-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000891092-05-001323.txt : 20050721
<SEC-HEADER>0000891092-05-001323.hdr.sgml : 20050721
<ACCEPTANCE-DATETIME>20050721151538
ACCESSION NUMBER:		0000891092-05-001323
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050823
FILED AS OF DATE:		20050721
DATE AS OF CHANGE:		20050721
EFFECTIVENESS DATE:		20050721

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:		05966108

	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:		05966109

	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:		05966110

	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>e21097def_14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As filed with
  the Securities and Exchange Commission on July 21, 2005 </FONT></P>
<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SCHEDULE
  14A INFORMATION<BR>
  PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE<BR>
  SECURITIES EXCHANGE ACT OF 1934<BR>
  (AMENDMENT NO. 1) </B></FONT></P>


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

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


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> |_| </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Preliminary
Proxy Statement </FONT></TD>
</TR>
</TABLE>

<BR>

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


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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>Definitive
Proxy Statement </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> |_| </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitive
Additional Materials </FONT></TD>
</TR>
</TABLE>

<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> |_| </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Soliciting
Material Pursuant to Rule 14a-12 </FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CORPORATE HIGH
  YIELD FUND, INC.<BR>
  CORPORATE HIGH YIELD FUND III, INC.<BR>
  MUNIASSETS FUND, INC. </FONT></P>

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

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

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

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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>No
fee required. </FONT></TD>
</TR>
</TABLE>
<BR>

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

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

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

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





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

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

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

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

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

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

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

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

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

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





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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=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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<HR SIZE=1 noshade ALIGN=CENTER WIDTH=150>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOTICE OF 2005
ANNUAL MEETINGS OF STOCKHOLDERS </B></FONT></P>

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

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

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE
IS HEREBY GIVEN that the 2005 Annual Meeting of Stockholders (each, a &#147;Meeting&#148; and,
collectively, the &#147;Meetings&#148;) of each of the above-listed investment companies (each a
&#147;Fund&#148; and, collectively, the &#147;Funds&#148;) will be held at the offices of Fund Asset
Management, L.P. (&#147;FAM&#148;), 800 Scudders Mill Road, Plainsboro, New Jersey 08536, on
Tuesday, August 23, 2005 at the time specified for each Fund in Exhibit A to the Combined
Proxy Statement for the following purposes: </FONT></P>

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (2)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>For Corporate
      High Yield Fund, Inc. and MuniAssets Fund, Inc.:</b> To consider and act
      upon a proposal to amend a fundamental investment restriction of the Fund
      with respect to investment in other investment companies; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      (3)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>For all Funds:</b>
      To transact such other business as may properly come before the Meetings
      or any adjournment thereof. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Fund&#146;s Board has fixed the close of business on June 24, 2005 as the record date for the
determination of stockholders entitled to notice of and to vote at the applicable Fund&#146;s
Meeting or any adjournment thereof. </FONT></P>

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<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
  are cordially invited to attend the Meeting for any Fund in which you own shares.
  <b>Stockholders who do not expect to attend a Meeting in person are requested
  to complete, date and sign the enclosed form of proxy and return it promptly
  in the envelope provided for this purpose. If you have been provided with the
  opportunity on your proxy card or voting instruction form to provide voting
  instructions via telephone or the Internet, please take advantage of these prompt
  and efficient voting options</b>. The enclosed proxy is being solicited on behalf
  of the Board of Directors of each Fund. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  you have any questions regarding the enclosed proxy material or need assistance
  in voting your shares, please contact our proxy solicitor, Computershare Fund
  Services, at 1-800-645-4519. </FONT></P>


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<TABLE WIDTH=100%>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=35% colspan="2" align="left"><font size=2>By Order of the Boards
      of Directors </font></TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=35% colspan="2" align="left"><font size=2>A<font size="1">LICE</font>
      A. P<font size="1">ELLEGRINO</font> <br>
      <i>Secretary of Corporate High Yield Fund, Inc., <br>
      Corporate High Yield Fund III, Inc. and <br>
      MuniAssets Fund, Inc. </i></font></TD>
  </TR>
</TABLE>


<br>

<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>Plainsboro, New Jersey <br>
      Dated: July 21, 2005 </font></td>
    <td width=5%>&nbsp;</td>
    <td width=30%>&nbsp;</td>
    <td width=5%>&nbsp;</td>
    <td width=30%>&nbsp;</td>
  </tr>
</table>

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

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<P ALIGN=CENTER>
<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B><font size="2">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 </font> </B></FONT></P>
<font size="2"><!-- MARKER FORMAT-SHEET="Cutoff rule centered" FSL="Workstation" -->
</font>
<HR SIZE=1 noshade ALIGN=CENTER WIDTH=150>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B><font size="2">2005
  ANNUAL MEETINGS OF STOCKHOLDERS</font> </B></FONT></P>

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

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>August 23, 2005 </B></FONT></P>


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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
Funds will be referred to throughout this Combined Proxy Statement as listed below: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 align="center">
  <TR VALIGN=Bottom>
    <TD WIDTH=67% ALIGN=center><font size="1"><b>Fund </b></font>
      <hr size="1" noshade align="center" width="45">
    </TD>
    <TD WIDTH=5% ALIGN=center>&nbsp;</TD>
    <TD WIDTH=26% ALIGN=center><font size="1"><b>Term Used in this <br>
      Combined Proxy Statement </b></font>
      <hr size="1" noshade width="95%">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=67% ALIGN=CENTER><FONT SIZE=2>Corporate High Yield Fund, Inc.</FONT></TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=26% ALIGN=CENTER><FONT SIZE=2>High Yield</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>Corporate High Yield Fund III, Inc.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>High Yield III</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER><FONT SIZE=2>MuniAssets Fund, Inc.</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>MuniAssets</FONT></TD>
  </TR>
</TABLE>

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

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

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

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
  &#147;FOR&#148; approval of the proposed amendment to the fundamental investment
  restriction for each of High Yield and MuniAssets. </FONT></P>
<P><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
  proxy may be revoked at any time prior to the exercise thereof by giving written
  notice to the Secretary of the applicable Fund at that Fund&#146;s address indicated
  above or by voting in person at the Meeting. </font></P>
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<p><font face="Times New Roman, Times, Serif" size=2></font> &nbsp; </p>

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





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Board of Directors of each Fund has fixed the close of business on June 24,
  2005 as the record date (the &#147;Record Date&#148;) for the determination
  of stockholders entitled to notice of and to vote at the Meetings and at any
  adjournments thereof. Stockholders on the Record Date will be entitled to one
  vote for each share held, with no shares having cumulative voting rights. As
  of the Record Date, each Fund had outstanding the number of shares of Common
  Stock (&#147;Shares&#148;) 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 holders of Shares of each Fund. </FONT></P>

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


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




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 align="center">
  <TR VALIGN=Bottom>
    <TD WIDTH=16% ALIGN=center><b><font size="1">Fund</font></b>
      <hr size="1" noshade align="center" width="45">
    </TD>
    <TD WIDTH=29% ALIGN=center>&nbsp;</TD>
    <TD WIDTH=21% ALIGN=center><b><font size="1">Item 1</font></b>
      <hr size="1" noshade align="center" width="45">
    </TD>
    <TD WIDTH=9% ALIGN=center>&nbsp;</TD>
    <TD WIDTH=25% ALIGN=center><b><font size="1">Item 2</font></b>
      <hr size="1" noshade align="center" width="45">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=16% ALIGN=CENTER><FONT SIZE=2>High Yield</FONT></TD>
    <TD WIDTH=29% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=21% ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
    <TD WIDTH=9% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=25% ALIGN=CENTER><FONT SIZE=2>Yes</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER width="16%"><FONT SIZE=2>High Yield III</FONT></TD>
    <TD ALIGN=LEFT width="29%"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER width="21%"><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT width="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER width="25%"><FONT SIZE=2>No</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=CENTER width="16%"><FONT SIZE=2>MuniAssets</FONT></TD>
    <TD ALIGN=LEFT width="29%"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER width="21%"><FONT SIZE=2>Yes</FONT></TD>
    <TD ALIGN=LEFT width="9%"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER width="25%"><FONT SIZE=2>Yes</FONT></TD>
  </TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ITEM 1. ELECTION OF
DIRECTORS </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Meetings of High Yield and High Yield III, the Directors of each Fund will be elected
to serve until the next Annual Meeting of Stockholders for such Fund and until their
successors are elected and qualified or until their earlier retirement, resignation or
removal. The nominees are James H. Bodurtha, Robert C. Doll, Jr., Kenneth A. Froot, Joe
Grills, Herbert I. London, 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 II Directors of MuniAssets are to be elected. The Class II Director
  Nominees, Messrs. Doll, Froot and London, will be elected to serve until the
  expiration of the term of the Class II Directors 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>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<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
  II Director Nominees, Robert C. Doll, Jr., Kenneth A. Froot and Herbert I. London,
  to serve until the 2008 Annual Meeting of Stockholders. </FONT></P>
<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>For High Yield
  and High Yield III: </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;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>
<BR>
&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
2</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>





