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<SEC-DOCUMENT>0000930413-06-004912.txt : 20060627
<SEC-HEADER>0000930413-06-004912.hdr.sgml : 20060627
<ACCEPTANCE-DATETIME>20060627122420
ACCESSION NUMBER:		0000930413-06-004912
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20060803
FILED AS OF DATE:		20060627
DATE AS OF CHANGE:		20060627
EFFECTIVENESS DATE:		20060627

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SALOMON BROTHERS HIGH INCOME FUND II INC
		CENTRAL INDEX KEY:			0001058239
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-08709
		FILM NUMBER:		06926365

	BUSINESS ADDRESS:	
		STREET 1:		CITIGROUP ASSET MANAGEMENT
		STREET 2:		125 BROAD STREET, 10TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10004
		BUSINESS PHONE:		212-291-2556

	MAIL ADDRESS:	
		STREET 1:		CITIGROUP ASSET MANAGEMENT
		STREET 2:		125 BROAD STREET, 10TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10004

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SALOMON BROTHERS HIGH YIELD BOND FUND IN
		DATE OF NAME CHANGE:	19980319
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>c42989_def14a.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">
<PRE>

                          SCHEDULE 14A INFORMATION

               Proxy Statement Pursuant to Section 14(a) of the
              Securities Exchange Act of 1934 (Amendment No.   )

Filed by the Registrant        [X]
Filed by a Party other than the Registrant     [ ]

Check the appropriate box:
[ ] Preliminary Proxy Statement             [ ] Confidential, for Use of the
                                                Commission Only (as permitted
                                                by Rule 14a-6(e) (2))

[X] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12

                 Salomon Brothers High Income Fund II Inc.
- --------------------------------------------------------------------------
                (Name of Registrant as Specified in Its Charter)

- --------------------------------------------------------------------------

     (Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
     [X] No fee required.
     [ ] Fee computed on table below per Exchange Act Rules 14a-6(i) (4)
         and 0-11.

     (1) Title of each class of securities to which transaction applies:

- --------------------------------------------------------------------------
     (2) Aggregate number of securities to which transaction applies:

- --------------------------------------------------------------------------
     (3) 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):

- --------------------------------------------------------------------------
     (4) Proposed maximum aggregate value of transaction:

- ---------------------------------------------------------------------------
     (5) Total fee paid:

- ---------------------------------------------------------------------------
     [ ] Fee paid previously with preliminary materials.

- ---------------------------------------------------------------------------
     [ ] 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.

     (1) Amount Previously Paid:

- ---------------------------------------------------------------------------
     (2) Form, Schedule or Registration Statement No.:

- ---------------------------------------------------------------------------
     (3) Filing Party:

- ---------------------------------------------------------------------------
     (4) Date Filed:

