mailing of the enclosed forms of  proxy and accompanying Notice
and Combined Proxy Statement will be borne by the  Funds in proportion to their relative
net assets.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to obtain the necessary
      quorum at each Meeting (i.e., a majority of the Fund&#146;s Common Stock
      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 each Fund. Each Fund has retained Georgeson Shareholder,
      17 State Street, New York, New York 10004, to assist in the solicitation
      of proxies at a cost of approximately $3,500 for each Fund, plus out-of-pocket
      expenses estimated to be $500 for each Fund.</font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares
represented by properly executed proxies, unless such proxies  have previously been
revoked, will be voted at each Meeting in accordance with  the directions on the proxies;
if no direction is indicated, the shares will be  voted &#147;FOR&#148; the nominees. In
the case of Corporate High Yield and Corporate High  Yield III, approval with respect to
the election of Directors (Item 1) will  require the affirmative vote of a plurality of
the votes cast by each Fund&#146;s  stockholders, in person or by proxy, at a meeting at which
a quorum is present  and</font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
11</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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




<p><table width=600><tr><td><font size=2>duly constituted. A &#147;plurality of the
votes&#148; means the candidate must  receive more votes than any other candidate for the
same position, but not  necessarily a majority of the votes cast. In the case of
MuniAssets, assuming a  quorum is present at the Meeting, the election of Directors will
require the  affirmative vote of a majority of the total votes cast by the stockholders
represented at the Meeting and entitled to vote.</font></td></tr></table>


<p><table width=600><tr><td><font size=2><B>Broker Non-Votes and Abstentions</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broker-dealer
firms, including Merrill Lynch, Pierce, Fenner &amp; Smith  Incorporated (&#147;MLPF&amp;S&#148;),
holding shares of each Fund in &#147;street name&#148; for the  benefit of their
customers and clients, will request the instructions of such  customers and clients on
how to vote their shares on Item 1 before the Meeting.  The Funds understand 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  (Item 1) if no instructions have been received
prior to the date specified in  the broker-dealer firm&#146;s request for voting instructions.
The Funds will include  shares held of record by broker-dealers as to which such
authority has been  granted in its tabulation of the total number of shares present for
purposes of  determining whether the necessary quorum of stockholders of each Fund
exists.  Proxies that are returned to a Fund but that are marked &#147;abstain&#148; or
on which a  broker-dealer has declined to vote on Item 1 (&#147;broker non-votes&#148;)
will be  counted as present for the purposes of determining a quorum. MLPF&amp;S has advised
each Fund that if it votes shares held in its name for which no instructions are
received, except as limited by agreement or applicable law, it will do so in the  same
proportion as the votes received from beneficial owners of those shares for  which
instructions have been received, whether or not held in nominee name.  Abstentions and
broker non-votes will not be counted as votes cast. Therefore,  abstentions and broker
non-votes will not have an effect on the vote on Item 1  for any Fund.</font></td></tr></table>


<p><table width=600><tr><td><font size=2><B>Other Matters</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management knows
of no other matters to be presented at the Meetings.  However, if other matters are
presented for a vote at the meeting or any  adjournments thereof, the proxy holders will
vote the Common Stock represented  by properly executed proxies according to their
judgment on those matters.</font></td></tr></table>


<p><table width=600><tr>
    <td><font size=2><B>Independent Accountants&#146; Fees</B></font></td>
  </tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth
      the aggregate fees paid to D&amp;T for each Fund&#146;s fiscal year ended
      May 31, 2003 for professional services rendered for: (i) the audit of the
      Funds&#146; annual financial statements included in each Fund&#146;s report
      to stockholders; (ii) all other audit related services provided to each
      Fund; and (iii) all non-audit services provided to each Fund, FAM, and entities
      controlling, controlled by or under common control with FAM that provide
      services to the Fund. For each Fund&#146;s fiscal year ended May 31, 2003,
      the independent accountants did not render any professional services for
      financial information systems and design and implementation services to
      the Funds, FAM or entities controlling, controlled by or under common control
      with FAM that provide services to the Funds. The Committee of each Fund
      has determined that the provision of other audit related services under
      clause (ii) and the provision of non-audit services under clause (iii) are
      compatible with maintaining the independence of the independent accountants.
      Representatives of D&amp;T are expected to be present at the Meetings and
      will have an opportunity to make a statement if they so desire and to respond
      to questions from stockholders.</font></td>
  </tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
12</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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<!-- MARKER PAGE="sheet: 15; page: 15" -->



