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<SEC-DOCUMENT>0000891092-04-003492.txt : 20040728
<SEC-HEADER>0000891092-04-003492.hdr.sgml : 20040728
<ACCEPTANCE-DATETIME>20040726180720
ACCESSION NUMBER:		0000891092-04-003492
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040625
FILED AS OF DATE:		20040727
EFFECTIVENESS DATE:		20040727

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:		04931778

	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:		04931777

	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:		04931776

	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>e18371_def14a.htm
<DESCRIPTION>DEF 14A
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>As filed
  with the Securities and Exchange Commission on July 27, 2004 </B></FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>SCHEDULE 14A<br>
  RULE 14a-101 </FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" 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. ) </FONT></H1>


<div align="center">
  <table border="0" width="75%">
    <tr>
      <td width="28%"><font face="Times New Roman, Times, Serif" size=2>Filed
        by the Registrant |X]<br>
        <br>
        </font>
        <div align="center"> </div>
        <p><font face="Times New Roman, Times, Serif" size=2>Check the appropriate
          box:</font><font face="Times New Roman, Times, Serif" size=2> </font></p>
        </td>
      <td width="26%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
      <td width="46%" valign="top">
        <div align="right"><font face="Times New Roman, Times, Serif" size=2>Filed
          by a party other than the Registrant |_| </font></div>
      </td>
    </tr>
  </table>
  <br>
</div>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
    <TR VALIGN=Bottom>
      <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
      <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD WIDTH=92% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Preliminary
        Proxy Statement</FONT></TD>
      <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|X|</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitive
        Proxy Statement</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitive
        Additional Materials</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Soliciting
        Material Pursuant to Rule 14a-12</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_|</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Confidential,
        for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</FONT></TD>
      <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    </TR>
  </TABLE>
  <br>
</div>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>CORPORATE HIGH
  YIELD FUND, INC.<br>
  CORPORATE HIGH YIELD FUND III, INC.<br>
  MUNIASSETS FUND, INC. </FONT></H1>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>P.O. Box 9011,
  Princeton, New Jersey 08543-9011</FONT></H1>
<hr noshade size="1">
<div align="center">
  <p><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Name of Registrant as
    Specified in Its Charter) </FONT></p>
  <hr noshade size="1">
</div>
<div align="center">
  <p><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Name of Person(s) Filing
    Proxy Statement if other than the Registrant) </FONT></p>
  <table border="0" width="75%">
    <tr>
      <td width="68%"><font face="Times New Roman, Times, Serif" size=2>Payment
        of filing fee (Check the appropriate box):</font></td>
      <td width="5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
      <td width="27%">
        <div align="right"></div>
      </td>
    </tr>
  </table>
  <br>
</div>
<table cellpadding=0 cellspacing=0 border=0 align="center" width=600>
  <tr valign=Bottom>
    <td align=LEFT width=20 valign="top"><font face="Times New Roman, Times, Serif" size=2>|X|</font></td>
    <td align=LEFT width=16><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT colspan="3"><font face="Times New Roman, Times, Serif" size=2>No
      fee required.</font><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=20 valign="top">&nbsp;</td>
    <td align=LEFT width=16>&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top"><font face="Times New Roman, Times, Serif" size=2>|_|</font></td>
    <td align=LEFT width="16"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT colspan="3"><font face="Times New Roman, Times, Serif" size=2>Fee
      computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11</font><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top"><font face="Times New Roman, Times, Serif" size=2>(1)</font></td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3"><font face="Times New Roman, Times, Serif" size=2>Title
      of each class of securities to which transaction applies:</font> </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top"><font face="Times New Roman, Times, Serif" size=2>(2)</font></td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3"><font face="Times New Roman, Times, Serif" size=2>Aggregate
      number of securities to which transaction applies:</font> </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top"><font face="Times New Roman, Times, Serif" size=2>(3)</font></td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3"><font face="Times New Roman, Times, Serif" size=2>Per
      unit price or other underlying value of transaction&nbsp;computed pursuant
      to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee
      is calculated and state how it was determined.):</font> </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top"><font face="Times New Roman, Times, Serif" size=2>(4)</font></td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3"><font face="Times New Roman, Times, Serif" size=2>Proposed
      maximum aggregate value of transaction:</font> </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top"><font face="Times New Roman, Times, Serif" size=2>(5)</font></td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3"><font face="Times New Roman, Times, Serif" size=2>Total
      fee paid:</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top"><font face="Times New Roman, Times, Serif" size=2>|_|</font></td>
    <td align=LEFT width="16"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT colspan="3"><font face="Times New Roman, Times, Serif" size=2>Fee
      paid previously with preliminary materials:</font> </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT colspan="3">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top"><font face="Times New Roman, Times, Serif" size=2>|_|</font></td>
    <td align=LEFT width="16"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT colspan="3"><font face="Times New Roman, Times, Serif" size=2>Check
      box if any part of the fee is offset as provided by</font> <font face="Times New Roman, Times, Serif" size=2>Exchange
      Act Rule 0-11(a)(2) and identify the filing for which&nbsp;the offsetting
      fee was paid previously. Identify the previous filing by registration statement
      number, or the form or schedule and the date of its filing</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="18">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="530">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;&nbsp;&nbsp;</td>
    <td align=LEFT width="18" valign="top"><font face="Times New Roman, Times, Serif" size=2>(1)</font></td>
    <td align=LEFT width="16">&nbsp;&nbsp;&nbsp;</td>
    <td align=LEFT width="530"><font face="Times New Roman, Times, Serif" size=2>
      Amount previously paid:</font> </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="18" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="530">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT valign="top" colspan="3">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="18" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="530">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="18" valign="top"><font face="Times New Roman, Times, Serif" size=2>(2)</font></td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="530"><font face="Times New Roman, Times, Serif" size=2>Form,
      Schedule or Registration Statement No.:</font> </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="18" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="530">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT valign="top" colspan="3">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="18" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="530">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="18" valign="top"><font face="Times New Roman, Times, Serif" size=2>(3)</font></td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="530"><font face="Times New Roman, Times, Serif" size=2>Filing
      Party:</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="18" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="530">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT valign="top" colspan="3">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="18" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="530">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="18" valign="top"><font face="Times New Roman, Times, Serif" size=2>(4)</font></td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="530"><font face="Times New Roman, Times, Serif" size=2>Date
      Filed:</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="18" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT width="530">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="20" valign="top">&nbsp;</td>
    <td align=LEFT width="16">&nbsp;</td>
    <td align=LEFT valign="top" colspan="3">
      <hr noshade size="1">
    </td>
  </tr>
</table>
<p>&nbsp; </p>
<hr size=5 noshade width=100% align=LEFT>
<p> <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 2; page: 2" -->
<P>&nbsp;</P>



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

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>NOTICE OF 2004
ANNUAL MEETINGS OF STOCKHOLDERS </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>TO BE HELD ON
AUGUST 25, 2004 </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">T</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">O
  THE </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">S</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">TOCKHOLDERS
  OF </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>
  &nbsp;&nbsp;&nbsp;C</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">ORPORATE
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">H</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">IGH
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">Y</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">IELD
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">F</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">UND
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">, I</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">NC
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">. <BR>
  &nbsp;&nbsp;&nbsp;C</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">ORPORATE
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">H</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">IGH
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">Y</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">IELD
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">F</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">UND
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">III, I</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">NC
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">. <BR>
  &nbsp;&nbsp; M</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">UNI
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">A</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">SSETS
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">F</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">UND
  </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">, I</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">NC
  </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">.: </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE
IS HEREBY GIVEN that the 2004 Annual Meeting of Stockholders (each, a &#147;Meeting&#148; and,
collectively, the &#147;Meetings&#148;) of each of the above-listed investment companies (each a
&#147;Fund&#148; and, collectively, the &#147;Funds&#148;) will be held at the offices of Fund Asset
Management, L.P. (&#147;FAM&#148;), 800 Scudders Mill Road, Plainsboro, New Jersey 08536, on
Wednesday, August 25, 2004 at the time specified for each Fund in Exhibit A to the
Combined Proxy Statement for the following purposes: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (1)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
elect a Board of Directors of each Fund to serve for the ensuing            year 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>
<BR>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Fund&#146;s Board of Directors has fixed the close of business on June 25, 2004 as the record
date for the determination of stockholders entitled to notice of and to vote at the
applicable Fund&#146;s Meeting or any adjournment thereof. </FONT></P>

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



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





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  you have any questions regarding the enclosed proxy material or need assistance
  in voting your shares, please contact our proxy solicitor, Georgeson Shareholder,
  at 1-800-645-4519. </FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="65%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="35%"><font face="Times New Roman, Times, Serif" size=2>By Order
      of the Boards of Directors</font></td>
  </tr>
  <tr>
    <td width="65%">&nbsp;</td>
    <td width="35%">&nbsp;</td>
  </tr>
  <tr>
    <td width="65%">&nbsp;</td>
    <td width="35%"><font face="Times New Roman, Times, Serif" size=2>P<font size="1">HILLIP</font>
      S. G<font size="1">ILLESPIE </font></font><font face="Times New Roman, Times, Serif" size=2><br>
      <i>Secretary of Corporate High Yield Fund, Inc,. <br>
      Corporate High Yield Fund III, Inc. and <br>
      MuniAssets Fund, Inc. </i></font></td>
  </tr>
</table>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Plainsboro, New Jersey <BR>
  Dated: July 27, 2004 </FONT></P>

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<P>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>COMBINED PROXY
STATEMENT </B></FONT></P>

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

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>2004 ANNUAL
MEETINGS OF STOCKHOLDERS </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>AUGUST 25, 2004 </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Funds will be referred to throughout this Combined Proxy Statement as listed
  below. </FONT></P>
<P align="center">&nbsp;</P>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
    <TR VALIGN=Bottom>
      <TH width="200"><font face="Times New Roman, Times, serif" size="2">Fund
        </font>
        <HR WIDTH=95% SIZE=1 COLOR=BLACK noshade>
      </TH>
      <TH width="241">&nbsp;</TH>
      <TH colspan="2"><font face="Times New Roman, Times, serif" size="2">Term
        used in this <br>
        Combined Proxy Statement </font>
        <HR WIDTH=95% SIZE=1 COLOR=BLACK noshade>
      </TH>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT WIDTH=200><font face="Times New Roman, Times, serif" size="2">Corporate
        High Yield Fund, Inc.</font></TD>
      <TD ALIGN=LEFT WIDTH=241>&nbsp;&nbsp;</TD>
      <TD ALIGN=LEFT WIDTH=53>&nbsp;&nbsp;</TD>
      <TD ALIGN=LEFT WIDTH=106><font face="Times New Roman, Times, serif" size="2">CHY</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="200"><font face="Times New Roman, Times, serif" size="2">Corporate
        High Yield Fund III, Inc.</font></TD>
      <TD ALIGN=LEFT width="241">&nbsp;</TD>
      <TD ALIGN=LEFT width="53">&nbsp;</TD>
      <TD ALIGN=LEFT width="106"><font face="Times New Roman, Times, serif" size="2">CHY
        III</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="200"><font face="Times New Roman, Times, serif" size="2">MuniAssets
        Fund, Inc.</font></TD>
      <TD ALIGN=LEFT width="241">&nbsp;</TD>
      <TD ALIGN=LEFT width="53">&nbsp;</TD>
      <TD ALIGN=LEFT width="106"><font face="Times New Roman, Times, serif" size="2">MuniAssets</font></TD>
    </TR>
  </TABLE>
  <p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>INTRODUCTION </B></FONT></p>
</div>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Combined Proxy Statement is furnished in connection with the solicitation of proxies on
behalf of the Boards of Directors of the above-listed funds (each a &#147;Fund&#148; and,
collectively, the &#147;Funds&#148;), to be voted at the 2004 Annual Meeting of Stockholders of
each Fund (each, a &#147;Meeting&#148; and, collectively, the &#147;Meetings&#148;), to be held at the
offices of Fund Asset Management, L.P. (&#147;FAM&#148;), 800 Scudders Mill Road, Plainsboro, New
Jersey 08536, on Wednesday, August 25, 2004, at the time specified in Exhibit A hereto.
The approximate mailing date of this Combined Proxy Statement is July 28, 2004. </FONT></P>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors of each Fund has fixed the close of business on June 25, 2004 as the
record date (the &#147;Record Date&#148;) for the determination of stockholders entitled to notice
of and to vote at the applicable Fund&#146;s Meeting and at any adjournment thereof.
Stockholders on the Record Date will be entitled to one vote for each share held, with no
shares having cumulative voting rights. As of the Record Date, each Fund had  </FONT></P>


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





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>outstanding the number of shares
indicated in Exhibit A. To the knowledge of each Fund, as of the Record Date, no person
is the beneficial owner of five percent or more of that Fund&#146;s outstanding shares. This
Combined Proxy Statement is being provided to the stockholders of each Fund. </FONT></P>