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<P ALIGN=LEFT>&nbsp;</P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=600>
  <TR VALIGN=Bottom>
    <TD ALIGN=center colspan="3"><font size=2><b>Nominees to be Elected by<br>
      Stockholders of High Yield and High Yield III </b></font>
      <hr size="1" noshade width="55%">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT WIDTH=146>&nbsp;</TD>
    <td align=LEFT width=203><font size=2>James H. Bodurtha</font></td>
    <td align=LEFT width=238><font size=2>Herbert I. London</font></td>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="146">&nbsp;</TD>
    <td align=LEFT width="203"><font size=2>Robert C. Doll, Jr.</font></td>
    <td align=LEFT width="238"><font size=2>Roberta Cooper Ramo</font></td>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="146">&nbsp;</TD>
    <td align=LEFT width="203"><font size=2>Kenneth A. Froot</font></td>
    <td align=LEFT width="238"><font size=2>Robert S. Salomon, Jr.</font></td>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="146">&nbsp;</TD>
    <td align=LEFT width="203"><font size=2>Joe Grills</font></td>
    <td align=LEFT width="238"><font size=2>Stephen B. Swensrud</font></td>
  </TR>
</TABLE>

<br>
<!-- MARKER FORMAT-SHEET="Cutoff rule centered" FSL="Workstation" -->
<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 each Fund knows of no reason why any of the Director Nominees listed above for
any Fund will be unable to serve, but in the event of any such unavailability, the
proxies received will be voted for such substitute nominee or nominees as that Fund&#146;s
Board of Directors may recommend. </FONT></P>

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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>

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

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
biographical and other information relating to the Director Nominee who is an &#147;interested
person,&#148; as defined in the Investment Company Act of 1940, as amended (the &#147;Investment
Company Act&#148;) of each Fund, is set forth below: </FONT></P>


<table border=0 cellspacing=0 cellpadding=0 width="100%">
  <tr valign="bottom" align="center">
    <td width=13%>
      <p align="center"><b><font size="1">Name, Address&#134; <br>
        and Age </font></b>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=9%>
      <p align="center"><b><font size="1">Position(s) <br>
        Held with <br>
        Each Fund </font></b>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=11%>
      <p align="center"><b><font size="1">Term of <br>
        Office and <br>
        Length of <br>
        Time Served </font></b>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=39%>
      <p align="center"><b><font size="1">Principal Occupation(s) <br>
        During Past Five Years </font></b>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=11%>
      <p align="center"><b><font size="1">Number of <br>
        MLIM/FAM- <br>
        Advised <br>
        Funds** and <br>
        Portfolios <br>
        Overseen </font></b>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=12%>
      <p align="center"><b><font size="1">Public <br>
        Directorships </font></b>
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Robert C. Doll, Jr. (50)&#134;&#134;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=9%>
      <p><font size="1">President and Director</font></p>
    </td>
    <td valign=top width=1%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">President and Director* of each Fund since 2005.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=39%>
      <p><font size="1">President of the MLIM/FAM-advised funds since 2005; President
        of MLIM and FAM since 2001; Co-Head (Americas Region) of FAM and MLIM
        from 2000 to 2001 and Senior Vice President thereof from 1999 to 2001;
        President and Director of Princeton Services, Inc. (&#147;Princeton Services&#148;)
        since 2001; President of Princeton Administrators, L.P. (&#147;Princeton
        Administrators&#148;) since 2001; Chief Investment Officer of OppenheimerFunds,
        Inc. in 1999 and Executive Vice President thereof from 1991 to 1999.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">125 registered investment companies consisting of <br>
        169 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </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"> &#134; </FONT></TD>
    <TD WIDTH=2%>&nbsp;</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%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Mr.
Doll is an &#147;interested person,&#148; as defined in the Investment Company     Act, of each
Fund based on his positions with Merrill Lynch Investment     Managers, L.P. (&#147;MLIM&#148;),
FAM, Princeton Services and Princeton     Administrators.</FONT></TD></TR></TABLE>

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

<!-- 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%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">The
complex of funds advised by FAM and MLIM.</FONT></TD></TR></TABLE>

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





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




<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
biographical and other information relating to the Director Nominees who are not
&#147;interested persons,&#148; as defined in the Investment Company Act, of any Fund and who are
&#147;independent&#148; as defined in the listing standards of the New York Stock Exchange (&#147;NYSE&#148;)
with respect to each Fund (sometimes referred to herein as &#147;non-interested Directors&#148; or
&#147;non-interested Director Nominees&#148;) is set forth below. Each non-interested Director
Nominee is a member of each Fund&#146;s Audit Committee. Herbert I. London, Roberta Cooper
Ramo and Robert S. Salomon, Jr. are the members of each Fund&#146;s Nominating Committee. </FONT></P>


<table border=0 cellspacing=0 cellpadding=0 width="100%">
  <tr valign="bottom">
    <td width=14%>
      <p align="center"><font size="1"><b>Name, Address&#134; <br>
        and Age </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=9%>
      <p align="center"><font size="1"><b>Position(s) <br>
        Held with <br>
        Each Fund </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=10%>
      <p align="center"><font size="1"><b>Term of <br>
        Office&#134;&#134; and <br>
        Length of <br>
        Time Served </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=39%>
      <p align="center"><font size="1"><b>Principal Occupation(s) <br>
        During Past Five Years </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=11%>
      <p align="center"><font size="1"><b>Number of <br>
        MLIM/FAM- <br>
        Advised Funds <br>
        and Portfolios <br>
        Overseen </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%><font size="1"><b>&nbsp;&nbsp;&nbsp;</b></font></td>
    <td width=12%>
      <p align="center"><font size="1"><b>Public <br>
        Directorships </b> </font>
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td valign=top width=14%>
      <p><font size="1">James H. Bodurtha (61)*</font></p>
    </td>
    <td valign=top width=1%><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td valign=top width=9%>
      <p><font size="1">Director</font></p>
    </td>
    <td valign=top width=1%><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td valign=top width=10%>
      <p><font size="1">Director of each Fund since the year listed in Exhibit
        B.</font></p>
    </td>
    <td valign=top width=1%><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td valign=top width=39%>
      <p><font size="1">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.</font></p>
    </td>
    <td valign=top width=1%><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td valign=top width=11%>
      <p><font size="1">38 registered investment companies consisting of <br>
        55 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=14%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=9%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=10%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=39%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=14%>
      <p><font size="1">Kenneth A. Froot (48)</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=9%>
      <p><font size="1">Director</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=10%>
      <p><font size="1">Director of each Fund since the year listed in Exhibit
        B.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=39%>
      <p><font size="1">Professor, Harvard University since 1992; Professor, Massachusetts
        Institute of Technology from 1986 to 1992.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">38 registered investment companies consisting of <br>
        55 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
</table>