<p>
<table border=0 cellspacing=0 cellpadding=0 width="600">
  <tr valign="bottom">
    <td><b><font size="1">Fund </font></b>
      <hr align="left" noshade size="1" width="12%">
    </td>
    <td><b></b></td>
    <td align="center"><b><font size="1">Audit Fees <br>
      Charged <br>
      to the Fund </font></b>
      <hr align="center" noshade size="1" width="60%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Other Audit <br>
      Related Fees <br>
      Charged <br>
      to the Fund </font></b>
      <hr align="center" noshade size="1" width="60%">
    </td>
    <td align="center"><b></b></td>
    <td align="center"><b><font size="1">Other Fees </font></b>
      <hr align="center" noshade size="1" width="60%">
    </td>
  </tr>
  <tr>
    <td valign=top>
      <p><font face="Times" size="2">Corporate High Yield</font></p>
    </td>
    <td valign=top>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="center">
      <p><font face="Times" size="2">$35,000</font></p>
    </td>
    <td valign=top align="center">
      <p>&nbsp;</p>
    </td>
    <td valign=top align="center">
      <p><font face="Times" size="2">$41,650</font></p>
    </td>
    <td valign=top align="center">
      <p>&nbsp;</p>
    </td>
    <td valign=top align="center">
      <p><font face="Times" size="2">$6,412,000</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top>
      <p><font face="Times" size="2">Corporate High Yield III </font></p>
    </td>
    <td valign=top>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="center">
      <p><font face="Times" size="2">$35,000</font></p>
    </td>
    <td valign=top align="center">
      <p>&nbsp;</p>
    </td>
    <td valign=top align="center">
      <p><font face="Times" size="2">$19,800</font></p>
    </td>
    <td valign=top align="center">
      <p>&nbsp;</p>
    </td>
    <td valign=top align="center">
      <p><font face="Times" size="2">$6,412,000</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top>
      <p><font face="Times" size="2">MuniAssets</font></p>
    </td>
    <td valign=top>
      <p>&nbsp;</p>
    </td>
    <td valign=top align="center">
      <p><font face="Times" size="2">$25,000</font></p>
    </td>
    <td valign=top align="center">
      <p>&nbsp;</p>
    </td>
    <td valign=top align="center">
      <p><font face="Times" size="2">$&nbsp;&nbsp;4,800</font></p>
    </td>
    <td valign=top align="center">
      <p>&nbsp;</p>
    </td>
    <td valign=top align="center">
      <p><font face="Times" size="2">$6,412,000</font></p>
    </td>
  </tr>
</table>
<br>
<table width=600><tr><td><font size=2><B>Address of Investment Adviser</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal
office of FAM is located at 800 Scudders Mill Road,  Plainsboro, New Jersey 08536.</font></td></tr></table>


<p><table width=600><tr><td><font size=2><B>Annual Report Delivery</B></font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Each Fund will furnish,
      without charge, a copy of its annual report for the Fund&#146;s last fiscal
      year to any stockholder upon request.</b> Such requests should be directed
      to the applicable Fund, P.O. Box 9011, Princeton, New Jersey 08543-9011,
      Attention: Fund Secretary, or to 1-800-637-3863.</font></td>
  </tr></table>


<p><table width=600><tr><td><font size=2><B>Stockholder  Proposals</B></font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a stockholder of any Fund
      intends to present a proposal at the 2004 Annual Meeting of Stockholders
      of such Fund, each of which is anticipated to be held in August 2004, and
      desires to have the proposal included in the Fund&#146;s proxy statement
      and form of proxy for that meeting, the stockholder must deliver the proposal
      to the offices of the appropriate Fund by March 19, 2004. The persons named
      as proxies in the proxy materials for the 2004 Annual Meetings of Stockholders
      may exercise discretionary authority with respect to any stockholder proposal
      presented at such meeting if written notice of such proposal has not been
      received by the Fund by June 7, 2004. Written proposals and notices should
      be sent to the Secretary of the respective Fund (addressed to 800 Scudders
      Mill Road, Plainsboro, New Jersey 08536).</font></td>
  </tr></table>