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

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Meetings of CHY and CHY III, 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 nominees are James H. Bodurtha, Terry K. Glenn, Joe Grills, Herbert I.
London, Andr&#233; F. Perold, Roberta Cooper Ramo, Robert S. Salomon, Jr. and Stephen B.
Swensrud (collectively, the &#147;Director Nominees&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of MuniAssets is divided into three classes, designated Class I, Class II and Class
III, with each class serving for a three-year term. At the Meeting, three Class I
Directors of MuniAssets are to be elected. The Class I Director Nominees, Messrs.
Bodurtha, Grills and Salomon, will be elected to serve until the expiration of the term
of the Class I Director Nominees and until their successors are elected and qualified or
until their earlier resignation or removal as described below. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is intended that all properly executed proxies will be voted (unless such authority has
been withheld in the proxy or revoked as described herein) as set forth below: </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
properly executed proxies will be voted &#147;FOR&#148; the three (3) Class I Director Nominees,
James H. Bodurtha, Joe Grills and Robert S. Salomon, Jr., to serve until the 2007 Annual
Meeting of Stockholders. </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>For CHY and CHY III: </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
  properly executed proxies will be voted &#147;FOR&#148; the eight (8) Director
  Nominees listed below to serve until the next Annual Meeting of Stockholders
  and until their successors are elected and qualified. </FONT></P>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 width=600>
    <tr valign=Bottom>
      <td width=19% align=LEFT>&nbsp;</td>
      <td align=center colspan="3"><font size="2" face="Times New Roman, Times, serif"><b>Nominees
        to be Elected by <br>
        Stockholders of CHY and CHY III</b> </font>
        <hr width=100% size=1 color=BLACK noshade>
      </td>
      <td width=19% align=LEFT>&nbsp;</td>
    </tr>
    <tr valign=Bottom>
      <td width=19% align=LEFT>&nbsp;</td>
      <td width=21% align=LEFT><font size="2" face="Times New Roman, Times, serif">James
        H. Bodurtha</font></td>
      <td width=17% align=LEFT>&nbsp;</td>
      <td width=24% align=LEFT><font size="2" face="Times New Roman, Times, serif">Andr&#233;
        F. Perold</font></td>
      <td width=19% align=LEFT>&nbsp;</td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="19%">&nbsp;</td>
      <td align=LEFT width="21%"><font size="2" face="Times New Roman, Times, serif">Terry
        K. Glenn</font></td>
      <td align=LEFT width="17%">&nbsp;</td>
      <td align=LEFT width="24%"><font size="2" face="Times New Roman, Times, serif">Roberta
        Cooper Ramo</font></td>
      <td align=LEFT width="19%">&nbsp;</td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="19%">&nbsp;</td>
      <td align=LEFT width="21%"><font size="2" face="Times New Roman, Times, serif">Joe
        Grills</font></td>
      <td align=LEFT width="17%">&nbsp;</td>
      <td align=LEFT width="24%"><font size="2" face="Times New Roman, Times, serif">Robert
        S. Salomon, Jr.</font></td>
      <td align=LEFT width="19%">&nbsp;</td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="19%">&nbsp;</td>
      <td align=LEFT width="21%"><font size="2" face="Times New Roman, Times, serif">Herbert
        I. London</font></td>
      <td align=LEFT width="17%">&nbsp;</td>
      <td align=LEFT width="24%"><font size="2" face="Times New Roman, Times, serif">Stephen
        B. Swensrud</font></td>
      <td align=LEFT width="19%">&nbsp;</td>
    </tr>
  </table>
  <br>
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<HR SIZE=1 noshade ALIGN=CENTER WIDTH=150>


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


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






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

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

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


<table border="0" width="100%">
  <tr>
    <td valign="bottom" width="112">
      <div align="center"><font face="Times New Roman, Times, serif" size="2"><b><font size="1">Name,
        Address+ and Age</font></b></font></div>
    </td>
    <td width="8">&nbsp;</td>
    <td valign="bottom" width="84">
      <div align="center"><font face="Times New Roman, Times, serif" size="2"><b><font size="1"><br>
        Position(s)<br>
        Held with<br>
        Each Fund</font></b></font></div>
    </td>
    <td width="8">&nbsp;</td>
    <td valign="bottom" width="108">
      <div align="center"><font face="Times New Roman, Times, serif" size="2"><b><font size="1"><br>
        Term of<br>
        Office and<br>
        Length of<br>
        Time Served</font></b></font></div>
    </td>
    <td width="8">&nbsp;</td>
    <td valign="bottom" width="453">
      <div align="center"><font face="Times New Roman, Times, serif" size="2"><b><font size="1"><br>
        Principal Occupation(s)<br>
        During Past Five Years</font></b></font></div>
    </td>
    <td width="8">&nbsp;</td>
    <td valign="bottom" width="111">
      <div align="center"><font face="Times New Roman, Times, serif" size="2"><b><font size="1"><br>
        Number of<br>
        MLIM/FAM-<br>
        Advised<br>
        Funds++ and<br>
        Portfolios<br>
        Overseen</font></b></font></div>
    </td>
    <td width="8">&nbsp;</td>
    <td valign="bottom" width="63">
      <div align="center"><font face="Times New Roman, Times, serif" size="2"><b><font size="1">Public<br>
        Directorships </font></b></font></div>
    </td>
  </tr>
  <tr>
    <td width="112">
      <hr noshade size="1">
    </td>
    <td width="8">&nbsp;</td>
    <td width="84">
      <hr noshade size="1">
    </td>
    <td width="8">&nbsp;</td>
    <td width="108">
      <hr noshade size="1">
    </td>
    <td width="8">&nbsp;</td>
    <td width="453">
      <hr noshade size="1">
    </td>
    <td width="8">&nbsp;</td>
    <td width="111">
      <hr noshade size="1">
    </td>
    <td width="8">&nbsp;</td>
    <td width="63">
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td width="112">&nbsp;</td>
    <td width="8">&nbsp;</td>
    <td width="84">&nbsp;</td>
    <td width="8">&nbsp;</td>
    <td width="108">&nbsp;</td>
    <td width="8">&nbsp;</td>
    <td width="453">&nbsp;</td>
    <td width="8">&nbsp;</td>
    <td width="111">&nbsp;</td>
    <td width="8">&nbsp;</td>
    <td width="63">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="112"><font face="Times New Roman, Times, serif" size="2">Terry&nbsp;K.&nbsp;Glenn*&nbsp;(63)</font></td>
    <td width="8">&nbsp;</td>
    <td valign="top" width="84"><font face="Times New Roman, Times, serif" size="2">President&nbsp;and
      Director</font></td>
    <td width="8">&nbsp;</td>
    <td valign="top" width="108"><font face="Times New Roman, Times, serif" size="2">President**
      and Director***&nbsp;of each Fund since 1999 </font></td>
    <td width="8">&nbsp;</td>
    <td valign="top" width="453"><font face="Times New Roman, Times, serif" size="2">President
      of the MLIM/FAM-advised funds since 1999; Chairman (Americas Region) of
      MLIM from 2000 to 2002; Executive Vice President of FAM and MLIM (which
      terms as used herein include their corporate predecessors) from 1983 to
      2002; President of FAM Distributors, Inc. (&#147;FAMD&#148;) from 1986 to
      2002, and Director thereof from 1991 to 2002; Executive Vice President and
      Director of Princeton Services, Inc. (&#147;Princeton Services&#148;) from
      1993 to 2002; President of Princeton Administrators, L.P. (&#147;Princeton
      Administrators&#148;) from 1988 to 2002; Director of Financial Data Services,
      Inc. from 1985 to 2002.<br>
      </font></td>
    <td width="8">&nbsp;</td>
    <td valign="top" width="111"><font face="Times New Roman, Times, serif" size="2">125&nbsp;registered
      investment companies consisting of 160 portfolios</font></td>
    <td width="8">&nbsp;</td>
    <td valign="top" width="63"><font face="Times New Roman, Times, serif" size="2">None</font></td>
  </tr>
</table>
<font face="Times New Roman, Times, serif" size="2"><br>
<!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" --> </font>
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>


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

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> &#134;&#134;</FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT>
</TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">   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>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">  * </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Mr.
Glenn is an &#147;interested person,&#148; as defined in the Investment Company       Act, of each
Fund based on his current and former positions with MLIM,       FAM, FAMD, Princeton
Services and Princeton Administrators, and/or his       ownership of securities issued by
Merrill Lynch &amp; Co., Inc. (&#147;ML&amp;Co.&#148;).</FONT></TD></TR></TABLE>

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

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


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






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



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
biographical and other information relating to the Director Nominees who are not
&#147;interested persons,&#148; as defined in the Investment Company Act, of any Fund
(&#147;non-interested Directors&#148;) is set forth below. Each Director Nominee is a member of
each Fund&#146;s Audit Committee and Nominating Committee. </FONT></P>



<table border="0" width="100%">
  <tr>
    <td valign="bottom" width="114">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Name,
        Address* and Age</b></font></div>
    </td>
    <td width="8">&nbsp;</td>
    <td valign="bottom" width="72">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Position(s)<br>
        Held with<br>
        Each Fund </b></font></div>
    </td>
    <td width="10">&nbsp;</td>
    <td valign="bottom" width="99">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Term
        of<br>
        Office** and<br>
        Length of<br>
        Time Served </b></font></div>
    </td>
    <td width="9">&nbsp;</td>
    <td valign="bottom" width="433">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Principal
        Occupation(s)<br>
        During Past Five Years</b></font></div>
    </td>
    <td width="10">&nbsp;</td>
    <td valign="bottom" width="85">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Number
        of<br>
        MLIM/FAM-<br>
        Advised<br>
        Funds and<br>
        Portfolios<br>
        Overseen </b></font></div>
    </td>
    <td width="12">&nbsp;</td>
    <td valign="bottom" width="93">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Public<br>
        Directorships</b></font></div>
    </td>
  </tr>
  <tr>
    <td width="114">
      <hr noshade size="1">
    </td>
    <td width="8">&nbsp;</td>
    <td width="72">
      <hr noshade size="1">
    </td>
    <td width="10">&nbsp;</td>
    <td width="99">
      <hr noshade size="1">
    </td>
    <td width="9">&nbsp;</td>
    <td width="433">
      <hr noshade size="1">
    </td>
    <td width="10">&nbsp;</td>
    <td width="85">
      <hr noshade size="1">
    </td>
    <td width="12">&nbsp;</td>
    <td width="93">
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td width="114">&nbsp;</td>
    <td width="8">&nbsp;</td>
    <td width="72">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="99">&nbsp;</td>
    <td width="9">&nbsp;</td>
    <td width="433">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="85">&nbsp;</td>
    <td width="12">&nbsp;</td>
    <td width="93">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="114"><font face="Times New Roman, Times, serif" size="2">James&nbsp;H.&nbsp;Bodurtha&nbsp;<br>
      (60)</font></td>
    <td width="8">&nbsp;</td>
    <td valign="top" width="72"><font face="Times New Roman, Times, serif" size="2">Director</font></td>
    <td width="10">&nbsp;</td>
    <td valign="top" width="99"><font face="Times New Roman, Times, serif" size="2">
      Director of<br>
      each Fund since&nbsp;the&nbsp;year <br>
      listed in Exhibit&nbsp;B.</font></td>
    <td width="9">&nbsp;</td>
    <td valign="top" width="433"><font face="Times New Roman, Times, serif" size="2">Director,
      The China Business Group, Inc. since 1996 and Executive Vice President thereof
      from 1996 to 2003; Chairman of the Board, Berkshire Holding Corporation
      since 1980; Partner, Squire, Sanders &amp; Dempsey from 1980 to 1993.<br>
      </font></td>
    <td width="10">&nbsp;</td>
    <td valign="top" width="85"><font face="Times New Roman, Times, serif" size="2">38&nbsp;registered
      investment companies consisting of<br>
      55 portfolios</font></td>
    <td width="12">&nbsp;</td>
    <td valign="top" width="93"><font face="Times New Roman, Times, serif" size="2">None</font></td>
  </tr>
<tr>&nbsp;</tr>
  <tr>
    <td valign="top" width="114"><font face="Times New Roman, Times, serif" size="2">Joe
      Grills (69)</font></td>
    <td width="8">&nbsp;</td>
    <td valign="top" width="72"><font face="Times New Roman, Times, serif" size="2">Director</font></td>
    <td width="10">&nbsp;</td>
    <td valign="top" width="99"><font face="Times New Roman, Times, serif" size="2">Director
      of<br>
      each Fund<br>
      since the year <br>
      listed in Exhibit&nbsp;B.</font></td>
    <td width="9">&nbsp;</td>
    <td valign="top" width="433"><font face="Times New Roman, Times, serif" size="2">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
      University Management Company from 1992 to 2004, Vice Chairman thereof from
      1998 to 2004 and Director Emeritus thereof since 2004; 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></td>
    <td width="10">&nbsp;</td>
    <td valign="top" width="85"><font face="Times New Roman, Times, serif" size="2">
      38 registered investment companies consisting of<br>
      55 portfolios </font></td>
    <td width="12">&nbsp;</td>
    <td valign="top" width="93"><font face="Times New Roman, Times, serif" size="2">Kimco Realty <br>
      Corporation </font></td>
  </tr>
</table>
 <font face="Times New Roman, Times, serif" size="1"><b><br>
</b></font><br>
<br>
<font face="Times New Roman, Times, serif" size="2"><br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
</font><!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<P>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
4</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<P> <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 11; page: 11" -->


<table border="0" width="100%">
  <tr>
    <td valign="bottom" width="27%">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Name,
        Address* and Age</b></font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td valign="bottom" width="10%">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Position(s)<br>
        Held with<br>
        Each Fund </b></font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td valign="bottom" width="11%">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Term
        of<br>
        Office** and<br>
        Length of<br>
        Time Served </b></font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td valign="bottom" width="18%">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Principal
        Occupation(s)<br>
        During Past Five Years</b></font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td valign="bottom" width="12%">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Number
        of<br>
        MLIM/FAM-<br>
        Advised<br>
        Funds and<br>
        Portfolios<br>
        Overseen </b></font></div>
    </td>
    <td width="1%">&nbsp;</td>
    <td valign="bottom" width="17%">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Public<br>
        Directorships</b></font></div>
    </td>
  </tr>
  <tr>
    <td width="27%">
      <hr noshade size="1">
    </td>
    <td width="1%">&nbsp;</td>
    <td width="10%">
      <hr noshade size="1">
    </td>
    <td width="1%">&nbsp;</td>
    <td width="11%">
      <hr noshade size="1">
    </td>
    <td width="1%">&nbsp;</td>
    <td width="18%">
      <hr noshade size="1">
    </td>
    <td width="1%">&nbsp;</td>
    <td width="12%">
      <hr noshade size="1">
    </td>
    <td width="1%">&nbsp;</td>
    <td width="17%">
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td width="27%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="11%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="18%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="1%">&nbsp;</td>
    <td width="17%">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="27%"><font face="Times New Roman, Times, serif" size="2">Herbert&nbsp;I.&nbsp;London&nbsp;(65)</font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="10%"><font face="Times New Roman, Times, serif" size="2">Director</font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="11%"><font face="Times New Roman, Times, serif" size="2">Director
      of<br>
      each Fund<br>
      since the year listed in<br>
      Exhibit&nbsp;B.<br>
      </font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="18%"><font face="Times New Roman, Times, serif" size="2">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; Director, Level Playing Field (education) from
      2000 to 2003.<br>
      </font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="12%"><font face="Times New Roman, Times, serif" size="2">38
      registered investment companies consisting of<br>
      55 portfolios</font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="17%"><font face="Times New Roman, Times, serif" size="2">None</font></td>
  </tr>
  <tr>
    <td valign="top" width="27%"><font face="Times New Roman, Times, serif" size="2">Andr&#233;
      F. Perold (52)</font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="10%"><font face="Times New Roman, Times, serif" size="2">Director</font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="11%"><font face="Times New Roman, Times, serif" size="2">Director
      of<br>
      each Fund<br>
      since the year listed in<br>
      Exhibit&nbsp;B.</font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="18%"><font face="Times New Roman, Times, serif" size="2">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 from
      1999 to 2003; Director, Stockback, Inc. from 2000 to 2002; Director, Sanlam
      Limited from 2001 to 2003; 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></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="12%"><font face="Times New Roman, Times, serif" size="2">
      38 registered investment companies consisting of<br>
      55 portfolios<br>
      </font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="17%"><font face="Times New Roman, Times, serif" size="2">None</font></td>
  </tr>
  <tr>
    <td valign="top" width="27%"><font face="Times New Roman, Times, serif" size="2">Roberta
      Cooper Ramo (61)</font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="10%"><font face="Times New Roman, Times, serif" size="2">Director</font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="11%"><font face="Times New Roman, Times, serif" size="2">Director
      of<br>
      each Fund<br>
      since the year listed in<br>
      Exhibit&nbsp;B.</font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="18%"><font face="Times New Roman, Times, serif" size="2">
      Shareholder of 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; Shareholder of 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></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="12%"><font face="Times New Roman, Times, serif" size="2">
      38 registered investment companies consisting of<br>
      55 portfolios</font></td>
    <td width="1%">&nbsp;</td>
    <td valign="top" width="17%"><font face="Times New Roman, Times, serif" size="2">None
      </font></td>
  </tr>
</table>

