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<SEC-DOCUMENT>0000950136-02-000772.txt : 20020415
<SEC-HEADER>0000950136-02-000772.hdr.sgml : 20020415
ACCESSION NUMBER:		0000950136-02-000772
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20020425
FILED AS OF DATE:		20020321

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MUNIVEST FUND II INC
		CENTRAL INDEX KEY:			0000897269
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-07478
		FILM NUMBER:		02581716

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

	MAIL ADDRESS:	
		STREET 1:		PO BOX 9011
		CITY:			PRINCETON
		STATE:			NJ
		ZIP:			08543-9011
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>file001.htm
<DESCRIPTION>PROXY STATEMENT
<TEXT>

<HTML>
  <HEAD>
    <TITLE></TITLE>
  </HEAD>
  <BODY> <PAGE>
    <P ALIGN="center">
      <B>As filed with the Securities and Exchange Commission on March 21, 2002
      </B>
    </P>
    <P ALIGN="center">
      <FONT SIZE="+2"><B><FONT SIZE="+1">SCHEDULE
      14A</FONT></B></FONT><BR><B>(Rule 14a-101) </B>
    </P>
    <BR>
    <P ALIGN="center">
      <B>INFORMATION REQUIRED IN PROXY STATEMENT<BR>SCHEDULE 14A
      INFORMATION<BR>PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE
      SECURITIES<BR>EXCHANGE ACT OF 1934 (AMENDMENT NO. &nbsp;&nbsp;&nbsp;&nbsp;)</B>

    </P>
    <TABLE CELLPADDING="0" WIDTH="100%">
      <TR>
        <TD WIDTH="745" COLSPAN="3">Filed by the Registrant&nbsp; [X] </TD>
        <TD WIDTH="483" COLSPAN="2"></TD>
      </TR>
      <TR>
        <TD WIDTH="745" COLSPAN="3">Filed by a party other than the Registrant
          &nbsp;[&nbsp;&nbsp;] </TD>
        <TD WIDTH="483" COLSPAN="2">&nbsp;</TD>
      </TR>
      <TR>
        <TD WIDTH="745" COLSPAN="3">Check the appropriate box:</TD>
        <TD WIDTH="483" COLSPAN="2">&nbsp;</TD>
      </TR>
      <TR>
        <TD WIDTH="12"></TD>
        <TD WIDTH="28">[&nbsp;&nbsp;&nbsp;]</TD>
        <TD WIDTH="695">Preliminary Proxy Statement</TD>
        <TD WIDTH="29">[&nbsp; &nbsp;&nbsp;]</TD>
        <TD WIDTH="454"> &nbsp; Confidential, for Use of the Commission</TD>
      </TR>
      <TR>
        <TD WIDTH="12"> </TD>
        <TD WIDTH="28">[X]</TD>
        <TD WIDTH="695">Definitive Proxy Statement</TD>
        <TD WIDTH="29"></TD>
        <TD WIDTH="454"> &nbsp; Only (as permitted by Rule 14a-6(e)(2)) </TD>
      </TR>
      <TR>
        <TD WIDTH="12"></TD>
        <TD WIDTH="28">[&nbsp;&nbsp;&nbsp;]</TD>
        <TD WIDTH="695">Definitive Additional Materials</TD>
        <TD WIDTH="483" COLSPAN="2"></TD>
      </TR>
      <TR>
        <TD WIDTH="12"></TD>
        <TD WIDTH="28">[&nbsp;&nbsp;&nbsp;]</TD>
        <TD WIDTH="695">Soliciting Material Pursuant to Rule 14a-12</TD>
        <TD WIDTH="483" COLSPAN="2"></TD>
      </TR>
    </TABLE>
    <TABLE CELLPADDING="0" WIDTH="100%">
      <TR>
        <TD ALIGN="CENTER">
          <P ALIGN="center">
            <B><FONT SIZE="+1">MUNIVEST FUND II, INC.</FONT></B>
          </P>
        </TD>
      </TR>
      <TR>
        <TD ALIGN="CENTER"><B>P.O. Box 9011, Princeton, New Jersey
          08543-9011</B></TD>
      </TR>
      <TR>
        <TD><HR SIZE="1" WIDTH="400"></TD>
      </TR>
      <TR>
        <TD ALIGN="CENTER"><B><FONT SIZE="-1">(Name of Registrant as Specified
          In Its Charter) </FONT></B></TD>
      </TR>
      <TR>
        <TD>&nbsp;</TD>
      </TR>
      <TR>
        <TD ALIGN="CENTER"><B>same as above </B></TD>
      </TR>
      <TR>
        <TD> <HR SIZE="1" WIDTH="400"> </TD>
      </TR>
      <TR>
        <TD ALIGN="CENTER"><B><FONT SIZE="-1">(Name of Person(s) Filing Proxy
          Statement, if other than the Registrant)</FONT></B></TD>
      </TR>
    </TABLE>
    <TABLE CELLPADDING="0" WIDTH="100%">
      <TR>
        <TD COLSPAN="4" WIDTH="1229">&nbsp;</TD>
      </TR>
      <TR>
        <TD COLSPAN="4" WIDTH="1229">Payment of Filing Fee (Check the
          appropriate box): </TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38">[X]</TD>
        <TD COLSPAN="2" WIDTH="1177"> No fee required.</TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38" ALIGN="LEFT"></TD>
        <TD COLSPAN="2" WIDTH="1177"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38" ALIGN="LEFT">[&nbsp;&nbsp;&nbsp;]</TD>
        <TD COLSPAN="2" WIDTH="1177"> Fee computed on table below per Exchange
          Act Rules 14a-6(i)(1) and 0-11.</TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38" ALIGN="LEFT"></TD>
        <TD COLSPAN="2" WIDTH="1177"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38"></TD>
        <TD WIDTH="22">(1)</TD>
        <TD WIDTH="1155">Title of each class of securities to which transaction
          applies:</TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38"></TD>
        <TD WIDTH="22"></TD>
        <TD WIDTH="1155"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38">&nbsp;</TD>
        <TD WIDTH="22">(2)</TD>
        <TD WIDTH="1155">Aggregate number of securities to which transaction
          applies:</TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38"></TD>
        <TD WIDTH="22"></TD>
        <TD WIDTH="1155"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38">&nbsp;</TD>
        <TD WIDTH="22" VALIGN="TOP">(3)</TD>
        <TD WIDTH="1155">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):</TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38"></TD>
        <TD WIDTH="22"></TD>
        <TD WIDTH="1155"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38">&nbsp;</TD>
        <TD WIDTH="22">(4)</TD>
        <TD WIDTH="1155">Proposed maximum aggregate value of transaction:</TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38"></TD>
        <TD WIDTH="22"></TD>
        <TD WIDTH="1155"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38">&nbsp;</TD>
        <TD WIDTH="22">(5)</TD>
        <TD WIDTH="1155">Total fee paid: </TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38"></TD>
        <TD WIDTH="22"></TD>
        <TD WIDTH="1155"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38">[&nbsp;&nbsp;&nbsp;]</TD>
        <TD WIDTH="1155" COLSPAN="2">Fee paid previously with preliminary
          materials:</TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38"></TD>
        <TD WIDTH="1155" COLSPAN="2"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38" VALIGN="TOP">[&nbsp;&nbsp;&nbsp;]</TD>
        <TD WIDTH="1155" COLSPAN="2">Check box if any part of the fee is offset
          as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which
          the offsetting fee was paid previously. Identify the previous filing by
          registration statement number, or the form or schedule and the date of its
          filing. </TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38"></TD>
        <TD WIDTH="1155" COLSPAN="2"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38">&nbsp;</TD>
        <TD WIDTH="22">(1)</TD>
        <TD WIDTH="1155">Amount previously paid:</TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38"></TD>
        <TD WIDTH="22"></TD>
        <TD WIDTH="1155"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38">&nbsp;</TD>