<br>
<table width=600>
  <tr>
    <td width="264">&nbsp;</td>
    <td width="324"><font size=2>By Order of the Boards of Directors</font></td>
  </tr>
  <tr>
    <td width="264">&nbsp;</td>
    <td width="324">&nbsp;</td>
  </tr>
  <tr>
    <td width="264">&nbsp;</td>
    <td width="324"><font size=2>D<font size="1">AVID</font> W. C<font size="1">LAYTON
      </font><i><br>
      Secretary of Corporate High Yield Fund, Inc. and Corporate High Yield Fund
      III, Inc.</i></font></td>
  </tr>
  <tr>
    <td width="264">&nbsp;</td>
    <td width="324">&nbsp;</td>
  </tr>
  <tr>
    <td width="264">&nbsp;</td>
    <td width="324"><font size=2>B<font size="1">RIAN </font>D. S<font size="1">TEWART
      </font><br>
      <i> Secretary of MuniAssets Fund, Inc.</i></font></td>
  </tr>
</table>
<p>
<p>
<p>
<p><table width=600><tr>
    <td><font size=2>Dated: July 16, 2003</font></td>
  </tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
13</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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





<p><table width=600><tr>
    <td align=right><font size=2><B>EXHIBIT A</B></font></td>
  </tr></table>

<p><table width=600><tr><td  align=center><font size=2><B>CHARTER OF THE AUDIT COMMITTEE
<BR>OF THE BOARD OF DIRECTORS/TRUSTEES  <BR>FOR EXCHANGE LISTED FUNDS</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the audit
committee of an investment company also serves as a  nominating committee, the following
charter pertains only to each audit and  nominating committee&#146;s duties as an audit
committee. The Board of  Directors/Trustees of each investment company listed on Appendix
A hereto has  adopted the following audit committee charter:</font></td></tr></table>


<p><table width=600><tr><td><FONT SIZE="2"><B>I. <I>Composition of the Audit Committee</I></B></FONT></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit
Committee shall be composed of at least three  Directors/Trustees:</font></td></tr></table>


<P><table width=600><TR>
    <TD width=10% valign=top><font size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) </FONT></TD>
    <TD width=90% valign=top><font size=2> each
of whom shall not be an &#147;interested person&#148; of the Fund, as  defined in Section
2(a)(19) of the Investment Company Act of 1940, as  amended, or an &#147;affiliated
person&#148; of the Fund, as described in  Section 10A(m) of the Securities Exchange Act
of 1934, as amended (the  &#147;1934 Act&#148;);</font></TD></TR></TABLE><p></P>

<P><table width=600><TR>
    <TD width=10% valign=top><font size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) </FONT></TD>
    <TD width=90% valign=top><font size=2> each
of whom shall not accept any consulting, advisory, or other  compensatory fee from the
Fund (other than fees for serving on the  Board of Directors/Trustees or any committee
thereof) or have any  other relationship to the Fund that may interfere with the exercise
of  such person&#146;s independence from the Fund and Fund management;</font></TD></TR></TABLE><p></P>

<P><table width=600><TR>
    <TD width=10% valign=top><font size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) </FONT></TD>
    <TD width=90% valign=top><font size=2> each
of whom shall otherwise satisfy the applicable independence  requirements for any stock
exchange or market quotation system on  which Fund shares are listed or quoted;</font></TD></TR></TABLE><p></P>

<P><table width=600><TR>
    <TD width=10% valign=top><font size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) </FONT></TD>
    <TD width=90% valign=top><font size=2> each
of whom shall be financially literate, as such qualification is  interpreted by the Board
of Directors/Trustees in its business  judgment, or shall become financially literate
within a reasonable  period of time after his or her appointment to the Audit Committee;
and</font></TD></TR></TABLE><p></P>

<P><table width=600><TR>
    <TD width=10% valign=top><font size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) </FONT></TD>
    <TD width=90% valign=top><font size=2> at
least one of whom shall have accounting or related financial  management expertise as the
Board of Directors/Trustees interprets  such qualification in its business judgment.</font></TD></TR></TABLE><p></P>

<p><table width=600><tr><td><font size=2>The Audit Committee shall determine whether at
least one member of the Audit  Committee is a &#147;financial expert&#148; as defined in
rules promulgated by the U.S.  Securities and Exchange Commission (the &#147;SEC&#148;)
under the Sarbanes-Oxley Act of  2002 and shall consider whether any member thereof
serves on the audit committee  of any other public companies.</font></td></tr></table>


<p><table width=600><tr>
    <td><font size=2><B>II. <i>Purposes of the Audit Committee</i></B></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit
Committee, in its capacity as a committee of the Board of  Directors/Trustees, is
directly responsible for the appointment, compensation,  and oversight of the Fund&#146;s
independent accountants, including the resolution of  disagreements regarding financial
reporting between Fund management and such  independent accountants. The Audit Committee
should report regularly to the  Board of Directors/Trustees with respect to the matters
described in Section III  of this Audit Committee Charter. The Fund&#146;s independent
accountants report  directly to the Audit Committee.</font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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