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&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
4</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 35; page: 35" --> <br>
<table border=0 cellspacing=0 cellpadding=0 width="100%">
  <tr valign="bottom">
    <td width=13%>
      <p align="center"><font size="1"><b>Name, Address&#134; <br>
        and Age </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=9%>
      <p align="center"><font size="1"><b>Position(s) <br>
        Held with <br>
        Each Fund </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=11%>
      <p align="center"><font size="1"><b>Term of <br>
        Office&#134;&#134; and <br>
        Length of <br>
        Time Served </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=39%>
      <p align="center"><font size="1"><b>Principal Occupation(s) <br>
        During Past Five Years </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=11%>
      <p align="center"><font size="1"><b>Number of <br>
        MLIM/FAM- <br>
        Advised Funds <br>
        and Portfolios <br>
        Overseen </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%><font size="1"><b>&nbsp;&nbsp;&nbsp;</b></font></td>
    <td width=12%>
      <p align="center"><font size="1"><b>Public <br>
        Directorships </b> </font>
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Joe Grills (70)*</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=9%>
      <p><font size="1">Director</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">Director of each Fund since the year listed in Exhibit
        B.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=39%>
      <p><font size="1">Member of the Committee of Investment of Employee Benefit
        Assets of the Association of Financial Professionals (&#147;CIEBA&#148;)
        since 1986; Member of CIEBA&#146;s Executive Committee since 1988 and
        its Chairman from 1991 to 1992; Assistant Treasurer of International Business
        Machines Corporation (&#147;IBM&#148;) and Chief Investment Officer of
        IBM Retirement Funds from 1986 to 1993; Member of the Investment Advisory
        Committee of the State of New York Common Retirement Fund since 1989;
        Member of the Investment Advisory Committee of the Howard Hughes Medical
        Institute from 1997 to 2000; Director, Duke University Management Company
        from 1992 to 2004, Vice Chairman thereof from 1998 to 2004 and Director
        Emeritus 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, Vice
        Chairman thereof from 2002 to 2005, and Chairman thereof since 2005; Director,
        Montpelier Foundation since 1998 and its Vice Chairman since 2000; Member
        of the Investment Committee of the Woodberry Forest School since 2000;
        Member of the Investment Committee of the National Trust for Historic
        Preservation since 2000.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">38 registered investment companies consisting of <br>
        55 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">Kimco Realty Corporation</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=9%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=39%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Herbert I. London (66)</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=9%>
      <p><font size="1">Director</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">Director of each Fund since the year listed in Exhibit
        B.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=39%>
      <p><font size="1">John M. Olin Professor of Humanities, New York University
        since 1993 and Professor thereof since 1980; President, Hudson Institute
        since 1997 and Trustee thereof since 1980; Dean, Gallatin Division of
        New York University from 1976 to 1993; Distinguished Fellow, Herman Kahn
        Chair, Hudson Institute from 1984 to 1985; Director, Damon Corp. from
        1991 to 1995; Overseer, Center for Naval Analyses from 1983 to 1993.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">38 registered investment companies consisting of <br>
        55 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" --> <BR>
&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
5</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 36; page: 36" --> <br>
<table border=0 cellspacing=0 cellpadding=0 width="100%">
  <tr valign="bottom">
    <td width=13%>
      <p align="center"><font size="1"><b>Name, Address&#134; <br>
        and Age </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=9%>
      <p align="center"><font size="1"><b>Position(s) <br>
        Held with <br>
        Each Fund </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=11%>
      <p align="center"><font size="1"><b>Term of <br>
        Office&#134;&#134; and <br>
        Length of <br>
        Time Served </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=39%>
      <p align="center"><font size="1"><b>Principal Occupation(s) <br>
        During Past Five Years </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=11%>
      <p align="center"><font size="1"><b>Number of <br>
        MLIM/FAM- <br>
        Advised Funds <br>
        and Portfolios <br>
        Overseen </b> </font>
      <hr noshade size="1">
    </td>
    <td width=1%><font size="1"><b>&nbsp;&nbsp;&nbsp;</b></font></td>
    <td width=12%>
      <p align="center"><font size="1"><b>Public <br>
        Directorships </b> </font>
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Roberta Cooper Ramo (62)</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=9%>
      <p><font size="1">Director</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">Director of each Fund since the year listed in Exhibit
        B.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=39%>
      <p><font size="1">Shareholder, Modrall, Sperling, Roehl, Harris &amp; Sisk,
        P.A. since 1993; President, American Bar Association from 1995 to 1996
        and a Member of the Board of Governors thereof from 1994 to 1997; Shareholder,
        Poole, Kelly &amp; Ramo, Attorneys at Law, P. C. from 1977 to 1993; 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; Vice President, American Law Institute since 2004.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">38 registered investment companies consisting of <br>
        55 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=9%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=39%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Robert S. Salomon, Jr. (68)</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=9%>
      <p><font size="1">Director</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">Director of each Fund since the year listed in Exhibit
        B.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=39%>
      <p><font size="1">Principal of STI Management (investment adviser) since
        1994; Chairman and CEO of Salomon Brothers Asset Management, Inc. 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 until 1991; Trustee, Commonfund from 1980 to 2001.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">38 registered investment companies consisting of <br>
        55 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=9%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=39%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Stephen B. Swensrud (72)</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=9%>
      <p><font size="1">Director</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">Director of each Fund since the year listed in Exhibit
        B.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=39%>
      <p><font size="1">Chairman of Fernwood Advisors, Inc. (investment adviser)
        since 1996; Principal, Fernwood Associates (financial consultants) since
        1975; Chairman of R.P.P. Corporation (manufacturing company) since 1978;
        Director of International Mobile Communications, Inc. (telecommunications)
        since 1998.</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">39 registered investment companies consisting of <br>
        56 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </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"> &#134; </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">The
address of each non-interested Director Nominee is P.O. Box 9095, Princeton, New Jersey
08543-9095. </FONT></TD></TR></TABLE>

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

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

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





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



<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Committees and Board
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;Each
  Fund maintains two standing board committees, the Audit Committee and the Nominating
  Committee. Currently all of the non-interested Directors are members of each
  Fund&#146;s Audit Committee. The Nominating Committee of each fund currently
  consists of three of the non-interested Directors, Ms. Ramo, Mr. London and
  Mr. Salomon. During each Fund&#146;s last fiscal year, each of the Directors
  then in office attended at least 75% of the aggregate of the total number of
  meetings of the Board of Directors of that Fund held during the fiscal year
  and, if a member, the total number of meetings of the Audit Committee and Nominating
  Committee held during the period for which he or she served. For information
  about the number of meetings of the Board, the Audit Committee and the Nominating
  Committee held during each Fund&#146;s most recently completed fiscal year,
  see Exhibit A to the Combined Proxy Statement. </FONT></P>


<!-- MARKER FORMAT-SHEET="Left Head 2 Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Audit Committees </I></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 responsibilities of each Audit Committee are the appointment, compensation and
oversight of the Fund&#146;s independent registered public accounting firm, including the
resolution of disagreements regarding financial reporting between Fund management and
such independent registered public accounting firm. The Audit Committee&#146;s
responsibilities include, without limitation, to (i) review with the independent
registered public accounting firm the arrangements for and scope of annual and special
audits and any other services provided by the independent registered public accounting
firm to the Fund; (ii) discuss with the independent registered public accounting firm
certain matters relating to the Fund&#146;s financial statements, including any adjustment to
such financial statements recommended by such independent registered public accounting
firm or any other results of any audit; (iii) ensure that the independent registered
public accounting firm submits on a periodic basis a formal written statement with
respect to their independence, discuss with the independent registered public accounting
firm any relationships or services disclosed in the statement that may impact the
objectivity and independence of the Fund&#146;s independent registered public accounting firm
and recommend that the Board take appropriate action in response thereto to satisfy
itself of the independent registered public accounting firm&#146;s independence; and (iv)
consider the comments of the independent registered public accounting firm with respect
to the quality and adequacy of the Fund&#146;s accounting and financial reporting policies and
practices and internal controls and Fund management&#146;s responses thereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  Fund has adopted a written Charter for the Audit Committee, a copy of which
  was last filed as an exhibit to the Funds&#146; Combined Proxy Statement during
  the fiscal year ended in 2004. Each Fund&#146;s Audit Committee also has received
  written disclosures and the letter required by Independence Standards Board
  Standard No. 1, as may be modified or supplemented, from Deloitte &amp; Touche
  <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  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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, 2005 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. The Board of each Fund has adopted a written
  Charter for the Nominating Committee, a copy of which was last filed as an exhibit
  to the Funds&#146; Combined Proxy Statement during the fiscal year ended in
  2004. The nomination of Mr. Froot was recommended to the Nominating Committee
  by a non-interested Director. </FONT></P>

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


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

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


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Funds have no formal policy regarding Director attendance at stockholder meetings. None
of the Funds&#146; Directors attended the 2004 Annual Meetings of Stockholders. </FONT></P>

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

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

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


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

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


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAM,
  the investment adviser of each Fund, pays all compensation to all officers of
  each Fund and all Directors of each Fund who are affiliated with Merrill Lynch
  &amp; Co., Inc. (&#147;ML &amp; Co.&#148;) or its subsidiaries. Each non-interested
  Director receives 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. The Co-Chairman of each
  Audit Committee receives an additional annual retainer in the amount of $50,000,
  which is paid quarterly and allocated to each MLIM/FAM-advised fund for which
  such Co-Chairman provides services based on relative net assets 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;Information
  relating to (i) the aggregate fees and expenses paid by each Fund to its non-interested
  Directors during the Fund&#146;s most recently completed fiscal year is set
  forth in Exhibit A to this Combined Proxy Statement and (ii) the compensation
  received by each non-interested Director from each Fund and from all MLIM/FAM-advised
  funds is set forth in Exhibit B to this Combined Proxy Statement. </FONT></P>

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

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


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

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

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

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


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Boards of each of High Yield and MuniAssets have approved, and recommend that each Fund&#146;s
stockholders approve, the amendment to its investment restriction prohibiting investment
in other investment companies, except under certain circumstances. The investment
restriction is a fundamental policy of each Fund and may not be changed without
stockholder approval. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
investment restriction for High Yield as proposed to be amended is set forth below. The
language to be added appears in bold face type. </FONT></P>

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

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<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;&nbsp;&nbsp;&nbsp;Purchase
securities of other investment companies, except <B>(i) </B>in connection with a merger,
consolidation, acquisition or reorganization, <B>(ii) by purchase of shares of money
market funds advised by the Investment Adviser or its affiliates (as defined in the
Investment Company Act) to the extent permitted by an exemptive order issued to the
Fund by the Securities and Exchange Commission, </B>or <B>(iii) </B>by purchase in the open
market of securities of closed-end investment companies where no
underwriter&#146;s or dealer&#146;s commission or profit, other than customary broker&#146;s
commission, is involved and only if immediately thereafter not more than 10% of the
Fund&#146;s total assets would be invested in such securities. </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
investment restriction for MuniAssets as proposed to be amended is set forth below. The
language to be added appears in bold face type. </FONT></P>