<font face="Times New Roman, Times, serif" size="2"><br>
<br>
<br>
<br>
<br>
<br>
<br>
<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" --> </font>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
5</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>

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




<table border="0" width="100%">
  <tr>
    <td valign="bottom" width="124">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Name,
        Address* and Age</b></font></div>
    </td>
    <td width="9">&nbsp;</td>
    <td valign="bottom" width="65">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Position(s)<br>
        Held with<br>
        Each Fund </b></font></div>
    </td>
    <td width="8">&nbsp;</td>
    <td valign="bottom" width="100">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Term
        of<br>
        Office** and<br>
        Length of<br>
        Time Served </b></font></div>
    </td>
    <td width="10">&nbsp;</td>
    <td valign="bottom" width="434">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Principal
        Occupation(s)<br>
        During Past Five Years</b></font></div>
    </td>
    <td width="11">&nbsp;</td>
    <td valign="bottom" width="82">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Number
        of<br>
        MLIM/FAM-<br>
        Advised<br>
        Funds and<br>
        Portfolios<br>
        Overseen </b></font></div>
    </td>
    <td width="12">&nbsp;</td>
    <td valign="bottom" width="87">
      <div align="center"><font face="Times New Roman, Times, serif" size="1"><b>Public<br>
        Directorships</b></font></div>
    </td>
  </tr>
  <tr>
    <td width="124">
      <hr noshade size="1">
    </td>
    <td width="9">&nbsp;</td>
    <td width="65">
      <hr noshade size="1">
    </td>
    <td width="8">&nbsp;</td>
    <td width="100">
      <hr noshade size="1">
    </td>
    <td width="10">&nbsp;</td>
    <td width="434">
      <hr noshade size="1">
    </td>
    <td width="11">&nbsp;</td>
    <td width="82">
      <hr noshade size="1">
    </td>
    <td width="12">&nbsp;</td>
    <td width="87">
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td width="124" height="19">&nbsp;</td>
    <td width="9" height="19">&nbsp;</td>
    <td width="65" height="19">&nbsp;</td>
    <td width="8" height="19">&nbsp;</td>
    <td width="100" height="19">&nbsp;</td>
    <td width="10" height="19">&nbsp;</td>
    <td width="434" height="19">&nbsp;</td>
    <td width="11" height="19">&nbsp;</td>
    <td width="82" height="19">&nbsp;</td>
    <td width="12" height="19">&nbsp;</td>
    <td width="87" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" width="124"><font face="Times New Roman, Times, serif" size="2">Robert&nbsp;S.&nbsp;Salomon,&nbsp;Jr.&nbsp;<br>
      (67)</font></td>
    <td width="9">&nbsp;</td>
    <td valign="top" width="65"><font face="Times New Roman, Times, serif" size="2">Director</font></td>
    <td width="8">&nbsp;</td>
    <td valign="top" width="100"><font face="Times New Roman, Times, serif" size="2">
      Director of each Fund since&nbsp;the&nbsp;<br>
      year listed in<br>
      Exhibit&nbsp;B.</font></td>
    <td width="10">&nbsp;</td>
    <td valign="top" width="434"><font face="Times New Roman, Times, serif" size="2">
      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 2002; Director of Stock Research and U.S.
      Equity Strategist at Salomon Brothers Inc. from 1975 to 1991; Trustee, Commonfund
      from 1980 to 2001. </font></td>
    <td width="11">&nbsp;</td>
    <td valign="top" width="82"><font face="Times New Roman, Times, serif" size="2">38
      registered investment companies consisting of<br>
      55 portfolios</font></td>
    <td width="12">&nbsp;</td>
    <td valign="top" width="87"><font face="Times New Roman, Times, serif" size="2">None
      </font></td>
  </tr>
  <tr>
    <td valign="top" width="124"><font face="Times New Roman, Times, serif" size="2">Stephen&nbsp;B.&nbsp;Swensrud&nbsp;<br>
      (71)</font></td>
    <td width="9">&nbsp;</td>
    <td valign="top" width="65"><font face="Times New Roman, Times, serif" size="2">Director</font></td>
    <td width="8">&nbsp;</td>
    <td valign="top" width="100"><font face="Times New Roman, Times, serif" size="2">Director
      of each Fund since&nbsp;the&nbsp;<br>
      year listed in<br>
      Exhibit&nbsp;B. </font></td>
    <td width="10">&nbsp;</td>
    <td valign="top" width="434"><font face="Times New Roman, Times, serif" size="2">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></td>
    <td width="11">&nbsp;</td>
    <td valign="top" width="82"><font face="Times New Roman, Times, serif" size="2">39
      registered investment companies consisting of<br>
      56 portfolios </font></td>
    <td width="12">&nbsp;</td>
    <td valign="top" width="87"><font face="Times New Roman, Times, serif" size="2">None
      </font></td>
  </tr>
</table>

<P> <!-- *************************************************************************** -->
  <font face="Times New Roman, Times, serif" size="2"> </font> </p>
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">  * </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">The
address of each non-interested Director is P.O. Box 9095, Princeton, NJ 08543-9095.</FONT></TD></TR></TABLE>


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



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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Fund maintains two standing board committees, the Audit Committee and the Nominating
Committee, each consisting of the Directors who are not &#147;interested persons&#148; of the Fund,
as defined in the Investment Company Act and who are &#147;independent&#148; as defined in the
listing standards of the New York Stock Exchange (&#147;NYSE&#148;). Currently, Ms. Ramo and
Messrs. Bodurtha, Grills, London, Perold, Salomon and Swensrud are members of each Fund&#146;s
Audit Committee and Nominating Committee. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Audit Committees </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
principal responsibilities of each Audit Committee are the appointment, compensation and
oversight of the Fund&#146;s independent registered public accounting firm, including the
resolution of disagreements regarding financial reporting between Fund management and
such independent registered public accounting firm. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Fund has adopted a written Charter for the Audit Committee, which is attached as Exhibit
D to this Combined Proxy Statement. Each Fund&#146;s Audit Committee also has received written
disclosures and the letter required by Independence Standards Board Standard No. 1, as
may be modified or supplemented, from  </FONT></P>


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





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Deloitte &amp; Touche <font size="1">LLP</font>
  (&#147;D&amp;T&#148;), independent registered public accounting firm for each
  of the Funds. Each Audit Committee has discussed with D&amp;T such firm&#146;s
  independence with respect to the Fund and certain matters required to be discussed
  by Statements on Auditing Standards No. 61. Each Audit Committee has considered
  whether the provision of non-audit services by the Fund&#146;s independent registered
  public accounting firm is compatible with maintaining the independence of those
  accountants. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Audit Committee also reviews and discusses the audit of the Fund&#146;s financial statements
with Fund management and the independent registered public accounting firm. If any
material concerns arise during the course of the audit and the preparation of the audited
financial statements mailed to stockholders and included in the Fund&#146;s Annual Report to
Stockholders, the Audit Committee would be notified by Fund management or the independent
registered public accounting firm. The Audit Committees received no such notifications
for any of the Funds. Following each Audit Committee&#146;s review and discussion regarding
the audit of the Fund&#146;s financial statements with Fund management and the independent
registered public accounting firm, each Audit Committee recommended to the Directors that
the Fund&#146;s audited financial statements for the fiscal year ended May 31, 2004 be
included in each Fund&#146;s Annual Report to Stockholders. </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Nominating Committees </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
principal responsibilities of each Nominating Committee are to identify individuals
qualified to serve as non-interested Directors of the Fund and to recommend its nominees
for consideration by the full Board. While each Nominating Committee is solely
responsible for the selection and nomination of the Fund&#146;s non-interested Directors, the
Nominating Committee may consider nominations for the office of Director made by Fund
stockholders as it deems appropriate. Stockholders who wish to recommend a nominee should
send nominations to the applicable Fund&#146;s Secretary and include biographical information
and set forth the qualifications of the proposed nominee. The Nominating Committee
evaluates nominees from whatever source using the same standard. Each Fund adopted a
Charter of the Nominating Committee on February 18, 2004, a copy of which is attached
hereto as Exhibit E. </FONT></P>

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

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
each Fund&#146;s most recently completed fiscal year, each of the Directors then in office
attended at least 75% of the aggregate of the total number of meetings of the Board of
Directors of that Fund held during the fiscal year and, if a member, the total number of
meetings of the Audit Committee held during that period. Each Fund&#146;s Nominating Committee
is newly formed and did not meet during any Fund&#146;s last fiscal year. See Exhibit A for
further information about Committee and Board meetings. </FONT></P>




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







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

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

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Director Attendance at
Stockholder Meetings </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Funds have no formal policy regarding Director attendance at stockholder meetings. None
of the Funds&#146; Directors attended the 2003 Annual Meetings of Stockholders. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Compliance with
Section 16(a) of the Exchange Act </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
16(a) of the Exchange Act requires the officers and Directors of each Fund and persons
who own more than ten percent of a registered class of the Fund&#146;s equity securities to
file reports of ownership and changes in ownership on Forms 3, 4 and 5 with the
Securities and Exchange Commission (&#147;SEC&#148;) and the NYSE. Officers, Directors and greater
than ten percent stockholders of each Fund are required by SEC regulations to furnish the
Fund with copies of all Forms 3, 4 and 5 they file. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
  solely on each Fund&#146;s review of the copies of such forms, and amendments
  thereto, furnished to it during or with respect to its most recent fiscal year,
  and written representations from certain reporting persons that they were not
  required to file Form 5 with respect to the most recent fiscal year, each Fund
  believes that all of its officers, Directors, greater than ten percent beneficial
  owners and other persons subject to Section 16 of the Exchange Act due to the
  requirements of Section 30 of the Investment Company Act (<i>i.e.,</i> any advisory
  board member, investment adviser or affiliated person of the Fund&#146;s investment
  adviser) have complied with all filing requirements applicable to them with
  respect to transactions during the Fund&#146;s most recent fiscal year. </FONT></P>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAM,
the Investment Adviser of each Fund, pays all compensation to all officers and Directors
of each Fund who are affiliated with ML &amp; Co. or its subsidiaries. Each Fund pays
each non-interested Director an annual retainer of $125,000 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 Audit 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. Each Co-Chairman of the Audit Committee receives an additional annual
retainer in the amount of $25,000, which is paid quarterly and allocated to each
MLIM/FAM-advised fund for which such Co-Chairman provides services based on the relative
net assets of the fund. </FONT></P>



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





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




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
relating to the aggregate fees and expenses paid by each Fund to its non-interested
Directors during each Fund&#146;s most recently completed fiscal year is set forth in Exhibit
A. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
relating to the officers of each Fund is set forth in Exhibit C. Officers of the Funds
are elected and appointed by the Board of Directors and hold office until they resign,
are removed or are otherwise disqualified to serve. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth in Exhibit B to the Combined Proxy Statement is the following information for each
Director Nominee: (i) the number of shares of each Fund owned; (ii) the aggregate dollar
range such stock ownership represents; and (iii) the aggregate dollar range of securities
owned in all MLIM/FAM-advised funds for which the Director Nominee currently serves as a
Director. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  of June 30, 2004, no non-interested Director Nominee or his or her immediate
  family members, owned beneficially or of record any securities of ML &amp; Co.
  As of June 30, 2004, the Directors and officers of each Fund as a group owned
  an aggregate of less than 1% of the Fund&#146;s outstanding shares. At such
  date, all of the officers of each Fund owned an aggregate of less than 1% of
  the outstanding shares of common stock of ML &amp; Co. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
Board of Directors of each Fund recommends that the stockholders vote &#147;FOR&#148; the election
of the Director Nominees.</B> </FONT> </P>





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





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

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Expenses and Methods
of Proxy Solicitation; Vote Required </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
expenses of preparation, printing and mailing of the enclosed forms of proxy, the
accompanying Notice and this Combined Proxy Statement will be borne by the Funds in
proportion to its relative net assets. The Funds will reimburse banks, brokers and others
for their reasonable expenses in forwarding proxy solicitation material to the beneficial
owners of shares of the Funds. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
CHY III, one-third of the Fund&#146;s shares entitled to vote at the Meeting, present in
person or by proxy, constitutes a quorum; for each of CHY and MuniAssets, a majority of
the Fund&#146;s shares entitled to vote at the Meeting, present in person or by proxy,
constitutes a quorum. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to obtain the necessary quorum at each Meeting, supplementary solicitation may be
made by mail, telephone, telegraph or personal interview by officers of each Fund. If, by
the time scheduled for a Meeting, a quorum of stockholders is not present or if a quorum
is present but sufficient votes to allow action on the proposal are not received from the
stockholders, the persons named as proxies may propose one or more adjournments of the
Meeting to permit further solicitation of proxies from stockholders. Any such adjournment
will require the affirmative vote of a majority of the shares of the Fund present in
person or by proxy and entitled to vote at the time of the Meeting to be adjourned. The
persons named as proxies will vote in favor of any such adjournment if they believe the
adjournment and additional proxy solicitation are reasonable and in the best interests of
the Fund&#146;s stockholders. Each Fund has retained Georgeson Shareholder, 17 State Street,
New York, New York 10004, to assist in the solicitation of proxies at a cost of
approximately $3,500 for each Fund, plus out-of-pocket expenses estimated to be $500 for
each Fund. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Director Nominees.
Assuming a quorum is present at each Meeting, the election of Directors, at each Meeting,
will require the affirmative vote of a plurality of votes cast by stockholders at that
Meeting. &#147;Plurality of the votes&#148; means the candidate must receive more votes than any
other candidate for the same position, but not necessarily a majority of the votes cast. </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Broker Non-Votes and
Abstentions </B></FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broker-dealer
firms, including Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated (&#147;MLPF&amp;S&#148;),
holding shares of each Fund in &#147;street name&#148; for the benefit of their customers and
clients, will request the instructions of such customers and clients on how to vote their
shares on the election of Directors (Item 1) before the Meeting. The Funds understand
that, under the rules of the NYSE, such broker-dealer firms may, without instructions
from their customers and clients, grant authority to the proxies designated to vote on
the election of Directors (Item 1) if no instructions have been received prior to the
date specified in the broker-dealer firm&#146;s request for voting instructions. Proxies that
are returned to a Fund but that are marked &#147;abstain&#148; or on which a broker-dealer has
declined to vote on any proposal (&#147;broker non-votes&#148;) will be counted as present for the
purposes of determining a quorum. MLPF&amp;S has advised each Fund that if it votes
shares held in its name for which no instructions are received, except as limited by
agreement or applicable law, it will do so in the same proportion as the votes received
from beneficial owners of those shares for which instructions  </FONT></P>