<p><table width=600><tr><td><FONT SIZE="2"><B>III. <I>Responsibilities and Duties of the Audit
Committee</I></B></FONT></td></tr></table>


<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The policies and
procedures of the Audit Committee shall remain flexible  to facilitate its ability to
react to changing conditions and to generally  discharge its functions. The following
listed responsibilities describe areas of  attention in broad terms.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To carry out its
purposes, the Audit Committee shall have the following  responsibilities and duties:</font></td></tr></table>

<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) </font></td><td width=90%><font size="2">upon
submission of an application form by the Fund&#146;s independent  accountants to the
Public Company Accounting Oversight Board, to request:  (i) a copy of such application
form; (ii) any material amendments to such  application form; and (iii) the written
findings of the Public Company  Accounting Oversight Board in connection with that Board&#146;s
inspection of  the Fund&#146;s independent accountants;</font></td></tr></table>

<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) </font></td><td width=90%><font size="2">to
preapprove all auditing services to be provided to the Fund by the  Fund&#146;s
independent accountants*;</font></td></tr></table>

<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) </font></td><td width=90%><font size="2">to
preapprove all non-auditing services, including tax services, to be  provided to the Fund
by the Fund&#146;s independent accountants in accordance  with the 1934 Act; provided,
however, that the preapproval requirement with  respect to the provision of non-auditing
services to the Fund by the Fund&#146;s  independent accountants may be waived by the
Audit Committee under the  circumstances described in the 1934 Act**;</font></td></tr></table>

<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) </font></td><td width=90%><font size="2">to
ensure that the Fund&#146;s independent accountants submit on a periodic  basis to the
Audit Committee a formal written statement delineating all  relationships between such
independent accountants and the Fund, consistent  with Independence Standards Board
Standard No. 1, to actively engage in a  dialogue with the Fund&#146;s independent
accountants with respect to any  disclosed relationships or services that may affect the
objectivity and  independence of such independent accountants and, if deemed appropriate
by  the Audit Committee, to recommend that the Board of Directors/Trustees take
appropriate action in response to the report of such independent  accountants to satisfy
itself of the independence of such independent  accountants;</font></td></tr></table>

<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) </font></td><td width=90%><font size="2">to
receive and consider specific representations from the Fund&#146;s  independent
accountants with respect to the independence of such  accountants, audit partner
rotation, and conflicts of interest described in  Section 10A(l) of the 1934 Act, and to
consider whether the provision of  any non-audit services to the Fund by the Fund&#146;s
independent accountants as  described in Section III(c) of this Audit Committee Charter
is compatible  with maintaining the independence of those accountants;</font></td></tr></table>

<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) </font></td><td width=90%><font size="2">to
review arrangements for annual and special audits and the scope of  such audits with the
Fund&#146;s independent accountants;</font></td></tr></table>

<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) </font></td><td width=90%><font size="2">to
review and  discuss the Fund&#146;s audited financial statements with Fund management;</font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=left  width=75></td></tr></table>


<table width=600><tr><td width=4% align=right valign=top><font size="1">* </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1">The
Audit Committee may delegate to one or more designated members of the Audit Committee the
authority to grant such preapprovals;  provided, however, that the Audit Committee shall
not delegate preapproval of the audit required by the 1934 Act.  The  decisions of any
member or members of the Audit Committee to whom such authority has been given shall be
reported to  the full Audit Committee at each of its scheduled meetings.</font></td></tr></table>


<table width=600><tr><td width=4% align=right valign=top><font size="1">** </font></td><td width=2%><font size="1"></font></td><td width=94%><font size="1"> The
Audit Committee may delegate to one or more  designated  members of the Audit Committee
the authority to grant such  preapprovals.  The  decisions  of any member or members of
the Audit  Committee to whom such  authority  has been given  shall be reported to the
full Audit Committee at each of its scheduled meetings.</font></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">2
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 1; page: 1" --> <br>
  <br>

<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)</font></td><td width=90%><font size="2"> to
discuss with the independent accountants those matters required by  Statement of
Accounting Standards Nos. 61 and 90  relating to the Fund&#146;s financial statements,
including, without  limitation, any adjustment to such financial statements recommended
by  such independent accountants, or any other results of any audit;</font></td></tr></table>


<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) </font></td><td width=90%><font size="2"> to
cause to be prepared and to review and submit any report, including  any recommendation
of the Audit Committee, required by SEC Rules to be  included in the Fund&#146;s annual
proxy statement;</font></td></tr></table>