- ---------------------------------------------------------------------------

</PRE>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>

<center>
  <FONT size=5 face="serif">S</FONT><FONT face="serif">ALOMON </FONT><FONT size=5 face="serif">B</FONT><FONT face="serif">ROTHERS </FONT><FONT size=5 face="serif">H</FONT><FONT face="serif">IGH </FONT><FONT size=5 face="serif">I</FONT><FONT
face="serif">NCOME </FONT><FONT size=5 face="serif">F</FONT><FONT face="serif">UND </FONT><FONT size=5 face="serif">II I</FONT><FONT face="serif">NC</FONT><FONT size=5 face="serif">.</FONT><BR>
  <B><FONT size=2 face="sans-serif">125 Broad Street, New York, New York 10004</FONT></B><BR>
</center>
<P align=center>
<B><FONT size=4 face="sans-serif">NOTICE OF ANNUAL MEETING OF STOCKHOLDERS</FONT></B></P>
<P align=right>
<FONT size=2 face="sans-serif">June 28, 2006</FONT></P>
<P align=justify>
<I><FONT size=2 face="sans-serif">To the Stockholders:</FONT></I></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Annual Meeting of Stockholders (the &#147;Meeting&#148;) of Salomon Brothers High Income Fund II Inc. (the &#147;Fund&#148;) will be held at Citigroup Center, 153 East 53rd Street,
14th Floor Conference Center, New York, New York, on Thursday, August 3, 2006 at 3:30 p.m., Eastern Standard Time, for the purposes of considering and voting upon the following:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="2%" valign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
	<TD width="1%" valign=top nowrap>
<FONT size=2 face="sans-serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
	<TD width="97%">
<FONT size=2 face="sans-serif">The election of Directors (Proposal 1); and</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">2.</FONT></TD>
	<TD>
<FONT size=2 face="sans-serif">Any other business that may properly come before the Meeting.</FONT></TD>
</TR>
</TABLE>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The close of business on June 16, 2006 has been fixed as the record date for the determination of stockholders entitled to notice of and to vote at the Meeting.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=50% align=left>&nbsp;</TD>
	<TD width=50% align=left>
<FONT size=2 face="sans-serif">By Order of the Board of Directors,</FONT>&nbsp;
	</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">Robert I. Frenkel</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left>
<I><FONT size=2 face="sans-serif">Secretary</FONT></I>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
<div align=justify style="border:1px solid #000000; padding:10px">
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font size=1 face="sans-serif">TO
        AVOID UNNECESSARY EXPENSE OF FURTHER SOLICITATION, WE URGE YOU to indicate
        voting instructions on the enclosed proxy, date and sign it and return
        it promptly in the envelope provided, no matter how large or how small
your holdings may be.</font></b></div>
<P align=justify><B><FONT size=1 face="sans-serif"></FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align=center>
<B><FONT size=2 face="sans-serif">Instructions for Signing Proxy Cards</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The following general rules for signing proxy cards may be of assistance to you and avoid the time and expense to the Fund involved in validating your vote if you fail to sign your proxy
card properly.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">1. </FONT><I><FONT size=2 face="sans-serif">Individual Accounts: </FONT></I><FONT size=2 face="sans-serif">Sign your name exactly as it appears in the registration on the proxy card.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">2. </FONT><I><FONT size=2 face="sans-serif">Joint Accounts: </FONT></I><FONT size=2 face="sans-serif">Either party may sign, but the name of the party signing should conform exactly to a
name shown in the registration.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">3. </FONT><I><FONT size=2 face="sans-serif">All Other Accounts: </FONT></I><FONT size=2 face="sans-serif">The capacity of the individual signing the proxy card should be indicated unless
it is reflected in the form of registration. For example:</FONT></P>
<TABLE width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="sans-serif"><u>Registration</u></FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif"><u>Valid Signature</u></FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=2 align=left>
<B><FONT size=1 face="sans-serif"><u>Corporate Accounts</u></FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">(1)</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">ABC Corp</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">ABC Corp. (by John Doe, Treasurer)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">(2)</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">ABC Corp</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">John Doe, Treasurer</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">(3)</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">ABC Corp., c/o John Doe, Treasurer</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">John Doe</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">(4)</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">ABC Corp. Profit Sharing Plan</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">John Doe, Trustee</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=2 align=left>
<B><FONT size=1 face="sans-serif"><u>Trust Accounts</u></FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">(1)</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">ABC Trust</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">Jane B. Doe, Trustee</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">(2)</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">Jane B. Doe, Trustee, u/t/d 12/28/78</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">Jane B. Doe</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=2 align=left>
<B><FONT size=1 face="sans-serif"><u>Custodial or Estate Accounts</u></FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">(1)</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">John B. Smith, Cust., f/b/o John B. Smith, Jr. UGMA</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">John B. Smith</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">(2)</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">John B. Smith</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">John B. Smith, Jr., Executor</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<center>
  <FONT size=5 face="sans-serif">S</FONT><FONT face="sans-serif">ALOMON </FONT><FONT size=5 face="sans-serif">B</FONT><FONT face="sans-serif">ROTHERS </FONT><FONT size=5 face="sans-serif">H</FONT><FONT face="sans-serif">IGH </FONT><FONT size=5
face="sans-serif">I</FONT><FONT face="sans-serif">NCOME </FONT><FONT size=5 face="sans-serif">F</FONT><FONT face="sans-serif">UND </FONT><FONT size=5 face="sans-serif">II I</FONT><FONT face="sans-serif">NC</FONT><FONT size=5
face="sans-serif">.</FONT><BR>
  <B><FONT size=2 face="sans-serif">125 Broad Street, New York, New York 10004</FONT></B><br>
  <br>
  <BR>
</center>
<hr width="200" size="1" noshade>
<P align=center><B><FONT face="sans-serif">PROXY STATEMENT</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">This proxy statement is furnished in connection with a solicitation by the Board of Directors of Salomon Brothers High Income Fund II Inc. (the &#147;Fund&#148;) of proxies to be used at
the Annual Meeting of Stockholders (the &#147;Meeting&#148;) of the Fund to be held at Citigroup Center, 153 East 53rd Street, 14th Floor Conference Center, New York, New York, on Thursday, August 3, 2006 at 3:30 p.m., Eastern Standard Time (and at
any adjournment or adjournments thereof), for the purposes set forth in the accompanying Notice of Annual Meeting of Stockholders. This proxy statement and the accompanying form of proxy are first being mailed to stockholders on or about June 28,
2006. Stockholders who execute proxies retain the right to revoke them in person at the Meeting or by written notice received by the Secretary of the Fund at any time before they are voted. Unrevoked proxies will be voted in accordance with the
specifications thereon and, unless specified to the contrary, will be voted FOR the election of Directors. The close of business on June 16, 2006 has been fixed as the record date for the determination of stockholders entitled to notice of and to
vote at the Meeting. Each stockholder is entitled to one vote for each full share and an appropriate fraction of a vote for each fractional share held. On June 16, 2006, there were 77,614,787 shares of the Fund&#146;s common stock
outstanding.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">In accordance with the Fund&#146;s By-Laws, a quorum is constituted by the presence in person or by proxy of the holders of record of a majority of the outstanding shares of the
Fund&#146;s common stock entitled to vote at the Meeting. In the event that a quorum is not present at the Meeting, or in the event that a quorum is present but sufficient votes to approve any of the proposals are not received, the Meeting may be
adjourned to a date not more than 120 days after the original record date to permit further solicitation of proxies. Any such adjournment will require the affirmative vote of a majority of those shares represented at the Meeting in person or by
proxy. The persons named as proxies will vote those proxies which they are entitled to vote FOR or AGAINST any such proposal in their discretion.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Salomon Brothers Asset Management Inc (&#147;SBAM&#148;), whose principal business address is 399 Park Avenue, New York, New York 10022, is the Fund&#146;s investment adviser and
administrator and is a wholly-owned subsidiary of Legg Mason, Inc. (&#147;Legg Mason&#148;).</FONT></P>
<P align=center>
<B><FONT size=2 face="sans-serif">Proposal 1: Election of Directors</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">In accordance with the Fund&#146;s charter, the Fund&#146;s Board of Directors is divided into three classes: Class I, Class II and Class III. At the Meeting, stockholders will be asked to
elect two Class II Directors to hold office until the year 2009 or thereafter when their respective successors are duly elected and qualified. The effect of these staggered terms is to limit the ability of other entities or persons to acquire
control of the Fund by delaying the replacement of a majority of the Board of Directors.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The persons named in the proxy intend to vote at the Meeting (unless directed not to vote) FOR the election of the nominees named below. Each of the nominees is currently a member of the
Fund&#146;s Board of Directors and has indicated that they will serve if elected. However, if any nominee should be unable to serve,</FONT></P>
<P align=center>
<FONT size=2 face="sans-serif">1</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align=justify>
<FONT size=2 face="sans-serif">the proxy will be voted for any other person determined by the persons named in the proxy in accordance with their judgment.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The following table provides information concerning the nominees for election as Directors of the Fund:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Number of</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Portfolios in</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Fund Complex*</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Overseen</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Other</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">by Nominee</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Directorships</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Position(s) Held</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Length of</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
      <center>
        <B><FONT size=1 face="sans-serif">Principal Occupation(s)</FONT></B>&nbsp;
	    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">(including</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Held by</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="sans-serif">Name, Address and Age</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">with the Fund)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Term Served</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">During Past 5 years</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">the Fund</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Nominee</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR align="left" width="120" size=1 noshade>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=7 align=left>
<B><FONT size=1 face="sans-serif">Nominees to serve as Class II Directors until the 2009 Annual Meeting of Stockholders</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=3 align=left>
<B><FONT size=1 face="sans-serif">NON-INTERESTED DIRECTOR NOMINEES</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Leslie H. Gelb</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Director and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">President Emeritus and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">34</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Director of two registered</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">c/o Chairman of the Fund</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Member of</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">2001</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Senior Board Fellow, The</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">investment companies</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">399 Park Avenue &#150; 4th Floor</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Audit and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Council on Foreign</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">advised by Blackstone</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">New York, NY 10022</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Nominating</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Relations; formerly,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Asia Advisors L.L.C.</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Birth year: 1937</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Committees</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Columnist, Deputy</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">(&#147;Blackstone Advisors&#148;)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Editorial Page Editor and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Editor, Op-Ed Page, The</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">New York Times.</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=11>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=11>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Dr. Riordan Roett</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Director and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Professor and Director,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">34</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">None</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">The Johns Hopkins University</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Member of</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">1998</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Latin American Studies</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">1740 Massachusetts Ave., NW</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Audit and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Program, Paul H. Nitze</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Washington, D.C. 20036</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Nominating</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">School of Advanced</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Birth year: 1938</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Committees</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">International Studies, The</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Johns Hopkins University.</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=11>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=11>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=7 align=left>
<B><FONT size=1 face="sans-serif">Class I Directors serving until the 2008 Annual Meeting of Stockholders</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="sans-serif">NON-INTERESTED DIRECTORS</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Daniel P. Cronin</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Director and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Retired; formerly, Associate</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">34</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">None</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">c/o Chairman of the Fund</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Member of</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">1998</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">General Counsel, Pfizer,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">399 Park Avenue &#150; 4th Floor</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Audit and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Inc.</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">New York, NY 10022</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Nominating</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Birth year: 1946</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Committees</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=11>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Jeswald W. Salacuse</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Director and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Henry J. Braker Professor of</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">34</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Director of two registered</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">c/o Chairman of the Fund</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Member of</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">1998</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Commercial Law and for-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">investment companies</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">399 Park Avenue &#150; 4th Floor</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Audit and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">merly Dean, The Fletcher</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">advised by Blackstone</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">New York, NY 10022</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Nominating</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">School of Law &amp;</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Advisors</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Birth year: 1938</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Committees</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Diplomacy, Tufts University.</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
</TABLE><BR>
<hr align="left" noshade width="100" size="1" color=black>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD valign=top nowrap><FONT size=1 face="sans-serif">*</FONT></TD>
  <TD> <div align="justify"><FONT size=1 face="sans-serif"> The term &#147;fund complex&#148; means
    two or more registered investment companies that:</FONT></div></TD>
</TR>
<TR>
	<TD width="2%" valign=top nowrap>
<FONT size=1 face="sans-serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
	<TD width="98%">
      <div align="justify"><FONT size=1 face="sans-serif">Hold themselves out to investors as related companies for purposes of investment and investor services; or</FONT></div></TD>
</TR>
<TR>
	<TD nowrap valign=top>
<FONT size=1 face="sans-serif">(b)</FONT></TD>
	<TD>
      <div align="justify"><FONT size=1 face="sans-serif">Have a common investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other registered investment companies.</FONT></div></TD>
</TR>
</TABLE>
<P align=center>
<FONT size=2 face="sans-serif">2</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The following table provides information concerning the remaining Directors of the Fund:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Number of</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Portfolios in</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>&nbsp;</TD>
	<TD align=right>&nbsp;</TD>
	<TD align=right> <center>
	  <B><FONT size=1 face="sans-serif">Fund Complex*</FONT></B>&nbsp;
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Overseen</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Other</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">by Nominee</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Directorships</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Position(s) Held</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Length of</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
      <center>
        <B><FONT size=1 face="sans-serif">Principal Occupation(s)</FONT></B>&nbsp;
	    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">(including</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Held by</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="sans-serif">Name, Address and Age</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">with the Fund)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Term Served</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">During Past 5 years</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">the Fund</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Nominee</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
      <HR align="left" width="120" size=1 noshade>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=7 align=left>
<B><FONT size=1 face="sans-serif">Class III Directors until the 2007 Annual Meeting of Stockholders</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="sans-serif">NON-INTERESTED DIRECTORS</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Carol L. Colman</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Director and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">President, Colman</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">37</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">None</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Colman Consulting</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Member of</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">2002</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Consulting Co.</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">278 Hawley Road</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Audit and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">North Salem, NY 10560</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Nominating</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Birth year: 1946</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Committees</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=11>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">William R. Hutchinson</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Director and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">President, W.R.</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">44</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="left"><FONT size=1 face="sans-serif">Director of Associated</FONT>&nbsp;
	    </div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">535 N. Michigan Avenue</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Member of</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">1998</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Hutchinson &amp; Associates</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Banc-Corp.</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Suite 1012</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Nominating</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Inc. (consulting), formerly</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Chicago, IL 60611</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">and Audit</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Group Vice President,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Birth year: 1942</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Mergers and Acquisitions,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">BP Amoco p.l.c.</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=11>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">R. Jay Gerken, CFA**</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">Chairman,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Managing Director of</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">169</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="left"><FONT size=1 face="sans-serif">Trustee, Consulting Group</FONT>&nbsp;
	    </div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Legg Mason, Inc.</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD colspan=3 align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">CEO, President 2002</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Legg Mason, Chairman,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Capital Markets Fund</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">399 Park Avenue &#150; 4th Floor</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="sans-serif">and Director</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">President and Chief Executive</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">New York, NY 10022</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Officer of Smith Barney Fund</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Birth year: 1951</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Management LLC (&#147;SBFM&#148;)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">and Citi Fund Management</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Inc. (&#147;CFM&#148;); President and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Chief Executive Officer of</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">certain mutual funds asso-</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">ciated with Legg Mason;</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Formerly Portfolio Manager</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">of Smith Barney Allocation</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Series Inc. (from 1996 to</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">2001) Chairman of the Board,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Trustee and Director of 169</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">funds associated with the</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Investment Manager or its</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">affiliates.</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
	<TD nowrap valign=top>
<FONT size=1 face="sans-serif">**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
	<TD>
      <div align="justify"><FONT size=1 face="sans-serif">Mr. Gerken is an &#147;interested person&#148; as defined in the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;), because he is a Managing Director of SBAM, the Fund&#146;s
    investment adviser.</FONT></div></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align=center>
<FONT size=2 face="sans-serif">3</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The following table provides information concerning the dollar range of equity securities owned beneficially by each Director and nominee for election as Director as of December 31,
2005:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Aggregate Dollar Range</FONT></B><B><SUP><FONT size=1 face="sans-serif">(1) </FONT></SUP></B><B><FONT size=1 face="sans-serif">of Equity Securities</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Dollar Range</FONT></B><B><SUP><FONT size=1 face="sans-serif">(1) </FONT></SUP></B><B><FONT size=1 face="sans-serif">of Equity</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">in all Funds Overseen by Director/Nominee</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="sans-serif">Name of Director/Nominee</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Securities in the Fund</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">in Family of Investment Companies</FONT></B><B><SUP><FONT size=1 face="sans-serif">(2)</FONT></SUP></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
      <HR align="left" width="140" size=1 noshade>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="sans-serif">NON-INTERESTED DIRECTORS/NOMINEES</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Carol L. Colman</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">E</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Daniel P. Cronin</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">C</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">E</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Leslie H. Gelb</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">A</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">William R. Hutchinson</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">C</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">E</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Dr. Riordan Roett</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">A</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">A</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Jeswald W. Salacuse</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">B</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">C</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=5>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="sans-serif">INTERESTED DIRECTOR</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">R. Jay Gerken</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">C</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">E</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<FONT size=1 face="sans-serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
	<TD>
      <div align="justify"><FONT size=1 face="sans-serif">The dollar ranges are
          as follows: &#147;A&#148; = None; &#147;B&#148; = &#36;1-&#36;10,000; &#147;C&#148; = &#36;10,001-&#36;50,000; &#147;D&#148; = &#36;50,001-&#36;100,000; &#147;E&#148; = Over
&#36;100,000.</FONT></div></TD>
</TR>
<TR>
	<TD nowrap valign=top>
<FONT size=1 face="sans-serif">(2)</FONT></TD>
	<TD>
      <div align="justify"><FONT size=1 face="sans-serif">Family of Investment Companies means any two or more registered investment companies that share the same investment adviser or principal underwriter or hold themselves out to investors as related companies for purposes
  of investment and investor services.</FONT></div></TD>
</TR>
</TABLE>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">No Director or nominee for election as Director who is not an &#147;interested person&#148; of the Fund as defined in the 1940 Act, nor any immediate family members, to the best of the
Fund&#146;s knowledge, had any interest in SBAM, the Fund&#146;s investment adviser, or any person or entity (other than the Fund) directly or indirectly controlling, controlled by, or under common control with SBAM as of December 31,
2005.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Responsibilities of the Board of Directors</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Board of Directors is responsible for ensuring that the Fund is managed in the best interest of its stockholders. The Directors oversee the Fund&#146;s business by, among other things,
meeting with the Fund&#146;s management and evaluating the performance of the Fund&#146;s service providers including SBAM, the custodian and the transfer agent. As part of this process, the Directors consult with the Fund&#146;s independent
auditors and with their own separate independent counsel.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Board of Directors has four regularly scheduled meetings each year and additional meetings are scheduled as needed. In addition, the Board has an Audit Committee and a Nominating
Committee that meet periodically and whose responsibilities are described below.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">During the fiscal year ended April 30, 2006, the Board of Directors held four regular meetings and five special meetings. Each Director attended at least 75% of the aggregate number of
meetings of the Board and the committees for which he or she was eligible. The Fund does not have a formal policy regarding attendance by Directors at annual meetings of stockholders. Mr. Gerken attended the Fund&#146;s 2005 annual meeting of
stockholders.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Directors review the Fund&#146;s financial statements, performance and market price as well as the quality of the services being provided to the Fund. As part of this process, the
Directors review the Fund&#146;s fees and expenses to determine if they are reasonable and competitive in light of the services being received and while also ensuring that the Fund continues to have access to high quality services in the future.
Based on these reviews, the Directors periodically make suggestions to the Fund&#146;s management and monitor to ensure that responsive action is taken. The Directors also monitor potential conflicts of interest among the Fund, SBAM and its
affiliates and other funds and clients managed by SBAM to ensure that the Fund is managed in a manner which is in the best interest of the Fund&#146;s stockholders.</FONT></P>
<P align=center>
<FONT size=2 face="sans-serif">4</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">At June 16, 2006, the Nominees, Directors and officers of the Fund as a group beneficially owned less than 1% of the outstanding shares of the Fund&#146;s common stock. To the knowledge of
management, no person owned of record or owned beneficially more than 5% of the Fund&#146;s common stock outstanding at that date, except that Cede &amp; Co., a nominee for participants in Depository Trust Company, held of record 76,878,021 shares,
equal to approximately 99% of the Fund&#146;s outstanding shares.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Fund&#146;s executive officers are chosen each year at a regular meeting of the Board of Directors of the Fund, to hold office until their respective successors are duly elected and
qualified. In addition to Mr. Gerken, the Fund&#146;s Chairman, CEO and President, the executive officers of the Fund currently are:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 <center>
   <B><FONT size=1 face="sans-serif">Position(s) Held</FONT></B>&nbsp;
    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Length of</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Principal Occupation(s)</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
      <div align="left"><B><FONT size=1 face="sans-serif">Name, Address and Age</FONT></B>&nbsp;
	    </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">with Fund</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Time Served</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">During Past 5 years</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR align="left" width="120" size=1 noshade>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Andrew B. Shoup</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Senior Vice</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since 2003</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Director of Legg Mason; Senior Vice</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">Legg Mason</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">President and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">President and Chief Administrative</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">125 Broad Street,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Chief</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Officer of mutual funds associated with</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">11th Floor</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Administrative</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Legg Mason; Formerly, Head of</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">New York, NY 10004</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Officer</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">International Funds Administration of</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">Birth year: 1956</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Legg Mason or its predecessors (from</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">2001-2003)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Frances M. Guggino</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Treasurer and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since 2004</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Director of Legg Mason; Chief Financial</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">Legg Mason</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Chief Financial</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Officer and Treasurer of certain mutual</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">125 Broad Street,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Officer</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">funds associated with Legg Mason.</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">10th Floor</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">New York, NY 10004</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Controller</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">2002-2004</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Formerly Controller of certain mutual</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">Birth year: 1957</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">funds associated with Legg Mason.</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Wendy Setnicka</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Controller</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since 2004</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Vice President of Legg Mason (since</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">Legg Mason</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">2002); Controller of certain mutual funds</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">125 Broad Street,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">associated with Legg Mason (since 2004);</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">10th Floor</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Formerly, Assistant Controller of</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">New York, NY 10004</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">certain mutual funds associated with</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">Birth year: 1964</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Legg Mason; (from 2002 to 2004);</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Accounting Manager with Legg Mason</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">(from 1998 to 2002).</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Robert I. Frenkel</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Secretary and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since 2003</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Managing Director and General Counsel</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">Legg Mason</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Chief Legal</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">of Global Mutual Funds for Legg Mason</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">300 First Stamford Place</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Officer</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">and its predecessor (since 1994);</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">Stamford, CT 06902</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Secretary and Chief Legal Officer of</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">Birth year: 1954</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">certain mutual funds associated with</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Legg Mason.</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Ted P. Becker</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Chief Compliance</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">Since 2006</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Managing Director of Compliance at</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">Legg Mason</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Officer</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Legg Mason (2005-Present); Chief</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">399 Park Avenue,</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Compliance Officer with certain mutual</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">New York, NY 10022</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">funds associated with Legg Mason (since</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="sans-serif">Birth Year: 1951</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">2006); Managing Director of Compliance</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">at Legg Mason or its predecessors</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">(2002-2005). Prior to 2002, Managing</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Director&#150;Internal Audit &amp; Risk Review at</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT size=1 face="sans-serif">Citigroup Inc.</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Fund&#146;s Audit Committee is composed of all Directors who have been determined not to be &#147;interested persons&#148; of the Fund, SBAM or its affiliates within the meaning of the
1940 Act, and who are &#147;independent&#148; as defined in the New York Stock Exchange listing standards. Currently, the Audit Committee is composed of Ms. Colman, Messrs. Cronin, Gelb, Hutchinson and Salacuse and Dr. Roett. The principal functions
of the Audit Committee are: to (a) oversee the scope of the Fund&#146;s audit, the Fund&#146;s accounting and financial reporting policies and practices and its internal controls and enhance the quality and objectivity of the audit function; (b)
approve, and recommend to the Independent Board Members (as such term is defined in the Audit Committee Charter) </FONT></P>
<P align=center><FONT size=2 face="sans-serif">5</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align=justify>
<FONT size=2 face="sans-serif">for their ratification, the selection, appointment, retention or termination of the Fund&#146;s independent registered public accounting firm, as well as approving the compensation thereof; and (c) approve all audit
and permissible non-audit services provided to the Fund and certain other persons by the Fund&#146;s independent registered public accounting firm. This Committee met six times during the fiscal year ended April 30, 2006. The Fund&#146;s Board of
Directors adopted an amended Audit Committee Charter at a meeting held on February 3, 2006, a copy of which is attached to this Proxy Statement as Annex A.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Fund&#146;s Nominating Committee, the principal function of which is to select and nominate candidates for election as Directors of the Fund, is currently composed of Ms. Colman,
Messrs. Cronin, Gelb, Hutchinson and Salacuse and Dr. Roett. Only Directors who are not &#147;interested persons&#148; of the Fund as defined in the 1940 Act and who are &#147;independent&#148; as defined in the New York Stock Exchange listing
standards are members of the Nominating Committee. The Nominating Committee may accept nominees recommended by the stockholder as it deems appropriate. Stockholders who wish to recommend a nominee should send recommendations to the Fund&#146;s
Secretary that include all information relating to such person that is required to be disclosed in solicitations of proxies for the election of Directors. A recommendation must be accompanied by a written consent of the individual to stand for
election if nominated by the Board of Directors and to serve if elected by the stockholders. The Nominating Committee did not meet during the Fund&#146;s fiscal year ended April 30, 2006. The Fund&#146;s Board of Directors adopted a Nominating
Committee Charter at a meeting held on January 20, 2004, a copy of which is attached to this Proxy Statement as Annex B.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Nominating Committee identifies potential nominees through its network of contacts, and may also engage, if it deems appropriate, a professional search firm. The Nominating Committee
meets to discuss and consider such candidates&#146; qualifications and then chooses a candidate by majority vote. The Nominating Committee does not have specific, minimum qualifications for nominees and has not established specific qualities or
skills that it regards as necessary for one or more of the Fund&#146;s Directors to possess (other than any qualities or skills that may be required by applicable law, regulation or listing standard). However, as set forth in the Nominating
Committee Charter, in evaluating a person as a potential nominee to serve as a Director of the Fund, the Committee may consider the following factors, among any others it may deem relevant:</FONT></P>
<UL>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">whether or not the person
      is an &#147;interested person&#148; as defined in the 1940 Act and whether
      the person</FONT> <FONT size=2 face="sans-serif">is otherwise qualified under applicable laws and regulations to
  serve as a Director of the Fund;<br>
  <br>
  </FONT></div>
</LI>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">whether or not the person has any relationships that might impair his or her independence, such as any</FONT> <FONT size=2 face="sans-serif">business, financial or family relationships with Fund management, the
  investment manager of the Fund,</FONT> <FONT size=2 face="sans-serif">Fund service providers or their affiliates;<br>
  <br>
</FONT></div>
</LI>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">whether or not the person serves on boards of, or is otherwise affiliated with, competing financial service</FONT> <FONT size=2 face="sans-serif">organizations or their related mutual fund complexes;<br>
      <br>
  </FONT></div>
</LI>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">whether or not the person is willing to serve, and willing and able to commit the time necessary for the</FONT> <FONT size=2 face="sans-serif">performance of the duties of a Director of the Fund;<br>
      <br>
  </FONT></div>
</LI>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">the contribution which the person can make to the Board and the Fund (or, if the person has previously</FONT> <FONT size=2 face="sans-serif">served as a Director of the Fund, the contribution which the person made to
  the Board during his or her</FONT> <FONT size=2 face="sans-serif">previous
  term of service), with consideration being given to the person&#146;s business
  and professional</FONT> <FONT size=2 face="sans-serif">experience, education and such other
  factors as the Committee may consider relevant;<br>
  <br>
</FONT></div>
</LI>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">the character and integrity of the person; and</FONT></div>
</LI>
</UL>
<P align=center>
<FONT size=2 face="sans-serif">6</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<UL>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">whether or not the selection and nomination of the person would be consistent with the requirements</FONT> <FONT size=2 face="sans-serif">of
      the Fund&#146;s retirement policies.</FONT></div>
</LI>
</UL>
<P align=center>
<B><FONT size=2 face="sans-serif">Report of the Audit Committee</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Pursuant to a meeting of the Audit Committee on June 26, 2006, the Audit Committee reports that it has: (i) reviewed and discussed the Fund&#146;s audited financial statements with
management; (ii) discussed with KPMG LLP (&#147;KPMG&#148;), the independent registered public accounting firm of the Fund, the matters required to be discussed by Statement on Auditing Standards No. 61; and (iii) previously received written
confirmation from KPMG that it is independent and written disclosures regarding such independence as required by Independence Standards Board Standard No. 1, and discussed with KPMG the independent registered public accounting firm&#146;s
independence.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Pursuant to the Audit Committee Charter adopted by the Fund&#146;s Board, the Audit Committee is responsible for conferring with the Fund&#146;s independent registered public accounting
firm, reviewing annual financial statements and recommending the selection of the Fund&#146;s independent registered public accounting firm. The Audit Committee advises the full Board with respect to accounting, auditing and financial matters
affecting the Fund. The independent registered public accounting firm is responsible for planning and carrying out the proper audits and reviews of the Fund&#146;s financial statements and expressing an opinion as to their conformity with accounting
principles generally accepted in the United States of America.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The members of the Audit Committee are not professionally engaged in the practice of auditing or accounting and are responsible for oversight. Moreover, the Audit Committee relies on and
makes no independent verification of the facts presented to it or representations made by management or the independent registered public accounting firm. Accordingly, the Audit Committee&#146;s oversight does not provide an independent basis to
determine that management has maintained appropriate accounting and financial reporting principals and policies, or internal controls and procedures, designed to assure compliance with accounting standards and applicable laws and regulations.
Furthermore, the Audit Committee&#146;s considerations and discussions referred to above do not provide assurance that the audit of the Fund&#146;s financial statements has been carried out in accordance with generally accepted accounting standards
or that the financial statements are presented in accordance with generally accepted accounting principles.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Based on the review and discussions referred to in items (i) through (iii) above, the Audit Committee recommended to the Board of Directors (and the Board has approved) that the audited
financial statements be included in the Fund&#146;s annual report for the Fund&#146;s fiscal year ended April 30, 2006.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=60% align=left>&nbsp;</TD>
	<TD width=40% align=left nowrap>
<FONT size=2 face="sans-serif">Submitted by the Audit Committee</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left nowrap>
<FONT size=2 face="sans-serif">of the Fund&#146;s Board of Directors</FONT>&nbsp;
	</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
	<TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left nowrap>
<FONT size=2 face="sans-serif">Carol L. Colman</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left nowrap>
<FONT size=2 face="sans-serif">Daniel P. Cronin</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left nowrap>
<FONT size=2 face="sans-serif">Leslie H. Gelb</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left nowrap>
<FONT size=2 face="sans-serif">William R. Hutchinson</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left nowrap>
<FONT size=2 face="sans-serif">Dr. Riordan Roett</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left nowrap>
<FONT size=2 face="sans-serif">Jeswald W. Salacuse</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left nowrap>
<FONT size=2 face="sans-serif">June 26, 2006</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
<P align=center>
<FONT size=2 face="sans-serif">7</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align=center>
<B><FONT size=2 face="sans-serif">Additional Matters</FONT></B></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Special Shareholder Notice</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">On December 1, 2005, Citigroup completed the sale of substantially all of its asset management business, Citigroup Asset Management (&#147;CAM&#148;), to Legg Mason. As a result, the
Fund&#146;s investment adviser (the &#147;Manager&#148;), previously an indirect wholly-owned subsidiary of Citigroup, has become a wholly-owned subsidiary of Legg Mason. Completion of the sale caused the Fund&#146;s existing investment management
contract to terminate. The Fund&#146;s shareholders previously approved a new investment management contract between the Fund and the Manager, which became effective on December 1, 2005.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Compensation</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Under the federal securities laws, the Fund is required to provide to stockholders in connection with the Meeting information regarding compensation paid to the Directors by the Fund, as
well as by the various other investment companies advised by SBAM. The following table provides information concerning the compensation paid to each Director by the Fund during the fiscal year ended April 30, 2006 and the total compensation paid to
each Director during the calendar year ended April 30, 2006. Certain of the Directors listed below are members of the Fund&#146;s Audit and Nominating Committees, as well as other committees of the boards of certain other investment companies
advised by SBAM. Accordingly, the amounts provided in the table include compensation for service on all such committees. The Fund does not provide any pension or retirement benefits to Directors. In addition, no remuneration was paid during the
fiscal year ended April 30, 2006 by the Fund to Mr. Gerken who is an &#147;interested person&#148; as defined in the 1940 Act.</FONT></P>
<TABLE width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width=32% align=left>&nbsp;