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

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<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;&nbsp;&nbsp;&nbsp;Purchase
securities of other investment companies, except <B>(i) </B>in connection with a merger,
consolidation, acquisition or reorganization, <B>(ii) by purchase of shares of
tax-exempt money market funds advised by the Investment Adviser or its affiliates
(as defined in the Investment Company Act) to the extent permitted by an exemptive
order issued to the Fund by the Securities and Exchange Commission, </B>or <B>(iii) </B>by
purchase in the open market of securities of closed-end investment companies and
only if immediately thereafter not more than 10% of the Fund&#146;s total assets would
be invested in such securities. </FONT>
</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;High
Yield and MuniAssets have adopted a fundamental investment restriction that provides that
they may not invest in other investment companies except under certain specified
circumstances. You are being asked to approve changes to that fundamental investment
restriction that would allow High Yield to invest in other investment companies by
purchasing shares of money market funds advised by the Investment Adviser and its
affiliates as permitted by an exemptive order issued to High Yield by the SEC (the &#147;SEC
Order&#148;). Additionally, you are being asked to approve changes to that fundamental
investment restriction that would allow MuniAssets to invest in other investment
companies by purchasing shares of tax-exempt money market funds advised by the Investment
Adviser and its affiliates as permitted by the SEC Order. This change will make it
possible for High Yield and MuniAssets, in the future, to invest cash balances, including
any cash collateral received in securities lending activities and cash that is otherwise
not invested in portfolio securities, in affiliated tax-exempt money market funds, with
respect to MuniAssets, and affiliated money market funds with respect to High Yield,
pursuant to conditions imposed by the SEC Order. Uninvested cash might arise from a
variety of sources including dividend or interest payments, unsettled securities
transactions, reserves held for investment strategy purposes, scheduled maturity of
investments or liquidation of portfolio securities. Any such investment will be on the
same terms and on the same basis as other stockholders in such taxable money market
funds, with respect to High Yield, or tax-exempt money market funds, with respect to
MuniAssets, except that shares of taxable or tax-exempt money market funds sold to and
redeemed by High Yield and MuniAssets, respectively, will not be subject to a sales load,
redemption fee, distribution fee under a Rule 12b-1 plan or a service fee, and if the
shares are subject to any such fee, the Investment Adviser will waive its advisory fee in
an amount necessary to offset the amount of any such fees incurred. The SEC Order permits
High Yield to invest up to 25% of its total assets in an affiliated money market fund.
The SEC Order permits MuniAssets to invest up to 25% of its total assets in an affiliated
tax-exempt money market fund. If the proposed amendment is adopted, High Yield and
MuniAssets will interpret the amended restriction in light of the existing SEC Order or
as it may be amended in the future. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Boards of High Yield and MuniAssets believe that investment in affiliated taxable or
tax-exempt money market funds, respectively, would provide High Yield and MuniAssets with
an efficient and cost-effective means of investing uninvested cash balances and cash
collateral. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
  &#147;Additional Information &#151; Quorum and Vote Required&#148; for the required
  vote necessary for the approval of the change to the fundamental investment
  restriction. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
Boards of Directors of High Yield and MuniAssets recommend that stockholders vote FOR the
proposal to amend the applicable Fund&#146;s fundamental investment restriction regarding
investing in other investment companies.</B> </FONT> </P>

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


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

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


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  order to obtain the necessary quorum at each Meeting, supplementary solicitation
  may be made by mail, telephone, telegraph or personal interview by officers
  of each Fund. Each Fund has retained Computershare Fund Services, 17 State Street,
  New York, New York 10004, to assist in the solicitation of proxies at a cost
  of approximately $3,500 for each Fund, plus aggregate out-of-pocket expenses
  of approximately $750. </FONT></P>
s


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

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

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


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming
a quorum is present, approval of Item 1. Election of Directors will require the
affirmative vote of a plurality of votes cast by stockholders of each Fund. For purposes
of Item 1, a &#147;plurality of the votes&#148; cast means the candidate must receive more votes
than any other candidate for the same position, but not necessarily a majority of the
votes cast. The vote required for approval of Item 2 (applicable only to High Yield and
MuniAssets) is the affirmative vote of the lesser of (i) 67% of the shares represented at
the Meeting at which more than 50% of the outstanding shares are represented or (ii) more
than 50% of the outstanding shares (an &#147;Investment Company Act Majority&#148;). </FONT></P>

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





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<!-- MARKER PAGE="sheet: 43; page: 43" -->





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
shares of Common Stock represented by properly executed proxies, unless such proxies have
previously been revoked, will be voted at each Meeting in accordance with the directions
on the proxies; if no direction is indicated, the shares of Common Stock will be voted: </FONT></P>

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

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

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


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

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


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D&amp;T
  has been selected as each Funds&#146; independent registered public accounting
  firm. D&amp;T, in accordance with Independence Standards Board Standard No.
  1, has confirmed to each Fund&#146;s Audit Committee that they are the independent
  registered public accounting firm with respect to the Funds. The </FONT></P>

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





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<!-- MARKER PAGE="sheet: 44; page: 44" -->




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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 are </I>for the audit of the Fund&#146;s annual financial statements included in
the Fund&#146;s reports to stockholders and in connection with statutory and
regulatory filings or engagements; </FONT></TD></TR></TABLE>

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

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

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

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
fiscal year end for each Fund is set forth in Exhibit A to this Combined Proxy Statement. </FONT></P>


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



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640 align="center">
  <TR VALIGN=Bottom>
    <TH width="100" rowspan="2" align="left"><FONT SIZE=1>Fund</FONT>
      <hr size="1" noshade width="30%" align="left">
    </TH>
    <TH rowspan="2" width="114"><FONT SIZE=1>Independent Registered<BR>
      Public Accounting Firm </FONT>
      <hr size="1" noshade>
    </TH>
    <TH COLSPAN=4><FONT SIZE=1>Audit Fees ($)</FONT>
      <hr size="1" noshade width="90%">
    </TH>
    <TH COLSPAN=4><FONT SIZE=1>Audit-Related Fees ($)</FONT>
      <hr size="1" noshade width="95%">
    </TH>
    <TH COLSPAN=4><FONT SIZE=1>Tax Fees ($)</FONT>
      <hr size="1" noshade width="95%">
    </TH>
    <TH COLSPAN=4><FONT SIZE=1>All Other Fees ($)</FONT>
      <hr size="1" noshade width="95%">
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2><FONT SIZE=1>2005</FONT>
      <hr size="1" noshade width="80%">
    </TH>
    <TH COLSPAN=2><FONT SIZE=1>2004</FONT>
      <hr size="1" noshade width="80%">
    </TH>
    <TH COLSPAN=2><FONT SIZE=1>2005</FONT>
      <hr size="1" noshade width="80%">
    </TH>
    <TH COLSPAN=2><FONT SIZE=1>2004</FONT>
      <hr size="1" noshade width="80%">
    </TH>
    <TH COLSPAN=2><FONT SIZE=1>2005**</FONT>
      <hr size="1" noshade width="80%">
    </TH>
    <TH COLSPAN=2><FONT SIZE=1>2004**</FONT>
      <hr size="1" noshade width="80%">
    </TH>
    <TH COLSPAN=2><FONT SIZE=1>2005</FONT>
      <hr size="1" noshade width="80%">
    </TH>
    <TH COLSPAN=2><FONT SIZE=1>2004</FONT>
      <hr size="1" noshade width="80%">
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="100"><FONT SIZE=2>High Yield</FONT></TD>
    <TD ALIGN=CENTER width="114"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=RIGHT width="48"><FONT SIZE=2>37,000</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="48"><FONT SIZE=2>35,000</FONT></TD>
    <TD ALIGN=LEFT width="13"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="30"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>7,500</FONT></TD>
    <TD ALIGN=LEFT width="16"><FONT SIZE=2>*</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>5,700</FONT></TD>
    <TD ALIGN=LEFT width="13"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="36"><FONT SIZE=2>5,200</FONT></TD>
    <TD ALIGN=LEFT width="15"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="31"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="15"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="29"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="100"><FONT SIZE=2>High Yield III</FONT></TD>
    <TD ALIGN=CENTER width="114"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=RIGHT width="48"><FONT SIZE=2>37,000</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="48"><FONT SIZE=2>35,000</FONT></TD>
    <TD ALIGN=LEFT width="13"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="30"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>7,500</FONT></TD>
    <TD ALIGN=LEFT width="16"><FONT SIZE=2>*</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>5,700</FONT></TD>
    <TD ALIGN=LEFT width="13"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="36"><FONT SIZE=2>5,200</FONT></TD>
    <TD ALIGN=LEFT width="15"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="31"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="15"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="29"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="100"><FONT SIZE=2>MuniAssets</FONT></TD>
    <TD ALIGN=CENTER width="114"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=RIGHT width="48"><FONT SIZE=2>27,500</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="48"><FONT SIZE=2>26,000</FONT></TD>
    <TD ALIGN=LEFT width="13"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="30"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="16"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="38"><FONT SIZE=2>5,700</FONT></TD>
    <TD ALIGN=LEFT width="13"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="36"><FONT SIZE=2>5,610</FONT></TD>
    <TD ALIGN=LEFT width="15"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="31"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="15"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="29"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="17"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

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

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<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1"> * </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Agreed
upon procedures associated with Monthly Sellers Reports for 2004.</FONT></TD></TR></TABLE>

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<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</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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<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
14</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>