<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) </font></td><td width=90%><font size="2"> to
review legal and regulatory matters presented by counsel and the  Fund&#146;s independent
accountants that may have a material impact on the  Fund&#146;s financial statements;</font></td></tr></table>


<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) </font></td><td width=90%><font size="2"> to
establish and administer policies and procedures relating to: (i)  the hiring of
employees or former employees of the Fund&#146;s independent  accountants; and (ii) the
resolution of any disagreements between Fund  management and the Fund&#146;s independent
accountants regarding accounting  and/or financial reporting policies and procedures;</font></td></tr></table>


<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) </font></td><td width=90%><font size="2"> to
consider with the Fund&#146;s independent accountants their comments  with respect to the
quality and adequacy of the Fund&#146;s accounting and  financial reporting policies,
practices and internal controls and  management&#146;s responses thereto, including,
without limitation, the  effect on the Fund of any recommendation of changes in
accounting  principles or practices by management or the independent accountants;</font></td></tr></table>


<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)</font></td><td width=90%><font size="2"> to
receive and consider reports from the Fund&#146;s independent  accountants regarding: (i)
all critical accounting policies and  practices to be used; (ii) all alternative
treatments of financial  information within generally accepted accounting principles that
have  been discussed with Fund management, ramifications of the use of such  alternative
disclosures and treatments, and the treatment preferred by  the independent accountants;
and (iii) other material written  communications between the independent accountants and
Fund  management, such as any management letter or schedule of unadjusted  differences;</font></td></tr></table>


<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) </font></td><td width=90%><font size="2"> to
receive reports from the principal executive officer and the  principal financial
officer, or persons performing similar functions,  regarding: (i) all significant
deficiencies in the design or operation  of Fund internal controls that could adversely
affect the Fund&#146;s  ability to record, process, summarize, and report financial data
and  have identified for Fund&#146;s independent accountants any material  weaknesses in
internal controls; (ii) any fraud, whether or not  material, that involves Fund
management or other employees who have a  significant role in the Fund&#146;s internal
controls; and (iii) whether or  not there were significant changes in the Fund&#146;s
internal controls or  in other factors that could significantly affect the Fund&#146;s
internal  controls subsequent to the date of their evaluation, including any  corrective
actions with regard to significant deficiencies and  material weaknesses;</font></td></tr></table>


<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) </font></td><td width=90%><font size="2"> to
establish procedures for: (i) the receipt, retention, and treatment  of complaints
received by the Fund regarding accounting, internal  accounting controls, or auditing
matters; and (ii) the confidential,  anonymous submission of concerns regarding
questionable accounting or  auditing matters;</font></td></tr></table>


<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) </font></td><td width=90%><font size="2"> to
discuss with Fund management and the Fund&#146;s independent auditors  policies with
respect to risk assessment and risk management and the  quality and adequacy of the Fund&#146;s
internal controls and processes  that could materially affect the Fund&#146;s financial
statements and  financial reporting;</font></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">3
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 2; page: 2" --> <br>
  <br>

<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) </font></td><td width=90%><font size="2"> to
assist the Fund, if necessary, in preparing any written affirmation  or written
certification required to be filed with any stock exchange  on which Fund shares are
listed;</font></td></tr></table>


<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) </font></td><td width=90%><font size="2"> to
review and reassess the adequacy of this Charter on an annual basis  and recommend any
changes to the Board of Directors/Trustees; and</font></td></tr></table>


<table width=600><tr><td width=10% valign=top><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) </font></td><td width=90%><font size="2"> to
perform such other functions consistent with this Audit Committee  Charter, the Fund&#146;s
Articles of Incorporation or Declaration of Trust,  as applicable, the Fund&#146;s
By-laws, and applicable law, as the Audit  Committee or the Board of Directors/Trustees
deems necessary or  appropriate.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In fulfilling
their responsibilities under this Audit Committee Charter,  it is recognized that members
of the Audit Committee are not full-time employees  of the Fund. As such, it is not the
duty or responsibility of the Audit  Committee or its members to conduct &#147;field work&#148; or
other types of auditing or  accounting reviews or procedures. Each member of the Audit
Committee shall be  entitled to rely on (i) the integrity of those persons and
organizations inside  and outside the Fund from which the Audit Committee receives
information and  (ii) the accuracy of the financial and other information provided to the
Audit  Committee by such persons or organizations, absent actual knowledge to the
contrary (which actual knowledge shall be promptly reported to the Board of
Directors/Trustees).</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fund management is
responsible for maintaining appropriate systems for  accounting. The Fund&#146;s
independent accountants are responsible for conducting a  proper audit of the Fund&#146;s
financial statements and are ultimately accountable  to the Audit Committee. The Audit
Committee has the ultimate authority and  responsibility to select (subject, if
applicable, to shareholder approval) and  evaluate the Fund&#146;s independent
accountants, to determine the compensation of  the Fund&#146;s independent accountants
and, where appropriate, to replace the Fund&#146;s  independent accountants.</font></td></tr></table>