	</TD>
	<TD width=16%>&nbsp;
	</TD>
	<TD width=18% align=center>
<B><FONT size=1 face="sans-serif">Aggregate</FONT></B>&nbsp;
	</TD>
	<TD width=12%>&nbsp;
	</TD>
	<TD width=22% align=center>
<B><FONT size=1 face="sans-serif">Total Compensation</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Compensation</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">from the Fund and</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">from the Fund</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Fund Complex</FONT></B><B><SUP><FONT size=1 face="sans-serif">(1) </FONT></SUP></B><B><FONT size=1 face="sans-serif">for</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">for Fiscal Year Ended</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Calendar Year Ended</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="sans-serif">Name of Directors</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">04/30/06</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">12/31/05</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR align="left" width="100" size=1 noshade>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<B><FONT size=1 face="sans-serif">Directorships</FONT></B><B><SUP><FONT size=1 face="sans-serif">(2)</FONT></SUP></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=5>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Carol L. Colman</FONT><SUP><FONT size=1 face="sans-serif">(3)</FONT></SUP>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36;12,778</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36;233,500(37)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Daniel P. Cronin</FONT><SUP><FONT size=1 face="sans-serif">(3)</FONT></SUP>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36;11,917</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36;176,500(34)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Leslie H. Gelb</FONT><SUP><FONT size=1 face="sans-serif">(3)</FONT></SUP>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36; 9,417</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36;169,500(34)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Willian R. Hutchinson</FONT><SUP><FONT size=1 face="sans-serif">(3)</FONT></SUP>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36;13,530</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36;279,300(44)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Dr. Riordan Roett</FONT><SUP><FONT size=1 face="sans-serif">(3)</FONT></SUP>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36; 9,917</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36;166,000(34)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="sans-serif">Jeswald W. Salacuse</FONT><SUP><FONT size=1 face="sans-serif">(3)</FONT></SUP>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36;11,417</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT size=1 face="sans-serif">&#36;169,250(34)</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1" color=black>