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





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>have been received, whether or not
held in nominee name. Abstentions and broker non-votes will not be counted as votes cast.
Therefore, abstentions and broker non-votes will not have an effect on the vote on Item 1
for any Fund. </FONT></P>

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

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


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Independent Registered
Public Accounting Firm&#146;s Fees </B></FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
SEC&#146;s auditor independence rules require the Audit Committee of each Fund to pre-approve
(a) all audit and permissible non-audit services provided by the Fund&#146;s independent
registered public accounting firm directly to the Fund and (b) those permissible
non-audit services provided by the Fund&#146;s independent registered public accounting firm
to the Fund&#146;s Investment Adviser and any entity controlling, controlled by or under
common control with the Investment Adviser that provides ongoing services to the Fund
(the &#147;Affiliated Service Providers&#148;), if the services relate directly to the operations
and financial reporting of the Fund. </FONT></P>

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

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2><i>Audit Fees</i> are for the audit of the Fund&#146;s
      annual financial statements included in the Fund&#146;s reports to stockholders
      and in connection with statutory and regulatory filing or engagements;</FONT></TD>
  </TR></TABLE>

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2><i>Audit-Related Fees</i> include assurance and
      related services reasonably related to the performance of the audit of financial
      statements not included in Audit Fees;</FONT></TD>
  </TR></TABLE>

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2><i>Tax Fees</i> include tax compliance, tax advice
      and tax planning; and </FONT></TD>
  </TR></TABLE>

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2><i>All Other Fees</i> are for other products and
      services provided.</FONT></TD>
  </TR></TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Fund also is required to disclose the total non-audit fees paid to its independent
registered public accounting firm, for services rendered to the Fund and its Affiliated
Service Providers regardless of whether those fees were pre-approved by the Audit
Committee. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
fiscal year end for each Fund is May 31. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Fees for audit and
non-audit services provided directly to the Fund: </I></B></FONT></P>





<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH colspan="3">&nbsp;<font face="Times New Roman, Times, serif" size="1"><b>Audit
      Fees</b></font></TH>
    <TH>&nbsp;</TH>
    <TH colspan="5"><font face="Times New Roman, Times, serif" size="1">Audit-Related&nbsp;Fees&nbsp;($)</font></TH>
    <TH>&nbsp;</TH>
    <TH colspan="3"><font face="Times New Roman, Times, serif" size="1">Tax Fees
      ($)</font></TH>
    <TH>&nbsp;</TH>
    <TH colspan="3"><font face="Times New Roman, Times, serif" size="1">All Other
      Fees</font></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH colspan="3">
      <hr width=95% size=1 color=BLACK noshade>
    </TH>
    <TH>&nbsp;</TH>
    <TH colspan="5">
      <hr width=95% size=1 color=BLACK noshade>
    </TH>
    <TH>&nbsp;</TH>
    <TH colspan="3">
      <hr width=95% size=1 color=BLACK noshade>
    </TH>
    <TH>&nbsp;</TH>
    <TH colspan="3">
      <hr width=95% size=1 color=BLACK noshade>
    </TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH align="left"><font face="Times New Roman, Times, serif" size="1">Fund</font></TH>
    <TH>&nbsp;</TH>
    <TH><font face="Times New Roman, Times, serif" size="1">Independent&nbsp;Registered<BR>
      Public&nbsp;Accounting&nbsp;Firm</font></TH>
    <TH>&nbsp;</TH>
    <TH><BR>
      <font face="Times New Roman, Times, serif" size="1">2004</font></TH>
    <TH>&nbsp;</TH>
    <TH><font face="Times New Roman, Times, serif" size="1">2003</font></TH>
    <TH>&nbsp;</TH>
    <TH colspan="2"><font face="Times New Roman, Times, serif" size="1"><BR>
      2004</font></TH>
    <TH>&nbsp;</TH>
    <TH colspan="2"><font face="Times New Roman, Times, serif" size="1">2003</font></TH>
    <TH>&nbsp;</TH>
    <TH><font face="Times New Roman, Times, serif" size="1"><BR>
      2004*</font></TH>
    <TH>&nbsp; </TH>
    <TH><font face="Times New Roman, Times, serif" size="1">2003*</font></TH>
    <TH>&nbsp;</TH>
    <TH><font face="Times New Roman, Times, serif" size="1">2004</font></TH>
    <TH>&nbsp;</TH>
    <TH>
      <div align="center"><font face="Times New Roman, Times, serif" size="1">2003
        </font></div>
    </TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>
      <hr width=35% size=1 color=BLACK noshade align="left">
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <hr width=95% size=1 color=BLACK noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr width=95% size=1 color=BLACK noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr width=95% size=1 color=BLACK noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT colspan="2">
      <hr width=95% size=1 color=BLACK noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT colspan="2">
      <hr width=95% size=1 color=BLACK noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr width=95% size=1 color=BLACK noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr width=95% size=1 color=BLACK noshade>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr width=95% size=1 color=BLACK noshade>
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <hr width=95% size=1 color=BLACK noshade align="center">
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">CHY</font></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=LEFT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"><font size="2">&nbsp;</font></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">35,000</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"><font size="2"></font></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">45,925</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"><font size="2">&nbsp;</font></div>
    </TD>
    <TD ALIGN=RIGHT> <font face="Times New Roman, Times, serif" size="2">7,500</font></TD>
    <TD ALIGN=LEFT> <font size="2">**</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT> <font face="Times New Roman, Times, serif" size="2">7,500</font></TD>
    <TD ALIGN=LEFT> <font size="2">**&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">5,200</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"><font size="2"></font></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">4,800</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"><font size="2">&nbsp;</font></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">0</font></div>
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">0</font></div>
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">CHY III</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">35,000</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">35,000</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=RIGHT> <font face="Times New Roman, Times, serif" size="2">7,500</font></TD>
    <TD ALIGN=LEFT> **</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT> <font face="Times New Roman, Times, serif" size="2">7,500</font></TD>
    <TD ALIGN=LEFT> **</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">5,200</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">4,800</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">0</font></div>
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">0</font></div>
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font face="Times New Roman, Times, serif" size="2">MuniAssets</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">26,000</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">25,000</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=RIGHT> <font face="Times New Roman, Times, serif" size="2">0</font></TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT> <font face="Times New Roman, Times, serif" size="2">0</font></TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">5,610</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">4,800</font></div>
    </TD>
    <TD ALIGN=LEFT>
      <div align="center"></div>
    </TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">0</font></div>
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">0</font></div>
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
</TABLE>


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

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

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<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=left VALIGN=top><FONT SIZE="1">** </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Agreed upon procedures associated with monthly seller report.</FONT></TD></TR></TABLE>


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






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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Fees for non-audit
services provided to the Fund&#146;s Affiliated Service Providers for which pre-approval by
the Audit Committee was required: </I></B></FONT></P>





<table cellpadding=0 cellspacing=0 border=0 width=100%>
  <tr valign=Bottom>
    <th width="17%">&nbsp;</th>
    <th width="0%">&nbsp;</th>
    <th align="center" width="25%">&nbsp;</th>
    <th align="center" width="0%">&nbsp;</th>
    <th colspan="2" align="center"><font face="Times New Roman, Times, serif" size="1">Audit-Related
      Fees ($)</font></th>
    <th align="center" width="0%">&nbsp;</th>
    <th align="center" colspan="2"><font face="Times New Roman, Times, serif" size="1">Tax
      Fees ($)</font></th>
    <th align="center" width="0%">&nbsp;</th>
    <th colspan="3" align="center"><font face="Times New Roman, Times, serif" size="1">All
      Other Fees ($)</font></th>
  </tr>
  <tr valign=Bottom>
    <th width="17%">&nbsp;</th>
    <th width="0%">&nbsp;</th>
    <th rowspan="2" align="center" width="25%"> <font face="Times New Roman, Times, serif" size="1">Independent&nbsp;Registered
      <br>
      Public&nbsp;Accounting&nbsp;Firm </font> </th>
    <th align="center" width="0%">&nbsp;</th>
    <td colspan="2" align="center">
      <hr width=95% size=1 color=BLACK noshade>
    </td>
    <th align="center" width="0%">&nbsp;</th>
    <th align="center" colspan="2">
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th align="center" width="0%">&nbsp;</th>
    <th colspan="3" align="center">
      <hr width=95% size=1 color=BLACK noshade>
    </th>
  </tr>
  <tr valign=Bottom>
    <th width="17%">
      <div align="left"><font face="Times New Roman, Times, serif" size="1">&nbsp;Fund</font>
      </div>
    </th>
    <th width="0%">&nbsp;</th>
    <th align="center" width="0%">&nbsp;</th>
    <th align="center" width="10%"><font face="Times New Roman, Times, serif" size="1">2004*</font>
    </th>
    <th align="center" width="9%"><font face="Times New Roman, Times, serif" size="1">2003</font></th>
    <th align="center" width="0%">&nbsp;</th>
    <th align="center" width="9%"><font face="Times New Roman, Times, serif" size="1">
      2004</font></th>
    <th align="center" width="9%"><font size="1">2003</font></th>
    <th align="center" width="0%">&nbsp;</th>
    <th align="center" width="9%"><font face="Times New Roman, Times, serif" size="1">
      2004</font><font size="2">**</font> </th>
    <th align="center" width="0%">&nbsp;</th>
    <th align="center" width="12%"><font face="Times New Roman, Times, serif" size="1">2003</font></th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=17%>
      <hr width=30% size=1 color=BLACK noshade align="left">
    </td>
    <td align=LEFT width=0%>&nbsp;</td>
    <td align="center" width="25%">
      <hr width=55% size=1 color=BLACK noshade align="center">
    </td>
    <td align=center width=0%>&nbsp;</td>
    <td align=center width="10%" >
      <hr width=40% size=1 color=BLACK noshade align="center">
    </td>
    <td align=center width=9%>
      <hr width=40% size=1 color=BLACK noshade align="center">
    </td>
    <td align=center width=0%>&nbsp;</td>
    <td align=center width="9%" >
      <hr width=60% size=1 color=BLACK noshade align="center">
    </td>
    <td align=center width=9%>
      <hr width=40% size=1 color=BLACK noshade align="center">
    </td>
    <td align=center width=0%>&nbsp;</td>
    <td align="center" width=9%>
      <hr width=40% size=1 color=BLACK noshade>
    </td>
    <td align="center" width=0%>&nbsp;</td>
    <td align=center width=12%>
      <hr width=40% size=1 color=BLACK noshade align="center">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=17%>&nbsp;</td>
    <td align=LEFT width=0%>&nbsp;</td>
    <td align=LEFT width=25%>&nbsp;</td>
    <td align=LEFT width=0%>&nbsp;</td>
    <td align=RIGHT width=10%>&nbsp;</td>
    <td align=LEFT width=9%>&nbsp;</td>
    <td align=LEFT width=0%>&nbsp;</td>
    <td align=RIGHT width=9%>&nbsp;</td>
    <td align=LEFT width=9%>&nbsp;</td>
    <td align=LEFT width=0%>&nbsp;</td>
    <td align=RIGHT width=9%>&nbsp;</td>
    <td align=RIGHT width=0%>&nbsp;</td>
    <td align=LEFT width=12%>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=17%><font face="Times New Roman, Times, serif" size="2">CHY</font></td>
    <td align=LEFT width=0%><font size="2">&nbsp;</font></td>
    <td align=LEFT width=25%>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></div>
    </td>
    <td align=LEFT width=0%>
      <div align="center"><font size="2">&nbsp;</font></div>
    </td>
    <td align=RIGHT width=10%>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">485,500</font></div>
    </td>
    <td align=LEFT width=9%>
      <div align="center"><font size="2">0</font></div>
    </td>
    <td align=LEFT width=0%>&nbsp;</td>
    <td align=LEFT width=9%>
      <div align="center"><font size="2">0</font></div>
    </td>
    <td align=LEFT width=9%>
      <div align="center"><font size="2">0</font></div>
    </td>
    <td align=LEFT width=0%>
      <div align="center"><font size="2">&nbsp;</font></div>
    </td>
    <td align=RIGHT width=9%>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">56,140</font></div>
    </td>
    <td align=RIGHT width=0%>&nbsp;</td>
    <td align=LEFT width=9%>
      <div align="center"><font size="2">0</font></div>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="17%"><font face="Times New Roman, Times, serif" size="2">CHY
      III</font></td>
    <td align=LEFT width="0%"><font size="2"></font></td>
    <td align=LEFT width="25%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></div>
    </td>
    <td align=LEFT width="0%">
      <div align="center"><font size="2"></font></div>
    </td>
    <td align=RIGHT width="10%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">485,500</font></div>
    </td>
    <td align=LEFT width="9%">
      <div align="center"><font size="2">0</font></div>
    </td>
    <td align=LEFT width="0%">&nbsp;</td>
    <td align=LEFT width="9%">
      <div align="center"><font size="2">0</font></div>
    </td>
    <td align=LEFT width="9%">
      <div align="center"><font size="2">0</font></div>
    </td>
    <td align=LEFT width="0%">
      <div align="center"><font size="2"></font></div>
    </td>
    <td align=RIGHT width="9%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">56,140</font></div>
    </td>
    <td align=RIGHT width="0%">&nbsp;</td>
    <td align=LEFT width="9%">
      <div align="center"><font size="2">0</font></div>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="17%"><font face="Times New Roman, Times, serif" size="2">MuniAssets</font></td>
    <td align=LEFT width="0%"><font size="2"></font></td>
    <td align=LEFT width="25%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></div>
    </td>
    <td align=LEFT width="0%">
      <div align="center"><font size="2"></font></div>
    </td>
    <td align=RIGHT width="10%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">485,500</font></div>
    </td>
    <td align=LEFT width="9%">
      <div align="center"><font size="2">0</font></div>
    </td>
    <td align=LEFT width="0%">&nbsp;</td>
    <td align=LEFT width="9%">
      <div align="center"><font size="2">0</font></div>
    </td>
    <td align=LEFT width="9%">
      <div align="center"><font size="2">0</font></div>
    </td>
    <td align=LEFT width="0%">
      <div align="center"><font size="2"></font></div>
    </td>
    <td align=RIGHT width="9%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">56,140</font></div>
    </td>
    <td align=RIGHT width="0%">&nbsp;</td>
    <td align=LEFT width="9%">
      <div align="center"><font size="2">0</font></div>
    </td>
  </tr>
</table>
 <!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" -->
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>
<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" --> <!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR>
    <TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">* </FONT></TD>
    <TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Primarily
related to examinations of internal controls and investment management performance
returns at Affiliated Service Providers.</FONT></TD></TR></TABLE>