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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 Committee was required: </I></B></FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=640>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER colspan="2">&nbsp;</TD>
    <TD ALIGN=CENTER colspan="4"><b><font size=1>Audit-Related Fees ($)*</font>
      </b>
      <hr size="1" noshade width="95%">
    </TD>
    <TD ALIGN=center colspan="4"><b><font size=1>Tax Fees ($)</font> </b>
      <hr size="1" noshade width="95%">
    </TD>
    <TD ALIGN=center colspan="3"><b><font size=1>All Other Fees ($)</font> </b>
      <hr size="1" noshade width="95%">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><font size=1>Fund</font> </b>
      <hr size="1" noshade width="30%" align="left">
    </TD>
    <TD ALIGN=CENTER colspan="2"><b><font size=1>Independent Registered<br>
      Public Accounting Firm </font> </b>
      <hr size="1" noshade width="95%">
    </TD>
    <TD ALIGN=CENTER colspan="2"><b><font size=1>2005</font> </b>
      <hr size="1" noshade width="90%">
    </TD>
    <TD ALIGN=CENTER colspan="2"><b><font size=1>2004</font> </b>
      <hr size="1" noshade width="90%">
    </TD>
    <TD ALIGN=center colspan="2"><b><font size=1>2005</font> </b>
      <hr size="1" noshade width="90%">
    </TD>
    <TD ALIGN=center colspan="2"><b><font size=1>2004</font> </b>
      <hr size="1" noshade width="90%">
    </TD>
    <TD ALIGN=center colspan="2"><b><font size=1>2005</font> </b>
      <hr size="1" noshade width="90%">
    </TD>
    <TD ALIGN=CENTER><b><font size=1>2004**</font> </b>
      <hr size="1" noshade width="90%">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>High Yield</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>945,000</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>485,500</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>56,140</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>High Yield III</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>945,000</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>485,500</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>56,140</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniAssets</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>945,000</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>485,500</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>56,140</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER colspan="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;</TD>
    <TD ALIGN=CENTER colspan="2">&nbsp;</TD>
    <TD ALIGN=CENTER colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
</TABLE>


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

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

<!-- MARKER FORMAT-SHEET="Footnote Right" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</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=600 align="center">
  <TR VALIGN=Bottom>
    <TH rowspan="2" align="left"><FONT SIZE=1>Fund</FONT>
      <hr size="1" noshade width="20%" align="left">
    </TH>
    <TH COLSPAN=2 rowspan="2" align="center"><FONT SIZE=1>Independent Registered<BR>
      Public Accounting Firm </FONT>
      <hr size="1" noshade width="75%">
    </TH>
    <TH COLSPAN=2 align="center"><font size=1>Aggregate Non-Audit Fees ($)*</font>
      <hr size="1" noshade width="80%">
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH align="center"><FONT SIZE=1>2005</FONT>
      <hr size="1" noshade width="50%">
    </TH>
    <TH align="center"><FONT SIZE=1>2004</FONT>
      <hr size="1" noshade width="50%">
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>High Yield</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>9,981,643</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>16,593,786</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>High Yield III</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>9,981,643</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>16,593,786</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>MuniAssets</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>D&amp;T</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>9,981,643</FONT></TD>
    <TD ALIGN=CENTER><FONT SIZE=2>16,586,696</FONT></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%>&nbsp;</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>

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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 of each Fund has reviewed the non-audit services  provided by the Fund&#146;s
independent registered public accounting firm to the  Fund&#146;s Affiliated Service Providers
that were not subject to the Audit  Committee&#146;s pre-approval and has determined that the
provision of such services  is compatible with maintaining the independence of the
independent registered  public accounting firm. </FONT></P>

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

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





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

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

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<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>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Address of Investment
Adviser </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
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>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  a stockholder of any Fund intends to present a proposal at the 2006 Annual Meeting
  of Stockholders of such Fund, each of which is anticipated to be held in August
  2006, and desires to have the proposal included in the Fund&#146;s proxy statement
  and form of proxy for that meeting, the stockholder must deliver the proposal
  to the offices of the appropriate Fund by March 24, 2006. The persons named
  as proxies in the proxy materials for the 2006 Annual Meeting 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 8, 2006. Written proposals and notices
  should be sent to the Secretary of the respective Fund, 800 Scudders Mill Road,
  Plainsboro, New Jersey 08536. </FONT></P>


<!-- MARKER FORMAT-SHEET="8K 3 col" FSL="Workstation" --> <!-- MARKER FORMAT-SHEET="8K 3 col" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=35% colspan="2" align="left"><font size=2>By Order of the Boards
      of Directors </font></TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
  </TR>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=5%>&nbsp;</TD>
    <TD WIDTH=30%>&nbsp;</TD>
    <TD WIDTH=35% colspan="2" align="left"><font size=2>A<font size="1">LICE</font>
      A. P<font size="1">ELLEGRINO </font><br>
      <i>Secretary of Corporate High Yield Fund, Inc., <br>
      Corporate High Yield Fund III, Inc. and <br>
      MuniAssets Fund, Inc.</i> </font></TD>
  </TR>
</TABLE>


<br>

<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>Dated: July 21, 2005 </font></td>
    <td width=5%>&nbsp;</td>
    <td width=30%>&nbsp;</td>
    <td width=5%>&nbsp;</td>
    <td width=30%>&nbsp;</td>
  </tr>
</table>

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





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<!-- MARKER PAGE="sheet: 47; page: 47" -->





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


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


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


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




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 align="center">
  <TR VALIGN=Bottom>
    <TH align="left" width="161"><FONT SIZE=1>Fund </FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Fiscal Year End </FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>State of <BR>
      Organization </FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Meeting Time </FONT></TH>
    <TH COLSPAN=2><FONT SIZE=1>Shares of Common <BR>
      Stock Outstanding <BR>
      as of the Record Date </FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="161">
      <hr size="1" noshade width="15%" align="left">
    </TD>
    <TD ALIGN=CENTER colspan="2">
      <hr size="1" noshade width="80%">
    </TD>
    <TD ALIGN=CENTER colspan="2">
      <hr size="1" noshade width="80%">
    </TD>
    <TD ALIGN=CENTER width="123" colspan="2">
      <hr size="1" noshade width="90%">
    </TD>
    <TD ALIGN=CENTER width="136" colspan="2">
      <hr size="1" noshade width="80%">
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="161"><FONT SIZE=2>High Yield</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>May 31</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=CENTER width="123" colspan="2"><FONT SIZE=2>10:45 a.m.</FONT></TD>
    <TD ALIGN=CENTER width="136" colspan="2"><FONT SIZE=2>34,489,493</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="161"><FONT SIZE=2>High Yield III</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>May 31</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=CENTER width="123" colspan="2"><FONT SIZE=2>11:00 a.m.</FONT></TD>
    <TD ALIGN=CENTER width="136" colspan="2"><FONT SIZE=2>37,310,139</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="161"><FONT SIZE=2>MuniAssets</FONT></TD>
    <TD ALIGN=CENTER colspan="2"><FONT SIZE=2>May 31</FONT></TD>
    <TD ALIGN=CENTER width="118" colspan="2"><FONT SIZE=2>MD</FONT></TD>
    <TD ALIGN=CENTER width="123" colspan="2"><FONT SIZE=2>11:15 a.m.</FONT></TD>
    <TD ALIGN=CENTER width="136" colspan="2"><FONT SIZE=2>20,399,713</FONT></TD>
  </TR>
</TABLE>

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

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640 align="center">
  <tr valign=Bottom>
    <th align="left">&nbsp;</th>
    <th colspan=6><font size=1>Board</font>
      <hr size="1" noshade width="95%">
    </th>
    <th colspan=6><font size=1>Audit Committee</font>
      <hr size="1" noshade width="95%">
    </th>
    <th colspan=4><font size=1>Nominating Committee</font>
      <hr size="1" noshade width="95%">
    </th>
    <th colspan=2>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th align="left"><font size=1>Fund </font>
      <hr size="1" noshade width="25%" align="left">
    </th>
    <th colspan=2 align="center"><font size=1>No. of <br>
      Meetings <br>
      Held* </font>
      <hr size="1" noshade width="90%">
    </th>
    <th colspan=2 align="center"><font size=1>Annual <br>
      Fee ($) </font>
      <hr size="1" noshade width="90%">
    </th>
    <th colspan=2 align="center"><font size=1>Per <br>
      Meeting <br>
      Fee ($)** </font>
      <hr size="1" noshade width="95%">
    </th>
    <th colspan=2 align="center"><font size=1>No. of <br>
      Meetings <br>
      Held* </font>
      <hr size="1" noshade width="90%">
    </th>
    <th colspan=2 align="center"><font size=1>Annual <br>
      Fee ($)*** </font>
      <hr size="1" noshade width="90%">
    </th>
    <th colspan=2 align="center"><font size=1>Per <br>
      Meeting <br>
      Fee ($)** </font>
      <hr size="1" noshade width="95%">
    </th>
    <th colspan=2 align="center"><font size=1>No. of <br>
      Meetings <br>
      Held* </font>
      <hr size="1" noshade width="90%">
    </th>
    <th colspan=2 align="center"><font size=1>Per <br>
      Meeting <br>
      Fee ($)** </font>
      <hr size="1" noshade width="90%">
    </th>
    <th colspan=2 align="center"><font size=1>Aggregate <br>
      Fees and <br>
      Expenses ($) </font>
      <hr size="1" noshade width="90%">
    </th>
  </tr>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT WIDTH=112><FONT SIZE=2>High Yield</FONT></TD>
    <TD ALIGN=CENTER WIDTH=55 colspan="2"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=CENTER WIDTH=47 colspan="2"><FONT SIZE=2>131</FONT></TD>
    <TD ALIGN=CENTER WIDTH=49 colspan="2"><FONT SIZE=2>227</FONT></TD>
    <TD ALIGN=CENTER WIDTH=55 colspan="2"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=CENTER WIDTH=47 colspan="2"><FONT SIZE=2>131</FONT></TD>
    <TD ALIGN=CENTER WIDTH=56 colspan="2"><FONT SIZE=2>227</FONT></TD>
    <TD ALIGN=center WIDTH=51 colspan="2"><FONT SIZE=2>3</FONT></TD>
    <TD ALIGN=center WIDTH=49 colspan="2"><FONT SIZE=2>&nbsp;0</FONT></TD>
    <TD ALIGN=center WIDTH=77 colspan="2"><FONT SIZE=2>19,614</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="112"><FONT SIZE=2>High Yield III</FONT></TD>
    <TD ALIGN=CENTER width="55" colspan="2"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=CENTER width="47" colspan="2"><FONT SIZE=2>140</FONT></TD>
    <TD ALIGN=CENTER width="49" colspan="2"><FONT SIZE=2>227</FONT></TD>
    <TD ALIGN=CENTER width="55" colspan="2"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=CENTER width="47" colspan="2"><FONT SIZE=2>140</FONT></TD>
    <TD ALIGN=CENTER width="56" colspan="2"><FONT SIZE=2>227</FONT></TD>
    <TD ALIGN=center width="51" colspan="2"><FONT SIZE=2>3</FONT></TD>
    <TD ALIGN=center width="49" colspan="2"><FONT SIZE=2>&nbsp;0</FONT></TD>
    <TD ALIGN=center width="77" colspan="2"><FONT SIZE=2>19,622</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="112"><FONT SIZE=2>MuniAssets</FONT></TD>
    <TD ALIGN=CENTER width="55" colspan="2"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=CENTER width="47" colspan="2"><FONT SIZE=2>113</FONT></TD>
    <TD ALIGN=CENTER width="49" colspan="2"><FONT SIZE=2>227</FONT></TD>
    <TD ALIGN=CENTER width="55" colspan="2"><FONT SIZE=2>4</FONT></TD>
    <TD ALIGN=CENTER width="47" colspan="2"><FONT SIZE=2>113</FONT></TD>
    <TD ALIGN=CENTER width="56" colspan="2"><FONT SIZE=2>227</FONT></TD>
    <TD ALIGN=center width="51" colspan="2"><FONT SIZE=2>3</FONT></TD>
    <TD ALIGN=center width="49" colspan="2"><FONT SIZE=2>&nbsp;0</FONT></TD>
    <TD ALIGN=center width="77" colspan="2"><FONT SIZE=2>18,549</FONT></TD>
  </TR>
</TABLE>