<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<FONT size=1 face="sans-serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
	<TD>
      <div align="justify"><FONT size=1 face="sans-serif">Fund Complex means two or more Funds (a registrant or, where the registrant is a series company, a separate portfolio of the registrant) that hold themselves out to investors as related companies for purposes of
  investment and investor services or have a common investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other Funds.</FONT></div></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT size=1 face="sans-serif">(2)</FONT></TD>
	<TD>
      <div align="justify"><FONT size=1 face="sans-serif">The numbers in parentheses indicate the applicable number of investment company directorships held by that Director.</FONT></div></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT size=1 face="sans-serif">(3)</FONT></TD>
	<TD>
      <div align="justify"><FONT size=1 face="sans-serif">In addition to the
          amounts set forth above, Messrs. Cronin, Gelb, Hutchinson, Roett and
          Salacuse and Ms. Colman received &#36;95,500, &#36;46,000, &#36;163,450, &#36;82,000, &#36;86,500 and &#36;171,750,
          respectively, during the calendar year ended December 31, 2005 for
          service as Directors in attending additional meetings relating to
          the approval of policies and procedures under Rule 38a-1, certain other
          regulatory issues and the consideration of new custody, transfer agency
          and accounting arrangements for the Fund. Those amounts were borne
    by SBAM and not the Fund.</FONT></div></TD>
</TR>
</TABLE>
<P align=justify>
<B><FONT size=2 face="sans-serif">Section 16(a) Beneficial Ownership Reporting Compliance</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Section 16(a) of the Securities Exchange Act of 1934, as amended, and Section 30(h) of the 1940 Act in combination require the Fund&#146;s Directors and officers, persons who own more than
10% of the Fund&#146;s common stock, SBAM, and its directors and officers, to file reports of ownership and changes in ownership with the Securities</FONT></P>
<P align=center>
<FONT size=2 face="sans-serif">8</FONT></P>