<p><table width=600><tr><td><FONT SIZE="2"><B>IV. <I>Meetings</I></B></FONT></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit
Committee shall meet regularly with the Fund&#146;s independent  accountants (outside the
presence of Fund management) and at least once annually  with the representatives of Fund
management responsible for the financial and  accounting operations of the Fund. The
Audit Committee shall hold special  meetings at such times as the Audit Committee
believes appropriate. Members of  the Audit Committee may participate in a meeting of the
Audit Committee by means  of conference call or similar communications equipment by means
of which all  persons participating in such meeting can hear each other.</font></td></tr></table>

<p><table width=600><tr><td><FONT SIZE="2"><B>V. <I>Assistance from Fund Management; Authority
to Engage Advisers; Funding</I></B></FONT></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The appropriate
officers of the Fund shall provide or arrange to provide  such information, data and
services as the Audit Committee may request. The  Audit Committee shall have the power
and authority to take all action it  believes necessary or appropriate to discharge its
responsibilities, including  the power and authority to retain independent counsel and
other advisers. The  Fund shall provide for appropriate funding, as determined by the
Audit Committee  as a committee of the Board of Directors/Trustees, for payment of
compensation  to: (i) the Fund&#146;s independent accountants and (ii) any advisers
employed by the  Audit Committee under this Section V.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>Dated: June 6, 2000  <BR>Revised: April 11, 2001
<BR>Further Revised: October 29, 2002</font></td></tr></table>


<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">4
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;






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



<p><table width=600><tr><td align=right><font size=2><B>APPENDIX A</B></font></td></tr></table>


<p><table width=600><tr><td><font size=2>CORPORATE HIGH YIELD FUND, INC.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>CORPORATE HIGH YIELD FUND III, INC.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>MUNIASSETS FUND, INC.</font></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;


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





<p>
<p><table width=600><tr><td  align=center><font size=3><B>CORPORATE HIGH YIELD FUND, INC. <BR>
P.O. Box 9011  <BR>Princeton, New Jersey 08543-9011</B></font></td></tr></table>


<p><table width=600><tr><td  align=center><font size=3><B>PROXY</B></font></td></tr></table>


<p><table width=600><tr><td  align=center><font size=3><B>This proxy is solicited on
behalf of the Board of Directors</B></font></td></tr></table>


<p><table width=600><tr><td><font size=2>The undersigned hereby appoints Donald&nbsp;C.
Burke, Terry&nbsp;K. Glenn and David W. Clayton as proxies, each with the  power to
appoint his substitute, and hereby authorizes each of them to represent and to vote, as
designated on  the reverse hereof, all the Common Stock of Corporate High Yield Fund,
Inc. (the &#147;Fund&#148;) held of record by the  undersigned on June&nbsp;26, 2003 at
the annual meeting of stockholders of the Fund to be held on August&nbsp;25, 2003 or  any
adjournment thereof.</font></td></tr></table>



<p><table width=600>
<tr><td width=30>&nbsp;</td>
    <td width=570><font size=2><b>&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 Proposal&nbsp;1.</b></font></td>
  </tr></table>



<p><table width=600><tr><td><font size=2>By signing and dating the reverse side of this
card, you authorize the proxies to vote Proposal&nbsp;1 as marked, or  if not marked, to
vote &#147;FOR&#148; Proposal&nbsp;1, and to use their discretion to vote for any other
matter as may properly  come before the meeting or any adjournment thereof.  If you do
not intend to personally attend the meeting,  please complete and return this card at
once in the enclosed envelope.</font></td></tr></table>