        <TD WIDTH="22">(2)</TD>
        <TD WIDTH="1155">Form, Schedule or Registration Statement No.:</TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38"></TD>
        <TD WIDTH="22"></TD>
        <TD WIDTH="1155"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38">&nbsp;</TD>
        <TD WIDTH="22">(3)</TD>
        <TD WIDTH="1155">Filing Party:</TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38"></TD>
        <TD WIDTH="22"></TD>
        <TD WIDTH="1155"></TD>
      </TR>
      <TR>
        <TD WIDTH="14"></TD>
        <TD WIDTH="38">&nbsp;</TD>
        <TD WIDTH="22">(4)</TD>
        <TD WIDTH="1155">Date Filed: </TD>
      </TR>
    </TABLE> <PAGE>
    <H4 ALIGN="center">MUNIVEST FUND II, INC.<BR> P.O. Box 9011<BR> Princeton,
      New Jersey 08543-9011</H4>
    <TABLE WIDTH="100%" CELLPADDING="0">
      <TR>
        <TD><HR SIZE="1" WIDTH="150"></TD>
      </TR>
      <TR>
        <TD>
          <H4 ALIGN="center"><BR> NOTICE OF 2002 ANNUAL MEETING OF
            STOCKHOLDERS<BR><BR></H4></TD>
      </TR>
      <TR>
        <TD><HR SIZE="1" WIDTH="150"></TD>
      </TR>
      <TR>
        <TD>
          <H4 ALIGN="center">TO BE HELD ON APRIL 25, 2002 </H4></TD>
      </TR>
    </TABLE>
    <P>
      <B></B>T<FONT SIZE="-2">O</FONT> <FONT SIZE="-2">THE</FONT> S<FONT
      SIZE="-2">TOCKHOLDERS</FONT> <FONT SIZE="-2">OF</FONT> M<FONT
      SIZE="-2">UNI</FONT>V<FONT SIZE="-2">EST</FONT> F<FONT SIZE="-2">UND</FONT> II,
      I<FONT SIZE="-2">NC</FONT>.:
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE IS HEREBY GIVEN that the 2002
      Annual Meeting of Stockholders (the "Meeting") of MuniVest Fund II, Inc. (the
      "Fund") will be held at the offices of Fund Asset Management, L.P., 800
      Scudders Mill Road, Plainsboro, New Jersey, on Thursday, April 25, 2002 at
      10:20 a.m. for the following purposes:
    </P>
    <TABLE WIDTH="100%" CELLPADDING="5">
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right" WIDTH="42">(1)</TD>
        <TD WIDTH="1171"> To elect a Board of Directors to serve for the
          ensuing year; and </TD>
      </TR>
    </TABLE>
    <TABLE WIDTH="100%" CELLPADDING="5">
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right" WIDTH="42">(2)</TD>
        <TD WIDTH="1171"> To transact such other business as may properly come
          before the Meeting or any adjournments thereof.</TD>
      </TR>
    </TABLE>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund's Board of Directors has
      fixed the close of business on February 28, 2002, as the record date for the
      determination of stockholders entitled to notice of and to vote at the Fund's
      Meeting or any adjournment thereof.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A complete list of the stockholders
      of the Fund entitled to vote at the Meeting will be available and open to the
      examination of any stockholder of the Fund for any purpose germane to the
      Meeting during ordinary business hours from and after April 11, 2002, at the
      offices of the Fund, 800 Scudders Mill Road, Plainsboro, New Jersey 08536. You
      are cordially invited to attend the Meeting. <B>Stockholders who do not expect
      to attend the Meeting in person are requested to complete, date and sign the
      enclosed form of proxy and return it promptly in the envelope provided for this
      purpose. If you have been provided with the opportunity on your proxy card or
      voting instruction form to provide voting instructions via telephone or the
      Internet, please take advantage of these prompt and efficient voting
      options.</B> The enclosed proxy is being solicited on behalf of the Board of
      Directors of the Fund.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you have any questions regarding
      the enclosed proxy material or need assistance in voting your shares, please
      contact our proxy solicitor, Georgeson Shareholder at 1-800-645-4519.
    </P>
    <TABLE WIDTH="100%">
      <TR>
        <TD WIDTH="820"></TD>
        <TD WIDTH="409">By Order of the Board of Directors</TD>
      </TR>
    </TABLE>
    <TABLE WIDTH="100%">
      <TR>
        <TD WIDTH="818">&nbsp;</TD>
        <TD WIDTH="411">&nbsp;</TD>
      </TR>
      <TR>
        <TD WIDTH="818"></TD>
        <TD WIDTH="411">A<FONT SIZE="-2">LICE</FONT> A. P<FONT
          SIZE="-2">ELLEGRINO</FONT><BR> <I>Secretary</I></TD>
      </TR>
    </TABLE>
    <P>
      Plainsboro, New Jersey<BR> Dated: March 21, 2002
    </P>
    <PAGE>
    <H4 ALIGN="center">PROXY STATEMENT</H4> <HR SIZE="1" WIDTH="150">
    <H4 ALIGN="center">MUNIVEST FUND II, INC.<BR>P.O. Box 9011<BR>Princeton,
      New Jersey 08543-9011</H4> <HR SIZE="1" WIDTH="150">
    <H4 ALIGN="center">2002 ANNUAL MEETING OF STOCKHOLDERS</H4>
    <HR SIZE="1" WIDTH="150">
    <H4 ALIGN="center">APRIL 25, 2002</H4> <HR SIZE="1" WIDTH="150">
    <H4 ALIGN="center">INTRODUCTION </H4>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Proxy Statement is furnished in
      connection with the solicitation of proxies on behalf of the Board of Directors
      of MuniVest Fund II, Inc. (the "Fund") to be voted at the 2002 Annual Meeting
      of Stockholders of the Fund (the "Meeting") to be held at the offices of Fund
      Asset Management, L.P. ("FAM"), 800 Scudders Mill Road, Plainsboro, New Jersey,
      on Thursday, April 25, 2002 at 10:20 a.m. The approximate mailing date of this
      Proxy Statement is March 28, 2002.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All properly executed proxies
      received prior to the Meeting will be voted at the Meeting in accordance with
      the instructions marked thereon or otherwise as provided therein. Unless
      instructions to the contrary are marked, such proxies will be voted <I>for</I>
      the election of the Board of Directors to serve for the ensuing year. Any proxy
      may be revoked at any time prior to the exercise thereof by giving written
      notice to the Secretary of the Fund at the Fund's address indicated above or by
      voting in person at the Meeting.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Fund
      has fixed the close of business on February 28, 2002 as the record date (the
      "Record Date") for the determination of stockholders entitled to notice of and
      to vote at the Meeting and at any adjournment thereof. Stockholders on the
      Record Date will be entitled to one vote for each share held, with no shares
      having cumulative voting rights. As of the Record Date, the Fund had
      outstanding 19,907,055 shares of common stock ("Common Stock") and 5,400 shares
      of auction market preferred stock, par value $.05 per share and liquidation
      preference of $25,000 per share plus an amount equal to accumulated but unpaid
      dividends thereon ("AMPS"). To the knowledge of the Fund, as of the Record
      Date, no person is the beneficial owner of more than five percent of its
      outstanding Common Stock or five percent of the outstanding AMPS, at such date.