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<P align=justify>
<FONT size=2 face="sans-serif">and Exchange Commission and the New York Stock Exchange. The Fund believes that for the fiscal year ended April 30, 2006, all relevant persons have complied with applicable filing requirements.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Required Vote</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Directors are elected by a plurality of the votes cast by the holders of shares of the Fund&#146;s common stock present in person or represented by proxy at a meeting at which a quorum is
present. For purposes of the election of Directors, abstentions and broker non-votes will not be considered votes cast, and do not affect the plurality vote required for directors.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="sans-serif">THE DIRECTORS, INCLUDING THE DIRECTORS WHO ARE NOT &#147;INTERESTED PERSONS,&#148; UNANIMOUSLY RECOMMEND THAT THE STOCKHOLDERS VOTE &#147;FOR&#148; THE NOMINEES FOR
DIRECTOR.</FONT></B></P>
<P align=center>
<B><FONT size=2 face="sans-serif">Fees Paid to Independent Registered Public Accounting Firm</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="sans-serif">Audit Fees. </FONT></B><FONT size=2 face="sans-serif">Effective June 17, 2005 PricewaterhouseCoopers LLP (&#147;PwC&#148;) resigned as the Fund&#146;s principal accountant (the
&#147;Auditor&#148;). The Fund&#146;s audit committee approved the engagement of KPMG LLP (&#147;KPMG&#148;) as the Fund&#146;s new principal accountant for the fiscal year ended April 30, 2006. The aggregate fees billed in the last two fiscal years
ending April 30, 2005 and April 30, 2006 (the &#147;Reporting Period&#148;) for professional services rendered by PwC for the audit of the Fund&#146;s annual financial statements, or services that are normally provided in connection with the
statutory and regulatory filings or engagements for the Reporting Periods, were &#36;33,000 in 2005 and &#36;33,000 in 2006. KPMG has not billed the Registrant for professional services rendered as of April 30, 2006.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="sans-serif">Audit Related Fees. </FONT></B><FONT size=2 face="sans-serif">The aggregate fees billed by KPMG and PwC in connection with assurance and related services related to the annual audit of
the Fund and for review of the Fund&#146;s financial statements, other than the Audit Fees described above, for the fiscal years ended April 30, 2005 were &#36;8,500 and &#36;8,766 in April 30, 2006.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">In addition, there were no Audit Related Fees billed in the year ended April 30, 2006 for assurance and related services by KPMG or PwC, respectively, to SBAM and any entity controlling,
controlled by or under common control with SBAM that provides ongoing services to the Fund (SBAM and such other entities together, the &#147;Service Affiliates&#148;), that were related to the operations and financial reporting of the Fund.
Accordingly, there were no such fees that required pre-approval by the Audit Committee for the period May 6, 2003 to April 30, 2006 (prior to May 6, 2003 such services provided were not subject to pre-approval requirements).</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="sans-serif">Tax Fees. </FONT></B><FONT size=2 face="sans-serif">The aggregate fees billed by KPMG and PwC for tax compliance, tax advice and tax planning services, which include the filing and
amendment of federal, state and local income tax returns, timely RIC qualification review, and tax distribution and analysis planning, rendered by KPMG or PwC, respectively, to the Fund for the fiscal years ended April 30, 2005 were &#36;7,300 and
April 30, 2006 were &#36;5,666 for PwC. As of April 30, 2006 KPMG has not billed the Fund for any tax services rendered.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">There were no fees billed by KPMG or PwC to the Service Affiliates for tax services for the period May 6, 2003 through April 30, 2006 that were required to be approved by the Fund&#146;s
Audit Committee.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="sans-serif">All Other Fees. </FONT></B><FONT size=2 face="sans-serif">There were no other fees billed for other non-audit services rendered by KPMG or PwC to the Fund for the fiscal years ended
April 30, 2005 and 2006.</FONT></P>
<P align=center>
<FONT size=2 face="sans-serif">9</FONT></P>

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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">There were no other non-audit services rendered by PwC or KPMG to SBAM, and any entity controlling, controlled by or under common control with SBAM that provided ongoing services to the
Fund requiring preapproval by the Audit Committee in the Reporting Period.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Generally, the Audit Committee must approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided to the
Service Affiliates that relate directly to the operations and financial reporting of the Fund. The Audit Committee may implement policies and procedures by which such services are approved other than by the full Committee, but has not yet done
so.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">For the Fund the percentage of fees that were approved by the Audit Committee, with respect to: Audit-Related Fees were 100% and 100% for the years ended April 30, 2005 and April 30, 2006;
Tax Fees were 100% and 100% for the years ended April 30, 2005 and April 30, 2006; and for Other Fees paid were 100% for the Reporting Period.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Audit Committee shall not approve non-audit services that the Committee believes may impair the independence of the independent registered public accounting firm. As of the date of the
approval of the Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent registered public
accounting firm, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting
records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services (v) internal audit
outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public
Company Accounting Oversight Board determines, by regulation, is impermissible.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Pre-approval by the Audit Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the
Fund and the Service Affiliates constitutes not more than 5% of the total amount of revenues paid to the Fund&#146;s independent registered public accounting firm during the fiscal year in which the permissible non-audit services are provided to (a)
the Fund, (b) SBAM and (c) any entity controlling, controlled by or under common control with SBAM that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee;
(ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Audit Committee and approved by the Audit Committee
(or its delegate(s)) prior to the completion of the audit.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The aggregate non-audit fees billed by PwC for services rendered to the Fund and Service Affiliates for the fiscal years ended April 30, 2005 and April 30, 2006 was &#36;6.4 million and
&#36;2.7 million, respectively. The aggregate non-audit fees billed by KPMG for services rendered to the Fund and Service Affiliates for the fiscal years ending April 30, 2005 and April 30, 2006 was &#36;75,000 and &#36;0, respectively.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Audit Committee has considered whether the provision of non-audit services to the Service Affiliates that were not pre-approved by the Audit Committee (because they did not require
pre-approval) is compatible with maintaining PwC&#146;s and KPMG&#146;s independence. All services provided by PwC or KPMG to the Fund or to the Service Affiliates that were required to be approved by the Audit Committee were
pre-approved.</FONT></P>
<P align=center>
<FONT size=2 face="sans-serif">10</FONT></P>

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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">A representative of KPMG, if requested by any stockholder, will be present via telephone at the Meeting to respond to appropriate questions from stockholders and will have an opportunity
to make a statement if he or she chooses to do so.</FONT></P>
<P align=center>
<B><FONT size=2 face="sans-serif">Proposals to be Submitted by Stockholders and other Shareholder Communications</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">All proposals by stockholders of the Fund which are intended to be presented at the Fund&#146;s next Annual Meeting of Stockholders to be held in 2007 must be received by the Fund for
inclusion in the Fund&#146;s proxy statement and proxy relating to that meeting no later than February 26, 2007. Any stockholder who desires to bring a proposal at the Fund&#146;s 2007 Annual Meeting of Stockholders without including such proposal
in the Fund&#146;s proxy statement must deliver written notice thereof to the Secretary of the Fund (addressed to c/o Legg Mason, 300 First Stamford Place, 4th Floor, Stamford, CT 06902) during the period from May 7, 2007 to June 4, 2007. However,
if the Fund&#146;s 2007 Annual Meeting of Stockholders is held earlier than July 5, 2007 or later than October 2, 2007, such written notice must be delivered to the Secretary of the Fund during the period from 90 days before the date of the 2007
Annual Meeting of Stockholders to the later of 60 days prior to the date of the 2007 Annual Meeting of Stockholders or 10 days following the public announcement of the date of the 2007 Annual Meeting of Stockholders.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Fund&#146;s Audit Committee has also established guidelines and procedures regarding the receipt, retention and treatment of complaints regarding accounting, internal accounting
controls or auditing matters (collectively, &#147;Accounting Matters&#148;). Persons with complaints or concerns regarding Accounting Matters may submit their complaints to the Fund&#146;s Chief Compliance Officer (&#147;CCO&#148;). Persons who are
uncomfortable submitting complaints to the CCO, including complaints involving the CCO, may submit complaints directly to the Fund&#146;s Audit Committee Chair (together with the CCO, &#147;Complaint Officers&#148;). Complaints may by submitted on
an anonymous basis.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="sans-serif">The CCO may be contacted at:</FONT></P>
<blockquote>
  <p><FONT size=2 face="sans-serif">Legg Mason</FONT><BR>
    <FONT size=2 face="sans-serif">Compliance Department</FONT><BR>
    <FONT size=2 face="sans-serif">399 Park Avenue, 4th floor</FONT><BR>
  <FONT size=2 face="sans-serif">New York, NY 10022</FONT></p>
</blockquote>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Complaints may also be submitted by telephone at 800-742-5274. Complaints submitted through this number will be received by the CCO.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Fund&#146;s Audit Committee Chair may be contacted at:</FONT></P>
<blockquote>
  <p><FONT size=2 face="sans-serif">Salomon Brothers High Income Fund II Inc.</FONT><BR>
    <FONT size=2 face="sans-serif">Audit Committee Chair</FONT><BR>
    <FONT size=2 face="sans-serif">c/o Robert K. Fulton, Esq.</FONT><BR>
    <FONT size=2 face="sans-serif">Stradley Ronon Stevens &amp; Young, LLP</FONT><BR>
    <FONT size=2 face="sans-serif">2600 One Commerce Square</FONT><BR>
  <FONT size=2 face="sans-serif">Philadelphia, PA 19103</FONT></p>
</blockquote>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Any stockholder who wishes to send any other communications to the Board of Directors should also deliver such communications to the Secretary of the Fund at the address listed above. The
Secretary is responsible for</FONT></P>
<P align=center>
<FONT size=2 face="sans-serif">11</FONT></P>