<p><table width=600><tr><td align=right><font size=1>(Continued and to be signed on the
reverse side) </font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 3; page: 3" --> <br>
<p>&nbsp;
<table width=600>
  <tr>
    <td><font size=2>Please mark boxes <font size="5">&#149;</font> or |X| in
      blue or black ink. </font></td>
  </tr>
</table>
<br>
<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr align="left" valign="top">
    <td><font size="2">1. ELECTION OF DIRECTORS </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>FOR</b> all nominees listed below <br>
      (except as marked to the contrary <br>
      below) |_| </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>WITHHOLD AUTHORITY</b> <br>
      to vote for all nominees listed <br>
      below |_| </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td><font size="1"><b><i>(INSTRUCTION: </i></b><i><b>To withhold authority
      to vote for any individual nominee, strike a line through the nominee&#146;s
      name in the list below.) </b></i> <b>James H. Bodurtha, Terry K. Glenn,
      Joe Grills, Herbert I. London, Andr&eacute; F. Perold, Roberta Cooper Ramo,
      Robert S. Salomon, Jr. and Stephen B. Swensrud. </b></font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=4% valign=top><font size=2> 2. </font></td>
    <td width=96% valign=top><font size="2">In the discretion of such proxies,
      upon such other business as may properly come before the meeting or any
      adjournment thereof. </font> </td>
  </tr>
</table>
<br>
<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr>
    <td width="231">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="left" valign="bottom" width="369"> <font size="1">Please sign exactly
      as name appears hereon. When stock is held by joint tenants, both should
      sign. When signing as attorney or as executor, administrator, trustee or
      guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person.</font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">Dated: ________________________________________________,
      2003</font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X__________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X __________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369">
      <p><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature,
        if held jointly </font> </p>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td><font size="1"><b>Sign, Date and Return the Proxy Card Promptly Using
      the Enclosed Envelope. </b></font> </td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;



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

<p>
<p><table width=600><tr>
    <td  align=center><font size=3><B>CORPORATE HIGH YIELD FUND III, INC. <br>
      P.O. Box 9011 <br>
      Princeton, New Jersey 08543-9011</B></font></td>
  </tr></table>


<p><table width=600><tr><td  align=center><font size=3><B>PROXY</B></font></td></tr></table>


<p><table width=600><tr><td  align=center><font size=3><B>This proxy is solicited on
behalf of the Board of Directors</B></font></td></tr></table>


<p><table width=600><tr><td><font size=2>The undersigned hereby appoints Donald&nbsp;C.
Burke, Terry&nbsp;K. Glenn and David W. Clayton as proxies, each with the  power to
appoint his substitute, and hereby authorizes each of them to represent and to vote, as
designated on  the reverse hereof, all the Common Stock of Corporate High Yield Fund III,
Inc. (the &#147;Fund&#148;) held of record by  the undersigned on June&nbsp;26, 2003 at
the annual meeting of stockholders of the Fund to be held on August&nbsp;25, 2003  or any
adjournment thereof.</font></td></tr></table>



<p><table width=600>
<tr><td width=30>&nbsp;</td>
<td width=570><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>This
proxy when properly executed will be voted in the manner directed herein by the
undersigned stockholder. If no direction is made, this proxy will be voted FOR Proposal&nbsp;1.</B></FONT></td></tr></table>



<p><table width=600><tr><td><font size=2>By signing and dating the reverse side of this
card, you authorize the proxies to vote Proposal&nbsp;1 as marked, or  if not marked, to
vote &#147;FOR&#148; Proposal&nbsp;1, and to use their discretion to vote for any other
matter as may properly  come before the meeting or any adjournment thereof.  If you do
not intend to personally attend the meeting,  please complete and return this card at
once in the enclosed envelope.</font></td></tr></table>



<p><table width=600><tr><td align=right><font size=1>(Continued and to be signed on the
reverse side) </font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 5; page: 5" --> <br>
  <br>
<table width=600>
  <tr>
    <td><font size=2>Please mark boxes <font size="5">&#149;</font> or |X| in
      blue or black ink. </font></td>
  </tr>
</table>
<br>
<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr align="left" valign="top">
    <td><font size="2">1. ELECTION OF DIRECTORS </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>FOR</b> all nominees listed below <br>
      (except as marked to the contrary <br>
      below) |_| </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>WITHHOLD AUTHORITY</b> <br>
      to vote for all nominees listed <br>
      below |_| </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td><font size="1"><b><i>(INSTRUCTION: </i></b><i><b>To withhold authority
      to vote for any individual nominee, strike a line through the nominee&#146;s
      name in the list below.) </b></i> <b>J</b><b>ames H. Bodurtha, Terry K.
      Glenn, Joe Grills, Herbert I. London, Andr&eacute; F. Perold, Roberta Cooper
      Ramo, Robert S. Salomon, Jr. and Stephen B. Swensrud. </b></font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=4% valign=top><font size=2> 2. </font></td>
    <td width=96% valign=top><font size="2">In the discretion of such proxies,
      upon such other business as may properly come before the meeting or any
      adjournment thereof. </font> </td>
  </tr>
</table>
<br>
<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr>
    <td width="231">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="left" valign="bottom" width="369"> <font size="1">Please sign exactly
      as name appears hereon. When stock is held by joint tenants, both should
      sign. When signing as attorney or as executor, administrator, trustee or
      guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person.</font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">Dated: ________________________________________________,
      2003</font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X__________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X __________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369">
      <p><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature,
        if held jointly </font> </p>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td><font size="1"><b>Sign, Date and Return the Proxy Card Promptly Using
      the Enclosed Envelope. </b></font> </td>
  </tr>
</table>
<p>&nbsp;