    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Fund
      knows of no business other than that mentioned in Item 1 of the Notice of
      Meeting that will be presented for consideration at the Meeting. If any other
      matter is properly presented, it is the intention of the persons named in the
      enclosed proxy to vote in accordance with their best judgment.
    </P>
    <PAGE>
    <H4 ALIGN="center">ITEM 1. ELECTION OF DIRECTORS </H4>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Meeting, the Board of
      Directors of the Fund will be elected to serve until the next Annual Meeting of
      Stockholders and until their successors are elected and qualified. It is
      intended that all properly executed proxies will be voted (unless such
      authority has been withheld in the proxy) as follows:
    </P>
    <TABLE WIDTH="100%" CELLPADDING="5">
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right" WIDTH="18">(1)</TD>
        <TD WIDTH="1195"> All such proxies of the holders of shares of AMPS,
          voting separately as a class, in favor of the two (2) persons designated as
          Directors to be elected by holders of AMPS; and</TD>
      </TR>
    </TABLE>
    <TABLE WIDTH="100%" CELLPADDING="5">
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right">(2)</TD>
        <TD> All such proxies of the holders of shares of Common Stock and
          AMPS, voting together as a single class, will be voted in favor of the six (6)
          persons designated as Directors to be elected by holders of Common Stock and
          AMPS.</TD>
      </TR>
    </TABLE>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Fund
      knows of no reason why any of these nominees will be unable to serve, but in
      the event of any such unavailability, the proxies received will be voted for
      such substitute nominee or nominees as the Board of Directors may recommend.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain information concerning the
      nominees, including their designated classes, is set forth below:
    </P>
    <P ALIGN="left">
      <B>Directors To Be Elected by Holders of AMPS, Voting Separately as a
      Class: </B>
    </P>
    <TABLE CELLPADDING="3">
      <TR ALIGN="center">
        <TH VALIGN="BOTTOM" WIDTH="256" ALIGN="LEFT">Name, Address and
          Age<BR>of AMPS Nominees<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="186">Position(s)<BR>Held with<BR>the
          Fund<BR>and Length of<BR>Time Served&#134;<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="277">Principal Occupation(s)<BR>During Past
          Five Years<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="266">Number of<BR>FAM/MLIM-<BR>Advised
          Funds#<BR>and Portfolios<BR>Overseen<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="212">Public<BR>Directorships<HR
          SIZE="1"></TH>
      </TR>
      <TR ALIGN="center">
        <TD VALIGN="top" WIDTH="256" ALIGN="LEFT">Ronald W. Forbes (61)*<BR>400
          Washington Avenue<BR>Albany, New York 12222</TD>
        <TD VALIGN="top" ALIGN="LEFT" WIDTH="186">Director since 1993</TD>
        <TD VALIGN="top" ALIGN="LEFT" WIDTH="277">Professor Emeritus of
          Finance, School of Business, State University of New York at Albany since 2000
          and Professor thereof from 1989 to 2000; International Consultant, Urban
          Institute, Washington, D.C. from 1995 to 1999.</TD>
        <TD VALIGN="top" WIDTH="266" ALIGN="LEFT">46 registered investment
          companies consisting of <BR>55 portfolios</TD>
        <TD VALIGN="top" WIDTH="212" ALIGN="LEFT">None</TD>
      </TR>
      <TR ALIGN="center">
        <TD VALIGN="top" WIDTH="256" ALIGN="LEFT">Richard R. West (64)*<BR>Box
          604<BR>Genoa, Nevada 89411</TD>
        <TD VALIGN="top" ALIGN="LEFT" WIDTH="186">Director<BR>since 1993</TD>
        <TD VALIGN="top" ALIGN="LEFT" WIDTH="277">Professor of Finance since
          1984, Dean from 1984 to 1993 and currently Dean Emeritus of New York University
          Leonard N. Stern School of Business Administration.</TD>
        <TD VALIGN="top" WIDTH="266" ALIGN="LEFT">50 registered investment
          companies consisting of <BR>66 portfolios</TD>
        <TD VALIGN="top" WIDTH="212" ALIGN="LEFT">Bowne &amp; Co., Inc.
          (financial printers); Vornado Realty Trust, Inc. (real estate holding company);
          Alexander's, Inc. (real estate company)</TD>
      </TR>
    </TABLE> <HR ALIGN="left" WIDTH="120">
    <TABLE WIDTH="100%" CELLPADDING="5">
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right">*</TD>
        <TD> Each of the nominees is a director, trustee or member of an
          advisory board of certain other investment companies for which FAM or its
          affiliate, Merrill Lynch Investment Managers, L.P. ("MLIM"), acts as an
          investment adviser and is a member of the audit committee of the funds for
          which he currently serves as a director or trustee and will be a member of the
          Audit and Oversight Committee of the Fund if elected a Director.</TD>
      </TR>
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right">&#134;</TD>
        <TD> Each Director serves until his or her successor is elected and
          qualified, or until his or her death or resignation, or removal as provided in
          the Fund's by-laws or charter or by statute, or until December 31 of the year
          in which he or she turns 72.</TD>
      </TR>
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right">#</TD>
        <TD> The complex of funds advised by FAM and its affiliate, MLIM.</TD>
      </TR>
    </TABLE>
    <P ALIGN="center">
      2
    </P>
    <PAGE>
    <H4 ALIGN="left">Directors To Be Elected by Holders of Common Stock and
      AMPS, Voting Together as a Single Class: </H4>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain biographical and other
      information relating to the nominee who is an "interested person," as defined
      in the Investment Company Act of 1940 (the "Investment Company Act"), of the
      Fund is set forth below:
    </P>
    <TABLE CELLPADDING="3">
      <TR ALIGN="center">
        <TH VALIGN="BOTTOM" WIDTH="267" ALIGN="LEFT">Name, Address and
          Age<BR>of Nominee<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="184">Position(s)<BR>Held with<BR>the
          Fund<BR>and Length of<BR>Time Served&#134;<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="278">Principal Occupation(s)<BR>During Past
          Five Years<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="262">Number of<BR>FAM/MLIM-<BR>Advised
          Funds<BR>and Portfolios<BR>Overseen<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="206">Public<BR>Directorships<HR
          SIZE="1"></TH>
      </TR>
      <TR ALIGN="center">
        <TD VALIGN="top" WIDTH="267" ALIGN="LEFT">Terry K. Glenn
          (61)*<SUP>(1)</SUP><BR>P.O. Box 9011<BR>Princeton, New Jersey