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<P align=justify>
<FONT size=2 face="sans-serif">determining, in consultation with other officers of the Fund, counsel, and other advisers as appropriate, which stockholder communications will be relayed to the Board.</FONT></P>
<P align=center>
<B><FONT size=2 face="sans-serif">Other Information</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="sans-serif">The Fund&#146;s Annual Report containing financial statements for the fiscal year ended April 30, 2006 is available free of charge by writing to the Fund c/o Salomon Brothers Asset
Management Inc at the address listed on the front cover, or by calling toll-free 1-888-777-0102.</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="sans-serif">Please note that only one annual report or Proxy Statement may be delivered to two or more shareholders of the Fund who share an address, unless the Fund has received instructions to
the contrary. To request a separate copy of these documents or to determine how to request a single copy if multiple copies of the document are received, shareholders should contact the Fund at the address and phone number set forth
above.</FONT></B></P>
<P align=center>
<B><FONT size=2 face="sans-serif">Expenses of Proxy Solicitation</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The costs of preparing, assembling and mailing material in connection with this solicitation of proxies will be borne by the Fund. Proxies may also be solicited personally by officers of
the Fund and by regular employees of SBAM or its affiliates, or other representatives of the Fund or by telephone, in addition to the use of mails. Brokerage houses, banks and other fiduciaries may be requested to forward proxy solicitation material
to their principals to obtain authorization for the execution of proxies, and will be reimbursed by the Fund for such outof-pocket expenses.</FONT></P>
<P align=center>
<B><FONT size=2 face="sans-serif">Other Business</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Board of Directors of the Fund does not know of any other matter which may come before the Meeting. If any other matter properly comes before the Meeting, it is the intention of the
persons named in the proxy to vote the proxies in accordance with their judgment on that matter.</FONT></P>
<P align=justify>
<FONT size=2 face="sans-serif">June 28, 2006</FONT></P>
<P align=center>
<FONT size=2 face="sans-serif">12</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align=center>
<B><FONT size=2 face="sans-serif">ANNEX A</FONT></B></P>
<P align="center">
<B><FONT size=2 face="sans-serif">AUDIT COMMITTEE CHARTER</FONT></B><BR>
<B><FONT size=2 face="sans-serif">AMENDED AND RESTATED AS OF FEBRUARY 3, 2006</FONT></B></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Establishment and Purpose</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">This document serves as the Charter for the Audit Committee (the &#147;Committee&#148;) of the Board of each registered investment company (the &#147;Fund&#148;) advised by Smith Barney
Fund Management or Salomon Brothers Asset Management or one of their affiliates (each, an &#147;Adviser&#148;) listed on Appendix A hereto (each such Charter being a separate Charter). The primary purposes of the Committee are to (a) assist Board
oversight of (i) the integrity of the Fund&#146;s financial reporting, (ii) the Fund&#146;s compliance with legal and regulatory requirements (iii) the qualifications and independence of the Fund&#146;s independent registered public accountants and
(iv) the performance of the Fund&#146;s internal audit function and independent registered public accountants; (b) approve, and recommend to the Independent Board Members (as such term is defined below) for their ratification, the selection,
appointment, retention or termination of the Fund&#146;s independent registered public accountants, as well as approving the compensation thereof; (c) approve all audit and permissible non-audit services provided to the Fund and certain other
persons by the Fund&#146;s independent registered public accountants; and (d) for each closed-end Fund, prepare the report required to be prepared by the Committee pursuant to the rules of the Securities and Exchange Commission for inclusion in the
Fund&#146;s annual Proxy Statement.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Duties and Responsibilities</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Fund&#146;s independent registered public accountants are accountable to the Committee.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Committee shall:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">Bear direct responsibility
          for the appointment, compensation, retention and oversight of the Fund&#146;s
          independent registered public accountants, or of any other public accounting
          firm engaged for the purpose of performing other audit, review or attest
    services for the Fund.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">2.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">Confirm with any independent registered public accountants retained to provide audit services that the independent registered public accountants has ensured the appropriate rotation of the lead audit partner pursuant
  to applicable regulations.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">3.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">Approve (a) all audit and permissible non-audit services</FONT><SUP><FONT size=2 face="sans-serif">1 </FONT></SUP><FONT size=2 face="sans-serif">to
          be provided to the Fund and (b) all permissible non-audit services
          to be provided by the Fund&#146;s independent registered public accountants
          to the Adviser and any Covered Service Providers if the engagement
          relates directly to the operations and financial reporting of the Fund.
          The Committee may implement policies and procedures by which such services
    are approved other than by the full Committee.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<hr align="left" noshade width="100" size="1" color=black>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<FONT size=1 face="sans-serif">1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
	<TD>
      <div align="justify"><FONT size=1 face="sans-serif">The Committee shall not approve non-audit services
  that the Committee believes may impair the independence of the independent registered
  public accountants. As of the date of the approval of this Audit Committee
   Charter, permissible non-audit services include any professional services (including
  tax services), that are not prohibited services as described below, provided
  to the Fund by the independent registered public accountants, other than those
   provided to the Fund in connection with an audit or a review of the financial
  statements of the Fund. Permissible non-audit services may not include: (i) bookkeep-
  ing or other services related to the accounting records or financial statements
  of  the Fund; (ii) financial information systems design and implementation; (iii)
  appraisal or valuation services, and fairness opinions; (iv) actuarial services;
  (v) internal audit services; (vi) management functions; (vii) human resources;
  (viii) broker or dealer; (ix) legal services; (x) expert services unrelated to
  the audit; and (xi) any other service the Public Company Accounting Oversight
  Board determines, by regulation, is impermissible.</FONT></div></TD>
</TR></TABLE>
<P align="center">
<FONT size=2 face="sans-serif">A-1</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">Discuss with the independent registered public accountants any disclosed relationships or services that may diminish the objectivity and independence of the independent registered public accountants and, if so
  determined by the Committee, recommend that the Board take appropriate action to ensure the independence of the independent registered public accountants.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">5.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">Review, in consultation
          with the independent registered public accountants, the proposed scope
          of the Fund&#146;s audit each year, including the audit procedures to be utilized in the review of the Fund&#146;s
    financial statements.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">6.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">Inquire of the Adviser and the independent registered public accountants as to significant tax and accounting policies elected by the Fund (including matters affecting qualification under Subchapter M of the Internal
  Revenue Code).</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">7.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">Review with the independent
          registered public accountants any problems or difficulties the registered
          public accountants may have encountered during the conduct of the audit
          and management&#146;s response, including a
  discussion with the independent registered public accountants of the matters
          required to be discussed by Statement on Auditing Standards No. 61,
          89, 90 or any subsequent Statement, relating to the conduct of the
    audit.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">8.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">Review, in consultation,
          as appropriate, with the independent registered public accountants
          and significant Fund service providers, matters relating to internal
          controls over financial reporting and disclosure controls and procedures
    of the Fund and of the Fund&#146;s significant service providers.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">9.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">Request, receive and/or
          review from the independent registered public accountants such other
          materials as deemed necessary or advisable by the Committee in the
          exercise of its duties under this Charter; such materials may include,
          without limitation, any other material written communications bearing
          on the Fund&#146;s financial statements, or internal or disclosure controls, between the independent registered public accountants and the Fund, the Adviser or other
  Fund service providers, such as any management letter or schedule of unadjusted differences, and any comment or &#147;deficiency&#148; letter
  (to the extent such letters relate to financial reporting) received from a
  regulatory or self-regulatory organization addressed to the Fund or the Adviser
  that relates to services rendered to the Fund.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">10.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">For each closed-end Fund, establish procedures regarding the receipt, retention and treatment of complaints that the Fund may receive regarding Fund accounting, internal accounting controls or auditing matters,
  including procedures for the confidential or anonymous submission by Fund officers, employees, stockholders or service providers of concerns regarding questionable accounting or auditing matters related to the Fund.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">11.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">For each closed-end
          Fund, obtain and review a report by the Fund&#146;s independent registered public accountants describing (i) the auditing firm&#146;s
          internal quality-control procedures; (ii) any material issues raised
          by the most recent internal quality-control review, or peer review,
          of the auditing firm, or by any inquiry or investigation by governmental
    or professional authorities, within the preceding five</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<hr align="left" noshade width="100" size="1" color=black>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><div align="justify"><FONT size=1 face="sans-serif">Pre-approval by the
          Committee of any permissible non-audit services is not required so
          long as: (i) the aggregate amount of all such permissible non-audit
          services provided to the Fund, the Adviser and any service providers
          controlling, controlled by or under common control with the Adviser
          that provide ongoing services to the Fund (&#147;Covered Service Providers&#148;)
          constitutes not more than 5% of the total amount of revenues paid to
          the independent registered public accountants during the fiscal year
          in which the permissible non-audit services are provided to (a) the
          Fund, (b) the Adviser and (c) any entity controlling, controlled by
          or under common control with the Adviser that provides ongoing services
          to the Fund during the fiscal year in which the services are provided
          that would have to be approved by the Committee; (ii) the permissible
          non-audit services were not recognized by the Fund at the time of the
          engagement to be non-audit services; and (iii) such services are promptly
          brought to the attention of the Committee and approved by the Committee
    (or its delegate(s)) prior to the completion of the audit.</FONT></div></td>
  </tr>
</table>
<P align="center">
<FONT size=2 face="sans-serif">A-2</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD>&nbsp;</TD>	<TD>
  <div align="justify"><FONT size=2 face="sans-serif">years, respecting one or
      more independent audits carried out by the auditing firm, and any steps
      taken to deal with any such issues; and (iii) (to assess the auditor&#146;s
      independence) all relationships between the independent registered public
      accountants and the Fund.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">12.&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">For each closed-end Fund, discuss policies with respect to risk assessment and risk management.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">13.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">For each closed-end
          Fund, review hiring policies for employees or former employees of the
    Fund&#146;s independent registered public accountants.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">14.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">For each closed-end
          Fund, discuss with management and the Fund&#146;s independent registered public accountants the Fund&#146;s audited and discuss with management the Fund&#146;s unaudited financial statements,
  including any narrative discussion by management concerning the Fund&#146;s financial condition and investment performance and, if appropriate, recommend the publication of the Fund&#146;s annual audited financial statements in the Fund&#146;s
  annual report in advance of the printing and publication of the annual report.</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">15.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">For each closed-end
          Fund, discuss the Fund&#146;s earnings press releases, as well as financial
    information and earnings guidance provided to analysts and rating agencies;</FONT></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">16.</FONT></TD>
	<TD>
      <div align="justify"><FONT size=2 face="sans-serif">For each closed-end Fund, review and evaluate annually the performance of the Committee and the adequacy of this Charter and recommend any proposed changes to the Charter to the Board for approval.</FONT></div></TD>
</TR>
</TABLE>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Committee shall have the resources and authority appropriate to discharge its responsibilities, including the authority to retain, as it deems necessary to carry out its duties,
special counsel and other experts or consultants at the expense of the Fund. The Fund shall provide appropriate funding, as determined by the Committee, for the Committee to carry out its duties and its responsibilities, including (a) for
compensation to be paid to, or services to be provided by, the Fund&#146;s independent registered public accountants or other public accounting firm providing audit, review or attest services for the Fund, (b) for payment of compensation to any
outside legal, accounting or other advisors, counsel or consultants employed by the Committee and (c) for the ordinary administrative expenses of the Committee. In performing its duties, the Committee shall consult as it deems appropriate with the
members of the Board, officers and employees of the Fund, the Adviser, the Fund&#146;s sub-adviser(s), if any, the Fund&#146;s counsel, counsel to the Independent Board Members and the Fund&#146;s other service providers.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Composition</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Committee shall be composed of each Board member who has been determined not to be an &#147;interested person,&#148; as that term is defined in Section 2(a)(19) of the Investment
Company Act of 1940, as amended (&#147;1940 Act&#148;), of the Fund (the &#147;Independent Board Members&#148;), or such lesser number as the Board of the Fund may specifically determine and reflect in the Board&#146;s minutes, each of whom shall be
financially literate and at least one of whom shall have accounting or related financial management expertise as determined by the Fund&#146;s Board in its business judgment. Each member of the Committee must also meet the independence and
experience requirements as set forth in the New York Stock Exchange&#146;s Listed Company Manual or as set forth in the American Stock Exchange&#146;s listing standards, as applicable, and the independence requirements applicable to investment
companies set forth in the Securities Exchange Act of 1934. For those Funds listed on the New York Stock Exchange, no member of the Committee may serve on the audit committees of more than three public companies, including the Funds, unless the
Board determines that such simultaneous service would not impair the ability of such member to serve on the Committee effectively. The Committee shall elect a Chairperson, who shall preside over Committee meetings. The Chairperson shall serve for a
term of three years, which term may be renewed from time to time.</FONT></P>
<P align=center>
<FONT size=2 face="sans-serif">A-3</FONT></P>