<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR>
    <TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> **</FONT></TD>
    <TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Primarily
associated with project management of non-financial service systems implementations.</FONT></TD></TR></TABLE>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Aggregate non-audit
fees for services provided to the Fund and its Affiliated Service Providers, regardless
of whether pre-approval was required. </I></B></FONT></P>




<table cellpadding=0 cellspacing=0 border=0 width=100%>
  <tr valign=Bottom>
    <th width="21%">&nbsp;</th>
    <th width="1%">&nbsp;</th>
    <th width="28%">&nbsp;</th>
    <th width="1%">&nbsp;</th>
    <th colspan=3><font face="Times New Roman, Times, serif" size="1">Aggregate
      Non-Audit Fees ($)</font></th>
    <th width="2%">&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th width="21%">&nbsp;</th>
    <th width="1%">&nbsp;</th>
    <th width="28%" rowspan="2"> <font face="Times New Roman, Times, serif" size="1">Independent&nbsp;Registered
      <br>
      Public Accounting Firm </font></th>
    <th width="1%">&nbsp;</th>
    <th colspan=3>
      <hr width=70% size=1 color=BLACK noshade>
    </th>
    <th width="2%">&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th width="21%">
      <div align="left"><font face="Times New Roman, Times, serif" size="1">Fund</font>
      </div>
    </th>
    <th width="1%">&nbsp;</th>
    <th width="1%">&nbsp;</th>
    <th width="23%"><font face="Times New Roman, Times, serif" size="1"> 2004</font>
    </th>
    <th width="1%">&nbsp;</th>
    <th width="23%"><font face="Times New Roman, Times, serif" size="1">2003</font>
    </th>
    <th width="2%">&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=21%>
      <hr width=20% size=1 color=BLACK noshade align="left">
    </td>
    <td align=LEFT width=1%>&nbsp;</td>
    <td width=28%>
      <hr width=60% size=1 color=BLACK noshade>
    </td>
    <td align=LEFT width=1%>&nbsp;</td>
    <td width=23%>
      <hr width=30% size=1 color=BLACK noshade>
    </td>
    <td align=LEFT width=1%>&nbsp;</td>
    <td>
      <hr width=30% size=1 color=BLACK noshade>
    </td>
    <td align=LEFT width=2%>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=21%>&nbsp;</td>
    <td align=LEFT width=1%>&nbsp;</td>
    <td align=LEFT width=28%>&nbsp;</td>
    <td align=LEFT width=1%>&nbsp;</td>
    <td align=LEFT width=23%>&nbsp;</td>
    <td align=LEFT width=1%>&nbsp;</td>
    <td align=LEFT width=23%>&nbsp;</td>
    <td align=LEFT width=2%>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=21%>
      <div align="left"><font face="Times New Roman, Times, serif" size="2">CHY</font></div>
    </td>
    <td align=LEFT width=1%>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td align=LEFT width=28%>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></div>
    </td>
    <td align=LEFT width=1%>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td align=LEFT width=23%>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">16,593,786&#134;</font></div>
    </td>
    <td align=LEFT width=1%>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td align=LEFT width=23%>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">17,634,906&#134;</font></div>
    </td>
    <td align=LEFT width=2%>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="21%">
      <div align="left"><font face="Times New Roman, Times, serif" size="2">CHY
        III</font></div>
    </td>
    <td align=LEFT width="1%">&nbsp; </td>
    <td align=LEFT width="28%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></div>
    </td>
    <td align=LEFT width="1%">&nbsp; </td>
    <td align=LEFT width="23%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">16,593,786&#134;</font></div>
    </td>
    <td align=LEFT width="1%">&nbsp; </td>
    <td align=LEFT width="23%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">17,634,906&#134;</font></div>
    </td>
    <td align=LEFT width="2%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="21%">
      <div align="left"><font face="Times New Roman, Times, serif" size="2">MuniAssets</font></div>
    </td>
    <td align=LEFT width="1%">&nbsp; </td>
    <td align=LEFT width="28%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">D&amp;T</font></div>
    </td>
    <td align=LEFT width="1%">&nbsp; </td>
    <td align=LEFT width="23%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">16,586,696&#134;</font></div>
    </td>
    <td align=LEFT width="1%">&nbsp; </td>
    <td align=LEFT width="23%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">17,627,406&#134;</font></div>
    </td>
    <td align=LEFT width="2%">&nbsp;</td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" -->
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>
<!-- MARKER FORMAT-SHEET="Footnote Left" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=left VALIGN=top><FONT SIZE="1">&#134;</FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Primarily
associated with project management of non-financial service       systems
implementations, advisory and management consulting services, and       examinations of
internal controls and investment management performance       returns for Affiliated
Service Providers. Fees are also related to the       performance of agreed upon tax
compliance services associated with       reviewing the Fund&#146;s tax returns.</FONT></TD></TR></TABLE>


<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee of each Fund has reviewed the non-audit services provided by the Fund&#146;s
independent registered public accounting firm to the Fund&#146;s Affiliated Service Providers
that were not subject to the Committee&#146;s pre-approval and has determined that the
provision of such services is compatible with maintaining the independent registered
public accounting firm&#146;s independence. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Committee&#146;s
  Pre-Approval Policies and Procedures</I>. The Audit Committee of each Fund has
  adopted policies and procedures with regard to the pre-approval of services.
  Audit, audit-related and tax compliance services provided to a Fund on an annual
  basis require specific pre-approval by the Fund&#146;s Audit Committee. As noted
  above, the Audit Committee also must approve non-audit services provided to
  a Fund and those non-audit services provided to the Fund&#146;s Affiliated Service
  Providers that relate directly to the operations and financial reporting of
  the Fund. Certain of these non-audit services that the Audit Committee believes
  are (a) consistent with the SEC&#146;s auditor independence rules and (b) routine
  and recurring services that will not impair the independence of the independent
  registered public accounting firm may be approved by the Audit Committee without
  consideration on a specific case-by-case basis (&#147;general pre-approval&#148;).
  However, such services will only be deemed pre-approved provided that any individual
  project does not exceed $5,000 attributable to the Fund or $50,000 for the project
  as a whole. Any proposed services exceeding the pre-approved cost levels will
  require specific pre-approval by the Audit Committee, as will any other services
  not subject to general pre-approval (<i>e.g.</i> unanticipated but permissible
  services). The Audit Committee is informed of each service approved subject
  to general pre-approval at the next regularly scheduled in-person board meeting.
  </FONT> </P>



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





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




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

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


<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other</I>.
Representatives of 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> </P>

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

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

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

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

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


<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  a stockholder of any Fund intends to present a proposal at the 2005 Annual Meeting
  of Stockholders of such Fund, each of which is anticipated to be held in August
  2005, and desires to have the proposal included in the Fund&#146;s proxy statement
  and form of proxy for that meeting, the stockholder must deliver the proposal
  to the offices of the appropriate Fund by March 30, 2005. The persons named
  as proxies in the proxy materials for 2005 Annual Meetings of Stockholders for
  each of the Funds 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 14, 2005. Written proposals and notices should
  be sent to the Secretary of the respective Fund, 800 Scudders Mill Road, Plainsboro,
  New Jersey 08536. </FONT></P>


<table width="600" border="0">
  <tr>
    <td width="340">&nbsp;</td>
    <td width="250"><font face="Times New Roman, Times, serif" size="2">By Order
      of the Boards of Directors<br>
      <br>
      P<font size=1>HILLIP</font> S. G<font size=1>ILLESPIE</font><br>
      <i>Secretary of Corporate High Yield Fund, Inc. <br>
      Corporate High Yield Fund III, Inc. <br>
      MuniAssets Fund, Inc. </i></font></td>
  </tr>
</table>
<br>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: July 27, 2004 </FONT></P>


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





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 20; page: 20" -->



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined
terms used herein and not otherwise defined shall have the same meanings attributed
thereto in the Combined Proxy Statement to which these Exhibits are attached. </FONT></P>

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

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

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


<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=2 height="54" align="left">
      <div align="left"><font size="1" face="Times New Roman, Times, serif">Fund
        </font> </div>
      <hr width=40% size=1 color=BLACK noshade align="left">
    </th>
    <th width="1" height="54">&nbsp;</th>
    <th colspan=2 height="54"><font size="1" face="Times New Roman, Times, serif">Fiscal
      Year End </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th width="10" height="54">&nbsp;</th>
    <th colspan=2><font size="1" face="Times New Roman, Times, serif">Meeting
      Time </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th width="18" height="54">&nbsp;</th>
    <th colspan=2 height="54"><font size="1" face="Times New Roman, Times, serif">State
      of<br>
      Organization </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th width="25" height="54">&nbsp;</th>
    <th colspan=2 width="150" height="54"><font size="1" face="Times New Roman, Times, serif">Shares
      Outstanding<br>
      as of the Record Date </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;CHY</font><font size="2"></font></td>
    <td align=LEFT width=1>&nbsp;</td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">5/31</font><font size="2"></font></div>
    </td>
    <td align=LEFT width=10>&nbsp;</td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">10:45
        a.m.</font><font size="2"></font></div>
    </td>
    <td align=LEFT width=18>&nbsp;</td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">MD</font><font size="2"></font></div>
    </td>
    <td width=25 align=RIGHT>&nbsp;</td>
    <td width=150 align=RIGHT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">34,380,747</font><font size="2"></font></div>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;CHY
      III</font><font size="2"></font></td>
    <td align=LEFT width="1">&nbsp;</td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">5/31</font></div>
    </td>
    <td align=LEFT width="10">&nbsp;</td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">11:00
        a.m.</font></div>
    </td>
    <td align=LEFT width="18">&nbsp;</td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">MD</font></div>
    </td>
    <td align=RIGHT width="25">&nbsp;</td>
    <td align=RIGHT colspan="2" width="150">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">37,219,239</font></div>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT height="18" colspan="2"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;MuniAssets</font><font size="2"></font></td>
    <td align=LEFT height="18" width="1">&nbsp;</td>
    <td align=LEFT colspan="2" height="18">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">5/31</font></div>
    </td>
    <td align=LEFT height="18" width="10">&nbsp;</td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">11:15
        a.m.</font></div>
    </td>
    <td align=LEFT height="18" width="18">&nbsp;</td>
    <td align=LEFT height="18" colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">MD</font></div>
    </td>
    <td align=RIGHT height="18" width="25">&nbsp;</td>
    <td align=RIGHT height="18" colspan="2" width="150">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">20,399,713</font></div>
    </td>
  </tr>
</table>
<br>


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

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth in the table below is information regarding Board and Audit Committee meetings
held, current annual and per meeting fees paid to each non-interested Director and the
aggregate fees and expenses paid by each Fund to the non-interested Directors during each
Fund&#146;s most recently completed fiscal year. </FONT></P>


<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=2>&nbsp;</th>
    <th colspan=6><font face="Times New Roman, Times, serif" size="1">Board<br>
      </font>
      <hr width="95%" size="1" noshade>
    </th>
    <th colspan=6><font face="Times New Roman, Times, serif" size="1">Audit Committee<br>
      </font>
      <hr width="95%" size="1" noshade>
    </th>
    <th colspan=2>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2 valign="bottom" align="left"> <font face="Times New Roman, Times, serif" size="1">Fund
      </font>
      <hr width=35% size=1 color=BLACK noshade align="left">

    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Board<br>
      Number of<br>
      Meetings<br>
      Held* </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Annual<br>
      Fee ($) </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Per<br>
      Meeting<br>
      Fee ($)** </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Audit Committee<br>
      Number of<br>
      Meetings<br>
      Held* </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Annual<br>
      Fee ($)*** </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Per<br>
      Meeting<br>
      Fee ($)** </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Aggregate<br>
      Fees and<br>
      Expenses ($) </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
  </tr>
  <tr valign=Bottom>
    <td width=14% align=LEFT><font face="Times New Roman, Times, serif" size="2">CHY</font></td>
    <td width=4% align=LEFT><font size="2"></font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">12</font></td>
    <td width=4% align=LEFT><font size="2"></font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">$154</font></td>
    <td width=4% align=LEFT><font size="2"></font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">$218</font></td>
    <td width=4% align=LEFT><font size="2"></font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">5</font></td>
    <td width=4% align=LEFT><font size="2"></font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">$154</font></td>
    <td width=4% align=LEFT><font size="2"></font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">$218</font></td>
    <td width=4% align=LEFT><font size="2"></font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">36,919</font></td>
    <td width=2% align=LEFT><font size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">CHY III</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">12</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$165</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$218</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">5</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$165</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$218</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">44,599</font></td>
    <td align=LEFT><font size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">MuniAssets</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">13</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$131</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$218</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">5</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$131</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$218</font></td>
    <td align=LEFT><font size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">32,587</font></td>
    <td align=LEFT><font size="2"></font></td>
  </tr>
</table>