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

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

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





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







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<!-- MARKER PAGE="sheet: 49; page: 49" -->



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


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


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



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 align="center">
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT SIZE=1>High Yield</FONT>
      <hr width=60% size="1" noshade>
    </TH>
    <TH><FONT SIZE=1>High Yield III</FONT>
      <hr width=60% size="1" noshade>
    </TH>
    <TH><FONT SIZE=1>MuniAssets</FONT>
      <hr width=60% size="1" noshade>
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=29% ALIGN=LEFT><FONT SIZE=2>Bodurtha</FONT></TD>
    <TD WIDTH=13% ALIGN=center><FONT SIZE=2>2002</FONT></TD>
    <TD WIDTH=13% ALIGN=center><FONT SIZE=2>2002</FONT></TD>
    <TD WIDTH=13% ALIGN=center><FONT SIZE=2>2002</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Doll</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2005</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Froot</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2005</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2005</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Grills</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1994</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1998</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1994</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>London</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2002</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2002</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2002</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Ramo</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2002</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2002</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>2002</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Salomon</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1996</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1998</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1996</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Swensrud</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1993</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1998</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>1993</FONT></TD>
  </TR>
</TABLE>

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

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


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=640>
  <TR VALIGN=Bottom>
    <TH align="left" width="243">&nbsp;</TH>
    <TH colspan="6"><font size="1">Compensation from the Fund ($)#</font>
      <hr noshade size="1" width="95%">
    </TH>
    <TH colspan="2"><font size="1">Aggregate Compensation <br>
      from Funds and Other <br>
      MLIM/FAM-Advised Funds($) </font>
      <hr noshade size="1" width="95%">
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH align="left" width="243"><FONT SIZE=1>Name</FONT>
      <hr width=10% size="1" noshade align="left">
    </TH>
    <TH colspan="2"><FONT SIZE=1>High Yield</FONT>
      <hr width=85% size="1" noshade>
    </TH>
    <TH colspan="2"><FONT SIZE=1>High Yield III</FONT>
      <hr width=90% size="1" noshade>
    </TH>
    <TH colspan="2"><FONT SIZE=1>MuniAssets</FONT>
      <hr width=85% size="1" noshade>
    </TH>
    <TH width="89">&nbsp;</TH>
    <TH width="41">&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT WIDTH=243><FONT SIZE=2>James H. Bodurtha*</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=56><FONT SIZE=2>2,728</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=25>&nbsp;&nbsp;&nbsp;</TD>
    <TD ALIGN=RIGHT WIDTH=56><FONT SIZE=2>2,829</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=25>&nbsp;&nbsp;&nbsp;</TD>
    <TD ALIGN=RIGHT WIDTH=64><FONT SIZE=2>2,537</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=41>&nbsp;&nbsp;&nbsp;</TD>
    <TD ALIGN=RIGHT WIDTH=89><FONT SIZE=2>250,000</FONT></TD>
    <TD ALIGN=RIGHT WIDTH=41>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="243"><FONT SIZE=2>Kenneth A. Froot**</FONT></TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="64"><FONT SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
    <TD ALIGN=RIGHT width="89"><FONT SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="243"><FONT SIZE=2>Joe Grills*</FONT></TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>2,728</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>2,829</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="64"><FONT SIZE=2>2,537</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
    <TD ALIGN=RIGHT width="89"><FONT SIZE=2>250,000</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="243"><FONT SIZE=2>Herbert I. London</FONT></TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>2,413</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>2,491</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="64"><FONT SIZE=2>2,265</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
    <TD ALIGN=RIGHT width="89"><FONT SIZE=2>225,000</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="243"><FONT SIZE=2>Andr&#233; Perold***</FONT></TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>712</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>731</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="64"><FONT SIZE=2>675</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
    <TD ALIGN=RIGHT width="89"><FONT SIZE=2>168,750</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="243"><FONT SIZE=2>Roberta Cooper Ramo</FONT></TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>2,413</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>2,491</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="64"><FONT SIZE=2>2,265</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
    <TD ALIGN=RIGHT width="89"><FONT SIZE=2>225,000</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="243"><FONT SIZE=2>Robert S. Salomon</FONT></TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>2,413</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>2,491</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="64"><FONT SIZE=2>2,265</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
    <TD ALIGN=RIGHT width="89"><FONT SIZE=2>225,000</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="243"><FONT SIZE=2>Stephen B. Swensrud</FONT></TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>2,413</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="56"><FONT SIZE=2>2,491</FONT></TD>
    <TD ALIGN=RIGHT width="25">&nbsp;</TD>
    <TD ALIGN=RIGHT width="64"><FONT SIZE=2>2,265</FONT></TD>
    <TD ALIGN=RIGHT width="41">&nbsp;</TD>
    <TD ALIGN=RIGHT width="89"><FONT SIZE=2>231,000</FONT></TD>
    <TD ALIGN=RIGHT width="41">&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=right VALIGN=top><FONT SIZE="1"> * </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Co-Chairman
of each Fund&#146;s Board and Audit Committee. </FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Left" FSL="Workstation" -->
<TABLE WIDTH=100%><TR>
    <TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Mr.
Froot became a  Director effective June 1, 2005.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Left" FSL="Workstation" -->
<TABLE WIDTH=100%><TR>
    <TD WIDTH=4% ALIGN=right VALIGN=top><FONT SIZE="1">*** </FONT></TD>
    <TD WIDTH=2%>&nbsp;</TD>
    <TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">Mr.
Perold resigned effective October 1, 2004.</FONT></TD></TR></TABLE>