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<P align=justify>
<B><FONT size=2 face="sans-serif">Meetings</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Committee shall meet on a regular basis, but not less frequently than twice a year. Special meetings may also be held upon reasonable notice to the members of the Committee. An agenda
shall be established for each meeting. The Committee may request any officer or employee of the Fund, the Fund&#146;s counsel, counsel to the Independent Board Members, the Adviser, the Fund&#146;s independent registered public accountants or other
interested persons to attend a meeting of the Committee or to meet with any members of, or consultants to, the Committee. The Committee will meet periodically with the Fund&#146;s independent registered public accountants outside the presence of the
Fund&#146;s and the Adviser&#146;s officers and employees. The Committee will also meet periodically with the Fund&#146;s management outside the presence of the Fund&#146;s independent registered public accountants. Meetings of the Committee may be
held in person, by telephone or by other appropriate means.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">One-third of the Committee&#146;s members, but not fewer than two members, shall constitute a quorum. At any meeting of the Committee, the decision of a majority of the members present and
voting shall be determinative as to any matter submitted to a vote.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Reporting</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Chairperson shall report regularly to the Board on the result of the Committee&#146;s deliberations and make such recommendations as deemed appropriate.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Limits on Role of Committee</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The function of the Committee is oversight. The Fund&#146;s management is responsible for (i) the preparation, presentation and integrity of the Fund&#146;s financial statements, (ii) the
maintenance of appropriate accounting and financial reporting principles and policies and (iii) the maintenance of internal controls and procedures designed to assure compliance with accounting standards and applicable laws and regulations. The
independent registered public accountants are responsible for planning and carrying out proper audits and reviews. In fulfilling their responsibilities hereunder, it is recognized that members of the Committee are not employees of the Fund. As such,
it is not the duty or responsibility of the Committee or its members to conduct &#147;field work&#148; or other types of auditing or accounting reviews or procedures or to set auditor independence standards. Each member of the Committee shall be
entitled to rely on (i) the integrity of those persons and organizations within and outside the Fund from which it receives information and (ii) the accuracy of the financial and other information provided to the Committee by such persons and
organizations absent actual knowledge to the contrary (which shall be promptly reported to the Fund&#146;s Board) and (iii) statements made by the officers and employees of the Fund, the Adviser or other third parties as to any information
technology, internal audit and other non-audit services provided by the independent registered public accountants to the Fund. The designation of a person as an &#147;audit committee financial expert,&#148; within the meaning of the rules adopted
and implemented under Section 407 of the Sarbanes-Oxley Act of 2002, shall not impose any greater responsibility or liability on that person than the responsibility and liability imposed on such person as a member of the Committee, nor does it
decrease the duties and obligations of other Committee members or the Board.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">In carrying out its responsibilities, the Committee&#146;s policies and procedures shall be adapted, as appropriate, in order to best react to a changing environment.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Amendments</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">This Charter may be amended by a vote of a majority of the Board members.</FONT></P>
<P align=center>
<FONT size=2 face="sans-serif">A-4</FONT></P>

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<P align="right">
<B><FONT size=2 face="sans-serif">Appendix A</FONT></B></P>
<center>
  <p><FONT size=2 face="sans-serif">Salomon Brothers Series Funds Inc</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Institutional Series Funds Inc</FONT><BR>
      <FONT size=2 face="sans-serif">Legg Mason Partners Variable Portfolios I, Inc.</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Capital and Income Fund Inc. (SCD) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Emerging Markets Debt Fund Inc. (ESD) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Emerging Markets Floating Rate Fund Inc. (EFL) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Emerging Markets Income Fund Inc. (EMD) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Emerging Markets Income Fund II Inc. (EDF) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Global High Income Fund Inc. (EHI) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Global Partners Income Fund Inc. (GDF) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers High Income Fund Inc. (HIF) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers High Income Fund II Inc. (HIX) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Inflation Management Fund Inc. (IMF) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Municipal Partners Fund Inc. (MNP) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Municipal Partners Fund II Inc. (MPT) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Variable Rate Strategic Fund Inc. (GFY) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers Worldwide Income Fund Inc. (SBW) *</FONT><BR>
      <FONT size=2 face="sans-serif">Salomon Brothers 2008 Worldwide Dollar Government Term Trust Inc. (SBG) *</FONT></p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p><BR>
        </p>
</center>
<hr align="left" noshade width="100" size="1" color=black>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
	<TD width="2%" valign=top nowrap>
<FONT size=1 face="sans-serif">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
	<TD width="98%">
      <div align="justify"><FONT size=1 face="sans-serif">Closed-end Fund. The duties and responsibilities of paragraphs 10 through 16 and any other provision applicable exclusively to closed-end funds apply only to these funds.</FONT></div></TD>
</TR>
</TABLE>
<P align=center>
<FONT size=2 face="sans-serif">A-5</FONT></P>

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<P align="center">
<B><FONT size=2 face="sans-serif">ANNEX B</FONT></B></P>
<P align="center">
<B><FONT size=2 face="sans-serif">NOMINATING COMMITTEE CHARTER</FONT></B></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Organization</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Nominating Committee of each registered investment company listed on Appendix A hereto (each, a &#147;Fund&#148; and together, the &#147;Funds&#148;) shall be composed solely of
Directors who are not &#147;interested persons&#148; of the Fund as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;) and, with respect to those Funds listed on the New York Stock Exchange, who
are &#147;independent&#148; as defined in the New York Stock Exchange listing standards (&#147;Independent Directors&#148;). The Board of Directors of the Fund (the &#147;Board&#148;) shall nominate the members of the Committee and shall designate
the Chairperson of the Committee. The Chairperson shall preside at each meeting of the Committee.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Responsibilities</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Committee shall select and nominate persons for election or appointment by the Board as Directors of the Fund.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Evaluation of Potential Nominees</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">In evaluating a person as a potential nominee to serve as a Director of the Fund, the Committee should consider among other factors it may deem relevant:</FONT></P>
<UL>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">whether or not the person
      is an &#147;interested person&#148; as defined in the 1940 Act and whether
      the person</FONT> <FONT size=2 face="sans-serif">is otherwise qualified under applicable laws and regulations to
  serve as a Director of the Fund;<br>
  <br>
  </FONT></div>
</LI>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">whether or not the person has any relationships that might impair his or her independence, such as any</FONT> <FONT size=2 face="sans-serif">business, financial or family relationships with Fund management, the
  investment manager of the Fund,</FONT> <FONT size=2 face="sans-serif">other Fund service providers or their affiliates;<br>
  <br>
</FONT></div>
</LI>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">whether or not the person serves on boards of, or is otherwise affiliated with, competing financial service</FONT> <FONT size=2 face="sans-serif">organizations or their related mutual fund complexes;<br>
      <br>
  </FONT></div>
</LI>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">whether or not the person is willing to serve, and willing and able to commit the time necessary for the</FONT> <FONT size=2 face="sans-serif">performance of the duties of a Director of the Fund;<br>
      <br>
  </FONT></div>
</LI>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">the contribution which the person can make to the Board and the Fund (or, if the person has previously</FONT> <FONT size=2 face="sans-serif">served as a Director of the Fund, the contribution which the person made to
  the Board during his or her</FONT> <FONT size=2 face="sans-serif">previous
  term of service), with consideration being given to the person&#146;s business
  and professional</FONT> <FONT size=2 face="sans-serif">experience, education and such other
  factors as the Committee may consider relevant;<br>
  <br>
</FONT></div>
</LI>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">the character and integrity of the person; and<br>
      <br>
  </FONT></div>
</LI>
<LI>
  <div align="justify"><FONT size=2 face="sans-serif">whether or not the selection and nomination of the person would be consistent with the requirements</FONT> <FONT size=2 face="sans-serif">of
      the Fund&#146;s retirement policies.</FONT></div>
</LI>
</UL>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">While the Committee is solely responsible for the selection and nomination of Directors, the Committee may consider nominees recommended by Fund stockholders as it deems appropriate.
Stockholders who wish to recommend a nominee should send nominations to the Secretary of the Fund that include all information relating</FONT></P>
<P align=center>
<FONT size=2 face="sans-serif">B-1</FONT></P>