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

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

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

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


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





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




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


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






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




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

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

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



<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=2><font size="1"></font></th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Bodurtha
      </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Glenn </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Grills </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">London </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Perold </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Ramo </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Salomon
      </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Swensrud
      </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
  </tr>
  <tr valign=Bottom>
    <td width=18% align=LEFT><font face="Times New Roman, Times, serif" size="2">CHY</font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, serif"></font></td>
    <td width=10% align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font><font face="Times New Roman, Times, serif"></font></div>
    </td>
    <td width=10% align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1999</font><font face="Times New Roman, Times, serif"></font></div>
    </td>
    <td width=10% align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1994</font><font face="Times New Roman, Times, serif"></font></div>
    </td>
    <td width=10% align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font><font face="Times New Roman, Times, serif"></font></div>
    </td>
    <td width=10% align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font><font face="Times New Roman, Times, serif"></font></div>
    </td>
    <td width=10% align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font><font face="Times New Roman, Times, serif"></font></div>
    </td>
    <td width=10% align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1996</font><font face="Times New Roman, Times, serif"></font></div>
    </td>
    <td width=8% align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1993</font><font face="Times New Roman, Times, serif"></font></div>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">CHY III</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1999</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1998</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1998</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1998</font></div>
      </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">MuniAssets</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1999</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1994</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">2002</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1996</font></div>
      </td>
    <td align=LEFT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">1993</font></div>
      </td>
  </tr>
</table>

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

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
relating to the share ownership, if any, by the Director Nominees as of the Record Date
is set forth in the chart below. </FONT></P>


<table cellpadding=0 cellspacing=0 border=0 width=640>
  <tr valign=Bottom>
    <th colspan=2>
      <div align="left"><font face="Times New Roman, Times, serif" size="1">Director
        Nominee </font> </div>
      <hr width=40% size=1 color=BLACK noshade align="left">
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Fund </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Aggregate<br>
      Dollar Range<br>
      of Equity in<br>
      Each Fund </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Aggregate
      Dollar Range<br>
      of Securities in all<br>
      MLIM/FAM-Advised Funds<br>
      Overseen by each<br>
      Director Nominee </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
  </tr>
  <tr valign=Bottom>
    <td width=45% align=LEFT><font size="2" face="Times New Roman, Times, serif"><i>Interested
      Director:</i></font></td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td width=13% align=LEFT>&nbsp;</td>
    <td width=1% align=LEFT>&nbsp;</td>
    <td width=16% align=LEFT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td width=18% align=LEFT>&nbsp;</td>
    <td width=3% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="45%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Terry
      K. Glenn</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="13%"><font size="2" face="Times New Roman, Times, serif">CHY</font></td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="16%"><font size="2" face="Times New Roman, Times, serif">$10,001
      - $50,000</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="18%"><font size="2" face="Times New Roman, Times, serif">Over
      $100,000</font></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="45%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="13%"><font size="2" face="Times New Roman, Times, serif">MuniAssets</font></td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="16%"><font size="2" face="Times New Roman, Times, serif">Over
      $100,000</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="18%"><font size="2" face="Times New Roman, Times, serif">Over
      $100,000</font></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="45%"><font size="2" face="Times New Roman, Times, serif"><i>Non-Interested
      Directors:</i></font></td>
    <td align=LEFT width="2%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="45%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;James
      H. Bodurtha</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="13%"><font size="2" face="Times New Roman, Times, serif">CHY</font></td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="16%"><font size="2" face="Times New Roman, Times, serif">$1
      - $10,000</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="18%"><font size="2" face="Times New Roman, Times, serif">Over
      $100,000</font></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="45%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Joe
      Grills</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="13%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="16%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="18%"><font size="2" face="Times New Roman, Times, serif">Over
      $100,000</font></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="45%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Herbert
      I. London</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="13%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="16%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="18%"><font size="2" face="Times New Roman, Times, serif">Over
      $100,000</font></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="45%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Andr&#233;
      F. Perold</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="13%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="16%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="18%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="45%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Roberta
      Cooper Ramo</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="13%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="16%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="18%"><font size="2" face="Times New Roman, Times, serif">$50,001
      - $100,000</font></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="45%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Robert
      S. Salomon, Jr</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="13%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="16%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="18%"><font size="2" face="Times New Roman, Times, serif">Over
      $100,000</font></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="45%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Stephen
      B. Swensrud</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="13%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="16%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="18%"><font size="2" face="Times New Roman, Times, serif">None</font></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
</table>
 <!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Compensation of
Non-Interested Directors </B></FONT></P>

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


<table cellpadding=0 cellspacing=0 border=0 width=640>
  <tr valign=Bottom>
    <th colspan=2></th>
    <th colspan=14><font face="Times New Roman, Times, serif" size="1">Compensation
      from Fund ($)*</font></th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2></th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Bodurtha**
      </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Grills**
      </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1"> London
      </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Perold </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Ramo </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Salomon
      </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Swensrud
      </font>
      <hr width=95% size=1 color=BLACK noshade>
    </th>
  </tr>
  <tr valign=Bottom>
    <td width=14% align=LEFT><font face="Times New Roman, Times, serif" size="2">CHY</font></td>
    <td width=4% align=LEFT>&nbsp;</td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">$1,535</font></td>
    <td width=4% align=LEFT>&nbsp;</td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">$1,535</font></td>
    <td width=4% align=LEFT>&nbsp;</td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">$1,275</font></td>
    <td width=4% align=LEFT>&nbsp;</td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">$1,275</font></td>
    <td width=4% align=LEFT>&nbsp;</td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">$1,275</font></td>
    <td width=4% align=LEFT>&nbsp;</td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">$1,275</font></td>
    <td width=4% align=LEFT>&nbsp;</td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, serif" size="2">$1,275</font></td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">CHY III</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,311</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,311</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,033</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,033</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,033</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,033</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,033</font></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">MuniAssets</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,320</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,320</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,094</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,094</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,094</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,094</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">$2,094</font></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
</table>
 <!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" -->
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>

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

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">** </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Co-Chairman
of the Audit Committee.</FONT></TD></TR></TABLE>



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






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



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth in the table below is information regarding the aggregate compensation paid by
MLIM/FAM-advised funds to non-interested Directors for the year ended December 31, 2003. </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=2>
      <div align="left"><font face="Times New Roman, Times, serif" size="1">Non-Interested
        Director </font> </div>
      <hr width=28% size=1 color=BLACK noshade align="left">
    </th>
    <th colspan=2><font face="Times New Roman, Times, serif" size="1">Aggregate
      Compensation Paid<br>
      to Non-Interested Directors by<br>
      MLIM/FAM-Advised Funds </font>
      <hr width=90% size=1 color=BLACK noshade>
    </th>
  </tr>
  <tr valign=Bottom>
    <td width=64% align=LEFT><font face="Times New Roman, Times, serif" size="2">James
      H. Bodurtha*</font></td>
    <td width=9% align=LEFT>&nbsp;</td>
    <td width=27% align=RIGHT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">$183,219</font></div>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Joe Grills*</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">$182,219</font></div>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Herbert
      I. London</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">$163,219</font></div>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Andr&#233;
      F. Perold</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">$162,219</font></div>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Roberta
      Cooper Ramo</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">$163,219</font></div>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Robert
      S. Salomon, Jr</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">$163,219</font></div>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Stephen
      B. Swensrud</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">$168,219</font></div>
    </td>
  </tr>
</table>

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

<!-- MARKER FORMAT-SHEET="Footnote Left" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=left VALIGN=top><FONT SIZE="1"> * </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Co-Chairman
of the Audit Committee.</FONT></TD></TR></TABLE>


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





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



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

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


<table border=0 cellspacing=0 cellpadding=0 width=600>
    <tr>
      <td width=117 rowspan=3 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>Name,
          Address* and <br>
          Age of Officer</b></font></p>
      </td>
      <td colspan=3 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>Position(s)
          Held and Length of Time Served** </b></font></p>
      </td>
      <td width=8 rowspan=3 valign=bottom>&nbsp;</td>
      <td width=247 rowspan=3 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>Principal
          Occupation During Past Five Years</b></font></p>
      </td>
    </tr>
    <tr>
      <td colspan=3 valign=bottom>
        <hr width="95%" size="1" noshade>
      </td>
    </tr>
    <tr>
      <td width=69 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>CHY</b></font></p>
      </td>
      <td width=73 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>CHY
          III</b></font></p>
      </td>
      <td width=72 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>MuniAssets</b></font></p>
      </td>
    </tr>
    <tr>
      <td width=117 valign=top>
        <hr width="95%" size="1" noshade>
      </td>
      <td width=69 valign=top>
        <hr width="95%" size="1" noshade>
      </td>
      <td width=73 valign=top>
        <hr width="95%" size="1" noshade>
      </td>
      <td width=72 valign=top>
        <hr width="95%" size="1" noshade>
      </td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>
        <hr width="95%" size="1" noshade>
      </td>
    </tr>
    <tr>
      <td width=117 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Terry K. Glenn
          (63)</font></p>
      </td>
      <td width=69 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">President and Director
          since 1999&#134;</font></p>
      </td>
      <td width=73 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">President and Director
          since 1999&#134;</font></p>
      </td>
      <td width=72 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">President and Director
          since 1999&#134;</font></p>
      </td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>
        <p><font face="Times New Roman, Times, serif" 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,
          from 1988 to 2002; Director of Financial Data Services, Inc. from 1985
          to 2002.</font></p>
      </td>
    </tr>
    <tr>
      <td width=117 valign=top>&nbsp;</td>
      <td width=69 valign=top>&nbsp;</td>
      <td width=73 valign=top>&nbsp;</td>
      <td width=72 valign=top>&nbsp;</td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td width=117 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Kenneth A. Jacob
          (53)</font></p>
      </td>
      <td width=69 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">N/A</font></p>
      </td>
      <td width=73 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">N/A</font></p>
      </td>
      <td width=72 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Senior Vice President
          since 1993</font></p>
      </td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>
        <p><font face="Times New Roman, Times, serif" 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 width=117 valign=top>&nbsp;</td>
      <td width=69 valign=top>&nbsp;</td>
      <td width=73 valign=top>&nbsp;</td>
      <td width=72 valign=top>&nbsp;</td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td width=117 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Elizabeth M. Phillips
          (54)</font></p>
      </td>
      <td width=69 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Vice President
          since 1993</font></p>
      </td>
      <td width=73 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Vice President
          since 1998</font></p>
      </td>
      <td width=72 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">N/A</font></p>
      </td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Director of MLIM
          since 2000; Vice President of MLIM from 1990 to 2000.</font></p>
      </td>
    </tr>
    <tr>
      <td width=117 valign=top>&nbsp;</td>
      <td width=69 valign=top>&nbsp;</td>
      <td width=73 valign=top>&nbsp;</td>
      <td width=72 valign=top>&nbsp;</td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td width=117 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Donald C. Burke
          (43)</font></p>
      </td>
      <td width=69 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Vice President
          since 1993 and Treasurer since 1999</font></p>
      </td>
      <td width=73 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Vice President
          since 1998 and Treasurer since 1999</font></p>
      </td>
      <td width=72 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Vice President
          since 1993 and Treasurer since 1999</font></p>
      </td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>
        <p><font face="Times New Roman, Times, serif" 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 width=117 valign=top>&nbsp;</td>
      <td width=69 valign=top>&nbsp;</td>
      <td width=73 valign=top>&nbsp;</td>
      <td width=72 valign=top>&nbsp;</td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td width=117 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Theodore R. Jaeckel,
          Jr. (44)</font></p>
      </td>
      <td width=69 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">N/A</font></p>
      </td>
      <td width=73 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">N/A</font></p>
      </td>
      <td width=72 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Vice President
          since 1997</font></p>
      </td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>
        <p><font face="Times New Roman, Times, serif" 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 width=117 valign=top>&nbsp;</td>
      <td width=69 valign=top>&nbsp;</td>
      <td width=73 valign=top>&nbsp;</td>
      <td width=72 valign=top>&nbsp;</td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td width=117 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">John M. Loffredo
          (40)</font></p>
      </td>
      <td width=69 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">N/A</font></p>
      </td>
      <td width=73 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">N/A</font></p>
      </td>
      <td width=72 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Senior Vice President
          since 2003</font></p>
      </td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>
        <p><font face="Times New Roman, Times, serif" 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 width=117 valign=top>&nbsp;</td>
      <td width=69 valign=top>&nbsp;</td>
      <td width=73 valign=top>&nbsp;</td>
      <td width=72 valign=top>&nbsp;</td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td width=117 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">B. Daniel Evans
          (50)</font></p>
      </td>
      <td width=69 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Vice President
          since 2002</font></p>
      </td>
      <td width=73 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Vice President
          since 2002</font></p>
      </td>
      <td width=72 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">N/A</font></p>
      </td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Managing Director
          of MLIM since 2004; Director of MLIM from 2000 to 2004; Vice President
          of MLIM from 1995 to 2000.</font></p>
      </td>
    </tr>
  </table>




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





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

<table border=0 cellspacing=0 cellpadding=0 width=600>
    <tr>
      <td width=117 rowspan=3 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>Name,
          Address* and <br>
          Age of Officer</b></font></p>
      </td>
      <td colspan=3 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>Position(s)
          Held and Length of Time Served** </b></font></p>
      </td>
      <td width=8 rowspan=3 valign=bottom>&nbsp;</td>
      <td width=247 rowspan=3 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>Principal
          Occupation During Past Five Years</b></font></p>
      </td>
    </tr>
    <tr>
      <td colspan=3 valign=bottom>
        <hr width="95%" size="1" noshade>
      </td>
    </tr>
    <tr>
      <td width=69 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>CHY</b></font></p>
      </td>
      <td width=73 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>CHY
          III</b></font></p>
      </td>
      <td width=72 valign=bottom>
        <p align=center><font size="1" face="Times New Roman, Times, serif"><b>MuniAssets</b></font></p>
      </td>
    </tr>
    <tr>
      <td width=117 valign=top>
        <hr width="95%" size="1" noshade>
      </td>
      <td width=69 valign=top>
        <hr width="95%" size="1" noshade>
      </td>
      <td width=73 valign=top>
        <hr width="95%" size="1" noshade>
      </td>
      <td width=72 valign=top>
        <hr width="95%" size="1" noshade>
      </td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>
        <hr width="95%" size="1" noshade>
      </td>
    </tr>
    <tr>
      <td width=117 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Phillip S. Gillespie
          (40)</font></p>
      </td>
      <td width=69 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Secretary since
          2004</font></p>
      </td>
      <td width=73 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Secretary since
          2004</font></p>
      </td>
      <td width=72 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">Secretary since
          2004</font></p>
      </td>
      <td width=8 valign=top>&nbsp;</td>
      <td width=247 valign=top>
        <p><font face="Times New Roman, Times, serif" size="1">First Vice President
          of MLIM since 2001; Director of MLIM from 2000 to 2001; Vice President
          of MLIM from 1999 to 2000; Attorney associated with MLIM since 1998;
          Assistant General Counsel, Chancellor LGT Asset Management Inc. from
          1997 to 1998; Senior Counsel and Attorney in the Division of Investment
          Management and the Office of General Counsel at the U.S. Securities
          and Exchange Commission from 1993 to 1997.</font></p>
      </td>
    </tr>
  </table>