<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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



<p>
<p><table width=600><tr>
    <td  align=center><font size=3><B>MUNIASSETS FUND, INC. <br>
      P.O. Box 9011 <br>
      Princeton, New Jersey 08543-9011</B></font></td>
  </tr></table>


<p><table width=600><tr><td  align=center><font size=3><B>PROXY</B></font></td></tr></table>


<p><table width=600><tr><td  align=center><font size=3><B>This proxy is solicited on
behalf  of the Board of Directors</B></font></td></tr></table>


<p><table width=600><tr><td><font size=2>The undersigned hereby appoints Donald&nbsp;C.
Burke, Terry&nbsp;K. Glenn and Brian D. Stewart as proxies, each with the  power to
appoint his substitute, and hereby authorizes each of them to represent and to vote, as
designated on  the reverse hereof, all the Common Stock of MuniAssets Fund, Inc. (the
&#147;Fund&#148;) held of record by the undersigned  on June&nbsp;26, 2003 at the annual
meeting of stockholders of the Fund to be held on August&nbsp;25, 2003 or any
adjournment thereof.</font></td></tr></table>



<p><table width=600>
<tr><td width=30>&nbsp;</td>
<td width=570><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>This
proxy when properly executed will be voted in the manner directed herein by the
undersigned stockholder. If no direction is made, this proxy will be voted FOR Proposal
1.</B></FONT></td></tr></table>



<p><table width=600><tr><td><font size=2>By signing and dating the reverse side of this
card, you authorize the proxies to vote Proposal&nbsp;1 as marked, or  if not marked, to
vote &#147;FOR&#148; Proposal&nbsp;1, and to use their discretion to vote for any other
matter as may properly  come before the meeting or any adjournment thereof.  If you do
not intend to personally attend the meeting,  please complete and return this card at
once in the enclosed envelope.</font></td></tr></table>



<p><table width=600><tr><td align=right><font size=1>(Continued and to be signed on the
reverse side) </font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 7; page: 7" --> <br>
  <br>
<table width=600>
  <tr>
    <td><font size=2>Please mark boxes <font size="5">&#149;</font> or |X| in
      blue or black ink. </font></td>
  </tr>
</table>
<br>
<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr align="left" valign="top">
    <td><font size="2">1. ELECTION OF DIRECTORS </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>FOR</b> all nominees listed below <br>
      (except as marked to the contrary <br>
      below) |_| </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>WITHHOLD AUTHORITY</b> <br>
      to vote for all nominees listed <br>
      below |_| </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td><font size="1"><b><i>(INSTRUCTION: </i></b><i><b>To withhold authority
      to vote for any individual nominee, strike a line through the nominee&#146;s
      name in the list below.)</b> </i> <br>
      <br>
      Class III Nominees to serve until the 2006 Annual Meeting of Stockholders:
      <b>Roberta Cooper Ramo and Stephen B. Swensrud</b></font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=4% valign=top><font size=2> 2. </font></td>
    <td width=96% valign=top><font size="2">In the discretion of such proxies,
      upon such other business as may properly come before the meeting or any
      adjournment thereof. </font> </td>
  </tr>
</table>
<br>
<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr>
    <td width="231">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="left" valign="bottom" width="369"> <font size="1">Please sign exactly
      as name appears hereon. When stock is held by joint tenants, both should
      sign. When signing as attorney or as executor, administrator, trustee or
      guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person.</font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">Dated: ________________________________________________,
      2003</font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X__________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X __________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369">
      <p><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature,
        if held jointly </font> </p>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td><font size="1"><b>Sign, Date and Return the Proxy Card Promptly Using
      the Enclosed Envelope. </b></font> </td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;


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