          <BR>08543-9011</TD>
        <TD VALIGN="top" WIDTH="184" ALIGN="LEFT">President** and Director
          since 1999</TD>
        <TD VALIGN="top" WIDTH="278" ALIGN="LEFT">Chairman (Americas Region) of
          FAM since 2000; Executive Vice President of FAM and MLIM (which terms as used
          herein include their corporate predecessors) since 1983; President of Merrill
          Lynch Mutual Funds since 1999; President of FAM Distributors, Inc. ("FAMD")
          since 1986 and Director thereof since 1991; Executive Vice President and
          Director of Princeton Services, Inc. ("Princeton Services") since 1993;
          President of Princeton Administrators, L.P. since 1988; Director of Financial
          Data Services, Inc. ("FDS") since 1985.</TD>
        <TD VALIGN="top" WIDTH="262" ALIGN="LEFT">127 registered investment
          companies consisting of <BR>184 portfolios</TD>
        <TD VALIGN="top" WIDTH="206" ALIGN="LEFT">None</TD>
      </TR>
    </TABLE> <HR ALIGN="left" WIDTH="120">
    <TABLE WIDTH="100%" CELLPADDING="5">
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right">*</TD>
        <TD> Mr. Glenn is an "interested person," as defined in the Investment
          Company Act, of the Fund based on his positions with FAM, MLIM, FAMD, Princeton
          Services and Princeton Administrators, L.P.</TD>
      </TR>
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right">**</TD>
        <TD>Elected and serves at the pleasure of the Board of Directors of the
          Fund.</TD>
      </TR>
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right">&#134;</TD>
        <TD> Each Director serves until his or her successor is elected and
          qualified, or until his or her death or resignation, or removal as provided in
          the Fund's by-laws or charter or by statute, or until December 31 of the year
          in which he or she turns 72.</TD>
      </TR>
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right">(1)</TD>
        <TD> Mr. Glenn was elected President of the Fund in 1999. Prior to that
          he served as Executive Vice President of the Fund.</TD>
      </TR>
    </TABLE>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain biographical and other
      information relating to the nominees who are not "interested persons," as
      defined in the Investment Company Act, of the Fund is set forth below:
    </P>
    <TABLE CELLPADDING="3">
      <TR ALIGN="center">
        <TH WIDTH="264" VALIGN="BOTTOM" ALIGN="LEFT">Name, Address and
          Age<BR>of Nominees<HR SIZE="1"></TH>
        <TH WIDTH="189" VALIGN="BOTTOM">Position(s) Held with<BR> the
          Fund<BR>and Length of<BR>Time Served&#134;<HR SIZE="1"></TH>
        <TH WIDTH="281" VALIGN="BOTTOM">Principal Occupation(s)<BR>During Past
          Five Years<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="268">Number of<BR>FAM/MLIM-<BR>Advised
          Funds<BR>and Portfolios<BR>Overseen<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="195">Public<BR>Directorships<HR
          SIZE="1"></TH>
      </TR>
      <TR ALIGN="center">
        <TD VALIGN="top" WIDTH="264" ALIGN="LEFT">Cynthia A. Montgomery
          (49)*<BR>P.O. Box 9011<BR>Princeton, New Jersey <BR>08543-9011</TD>
        <TD VALIGN="top" WIDTH="189" ALIGN="LEFT">Director since 1993</TD>
        <TD VALIGN="top" WIDTH="281" ALIGN="LEFT">Professor, Harvard Business
          School since 1989; Associate Professor, J.L. Kellogg Graduate School of
          Management, Northwestern University from 1985 to 1989; Associate Professor
          Graduate School of Business Administration, the University of Michigan from
          1979 to 1985.</TD>
        <TD VALIGN="top" WIDTH="268" ALIGN="LEFT">46 registered investment
          companies consisting of<BR> 55 portfolios</TD>
        <TD VALIGN="top" WIDTH="195" ALIGN="LEFT">UnumProvident Corporation
          (insurance products); Newell Rubbermaid Inc.</TD>
      </TR>
    </TABLE>
    <P ALIGN="RIGHT">
      <I>(footnotes on following page) </I>
    </P>
    <P ALIGN="center">
      3
    </P>
    <PAGE>
    <TABLE CELLPADDING="3">
      <TR ALIGN="center">
        <TH WIDTH="264" VALIGN="BOTTOM" ALIGN="LEFT">Name, Address and
          Age<BR>of Nominees<HR SIZE="1"></TH>
        <TH WIDTH="189" VALIGN="BOTTOM">Position(s) Held with<BR> the
          Fund<BR>and Length of<BR>Time Served&#134;<HR SIZE="1"></TH>
        <TH WIDTH="285" VALIGN="BOTTOM">Principal Occupation(s)<BR>During Past
          Five Years<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="268">Number of<BR>FAM/MLIM-<BR>Advised
          Funds<BR>and Portfolios<BR>Overseen<HR SIZE="1"></TH>
        <TH VALIGN="BOTTOM" WIDTH="191">Public<BR>Directorships<HR
          SIZE="1"></TH>
      </TR>
      <TR ALIGN="left" VALIGN="top">
        <TD>Charles C. Reilly (70)*<BR>P.O. Box 9011<BR>Princeton, New Jersey
          <BR>08543-9011</TD>
        <TD>Director since 1993</TD>
        <TD WIDTH="285">Self-employed financial consultant since 1990;
          President and Chief Investment Officer of Verus Capital Inc. from 1979 to 1990;
          Senior Vice President of Arnhold and S. Bleichroeder, Inc. from 1973 to 1990;
          Adjunct Professor Columbia University Graduate School of Business from 1990 to
          1991; Adjunct Professor, Wharton School, University of Pennsylvania from 1989
          to 1990; Partner, Small Cities Cable Television from 1986 to 1997.</TD>
        <TD WIDTH="268">46 registered investment companies consisting of 55
          portfolios</TD>
        <TD WIDTH="191">None</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="LEFT" VALIGN="TOP">Kevin A. Ryan (69)*<BR>127 Commonwealth
          Avenue<BR>Chestnut Hill, Massachusetts 02467</TD>
        <TD ALIGN="LEFT" VALIGN="TOP">Director since 1993</TD>
        <TD ALIGN="LEFT" WIDTH="285">Founder and currently Director Emeritus of
          the Boston University Center for the Advancement of Ethics and Character and
          Director thereof from 1989 to 1999; Professor from 1982 to 1999 and currently
          Professor Emeritus of Education of Boston University; formerly taught on the
          faculties of The University of Chicago, Stanford University and Ohio State
          University</TD>
        <TD ALIGN="LEFT" VALIGN="TOP" WIDTH="268">46 registered investment
          companies consisting of 55 portfolios</TD>
        <TD ALIGN="LEFT" VALIGN="TOP" WIDTH="191">None</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="LEFT" VALIGN="TOP">Roscoe S. Suddarth (66)*<BR>7403
          MacKenzie Court<BR>Bethesda, Maryland 20817</TD>
        <TD ALIGN="LEFT" VALIGN="TOP">Director since 2000</TD>
        <TD ALIGN="LEFT" WIDTH="285">President, Middle East Institute, from
          1995 to 2001; Foreign Service Officer, United States Foreign Service, from 1961
          to 1995; Career Minister, from 1989 to 1995; Deputy Inspector General, U.S.