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

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

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<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">** </FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Elected
by and serves at the pleasure of the Board of Directors of each Fund.</FONT></TD></TR></TABLE>

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<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> &#134;</FONT></TD><TD WIDTH=2%><FONT SIZE="1"></FONT></TD><TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Mr.
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>



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





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



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

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Charter of the
Audit Committee                        <BR>of the Board of Directors/Trustees
                            <BR>for Exchange Listed Funds </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
the Audit Committee of an investment company also serves as a Nominating Committee, the
following charter pertains only to each Audit Committee&#146;s duties as an Audit Committee.
The Board of Directors/Trustees of each investment company listed on Appendix A hereto
has adopted the following Audit Committee Charter. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>I. Composition of the
Audit Committee </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee shall be composed of at least three Directors/Trustees: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (a)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>each
of whom shall not be an &#147;interested person&#148; of the Fund, as            defined in Section
2(a)(19) of the Investment Company Act of 1940            (the &#147;1940 Act&#148;); </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (b)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>each
of whom shall not accept directly or indirectly any consulting,            advisory, or
other compensatory fee from the Fund (other than fees            for serving on the Board
of Directors/Trustees or any committee            thereof); </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (c)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>each
of whom shall be financially literate at the time of his or her            appointment to
the Audit Committee, as such qualification is            interpreted by the Board of
Directors/Trustees in its business            judgment, or shall become financially
literate within a reasonable            period of time after his or her appointment to
the Audit Committee; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (d)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>each
of whom shall otherwise satisfy the applicable independence            requirements for
any stock exchange or market quotation system on            which Fund shares are or
become listed or quoted; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (e)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>at
least one of whom shall have accounting or related financial            management
expertise as the Board of Directors/Trustees interprets            such qualification in
its business judgment. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors/Trustees shall determine annually (i) whether at least one of the
members of the Audit Committee is an &#147;audit committee financial expert,&#148; as defined in
Item 3 of Form N-CSR, and (ii) whether simultaneous service on more than three public
company audit committees by a member of the Audit Committee would not impair the ability
of such member to serve on the Audit Committee. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee, in its capacity as a committee of the Board of Directors/Trustees, shall
be responsible for: </FONT></P>

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

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



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






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




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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (c)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>overseeing,
or, as appropriate, assisting Board oversight of, the            Fund&#146;s compliance with
legal and regulatory requirements that relate            to the Fund&#146;s accounting and
financial reporting, internal control            over financial reporting, and
independent audits; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (d)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the appointment,
      compensation, retention, and oversight of the Fund&#146;s independent accountants,
      including the resolution of disagreements regarding financial reporting
      between Fund management and such independent accountants. </FONT></TD>
</TR>
</TABLE>
<BR>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Audit Committee shall report regularly to the Board of Directors/Trustees with
  respect to the matters described in this Audit Committee Charter and shall make
  such recommendations to the Board of Directors/Trustees relating thereto as
  the Audit Committee deems necessary or appropriate. The Fund&#146;s independent
  accountants shall report directly to the Audit Committee. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
policies and procedures of the Audit Committee shall remain flexible to facilitate its
ability to react to changing conditions and to generally discharge its functions. The
following listed responsibilities describe areas of attention in broad terms. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
carry out its purposes, the Audit Committee shall have the following responsibilities and
duties: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (a)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>upon submission
      of an application form by the Fund&#146;s independent accountants to the
      Public Company Accounting Oversight Board, to request copies of: (i) such
      application form; (ii) any material amendments to such application form;
      and (iii) the written findings of the Public Company Accounting Oversight
      Board in connection with that Board&#146;s inspection of the Fund&#146;s
      independent accountants; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (b)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to (i) select
      an accounting firm to (1) serve as the Fund&#146;s independent accountants,
      (2) audit the Fund&#146;s financial statements on an annual basis, and (3)
      provide an opinion on an annual basis with respect to the Fund&#146;s financial
      statements, and (ii) recommend that the members of the Board of Directors/Trustees
      who are not &#147;interested persons&#148; of the Fund, as defined in Section
      2(a)(19) of the 1940 Act, ratify such selection; </FONT></TD>
</TR>
</TABLE>
<BR>

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (d)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to develop policies
      and procedures for pre-approval of the engagement of the Fund&#146;s independent
      accountants to provide any of the audit or non-audit services described
      in Section III(c) above; </FONT></TD>
</TR>
</TABLE>
<br>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2> (e) </font></td>
    <td><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=90%><font face="Times New Roman, Times, Serif" size=2>to consider
      whether: (i) the provision of each non-audit service to the Fund by the
      Fund&#146;s independent accountants is compatible with maintaining the independence
      of such independent accountants and (ii) the provision of each non-audit
      service to the Fund&#146;s investment adviser or any adviser affiliate that
      provides ongoing services to the Fund is compatible with maintaining the
      independence of such independent accountants; </font></td>
  </tr>
</table>
<BR>




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






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





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<BR>

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (g)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to receive and
      consider specific representations from the Fund&#146;s independent accountants
      with respect to audit partner rotation and conflicts of interest as described
      in Section 10A(l) of the Securities Exchange Act of 1934 (the &#147;1934
      Act&#148;); </FONT></TD>
</TR>
</TABLE>
<BR>

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

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (j)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to review and
      approve the fees proposed to be charged to the Fund by the Fund&#146;s independent
      accountants for each audit and non-audit service; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (k)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to discuss
      with the Fund&#146;s independent accountants those matters required by Statement
      of Accounting Standards Nos. 61 and 90 relating to the Fund&#146;s financial
      statements, including, without limitation, any adjustment to such financial
      statements recommended by such independent accountants, or any other results
      of any audit; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (l)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
cause to be prepared and to review and submit any report,            including any
recommendation of the Audit Committee, required under            rules promulgated by the
Securities and Exchange Commission to be            included in any proxy statement used
by the Fund; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (m)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to review legal
      and regulatory matters presented by counsel and the Fund&#146;s independent
      accountants that may have a material impact on the Fund&#146;s financial
      statements; </FONT></TD>
</TR>
</TABLE>
<br>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2> (n) </font></td>
    <td><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=90%><font face="Times New Roman, Times, Serif" size=2>to establish
      and administer policies and procedures relating to: (i) the hiring by the
      Fund, its investment adviser, or any administrator that is an adviser affiliate
      of employees or former employees of the Fund&#146;s independent accountants;
      and (ii) the resolution of any disagreements between Fund management and
      the Fund&#146;s independent accountants regarding accounting and/or financial
      reporting policies and procedures; </font></td>
  </tr>
</table>
<br>
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<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2> (o) </font></td>
    <td><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=90%><font face="Times New Roman, Times, Serif" size=2>to consider
      information and comments from the Fund&#146;s independent accountants with
      respect to the Fund&#146;s accounting and financial reporting policies,
      procedures and internal control over financial reporting (including the
      Fund&#146;s critical accounting policies and practices) and management&#146;s
      responses to any such comments; </font></td>
  </tr>
</table>
<BR>



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






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




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<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (p)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to consider
      information and comments from the Fund&#146;s independent accountants with
      respect to, and meet with such independent accountants to discuss any matters
      of concern relating to, the Fund&#146;s financial statements, including
      any adjustments to such statements recommended by such independent accountants,
      and to review the independent accountants&#146; opinion on the Fund&#146;s
      financial statements; </FONT></TD>
</TR>
</TABLE>
<BR>

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (r)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to receive
      and consider reports from the Fund&#146;s independent accountants regarding:
      (i) all critical accounting policies and practices to be used; (ii) all
      alternative treatments of financial information within generally accepted
      accounting principles that have been discussed with Fund management, ramifications
      of the use of such alternative disclosures and treatments, and the treatment
      preferred by the independent accountants; and (iii) other material written
      communications between the independent accountants and Fund management,
      such as any management letter or schedule of unadjusted differences; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (s)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to receive reports
      from the Fund&#146;s principal executive officer and principal financial
      officer, or persons performing similar functions, regarding: (i) all significant
      deficiencies in the design or operation of the Fund&#146;s internal controls
      that could adversely affect the Fund&#146;s ability to record, process,
      summarize, and report financial data and the identification for the Fund&#146;s
      independent accountants of any material weaknesses in internal controls;
      (ii) any fraud, whether or not material, that involves Fund management or
      other employees or employees of the investment adviser who have a significant
      role in the Fund&#146;s internal controls; and (iii) whether or not there
      were significant changes in the Fund&#146;s internal controls or in other
      factors that could significantly affect the Fund&#146;s internal controls
      subsequent to the date of their evaluation, including any corrective actions
      with regard to significant deficiencies and material weaknesses; </FONT></TD>
</TR>
</TABLE>
<br>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2> (t) </font></td>
    <td><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=90%><font face="Times New Roman, Times, Serif" size=2>to establish
      procedures for: (i) the receipt, retention, and treatment of complaints
      received by the Fund regarding accounting, internal accounting controls,
      or auditing matters; and (ii) the confidential, anonymous submission of
      concerns by employees of the Fund&#146;s investment adviser, manager, administrator,
      principal underwriter, or any other provider of accounting related services
      for the Fund regarding questionable accounting or auditing matters; </font></td>
  </tr>
</table>
<br>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2> (u) </font></td>
    <td><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=90%><font face="Times New Roman, Times, Serif" size=2>to address
      reports received from attorneys in accordance with procedures adopted by
      the Fund&#146;s investment adviser relating to the possible violation of
      federal or state law or fiduciary duty; </font></td>
  </tr>
</table>
<BR>


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





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<!-- MARKER PAGE="sheet: 30; page: 30" -->



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<BR>
<!-- MARKER FORMAT-SHEET="Para Hang 10" FSL="Workstation" --> <BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (v)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to address reports
      received from the Fund&#146;s independent accountants relating to the possible
      violation of federal or state law and to investigate or initiate an investigation
      of reports of improprieties or suspected improprieties in connection with
      the Fund&#146;s accounting or financial reporting; </FONT></TD>
</TR>
</TABLE>
<BR>

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

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (y)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
review and reassess the adequacy of this Audit Committee Charter            on an annual
basis and recommend any changes to the Board of            Directors/Trustees and to
evaluate the performance of the Audit            Committee on an annual basis; and </FONT></TD>
</TR>
</TABLE>
<BR>

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

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  function of the Audit Committee is oversight; it is the responsibility of Fund
  management to maintain appropriate systems for accounting and internal control
  over financial reporting, and the responsibility of the Fund&#146;s independent
  accountants to plan and carry out a proper audit. Specifically, Fund management
  is responsible for: (1) the preparation, presentation and integrity of the Fund&#146;s
  financial statements; (2) the maintenance of appropriate accounting and financial
  reporting principles and policies; and (3) the maintenance of internal control
  over financial reporting and other procedures designed to assure compliance
  with accounting standards and related laws and regulations. The Fund&#146;s
  independent accountants are responsible for planning and carrying out an audit
  consistent with applicable legal and professional standards and the terms of
  their engagement letter. Nothing in this Audit Committee Charter shall be construed
  to reduce the responsibilities or liabilities of the Fund&#146;s service providers,
  including the Fund&#146;s independent accountants. </FONT></P>
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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
  the Audit Committee is expected to review appropriately the matters that come
  before it, such review of a Fund&#146;s financial statements by the Audit Committee
  is not an audit, nor does the Committee&#146;s review substitute for the responsibilities
  of the Fund&#146;s management for preparing, or the Fund&#146;s independent
  accountants for auditing, the financial statements. Members of the Audit Committee
  are not full-time employees of the Fund and, in serving on the Audit Committee,
  are not, and do not hold themselves out to be, acting as accountants or auditors.
  As such, it is not the duty or responsibility of the Audit Committee or its
  members to conduct &#147;field work&#148; or other types of auditing or accounting
  reviews or procedures. </font></p>
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<p><font face="Times New Roman, Times, Serif" size=2></font></p>

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






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







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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  discharging their duties, the members of the Audit Committee are entitled to
  rely on information, opinions, reports, or statements, including financial statements
  and other financial data, if prepared or presented by: (1) one or more officers
  of the Fund whom the Directors/Trustees reasonably believe to be reliable and
  competent in the matters presented; (2) legal counsel, public accountants, or
  other persons as to matters the Directors/Trustees reasonably believe are within
  the person&#146;s professional or expert competence; or (3) a Board committee
  of which the Directors/Trustees are not members. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Audit Committee shall meet regularly with the Fund&#146;s independent accountants
  (outside the presence of Fund management) and Fund management and at least once
  annually with the representatives of Fund management responsible for the financial
  and accounting operations of the Fund. The Audit Committee shall hold special
  meetings at such times as the Audit Committee believes appropriate. Members
  of the Audit Committee may participate in a meeting of the Audit Committee by
  means of conference call or similar communications equipment by means of which
  all persons participating in such meeting can hear each other. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  appropriate officers of the Fund shall provide or arrange to provide such information,
  data and services as the Audit Committee may request. The Audit Committee shall
  have the power and authority to take all action it believes necessary or appropriate
  to discharge its responsibilities, including the power and authority to retain
  independent counsel and other advisers. The Fund shall provide for appropriate
  funding, as determined by the Audit Committee as a committee of the Board of
  Directors/Trustees, for payment of: (i) compensation to the Fund&#146;s independent
  accountants or any other accounting firm engaged for the purpose of preparing
  or issuing an audit report or performing other audit, review, or attest services
  for the Fund, (ii) compensation to any advisers employed by the Audit Committee
  under this Section V, and (iii) ordinary administrative expenses of the Audit
  Committee that are necessary or appropriate in carrying out its responsibilities.
  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: November 21, 2003 </FONT></P>





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<P>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
D-6</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><P>






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




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


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

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

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



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





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



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





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<!-- MARKER PAGE="sheet: 34; page: 34" -->



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

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CHARTER OF THE
NOMINATING COMMITTEE </B></FONT></P>

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

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

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

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

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

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
identifying and evaluating a person as a potential nominee to serve as an Independent
Director of the Fund, the Committee should consider among other factors it may deem
relevant: </FONT></P>

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

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>the
character and integrity of the person;</FONT></TD></TR></TABLE>

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

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

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

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>whether
or not the person serves on boards of, or is otherwise            affiliated with,
competing financial service organizations or their            related investment company
complexes;</FONT></TD></TR></TABLE>