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




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







<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 50; page: 50" -->



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




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640 align="center">
  <TR VALIGN=Bottom>
    <TH align="left" width="228"><FONT SIZE=1>Director Nominee </FONT>
      <hr width=35% size="1" noshade align="left">
    </TH>
    <TH COLSPAN=2><FONT SIZE=1>Fund </FONT>
      <hr width=30% size="1" noshade>
    </TH>
    <TH COLSPAN=2><FONT SIZE=1>Common <BR>
      Stock </FONT>
      <hr width=85% size="1" noshade>
    </TH>
    <TH COLSPAN=2><FONT SIZE=1>Aggregate<BR>
      Dollar Range <BR>
      of Equity <BR>
      Securities in <BR>
      the Fund </FONT>
      <hr width=90% size="1" noshade>
    </TH>
    <TH COLSPAN=2 width="140"><FONT SIZE=1>Aggregate Dollar Range<BR>
      of Equity Securities in All <BR>
      MLIM/FAM-Advised <BR>
      Funds overseen by each <BR>
      Director Nominee </FONT>
      <hr width=85% size="1" noshade>
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT WIDTH=228><FONT SIZE=2><i>Interested Director:</i></FONT></TD>
    <TD ALIGN=LEFT colspan="2"><FONT SIZE=2>&nbsp;</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT colspan="2"><FONT SIZE=2>&nbsp;</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT colspan="2"><FONT SIZE=2>&nbsp;</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT colspan="2" WIDTH=140><FONT SIZE=2>&nbsp;</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228"><FONT SIZE=2>&nbsp;&nbsp;Robert C. Doll, Jr</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>High Yield</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center colspan="2" width="140"><FONT SIZE=2>Over $100,000</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>&nbsp;High Yield III</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>MuniAssets</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228"><FONT SIZE=2><i>Non-Interested Directors:</i></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228"><FONT SIZE=2>&nbsp;&nbsp;James H. Bodurtha</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>High Yield</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>1,240</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>$1 - $10,000</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center colspan="2" width="140"><FONT SIZE=2>Over $100,000</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield III</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>MuniAssets</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228"><FONT SIZE=2>&nbsp;&nbsp;Kenneth A. Froot</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>High Yield</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>None</FONT></TD>
    <TD ALIGN=center colspan="2" width="140"><FONT SIZE=2>None</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield III</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>MuniAssets</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228"><font size=2>&nbsp;&nbsp;Joe Grills</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140"><font size=2>Over $100,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield III</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>MuniAssets</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228"><font size=2>&nbsp;&nbsp;Herbert I. London</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140"><font size=2>Over $100,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield III</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>MuniAssets</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228"><font size=2>&nbsp;&nbsp;Roberta Cooper Ramo</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140"><font size=2>Over $100,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield III</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>MuniAssets</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228"><font size=2>&nbsp;&nbsp;Robert S. Salomon, Jr.</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140"><font size=2>Over $100,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield III</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>MuniAssets</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2">&nbsp;</TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228"><font size=2>&nbsp;&nbsp;Stephen B. Swensrud</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140"><font size=2>$10,001 - $50,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>High Yield III</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="228">&nbsp;</TD>
    <TD ALIGN=center colspan="2"><font size=2>MuniAssets</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2"><font size=2>None</font></TD>
    <TD ALIGN=center colspan="2" width="140">&nbsp;</TD>
  </TR>
</TABLE>



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







<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 51; page: 51" -->



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


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



<table border=0 cellspacing=0 cellpadding=0 width="100%">
  <tr valign="bottom">
    <td width=13%>
      <p align="center"><b><font size="1">Name, Address* <br>
        and Age </font></b>
      <hr noshade size="1">
    </td>
    <td width=2%>&nbsp;</td>
    <td width=13%>
      <p align="center"><b><font size="1">Positions Held with <br>
        Applicable Funds; <br>
        Term of Office** and <br>
        Length of Time Served </font></b>
      <hr noshade size="1">
    </td>
    <td width=2%>&nbsp;</td>
    <td width=45%>
      <p align="center"><b><font size="1">Principal Occupation(s) <br>
        During Past Five Years </font></b>
      <hr noshade size="1">
    </td>
    <td width=2%>&nbsp;</td>
    <td width=11%>
      <p align="center"><b><font size="1">Number of <br>
        MLIM/FAM- <br>
        Advised Funds <br>
        and Portfolios <br>
        Overseen </font></b>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=11%>
      <p align="center"><b><font size="1">Public <br>
        Directorships </font></b>
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Robert C. Doll, Jr.&#134; (50)</font></p>
    </td>
    <td valign=top width=2%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">President and Director of each Fund since 2005.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">President of MLIM/FAM-advised funds since 2005; President
        of MLIM and FAM since 2001; Co-Head (Americas Region) thereof from 2000
        to 2001 and Senior Vice President from 1999 to 2001; President and Director
        of Princeton Services, Inc. (&#147;Princeton Services&#148;) since 2001; President
        of Princeton Administrators, L.P. (&#147;Princeton Administrators&#148;) since 2001;
        Chief Investment Officer of OppenheimerFunds, Inc. in 1999 and Executive
        Vice President thereof from 1991 to 1999.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">125 registered investment companies consisting of <br>
        169 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Donald C. Burke (45)</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">Treasurer of each Fund since 1999; Vice President of High
        Yield and MuniAssets since 1993 and of High Yield III since 1998.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">First Vice President of MLIM and FAM since 1997 and Treasurer
        thereof since 1999; Senior Vice President and Treasurer of Princeton Services
        since 1999 and Director since 2004; Vice President of FAM Distributors,
        Inc. (&#147;FAMD&#148;) since 1999; Vice President of MLIM and FAM from 1990 to
        1997; Director of Taxation of MLIM from 1990 to 2001; Vice President,
        Treasurer and Secretary of the IQ Funds since 2004.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">131 registered investment companies consisting of <br>
        175 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Kenneth A. Jacob (54)</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">Senior Vice President of MuniAssets since 1993.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">Managing Director of MLIM since 2000; First Vice President
        of MLIM since 1997; Vice President of MLIM from 1984 to 1997; Vice President
        of FAM since 1984.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">38 registered investment companies consisting of <br>
        50 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=11%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" --> <BR>
&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
C-1</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 52; page: 52" --> <br>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
  <tr valign="bottom">
    <td width=13%>
      <p align="center"><b><font size="1">Name, Address* <br>
        and Age </font></b>
      <hr noshade size="1">
    </td>
    <td width=2%>&nbsp;</td>
    <td width=13%>
      <p align="center"><b><font size="1">Positions Held with <br>
        Applicable Funds; <br>
        Term of Office** and <br>
        Length of Time Served </font></b>
      <hr noshade size="1">
    </td>
    <td width=2%>&nbsp;</td>
    <td width=45%>
      <p align="center"><b><font size="1">Principal Occupation(s) <br>
        During Past Five Years </font></b>
      <hr noshade size="1">
    </td>
    <td width=2%>&nbsp;</td>
    <td width=10%>
      <p align="center"><b><font size="1">Number of <br>
        MLIM/FAM- <br>
        Advised Funds <br>
        and Portfolios <br>
        Overseen </font></b>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=12%>
      <p align="center"><b><font size="1">Public <br>
        Directorships </font></b>
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Elizabeth M. Phillips (55)</font></p>
    </td>
    <td valign=top width=2%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">Vice President of High Yield since 1993 and of High Yield
        III since 1998.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">Director of MLIM since 2000; Vice President of MLIM from
        1990 to 2000.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=10%>
      <p><font size="1">4 registered investment companies consisting of <br>
        4 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=10%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Theodore R. Jaeckel, Jr. (45)</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">Vice President of MuniAssets since 1997.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">Managing Director of MLIM since 2005; Director (Tax-Exempt
        Fund Management) of FAM and MLIM since 1997 and Vice President thereof
        from 1991 to 1997.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=10%>
      <p><font size="1">7 registered investment companies consisting of <br>
        7 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=10%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">John M. Loffredo (42)</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">Senior Vice President of MuniAssets since 2003.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">Managing Director of MLIM since 2000; First Vice President
        of MLIM from 1997 to 2000; Vice President of MLIM from 1991 to 1997; Portfolio
        Manager of FAM and MLIM since 1997.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=10%>
      <p><font size="1">39 registered investment companies consisting of <br>
        51 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=10%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">B. Daniel Evans (61)</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">Vice President of High Yield and High Yield III since
        2002.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font 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>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=10%>
      <p><font size="1">6 registered investment companies consisting of <br>
        5 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=10%>
      <p><font size="1">&nbsp;</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top width=13%>
      <p><font size="1">Jeffrey Hiller (53)</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=13%>
      <p><font size="1">Chief Compliance Officer of each Fund since 2004.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=45%>
      <p><font size="1">Chief Compliance Officer of the MLIM/FAM-advised funds
        and First Vice President and Chief Compliance Officer of MLIM (Americas
        Region) since 2004; Chief Compliance Officer of the IQ Funds since 2004;
        Global Director of Compliance at Morgan Stanley Investment Management
        from 2002 to 2004; Managing Director and Global Director of Compliance
        at Citigroup Asset Management from 2000 to 2002; Chief Compliance Officer
        at Soros Fund Management in 2000; Chief Compliance Officer at Prudential
        Financial from 1995 to 2000; Senior Counsel in the Commissions Division
        of Enforcement in Washington, D.C. from 1990 to 1995.</font></p>
    </td>
    <td valign=top width=2%>&nbsp;</td>
    <td valign=top width=10%>
      <p><font size="1">132 registered investment companies consisting of <br>
        176 portfolios</font></p>
    </td>
    <td valign=top width=1%>&nbsp;</td>
    <td valign=top width=12%>
      <p><font size="1">None</font></p>
    </td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" --> <BR>
&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
C-2</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 53; page: 53" --> <br>
<table border=0 cellspacing=0 cellpadding=0>
  <tr valign="bottom">
    <td width=13%>
      <p align="center"><b><font size="1">Name, Address* <br>
        and Age </font></b>
      <hr noshade size="1">
    </td>
    <td width=2%>&nbsp;</td>
    <td width=13%>
      <p align="center"><b><font size="1">Positions Held with <br>
        Applicable Funds; <br>
        Term of Office** and <br>
        Length of Time Served </font></b>
      <hr noshade size="1">
    </td>
    <td width=2%>&nbsp;</td>
    <td width=45%>
      <p align="center"><b><font size="1">Principal Occupation(s) <br>
        During Past Five Years </font></b>
      <hr noshade size="1">
    </td>
    <td width=2%>&nbsp;</td>
    <td width=10%>
      <p align="center"><b><font size="1">Number of <br>
        MLIM/FAM- <br>
        Advised Funds <br>
        and Portfolios <br>
        Overseen </font></b>
      <hr noshade size="1">
    </td>
    <td width=1%>&nbsp;</td>
    <td width=12%>
      <p align="center"><b><font size="1">Public <br>
        Directorships </font></b>
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign="top">
    <td width=13%><font size="1">Alice A. Pellegrino (45)</font></td>
    <td width=2%>&nbsp;</td>
    <td width=13%><font size="1">Secretary of each Fund since 2004.</font></td>
    <td width=2%>&nbsp;</td>
    <td width=45%><font size="1">Director (Legal Advisory) of MLIM since 2002;
      Vice President of MLIM from 1999 to 2002; Attorney associated with MLIM
      since 1997; Secretary of MLIM, FAM, FAMD and Princeton Services since 2004.</font></td>
    <td width=2%>&nbsp;</td>
    <td width=10%><font size="1">126 registered investment companies consisting
      of <br>
      170 portfolios</font></td>
    <td width=1%>&nbsp;</td>
    <td width=12%><font size="1">None</font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Cutoff rule Footnote" FSL="Workstation" -->
<HR SIZE=1 noshade ALIGN=left  WIDTH=75>