          Department of State, from 1991 to 1994; U.S. Ambassador to the Hashemite
          Kingdom of Jordan, from 1987 to 1990.</TD>
        <TD ALIGN="LEFT" VALIGN="TOP" WIDTH="268">46 registered investment
          companies consisting of 55 portfolios</TD>
        <TD ALIGN="LEFT" VALIGN="TOP" WIDTH="191">None</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="LEFT" VALIGN="TOP">Edward D. Zinbarg (67)*<BR>5 Hardwell
          Road<BR>Short Hills, New Jersey 07078</TD>
        <TD ALIGN="LEFT" VALIGN="TOP">Director since 2000</TD>
        <TD ALIGN="LEFT" WIDTH="285">Self-employed financial consultant since
          1994; Executive Vice President of the Prudential Insurance Company of America
          from 1988 to 1994; Former Director of Prudential Reinsurance Company and former
          Trustee of the Prudential Foundation.</TD>
        <TD ALIGN="LEFT" VALIGN="TOP" WIDTH="268">46 registered investment
          companies consisting of 55 portfolios</TD>
        <TD ALIGN="LEFT" VALIGN="TOP" WIDTH="191">None</TD>
      </TR>
    </TABLE> <HR ALIGN="left" WIDTH="120">
    <TABLE WIDTH="100%" CELLPADDING="5">
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right">*</TD>
        <TD> Each of the nominees is a director, trustee or member of an
          advisory board of certain other investment companies for which FAM or MLIM acts
          as investment adviser and is a member of the audit committee of the funds for
          which he or she currently serves as a director or trustee and will be a member
          of the Audit and Oversight Committee of the Fund if elected a Director. </TD>
      </TR>
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right">&#134;</TD>
        <TD>Each Director serves until his or her successor is elected and
          qualified, or until his or her death or resignation, or removal as provided in
          the Fund's by-laws or charter or by statute, or until December 31 of the year
          in which he or she turns 72.</TD>
      </TR>
    </TABLE>
    <P ALIGN="center">
      4
    </P>
    <PAGE>
    <H3 ALIGN="LEFT">Audit Committee Report</H3>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has a standing
      Audit and Oversight Committee (the "Committee"), which consists of the
      Directors who are not "interested persons" of the Fund within the meaning of
      the Investment Company Act and who are "independent" as defined in the listing
      standards of the New York Stock Exchange. Currently, Messrs. Forbes, Reilly,
      Ryan, Suddarth, West and Zinbarg and Ms. Montgomery are members of the
      Committee. The principal responsibilities of the Committee are to: (i)
      recommend to the Board of Directors the selection, retention or termination of
      the Fund's independent auditors; (ii) review with the independent auditors the
      scope, performance and anticipated cost of their audit; (iii) discuss with the
      independent auditors certain matters relating to the Fund's financial
      statements, including any adjustment to such financial statements recommended
      by such independent auditors, or any other results of any audit; (iv) review on
      a periodic basis a formal written statement from the independent auditors with
      respect to their independence, discuss with the independent auditors any
      relationships or services disclosed in the statement that may impact the
      objectivity and independence of the Fund's independent auditors and recommend
      that the Board of Directors take appropriate action in response to this
      statement to satisfy itself of the independent auditors' independence; and (v)
      consider the comments of the independent auditors and management's responses
      thereto with respect to the quality and adequacy of the Fund's accounting and
      financial reporting policies and practices and internal controls.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund adopted an Audit Committee
      Charter (the "Charter") at a meeting held on June 8, 2000. The Board of
      Directors revised and reapproved the Charter on April 5, 2001. The Committee
      also has (a) received written disclosures and the letter required by
      Independence Standards Board Standard No. 1 from Deloitte &amp; Touche
      <FONT SIZE="-2">LLP</FONT> ("D&amp;T"), independent auditors for the Fund, and
      (b) discussed certain matters required to be discussed by Statements on
      Auditing Standards No. 61 with D&amp;T. The Committee has considered whether
      the provision of non-audit services by the Fund's independent auditors is
      compatible with maintaining the independence of those auditors.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At its meeting held on November 28,
      2001, the Fund's Committee reviewed and discussed the audit of the Fund's
      financial statements with Fund management and D&amp;T. Had any material
      concerns arisen during the course of the audit and the preparation of the
      audited financial statements mailed to stockholders and included in the Fund's
      annual report to stockholders, the Committee would have been notified by Fund
      management or D&amp;T. The Committee received no such notifications. At the
      same meeting, the Committee recommended to the Board that the Fund's audited
      financial statements for the fiscal year ended October 31, 2001 be included in
      the Fund's annual report to stockholders.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the above, the
      Committee also reviews and nominates candidates to serve as non-interested
      Directors. The Committee generally will not consider nominees recommended by
      stockholders of the Fund. The non-interested Directors have retained
      independent legal counsel to assist them in connection with these duties.
    </P>
    <H3 ALIGN="LEFT">Committee and Board Meetings</H3>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal year ended October
      31, 2001, the Board of Directors held five meetings and the Committee held four
      meetings. Each of the Directors then in office attended at least 75% of the
      aggregate of the total number of meetings of the Board of Directors held and,
      if a member, the total number of meetings of the Committee held during such
      period.
    </P>
    <H3 ALIGN="LEFT">Compliance with Section 16(a) of the Securities Exchange
      Act of 1934</H3>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 16(a) of the Securities
      Exchange Act of 1934, as amended (the "Exchange Act"), requires the Fund's
      officers and Directors and persons who own more than ten percent of a
      registered class of the Fund's equity securities, to file reports of ownership
      and changes in ownership on Forms 3, 4 and 5 with the Securities and Exchange
      Commission (the "SEC") and the New York Stock Exchange. Officers, Directors and
      greater than ten percent stockholders are required by SEC regulations to
      furnish the Fund with copies of all Forms 3, 4 and 5 they file.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based solely on the Fund's review of
      the copies of such forms, and amendments thereto, furnished to it during or
      with respect to its most recent fiscal year, and written representations from
      certain reporting
    </P>
    <P ALIGN="center">
      5
    </P>
    <PAGE>
    <P>
      persons that they were not required to file Form 5 with respect to the
      most recent fiscal year, the Fund believes that all of its officers, Directors,
      greater than ten percent beneficial owners and other persons subject to Section
      16 of the Exchange Act due to the requirements of Section 30 of the Investment
      Company Act (<I>i.e.</I>, any advisory board member, investment adviser or
      affiliated person of the Fund's investment adviser) have complied with all
      filing requirements applicable to them with respect to transactions during the
      Fund's most recent fiscal year.<B></B>
    </P>
    <H3 ALIGN="LEFT">Interested Persons</H3>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund considers Mr. Glenn to be
      an "interested person" of the Fund within the meaning of Section 2(a)(19) of
      the Investment Company Act based on his positions as Chairman (Americas Region)
      and Executive Vice President of FAM and MLIM, President of FAMD, Executive Vice
      President of Princeton Services, and President of Princeton Administrators,
      L.P.
    </P>
    <H3 ALIGN="LEFT">Compensation of Directors</H3>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAM, the Fund's investment adviser,
      pays all compensation to all officers and all Directors of the Fund who are
      affiliated with Merrill Lynch &amp; Co., Inc. ("ML &amp; Co.") or its
      subsidiaries. The Fund pays each Director not affiliated with FAM (each, a
      "non-interested Director") an annual fee of $1,900 plus a fee of $150 for each
      Board meeting attended in person, together with such Director's out-of-pocket
      expenses relating to attendance at such meetings. The Fund also pays each
      member of its Committee, which consists of all the non-interested Directors, an
      annual fee of $1,900 plus a fee of $150 for each Committee meeting attended in
      person, together with such Director's out-of-pocket expenses relating to
      attendance at meetings. The Co-Chairmen of the Committee receive an additional
      annual fee of $1,000. These fees and expenses aggregated $28,520 for the fiscal
      year ended October 31, 2001.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth for
      the fiscal year ended October 31, 2001 compensation paid by the Fund to the
      non-interested Directors and, for the calendar year ended December 31, 2001,
      the aggregate compensation paid by FAM/MLIM-Advised Funds to the non-interested
      Directors.