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






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




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

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

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

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
majority of the members of the Committee shall constitute a quorum for the transaction of
business, and the act of a majority of the members of the Committee present at any
meeting at which there is quorum shall be the act of the Committee. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After
a determination by the Committee that a person should be nominated as an Independent
Director of the Fund, the Committee shall present its recommendation to the full Board
for its consideration and, where appropriate, to the Independent Directors. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Committee may meet either on its own or in conjunction with meetings of the Board.
Meetings of the Committee may be held in person, video conference or by conference
telephone. The Committee may take action by unanimous written consent in lieu of a
meeting. </FONT></P>

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



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





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




<div align="center"><font face="Times New Roman, Times, Serif" size=2><b>CORPORATE
  HIGH YIELD FUND, INC.<br>
  P.O. Box 9011<br>
  Princeton, New Jersey 08543-9011 </b></font> </div>
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=3>PROXY </font></h1>
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2><b>This proxy
  is solicited on behalf of the Board of Directors </b></font></h1>
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  undersigned hereby appoints Terry K. Glenn, Donald C. Burke and Phillip S. Gillespie
  as proxies, each with the power to appoint his substitute, and hereby authorizes
  each of them to represent and to vote, as designated on the reverse hereof,
  all of the shares of Common Stock of Corporate High Yield Fund, Inc. (the &#147;Fund&#148;)
  held of record by the undersigned on June 25, 2004 at the annual meeting of
  stockholders of the Fund to be held on August 25, 2004 or any adjournment thereof.
  </font></p>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=95%><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&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 1. </b></font> </td>
  </tr>
</table>
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
  signing and dating the reverse side of this card, you authorize the proxies
  to vote Proposal 1 as marked, or if not marked, to vote &#147;FOR&#148; Proposal 1, and
  to use their discretion to vote for any other matter as may properly come before
  the meeting or any adjournment thereof. If you do not intend to personally attend
  the meeting, please complete and return this card at once in the enclosed envelope.
  </font></p>
<p align="right"><font face="Times New Roman, Times, Serif" size=2>(Continued
  and to be signed on the reverse side) </font></p>
<p>
<hr size=5 noshade width=100% align=LEFT>
<p> <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 2; page: 2" -->
<p> <font face="Times New Roman, Times, Serif" size=2>Please mark boxes |X| or
  |&#149;| in blue or black ink. </font>
<p></p>
<!-- MARKER FORMAT-SHEET="8K 3 col" FSL="Workstation" -->
<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>1.&nbsp; ELECTION OF DIRECTORS </font></td>
    <td width=1%>&nbsp;&nbsp;</td>
    <td width=37% align="left"><font size=2><b>FOR</b> all nominees listed below<br>
      (except as marked to the contrary below) |_| &nbsp;</font></td>
    <td width=1%>&nbsp;&nbsp;</td>
    <td width=31% align="left"><font size=2><b>WITHHOLD AUTHORITY</b><br>
      to vote for all nominees listed below |_| &nbsp;</font></td>
  </tr>
</table>
<br>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=2%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=98%><font face="Times New Roman, Times, Serif" size=2> <b><i>(INSTRUCTION:
      To withhold authority to vote for any individual nominee, strike a line
      through the nominee&#146;s name in the list below.)</i><br>
      James H. Bodurtha, Terry K. Glenn, Joe Grills, Herbert I. London, Andr&#233;
      F. Perold, Roberta Cooper Ramo, Robert S. Salomon, Jr. and Stephen B. Swensrud
      </b></font></td>
  </tr>
</table>
<br>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=1%><font face="Times New Roman, Times, Serif" size=2>2. </font></td>
    <td width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=98%><font face="Times New Roman, Times, Serif" size=2>In the discretion
      of such proxies, upon such other business as may properly come before the
      meeting or any adjournment thereof. </font></td>
  </tr>
</table>
<div align="right"><br>
  <!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
  <table cellpadding=0 cellspacing=0 width=600>
    <tr valign=TOP>
      <td width=9>
        <div align="right"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div>
      </td>
      <td width=961><font face="Times New Roman, Times, Serif" size=2> Please
        sign exactly as name appears hereon. When stock is held by joint tenants,
        both should sign. When signing as attorney or as executor, administrator,
        trustee or guardian, please give full title as such. If a corporation,
        please sign in full corporate name by president or other authorized officer.
        If a partnership, please sign in partnership name by authorized person.
        </font></td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961><font face="Times New Roman, Times, Serif" size=2>Dated:_________________________________________
        , 2004 </font></td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>
        <div align="left"><font face="Times New Roman, Times, Serif" size=2>X
          </font>_______________________________________<br>
          <font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font>
        </div>
      </td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961><font face="Times New Roman, Times, Serif" size=2>X </font>_______________________________________<br>
        <font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">
        Signature, if held jointly </font> </td>
    </tr>
  </table>
  <b><br>
  </b> </div>
<p><b><font face="Times New Roman, Times, Serif" size=2>Sign, Date and Return
  the Proxy Card Promptly Using the Enclosed Envelope. </font></b></p>
<hr size=5 noshade width=100% align=LEFT>

<p> <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 2; page: 2" -->
<div align="center"><font size="2" face="Times New Roman, Times, serif"><b>CORPORATE
  HIGH YIELD FUND III, INC.</b></font><font face="Times New Roman, Times, Serif" size=2><b><br>
  P.O. Box 9011<br>
  Princeton, New Jersey 08543-9011 </b></font> </div>
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=3>PROXY </font></h1>
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2><b>This proxy
  is solicited on behalf of the Board of Directors </b></font></h1>
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  undersigned hereby appoints Terry K. Glenn, Donald C. Burke and Phillip S. Gillespie
  as proxies, each with the power to appoint his substitute, and hereby authorizes
  each of them to represent and to vote, as designated on the reverse hereof,
  all of the shares of Common Stock of Corporate High Yield III, Fund, Inc. (the
  &#147;Fund&#148;) held of record by the undersigned on June 25, 2004 at the annual meeting
  of stockholders of the Fund to be held on August 25, 2004 or any adjournment
  thereof. </font></p>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=95%><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&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 1. </b></font> </td>
  </tr>
</table>
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
  signing and dating the reverse side of this card, you authorize the proxies
  to vote Proposal 1 as marked, or if not marked, to vote &#147;FOR&#148; Proposal 1, and
  to use their discretion to vote for any other matter as may properly come before
  the meeting or any adjournment thereof. If you do not intend to personally attend
  the meeting, please complete and return this card at once in the enclosed envelope.
  </font></p>
<p align="right"><font face="Times New Roman, Times, Serif" size=2>(Continued
  and to be signed on the reverse side) </font></p>
<p>
<hr size=5 noshade width=100% align=LEFT>
<p> <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 2; page: 2" -->
<p> <font face="Times New Roman, Times, Serif" size=2>Please mark boxes |X| or
  |&#149;| in blue or black ink. </font>
<p></p>
<!-- MARKER FORMAT-SHEET="8K 3 col" FSL="Workstation" -->
<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>1.&nbsp; ELECTION OF DIRECTORS </font></td>
    <td width=1%>&nbsp;&nbsp;</td>
    <td width=38% align="left"><font size=2><b>FOR </b>all nominees listed below<br>
      (except as marked to the contrary below) |_| &nbsp;</font></td>
    <td width=1%>&nbsp;&nbsp;</td>
    <td width=30% align="left"><font size=2><b>WITHHOLD AUTHORITY</b><br>
      to vote for all nominees listed below |_| &nbsp;</font></td>
  </tr>
</table>
<br>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=2%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=98%><font face="Times New Roman, Times, Serif" size=2> <b><i>(INSTRUCTION:
      To withhold authority to vote for any individual nominee, strike a line
      through the nominee&#146;s name in the list below.)</i><br>
      James H. Bodurtha, Terry K. Glenn, Joe Grills, Herbert I. London, Andr&#233;
      F. Perold, Roberta Cooper Ramo, Robert S. Salomon, Jr. and Stephen B. Swensrud
      </b></font></td>
  </tr>
</table>
<br>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=1%><font face="Times New Roman, Times, Serif" size=2>2. </font></td>
    <td width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=98%><font face="Times New Roman, Times, Serif" size=2>In the discretion
      of such proxies, upon such other business as may properly come before the
      meeting or any adjournment thereof. </font></td>
  </tr>
</table>
<div align="right"><br>
  <!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
  <table cellpadding=0 cellspacing=0 width=600>
    <tr valign=TOP>
      <td width=9><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
      <td width=961><font face="Times New Roman, Times, Serif" size=2> Please
        sign exactly as name appears hereon. When stock is held by joint tenants,
        both should sign. When signing as attorney or as executor, administrator,
        trustee or guardian, please give full title as such. If a corporation,
        please sign in full corporate name by president or other authorized officer.
        If a partnership, please sign in partnership name by authorized person.
        </font></td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961><font face="Times New Roman, Times, Serif" size=2>Dated:_________________________________________
        , 2004 </font></td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>
        <div align="left"><font face="Times New Roman, Times, Serif" size=2>X
          </font>_______________________________________<br>
          <font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font>
        </div>
      </td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961><font face="Times New Roman, Times, Serif" size=2>X </font>_______________________________________<br>
        <font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">
        Signature, if held jointly </font> </td>
    </tr>
  </table>
  <b><br>
  </b> </div>
<p><b><font face="Times New Roman, Times, Serif" size=2>Sign, Date and Return
  the Proxy Card Promptly Using the Enclosed Envelope. </font></b></p>
<hr size=5 noshade width=100% align=LEFT>
<p><font face="Times New Roman, Times, Serif" size=2> </font> <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 2; page: 2" --> </p>
<div align="center">
  <p><b><font size="2" face="Times New Roman, Times, serif">MUNIASSETS FUND, INC.</font></b><font face="Times New Roman, Times, serif" size="2"><b><br>
    P.O. Box 9011<br>
    Princeton, New Jersey 08543-9011<br>
    </b></font><font face="Times New Roman, Times, Serif" size=2><b> </b></font>
  </p>
  </div>
<div align="center"><font face="Times New Roman, Times, serif" size="3"><b>PROXY</b></font><b><font face="Times New Roman, Times, Serif" size=3>
  </font></b> </div>
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2><b>This proxy
  is solicited on behalf of the Board of Directors </b></font></h1>
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  undersigned hereby appoints Terry K. Glenn, Donald C. Burke and Phillip S. Gillespie
  as proxies, each with the power to appoint his substitute, and hereby authorizes
  each of them to represent and to vote, as designated on the reverse hereof,
  all of the shares of Common Stock of</font><font size="2" face="Times New Roman, Times, serif">
  MuniAssets</font><font face="Times New Roman, Times, Serif" size=2> Fund, Inc.
  (the &#147;Fund&#148;) held of record by the undersigned on June 25, 2004 at the annual
  meeting of stockholders of the Fund to be held on August 25, 2004 or any adjournment
  thereof. </font></p>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=95%><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&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 1. </b></font> </td>
  </tr>
</table>
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
  signing and dating the reverse side of this card, you authorize the proxies
  to vote Proposal 1 as marked, or if not marked, to vote &#147;FOR&#148; Proposal 1, and
  to use their discretion to vote for any other matter as may properly come before
  the meeting or any adjournment thereof. If you do not intend to personally attend
  the meeting, please complete and return this card at once in the enclosed envelope.
  </font></p>
<p align="right"><font face="Times New Roman, Times, Serif" size=2>(Continued
  and to be signed on the reverse side) </font></p>
<p>
<hr size=5 noshade width=100% align=LEFT>

<p> <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 2; page: 2" -->
<p> <font face="Times New Roman, Times, Serif" size=2>Please mark boxes |X| or
  |&#149;| in blue or black ink. </font>
<p></p>
<!-- MARKER FORMAT-SHEET="8K 3 col" FSL="Workstation" -->
<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>1.&nbsp; ELECTION OF DIRECTORS </font></td>
    <td width=1%>&nbsp;&nbsp;</td>
    <td width=38% align="left"><font size=2><b>FOR</b> all nominees listed below<br>
      (except as marked to the contrary below) |_| &nbsp;</font></td>
    <td width=1%>&nbsp;&nbsp;</td>
    <td width=30% align="left"><font size=2><b>WITHHOLD AUTHORITY</b><br>
      to vote for all nominees listed below |_| &nbsp;</font></td>
  </tr>
</table>
<br>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=2%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=98%><font face="Times New Roman, Times, Serif" size=2> <b><i>(INSTRUCTION:
      To withhold authority to vote for any individual nominee, strike a line
      through the nominee&#146;s name in the list below.)</i><br>
      <font face="Times New Roman, Times, serif" size="2">Class I Director Nominees
      to serve until the 2007 Annual Meeting of Stockholders: James H. Bodurtha,
      Joe Grills and Robert S. Salomon, Jr.</font> </b></font></td>
  </tr>
</table>
<br>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=1%><font face="Times New Roman, Times, Serif" size=2>2. </font></td>
    <td width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=98%><font face="Times New Roman, Times, Serif" size=2>In the discretion
      of such proxies, upon such other business as may properly come before the
      meeting or any adjournment thereof. </font></td>
  </tr>
</table>
<div align="right"><br>
  <!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
  <table cellpadding=0 cellspacing=0 width=600>
    <tr valign=TOP>
      <td width=9><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
      <td width=961><font face="Times New Roman, Times, Serif" size=2> Please
        sign exactly as name appears hereon. When stock is held by joint tenants,
        both should sign. When signing as attorney or as executor, administrator,
        trustee or guardian, please give full title as such. If a corporation,
        please sign in full corporate name by president or other authorized officer.
        If a partnership, please sign in partnership name by authorized person.
        </font></td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961><font face="Times New Roman, Times, Serif" size=2>Dated:_________________________________________
        , 2004 </font></td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>
        <div align="left"><font face="Times New Roman, Times, Serif" size=2>X
          </font>_______________________________________<br>
          <font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font>
        </div>
      </td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961>&nbsp;</td>
    </tr>
    <tr valign=TOP>
      <td width=9>&nbsp;</td>
      <td width=961><font face="Times New Roman, Times, Serif" size=2>X </font>_______________________________________<br>
        <font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">
        Signature, if held jointly </font> </td>
    </tr>
  </table>
  <b><br>
  </b> </div>
<p><b><font face="Times New Roman, Times, Serif" size=2>Sign, Date and Return
  the Proxy Card Promptly Using the Enclosed Envelope. </font></b></p>
<hr size=5 noshade width=100% align=LEFT>
<p>&nbsp;


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