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

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

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


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






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<!-- MARKER PAGE="sheet: 54; page: 54" -->




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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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<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CORPORATE HIGH YIELD
FUND, INC.<BR>                                   P.O. BOX 9011<BR>
                        PRINCETON, NEW JERSEY 08543-9011 </B></FONT></P>

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

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

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  undersigned hereby appoints Andrew J. Donohue, Donald C. Burke and Alice A.
  Pellegrino, as proxies, each with the power to appoint his or her substitute,
  and hereby authorizes each of them to represent and to vote, as designated on
  the reverse hereof, all of the shares of Common Stock of Corporate High Yield
  Fund, Inc. (the &#147;Fund&#148;) held of record by the undersigned on June
  24, 2005, at the annual meeting of stockholders of the Fund to be held on August
  23, 2005 or any adjournment thereof. </FONT></P>
<P><b><!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" --> </b></P>
<P><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THIS PROXY WHEN PROPERLY
  EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED STOCKHOLDER.
  IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED &#147;FOR&#148; ITEMS 1 AND
  2. </FONT></b><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>
<P><!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" --> </P>

<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 Items 1 and 2 as marked, or if not marked, to vote &#147;FOR&#148; Items
  1 and 2, and to use their discretion to vote for any other matter as may properly
  come before the meeting or any adjournment thereof. If you do not intend to
  personally attend the meeting, please complete and return this card at once
  in the enclosed envelope. </FONT></P>
<P><!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" --> </P>

<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Continued and to be
signed on the reverse side) </FONT></P>

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





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



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

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


<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left">
      <p><font face="Times New Roman, Times, Serif" size=2>01) James H. Bodurtha<br>
        02) Robert C. Doll, Jr.<br>
        03) Kenneth A. Froot<br>
        04) Joe Grills<br>
        05) Herbert I. London<br>
        06) Roberta Cooper Ramo<br>
        07) Robert S. Salomon, Jr.<br>
        08) Stephen B. Swensrud</font></p>
      </td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<PRE> <!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</PRE>
<table cellpadding=0 cellspacing=0 width=599>
  <tr valign=TOP>
    <td width=5%><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=49%><font size="2">Proposal to approve an amendment to the Fund&#146;s
      fundamental investment restriction. </font></td>
    <td width=15%>
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><b>FOR</b></font><b><font size="2">
        </font></b><font size="2"><br>
        <br>
        |_|</font></div>
    </td>
    <td width=15%>
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><b>AGAINST</b></font><b><font size="2">
        </font></b><font size="2"><br>
        <br>
        |_|</font></div>
    </td>
    <td width=15%>
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><b>ABSTAIN</b></font><b><font size="2">
        </font></b><font size="2"><br>
        <br>
        |_|</font></div>
    </td>
  </tr>
</table>
<p><!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" --> </p>
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
    <TD width=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=94%><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>
<p><BR>
  <!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" --> </p>
<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:____________________________________</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGN, DATE AND RETURN THE PROXY CARD
PROMPTLY USING THE ENCLOSED ENVELOPE. </FONT></P>


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





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




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

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

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

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

<P><!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" --> </P>
<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 Item 1 as marked, or if not marked, to vote &#147;FOR&#148; Item 1,
  and to use their discretion to vote for any other matter as may properly come
  before the meeting or any adjournment thereof. If you do not intend to personally
  attend the meeting, please complete and return this card at once in the enclosed
  envelope. <br>
  </FONT><!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" --> </P>

<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Continued and
  to be signed on the reverse side) </FONT></P>

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





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



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

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


<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left"><font face="Times New Roman, Times, Serif" size=2>01)
      James H. Bodurtha<br>
      02) Robert C. Doll, Jr.<br>
      03) Kenneth A. Froot<br>
      04) Joe Grills<br>
      05) Herbert I. London<br>
      06) Roberta Cooper Ramo<br>
      07) Robert S. Salomon, Jr.<br>
      08) Stephen B. Swensrud </font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<PRE><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --> <!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
</PRE>
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the discretion of such proxies, upon such other business as may properly come before the
meeting or any adjournment thereof. </FONT></TD>
</TR>
</TABLE>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 20" FSL="Workstation" -->
<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:____________________________________</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGN, DATE AND RETURN THE PROXY CARD
PROMPTLY USING THE ENCLOSED ENVELOPE. </FONT></P>

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




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




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

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

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

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

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

<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 Items 1 and 2 as marked, or if not marked, to vote &#147;FOR&#148; Items
  1 and 2, and to use their discretion to vote for any other matter as may properly
  come before the meeting or any adjournment thereof. If you do not intend to
  personally attend the meeting, please complete and return this card at once
  in the enclosed envelope. <br>
  <!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" --> </FONT></P>

<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Continued and to be
signed on the reverse side) </FONT></P>

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





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



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

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

<table border=0 cellspacing=0 cellpadding=0 width=600>
  <tr align="center">
    <td valign=top width=115>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=115> <font size="2">For <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=35>&nbsp;&nbsp;</td>
    <td valign=top width=73> <font size="2">Withhold <br>
      All <br>
      <br>
      |_|</font></td>
    <td valign=top width=18>&nbsp;&nbsp;</td>
    <td valign=top width=90> <font size="2">For All <br>
      Except <br>
      <br>
      |_|</font></td>
    <td valign=top width=17>&nbsp;&nbsp;</td>
    <td valign=top align="left" width=236> <font size="2">To withhold authority
      to vote for certain nominees only, mark &#147;For All Except&#148; and write
      each such nominee&#146;s number on the line below.</font></td>
  </tr>
  <tr align="center">
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=115>&nbsp;</td>
    <td valign=top width=35>&nbsp;</td>
    <td valign=top width=73>&nbsp;</td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=top align="left" width=236>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign=top width=338 colspan="4" align="left"><font face="Times New Roman, Times, Serif" size=2>01)
      Robert C. Doll, Jr.<br>
      02) Kenneth A. Froot<br>
      03) Herbert I. London<br>
      </font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top width=90>&nbsp;</td>
    <td valign=top width=17>&nbsp;</td>
    <td valign=bottom align="left" width=236>
      <hr noshade size="1">
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<table cellpadding=0 cellspacing=0 width=599>
  <tr valign=TOP>
    <td width=5%><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=49%><font face="Times New Roman, Times, serif" size="2">Proposal
      to approve an amendment to the Fund&#146;s fundamental investment restriction.</font></td>
    <td width=15%>
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><b>FOR</b></font><b><font size="2">
        </font></b><font size="2"><br>
        <br>
        |_|</font></div>
    </td>
    <td width=15%>
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><b>AGAINST</b></font><b><font size="2">
        </font></b><font size="2"><br>
        <br>
        |_|</font></div>
    </td>
    <td width=15%>
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><b>ABSTAIN</b></font><b><font size="2">
        </font></b><font size="2"><br>
        <br>
        |_|</font></div>
    </td>
  </tr>
</table>
<br>
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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
    <TD width=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the discretion
      of such proxies, upon such other business as may properly come before the
      meeting or any adjournment thereof. </FONT></TD>
</TR>
</TABLE>
<BR>
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<table width=600 cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=46%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2> Please sign
      exactly as name appears hereon. When stock is held by joint tenants, both
      should sign. When signing as attorney or as executor, administrator, trustee
      or guardian, please give full title as such. If a corporation, please sign
      in full corporate name by president or other authorized officer. If a partnership,
      please sign in partnership name by authorized person. </font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>Dated:____________________________________</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=46%>&nbsp;</td>
    <td width=54%><font face="Times New Roman, Times, Serif" size=2>X________________________________________
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature, if held jointly</font></td>
  </tr>
</table>
<BR>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGN, DATE AND RETURN THE
  PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. </FONT></P>
<P><!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" --> <br>
  &nbsp; </P>
<table width=100%>
  <tr>
    <td width=20% align=left><font size=1>&nbsp;</font></td>
    <td width=60% align=center><font size="2"> </font></td>
    <td width=20% align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<hr size=5 noshade width=100% align=LEFT>



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