    </P>
    <TABLE CELLPADDING="3" WIDTH="100%">
      <TR ALIGN="center" VALIGN="bottom">
        <TH ALIGN="LEFT" WIDTH="289">Name<HR SIZE="1"></TH>
        <TH WIDTH="127">Position<BR>with<BR>Fund<HR SIZE="1"></TH>
        <TH WIDTH="200">Compensation<BR>from Fund<HR SIZE="1"></TH>
        <TH>Pension or<BR>Retirement Benefits<BR>Accrued as Part of<BR>Fund
          Expense<HR SIZE="1"></TH>
        <TH WIDTH="174">Estimated<BR>Annual<BR>Benefits upon<BR>Retirement<HR
          SIZE="1"></TH>
        <TH WIDTH="207">Aggregate<BR>Compensation<BR>from Fund and<BR>Other
          FAM/MLIM-<BR>Advised Funds(1)<HR SIZE="1"></TH>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="289">Ronald W. Forbes* </TD>
        <TD ALIGN="CENTER" WIDTH="127">Director </TD>
        <TD WIDTH="200">$4,400</TD>
        <TD>None</TD>
        <TD WIDTH="174">None</TD>
        <TD WIDTH="207">$293,400</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="289">Cynthia A. Montgomery </TD>
        <TD ALIGN="CENTER" WIDTH="127">Director </TD>
        <TD WIDTH="200">$3,600</TD>
        <TD>None</TD>
        <TD WIDTH="174">None</TD>
        <TD WIDTH="207">$234,567</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="289">Charles C. Reilly*</TD>
        <TD ALIGN="CENTER" WIDTH="127">Director </TD>
        <TD WIDTH="200">$4,400</TD>
        <TD>None</TD>
        <TD WIDTH="174">None</TD>
        <TD WIDTH="207">$293,400</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="289">Kevin A. Ryan</TD>
        <TD ALIGN="CENTER" WIDTH="127">Director </TD>
        <TD WIDTH="200">$3,900</TD>
        <TD>None</TD>
        <TD WIDTH="174">None</TD>
        <TD WIDTH="207">$261,067</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="289">Roscoe S. Suddarth</TD>
        <TD ALIGN="CENTER" WIDTH="127">Director </TD>
        <TD WIDTH="200">$3,900</TD>
        <TD>None</TD>
        <TD WIDTH="174">None</TD>
        <TD WIDTH="207">$250,633</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="289">Richard R. West</TD>
        <TD ALIGN="CENTER" WIDTH="127">Director </TD>
        <TD WIDTH="200">$3,900</TD>
        <TD>None</TD>
        <TD WIDTH="174">None</TD>
        <TD WIDTH="207">$261,067</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="289">Edward D. Zinbarg</TD>
        <TD ALIGN="CENTER" WIDTH="127">Director </TD>
        <TD WIDTH="200">$3,900</TD>
        <TD>None</TD>
        <TD WIDTH="174">None</TD>
        <TD WIDTH="207">$250,633</TD>
      </TR>
    </TABLE> <HR ALIGN="left" WIDTH="120">
    <TABLE WIDTH="100%" CELLPADDING="5">
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="right" WIDTH="9">*</TD>
        <TD WIDTH="1204"> Co-Chairmen of the Committee.</TD>
      </TR>
    </TABLE>
    <P ALIGN="center">
      6
    </P>
    <PAGE>
    <H3 ALIGN="LEFT">Officers of the Fund</H3>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has elected
      six officers of the Fund. The following sets forth information concerning each
      of these officers:
    </P>
    <TABLE CELLPADDING="3" WIDTH="100%">
      <TR ALIGN="center">
        <TH VALIGN="BOTTOM" WIDTH="264" ALIGN="LEFT">Name, Address* and
          Age<BR>of Officers<HR SIZE="1"></TH>
        <TH WIDTH="189" VALIGN="BOTTOM">Position(s)<BR>Held with<BR>the
          Fund<BR>and Length of<BR>Time Served**<HR SIZE="1"></TH>
        <TH WIDTH="352" VALIGN="BOTTOM">Principal Occupation(s)<BR>During Past
          Five Years<HR SIZE="1"></TH>
        <TH WIDTH="276" VALIGN="BOTTOM">Number of<BR>FAM/MLIM-<BR>Advised
          Funds#<BR>Overseen<HR SIZE="1"></TH>
        <TH WIDTH="178" VALIGN="BOTTOM">Public<BR>Directorships<HR
          SIZE="1"></TH>
      </TR>
      <TR ALIGN="center">
        <TD VALIGN="top" ALIGN="left">Donald C. Burke (41)</TD>
        <TD VALIGN="top" WIDTH="279" ALIGN="LEFT">Vice President since 1993 and
          Treasurer since 1999</TD>
        <TD VALIGN="top" WIDTH="352" ALIGN="LEFT">First Vice President of FAM
          and MLIM since 1997 and Treasurer thereof since 1999; Senior Vice President and
          Treasurer of Princeton Services since 1999; Vice President of FAMD since 1999;
          Vice President of FAM and MLIM from 1990 to 1997; Director of Taxation of MLIM
          since 1990.</TD>
        <TD VALIGN="top" ALIGN="LEFT" WIDTH="276">128 registered investment
          companies consisting of <BR>185 portfolios</TD>
        <TD VALIGN="top" ALIGN="LEFT">None</TD>
      </TR>
      <TR ALIGN="center">
        <TD VALIGN="top" ALIGN="left">Terry K. Glenn (61) </TD>
        <TD VALIGN="top" WIDTH="279" ALIGN="LEFT">President&#134; since
          1999</TD>
        <TD VALIGN="top" WIDTH="352" ALIGN="LEFT">Chairman (Americas Region)
          since 2000, and Executive Vice President since 1983 of FAM and MLIM (which
          terms as used herein include their corporate predecessors); President of
          Merrill Lynch Mutual Funds since 1999; President of FAMD since 1986 and
          Director thereof since 1991; Executive Vice President and Director of Princeton
          Services since 1993; President of Princeton Administrators since 1988; Director
          of FDS since 1985.</TD>
        <TD VALIGN="top" ALIGN="LEFT" WIDTH="276">127 registered investment
          companies consisting of <BR>184 portfolios</TD>
        <TD VALIGN="top" ALIGN="LEFT">None</TD>
      </TR>
      <TR ALIGN="center">
        <TD VALIGN="top" ALIGN="left">Kenneth A. Jacob (50)</TD>
        <TD VALIGN="top" WIDTH="279" ALIGN="LEFT">Senior Vice President since
          2002</TD>
        <TD VALIGN="top" WIDTH="352" ALIGN="LEFT">First Vice President of MLIM
          and FAM since 1997; Vice President of MLIM from 1984 to 1997.</TD>
        <TD VALIGN="top" ALIGN="LEFT" WIDTH="276">38 registered investment
          companies consisting of<BR> 61 portfolios</TD>
        <TD VALIGN="top" ALIGN="LEFT">None</TD>
      </TR>
      <TR ALIGN="center">
        <TD VALIGN="top" ALIGN="left">John Loffredo (38)</TD>
        <TD VALIGN="top" WIDTH="279" ALIGN="LEFT">Senior Vice President since
          2002</TD>
        <TD VALIGN="top" WIDTH="352" ALIGN="LEFT">First Vice President of MLIM
          since 1997. Vice President of MLIM from 1991 to 1997.</TD>
        <TD VALIGN="top" ALIGN="LEFT" WIDTH="276">38 registered investment
          companies consisting of <BR>61 portfolios</TD>
        <TD VALIGN="top" ALIGN="LEFT">None</TD>
      </TR>
      <TR ALIGN="center">
        <TD VALIGN="top" ALIGN="left">Fred K. Stuebe (50)</TD>
        <TD VALIGN="top" WIDTH="279" ALIGN="LEFT">Vice President since
          1993</TD>
        <TD VALIGN="top" WIDTH="352" ALIGN="LEFT">Vice President of MLIM since
          1989.</TD>
        <TD VALIGN="top" ALIGN="LEFT" WIDTH="276">6 registered investment
          companies consisting of<BR> 6 portfolios</TD>
        <TD VALIGN="top" ALIGN="LEFT">None</TD>
      </TR>
      <TR ALIGN="center">
        <TD VALIGN="top" ALIGN="left">Alice A. Pellegrino (42) </TD>
        <TD VALIGN="top" WIDTH="279" ALIGN="LEFT">Secretary since 2001</TD>