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<P align=justify>
<FONT size=2 face="sans-serif">to such person that is required to be disclosed in solicitations of proxies for the election of Directors. The recommendation must be accompanied by a written consent of the individual to stand for election if
nominated by the Board of Directors and to serve if elected by the stockholders.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Quorum</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">A majority of the members of the Committee shall constitute a quorum for the transaction of business, and the act of a majority of the members of the Committee present at any meeting at
which there is a quorum shall be the act of the Committee.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Nomination of Directors</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">After a determination by the Committee that a person should be selected and nominated as a Director of the Fund, the Committee shall present its recommendation to the full Board for its
consideration.</FONT></P>
<P align=justify>
<B><FONT size=2 face="sans-serif">Meetings</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">The Committee may meet either on its own or in conjunction with meetings of the Board. Meetings of the Committee may be held in person, video conference or by conference telephone. The
Committee may take action by unanimous written consent in lieu of a meeting.</FONT></P>
<P align=justify>
<FONT size=2 face="sans-serif">Adopted: January 20, 2004</FONT></P>
<P align=center>
<FONT size=2 face="sans-serif">B-2</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="right">
<B><FONT size=2 face="sans-serif">Appendix A</FONT></B><BR>
<B><FONT size=2 face="sans-serif">As of October 22, 2004</FONT></B></P>
<center>
  <FONT size=2 face="sans-serif">Salomon Brothers Series Funds Inc</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Institutional Series Funds Inc</FONT><BR>
  <FONT size=2 face="sans-serif">Legg Mason Partners Variable Portfolios I, Inc.</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Capital and Income Fund Inc. (SCD)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Emerging Markets Debt Fund Inc. (ESD)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Emerging Markets Floating Rate Fund Inc. (EFL)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Emerging Markets Income Fund Inc. (EMD)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Emerging Markets Income Fund II Inc. (EDF)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Global High Income Fund Inc. (EHI)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Global Partners Income Fund Inc. (GDF)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers High Income Fund Inc. (HIF)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers High Income Fund II Inc. (HIX)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Inflation Management Fund Inc. (IMF)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Municipal Partners Fund Inc. (MNP)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Municipal Partners Fund II Inc. (MPT)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Variable Rate Strategic Fund Inc. (GFY)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers Worldwide Income Fund Inc. (SBW)</FONT><BR>
  <FONT size=2 face="sans-serif">Salomon Brothers 2008 Worldwide Dollar Government Term Trust Inc. (SBG)</FONT><BR>
</center>
<P align=center>
<FONT size=2 face="sans-serif">B-3</FONT></P>

<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P align="center">
<B><FONT face="sans-serif">ANNUAL MEETING OF STOCKHOLDERS OF</FONT></B></P>
<P align="center">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=6 face="sans-serif">SALOMON BROTHERS <br>
HIGH INCOME FUND II INC.</FONT></B></P>
<P align="center">
<B><FONT face="sans-serif">August 3, 2006</FONT></B></P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">
<FONT size=5 face="sans-serif">Please date, sign and mail <br>
your proxy card in the <br>
envelope provided as soon <br>
as possible.</FONT></P>
<P>&nbsp;</P>
<BR>
<P align="center">&nbsp;</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td align="center" valign="middle"><font size=1 face="sans-serif"><img src="proxycardx1x1.jpg" border=0> Please detach along perforated line and mail in the envelope provided.<img src="proxycardx1x1.jpg" border=0> </font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align="left"><IMG src="proxycardx1x4.jpg" border=0> </P>
<table width="100%"  border="1" cellpadding="4" cellspacing="0">
  <tr>
    <td align="center"><b><font size=1 face="sans-serif">PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE </font></b><font face="wingdings" size="3">&#120;</font></td>
  </tr>
</table>
<br>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="5"><b><font
size=1 face="sans-serif">The Board of Directors recommends a vote "FOR" the following proposal:</font></b></td>
    <td width="26%">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="5"><font size=1 face="sans-serif">1. Election of Directors: Class ll to serve until the 2009 Annual Meeting of Stockholders.</font></td>
    <td colspan="3"><font size=1 face="sans-serif">2. Any other business that may properly come before the Meeting.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><b><font size=1 face="sans-serif">NOMINEES:</font></b></td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="2%"><img src="proxycardx1x3.jpg" border=0><b><font size=1 face="sans-serif"></font></b></td>
    <td width="25%"> <b><font size=1 face="sans-serif">FOR ALL NOMINEES</font></b></td>
    <td width="2%" valign="bottom"><img src="proxycardx1x2.jpg" border=0> <font size=1 face="sans-serif">&nbsp;</font></td>
    <td colspan="2" valign="middle"><font size=1 face="sans-serif">Leslie H. Gelb</font></td>
    <td colspan="3"><font size=1 face="sans-serif">The persons named as proxies are authorized to vote in their discretion on any other business that may properly come before the Meeting.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td valign="bottom"><img src="proxycardx1x2.jpg" border=0><font size=1 face="sans-serif"></font></td>
    <td colspan="2" valign="middle"><font size=1 face="sans-serif">Dr. Riordan Roett</font></td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td><b><font size=1 face="sans-serif"><img src="proxycardx1x3.jpg" border=0><b><font size=1 face="sans-serif"></font></b></font></b></td>
    <td><b><font size=1 face="sans-serif">WITHHOLD AUTHORITY <br>
    FOR ALL NOMINEES</font></b></td>
    <td valign="middle">&nbsp;</td>
    <td colspan="2" valign="middle">&nbsp;</td>
    <td colspan="3"><b><font size=1 face="sans-serif">Please Complete, Sign and Date hereon and Mail in Accompanying Postpaid Envelope.</font></b></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td><b><font size=1 face="sans-serif"><img src="proxycardx1x3.jpg" border=0><b><font size=1 face="sans-serif"></font></b></font></b></td>
    <td><b><font size=1 face="sans-serif">FOR ALL EXCEPT<br>
    (See instructions below)</font></b></td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="5"><b><u><font size=1 face="sans-serif">INSTRUCTION:</font></u></b><font size=1 face="sans-serif"> To withhold authority to vote for any individual nominee(s), mark </font><b><font size=1 face="sans-serif">&#147;FOR ALL EXCEPT&#148; </font></b><font
size=1 face="sans-serif"><br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; and fill in the circle next to each nominee you wish to withhold, as shown here: (&nbsp; )</font></td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="5"><HR noshade  width="100%" size=1></td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="5">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="5">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="5">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="5">&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="5"><HR noshade  width="100%" size=1></td>
    <td colspan="2" align="right"><b><font size=1 face="sans-serif">Please check the box to the right if you will be attending the Meeting.</font></b></td>
    <td width="17%">&nbsp; &nbsp; <IMG src="proxycardx1x3.jpg" border=0></td>
  </tr>
  <tr>
    <td colspan="4"><font size=1 face="sans-serif">To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method.</font></td>
    <td width="4%" align="right"> <IMG src="proxycardx1x3.jpg" border=0></td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="5"><HR noshade  width="100%" size=1></td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
</table>
<br>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="11%" align=left>
<FONT size=1 face="sans-serif">Signature of Stockholder</FONT>&nbsp;
        </TD>
        <TD width="23%"><hr noshade size=1>
        </TD>
        <TD width="5%" align=center>
<FONT size=1 face="sans-serif">Date:</FONT>&nbsp;
        </TD>
        <TD width="11%"><hr noshade size=1>
        </TD>
        <TD width="11%" align=center>
<FONT size=1 face="sans-serif">Signature of Stockholder</FONT>&nbsp;
        </TD>
        <TD width="23%"><hr noshade size=1>
        </TD>
        <TD width="5%" align=center>
<FONT size=1 face="sans-serif">Date:</FONT>
        </TD>
    <TD width="11%" align=right><hr noshade size=1></TD>
</TR>
</TABLE>
<BR>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="3%" valign="top"><IMG src="proxycardx1x4.jpg" border=0></td>
    <td width="3%" valign="top"><b><font size=1 face="sans-serif">Note:</font></b></td>
    <td width="91%" valign="top"><font size=1 face="sans-serif">Please sign exactly as your name or names appear on this Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person.</font></td>
    <td width="3%" align="right"><IMG src="proxycardx1x4.jpg" border=0></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right">&nbsp;</td>
  </tr>
</table>
<BR>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="right"><IMG src="proxycardx1x4.jpg" border=0> </P>
<P align="center"><B><FONT size=4 face="sans-serif">SALOMON BROTHERS </FONT></B></P>
<P align="center"><B><FONT size=4 face="sans-serif">HIGH INCOME FUND II INC.</FONT></B></P>
<P align="center">
<B><FONT face="sans-serif">THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">The undersigned hereby appoints R. Jay Gerken, Robert I. Frenkel, Robert M. Nelson and William J. Renahan and each of them, attorneys and proxies for the undersigned, with full power of
substitution and revocation to represent the undersigned and to vote on behalf of the undersigned all shares of Salomon Brothers High Income Fund II Inc. (the &#147;Fund&#148;) which the undersigned is entitled to vote at the Annual Meeting of
Stockholders of the Fund to be held at 153 East 53rd Street, 14th Floor, New York, New York on August 3, 2006, at 3:30 p.m., Eastern Standard Time and at any adjournments thereof. The undersigned hereby acknowledges receipt of the Notice of Meeting
and accompanying Proxy Statement and hereby instructs said attorneys and proxies to vote said shares as indicated hereon. In their discretion, the proxies are authorized to vote upon such other business as may properly come before the Meeting. A
majority of the proxies present and acting at the Meeting in person or by substitute (or, if only one shall be so present, then that one) shall have and may exercise all of the power and authority of said proxies hereunder.  The undersigned hereby
revokes any proxy previously given.</FONT></P>
<P>
<B><FONT face="sans-serif">This proxy, if properly executed, will be voted in the manner directed by the stockholder. If no direction is made, this proxy will be voted FOR the election of the nominees as director.</FONT></B></P>
<P align="center">
<FONT face="sans-serif">Please refer to the Proxy Statement for a discussion of the Proposal.</FONT></P>
<P align="center">
<B><FONT face="sans-serif">(Continued and to be signed on the reverse side)</FONT></B></P>
<br>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
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    <td width="5%" align="center"><img src="proxycardx1x4.jpg" border=0> </td>
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</table>
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