        <TD VALIGN="top" WIDTH="352" ALIGN="LEFT">Director (Legal Advisory) of
          MLIM since 2002; Vice President of MLIM from 1999 to 2001; attorney associated
          with MLIM since 1997; Associate with Kirkpatrick &amp; Lockhart <FONT
          SIZE="-2">LLP</FONT> from 1992 to 1997. </TD>
        <TD VALIGN="top" ALIGN="LEFT" WIDTH="276">28 registered investment
          companies consisting of <BR>50 portfolios</TD>
        <TD VALIGN="top" ALIGN="LEFT">None</TD>
      </TR>
    </TABLE> <HR ALIGN="left" WIDTH="120">
    <TABLE WIDTH="100%" CELLPADDING="5">
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="LEFT" WIDTH="18">*</TD>
        <TD WIDTH="1195"> The address of each officer listed above is P.O. Box
          9011, Princeton, New Jersey 08543-9011.</TD>
      </TR>
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="LEFT" WIDTH="18">**</TD>
        <TD WIDTH="1195"> Elected by and serves at the pleasure of the Board of
          Directors of the Fund.</TD>
      </TR>
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="LEFT" WIDTH="18">&#134;</TD>
        <TD WIDTH="1195"> Mr. Glenn was elected President of the Fund in 1999.
          Prior to that he served as Executive Vice President of the Fund.</TD>
      </TR>
      <TR ALIGN="left" VALIGN="top">
        <TD ALIGN="LEFT" WIDTH="18">#</TD>
        <TD WIDTH="1195"> </TD>
      </TR>
    </TABLE>
    <P ALIGN="center">
      7
    </P>
    <PAGE>
    <H3 ALIGN="LEFT">Stock Ownership</H3>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information relating to each
      Director nominee's ownership as of February 28, 2002 in the Fund and in all
      registered FAM/MLIM - Advised Funds overseen or to be oversen by each Director
      nominee is set forth below:
    </P>
    <TABLE CELLPADDING="3" WIDTH="100%">
      <TR ALIGN="center" VALIGN="bottom">
        <TH WIDTH="319" ALIGN="LEFT">Name<HR SIZE="1"></TH>
        <TH WIDTH="166">No. of<BR>Shares<HR SIZE="1"></TH>
        <TH WIDTH="201">No. of<BR> AMPS<HR SIZE="1"></TH>
        <TH
         WIDTH="230">Aggregate Dollar Range<BR>of Equity in the Fund<HR SIZE="1"></TH>
        <TH WIDTH="281">Aggregate Dollar Range<BR>of Securities in all
          <BR>FAM/MLIM - <BR>Advised Funds overseen <BR>by each Director or <BR>Nominee
          in the <BR>Merrill Lynch <BR>Family of Funds<HR SIZE="1"></TH>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="319"><I>Interested Director:</I></TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="319">&nbsp;&nbsp;&nbsp;&nbsp;Terry K.
          Glenn</TD>
        <TD WIDTH="166">None</TD>
        <TD WIDTH="201">None</TD>
        <TD WIDTH="230">None</TD>
        <TD WIDTH="281">over $100,000</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="319"><I>Non-Interested Directors:</I></TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="319">&nbsp;&nbsp;&nbsp;Ronald W. Forbes</TD>
        <TD WIDTH="166">621</TD>
        <TD WIDTH="201">None</TD>
        <TD WIDTH="230">$1-$10,000</TD>
        <TD WIDTH="281">over $100,000</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="319">&nbsp;&nbsp;&nbsp;Cynthia A.
          Montgomery</TD>
        <TD WIDTH="166">None</TD>
        <TD WIDTH="201">None</TD>
        <TD WIDTH="230">None</TD>
        <TD WIDTH="281">$10,001&#150;$50,000</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="319">&nbsp;&nbsp;&nbsp;Charles C. Reilly</TD>
        <TD WIDTH="166">7,765</TD>
        <TD WIDTH="201">None</TD>
        <TD WIDTH="230">over $100,000</TD>
        <TD WIDTH="281">over $100,000</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="319">&nbsp;&nbsp;&nbsp;Kevin A. Ryan</TD>
        <TD WIDTH="166">None</TD>
        <TD WIDTH="201">None</TD>
        <TD WIDTH="230">None</TD>
        <TD WIDTH="281">over $100,000</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="319">&nbsp;&nbsp;&nbsp;Roscoe S. Suddarth</TD>
        <TD WIDTH="166">None</TD>
        <TD WIDTH="201">None</TD>
        <TD WIDTH="230">None</TD>
        <TD WIDTH="281">$10,001&#150;$50,000</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="319">&nbsp;&nbsp;&nbsp;Richard R. West</TD>
        <TD WIDTH="166">None</TD>
        <TD WIDTH="201">None</TD>
        <TD WIDTH="230">None</TD>
        <TD WIDTH="281">over $100,000</TD>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="left" WIDTH="319">&nbsp;&nbsp;&nbsp;Edward D. Zinbarg</TD>
        <TD WIDTH="166">None</TD>
        <TD WIDTH="201">None</TD>
        <TD WIDTH="230">None</TD>
        <TD WIDTH="281">over $100,000</TD>
      </TR>
    </TABLE>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the Record Date, no
      Non-Interested Director or nominee or his or her immediate family members owned
      beneficially or of record any securities of ML &amp; Co. As of the Record Date,
      the Directors and officers of the Fund as a group owned an aggregate of less
      than 1% of the Fund's outstanding shares. At such date, Mr. Glenn, President
      and a Director of the Fund, and the other officers of the Fund owned an
      aggregate of less than 1% of the outstanding shares of common stock of ML &amp;
      Co.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends
      that the stockholders vote "FOR" each of the nominees for Director. </B>
    </P>
    <H4 ALIGN="center">LEGAL PROCEEDINGS </H4>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June 21, 1996, a putative class
      action titled <I>Green v. Fund Asset Management, L.P.,</I> was filed in the
      United States District Court for the District of Massachusetts. Among the named
      defendants in the action are seven of the leveraged closed-end municipal bond
      funds (including the Fund) for which FAM serves as the investment adviser. In
      addition to the named defendants, plaintiffs also purport to assert claims
      against a defendant class consisting of all other publicly traded, closed-end
      investment companies for which FAM serves as investment adviser and which,
      among other things, have issued AMPS. The named plaintiffs, who claim to be
      investors in the seven named funds, purport to bring the action on behalf of a
      class consisting of all holders of the common stock of the subject funds.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs claim, among other things,
      that the registration statements, annual reports and other documents filed by
      the funds with the SEC were misleading because such documents allegedly failed
      to disclose that proceeds arising from the issuance of AMPS would be included
      in a fund's net assets for the purposes of calculating the investment advisory
      fee payable to FAM. In addition, plaintiffs allege that a conflict of interest
      existed because it would always be in the defendants' interest to keep the
      funds fully leveraged to maximize the advisory fees and collateral compensation
      notwithstanding adverse market conditions. Plaintiffs also allege the advisory
      fees and collateral compensation notwithstanding adverse market conditions.
      Plaintiffs also allege an additional conflict of interest arising from the
      receipt by such affiliates of underwriting discounts, or other revenues in
      connection with the sale of the AMPS by the funds. The complaint attempted to
      assert claims under Sections 8(e), 34(b), 36(a) and 36(b) of the Investment
      Company Act and the common law. Plaintiffs seek unspecified monetary damages as
      well as injunctive relief.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The case was transferred on
      defendants' motion to the United States District Court for the District of New
      Jersey. On September 17, 1997, defendants moved to dismiss plaintiffs'
      complaint on the ground
    </P>
    <P ALIGN="center">
      8
    </P>
    <PAGE>
    <P>
      that plaintiffs had failed to state a claim upon which relief could be
      granted. On February 23, 1998, the Court granted defendants' motion in
      substantial part and dismissed plaintiffs' claims under Section 8(e), 34(b) and
      36(a) of the Investment Company Act with prejudice, but declined to dismiss
      plaintiffs' claims under Section 36(b) and state law. Defendants filed an
      answer on April 30, 1998, denying the substantive allegations in the First
      Amended Complaint.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 4, 1999, defendants moved
      to dismiss plaintiffs' state law claims for breach of fiduciary duty and deceit
      on the ground that they are preempted by Section 36(b) of the Investment
      Company Act. On June 14, 1999, the District Court granted defendants' motion
      and dismissed plaintiffs' state law claims. At the same time, the District
      Court granted plaintiffs permission to immediately file an interlocutory appeal
      to the United States Court of Appeals for the Third Circuit. On March 16, 2001,
      the Third Circuit reversed the District Court's decision and reinstated
      plaintiffs' state law claims.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 5, 2001, while
      plaintiffs' appeal before the Third Circuit was still pending, defendants moved
      in the District Court for summary judgment as to plaintiffs' remaining federal
      claim under Section 36(b). On March 16, 2001, plaintiffs cross-moved for
      partial summary judgment on liability. On June 5, 2001, the District Court
      granted defendants' motion for summary judgment, denied plaintiffs' motion for
      partial summary judgment, and dismissed the case in its entirety. In doing so,
      the Court refused to exercise supplemental jurisdiction over plaintiffs'
      remaining (and recently reinstated) state law claims.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs have filed a Notice of
      Appeal seeking review of the District Court's decision before the U.S. Court of
      Appeals for the Third Circuit. Oral argument was heard on March 4, 2002, and a
      decision is pending. Defendants believe that the plaintiffs' allegations are
      without merit and intend to continue to defend the action vigorously.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAM has agreed to indemnify the named
      defendant funds (including the Fund) for any liabilities or expenses they may
      incur in connection with this litigation.
    </P>
    <H4 ALIGN="center">ADDITIONAL INFORMATION </H4>
    <P ALIGN="left">
      <B>Expenses and Methods of Proxy Solicitation </B>
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The expenses of preparation, printing
      and mailing of the enclosed form of proxy and accompanying Notice and Proxy
      Statement will be borne by the Fund. The Fund will reimburse banks, brokers and
      others for their reasonable expenses in forwarding proxy solicitation material
      to the beneficial owners of the shares of the Fund.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to obtain the necessary
      quorum at the Meeting (<I>i.e</I>., a majority of the shares of each class of
      the Fund's securities entitled to vote at the Meeting, present in person or by
      proxy), supplementary solicitation may be made by mail, telephone, telegraph or
      personal interview by officers of the Fund. The Fund has retained Georgeson
      Shareholder, 17 State Street, New York, New York 10004, to assist in the
      solicitation of proxies at a cost to the Fund of approximately $3,500, plus
      out-of-pocket expenses estimated to be $500.
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares represented by properly
      executed proxies, unless such proxies have previously been revoked, will be
      voted at the Meeting in accordance with the directions on the proxies; if no
      direction is indicated, the shares will be voted "FOR" the Director nominees.
      Holders of AMPS, voting separately as a class, are entitled to elect the two
      Directors designated herein and holders of Common Stock and AMPS, voting
      together as a single class, are entitled to elect the remaining Directors.
      Assuming a quorum is present, (i) election of the two Directors to be elected
      by the holders of AMPS, voting separately as a class, will require a plurality
      of the votes cast by the holders of AMPS represented at the Meeting and
      entitled to vote; and (ii) election of the remaining Directors will require a
      plurality of the votes cast by the holders of Common Stock and the AMPS
      represented at the Meeting and entitled to vote, voting together as a single
      class. "Plurality of the votes" means the candidate must receive more votes
      than any other candidate for the same position, but not necessarily a majority
      of the votes cast.
    </P>
    <P ALIGN="center">
      9
    </P>
    <PAGE>
    <P ALIGN="left">
      <B>Broker Non-Votes and Abstentions </B>
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broker-dealer firms, including
      Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated ("MLPF&amp;S"), holding
      shares of the Fund in "street name" for the benefit of their customers and
      clients, will request the instructions of such customers and clients on how to
      vote their shares on the Item before the Meeting. The Fund understands that,
      under the rules of the New York Stock Exchange, such broker-dealer firms may,
      without instructions from their customers and clients, grant authority to the
      proxies designated to vote on the election of Directors (Item 1) if no
      instructions have been received prior to the date specified in the
      broker-dealer firm's request for voting instructions. The Fund will include
      shares held of record by broker-dealers as to which such authority has been
      granted in its tabulation of the total number of shares present for purposes of
      determining whether the necessary quorum of stockholders exists. Proxies that
      are returned but that are marked "abstain" or on which a broker-dealer has
      declined to vote on any proposal ("broker non-votes") will be counted as
      present for the purposes of determining a quorum. MLPF&amp;S has advised the
      Fund that if it votes shares held in its name for which no instructions have
      been received, except as limited by agreement or applicable law, it will do so
      in the same proportion as the votes received from beneficial owners of those
      shares for which instructions have been received, whether or not held in
      nominee name. Abstentions and broker non-votes will not be counted as votes
      cast. Therefore, abstentions and broker non-votes will not have an effect on
      the vote on Item 1.
    </P>
    <P ALIGN="left">
      <B>Other Matters </B>
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management knows of no other matters
      to be presented at the Meeting. However, if other matters are presented for a
      vote at the Meeting or any adjournments thereof, the proxy holders will vote
      the common stock and AMPS represented by properly executed proxies according to
      their judgment on those matters.
    </P>
    <P ALIGN="left">
      <B>Independent Auditors' Fees </B>
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the
      aggregate fees paid to D&amp;T for the Fund's fiscal year ended October 31,
      2001 for professional services rendered for: (i) the audit of the Fund's annual
      financial statements included in the Fund's report to stockholders; (ii) all
      other audit related services provided to the Fund; and (iii) all other
      non-audit services provided to the Fund, FAM and entities controlling,
      controlled by or under common control with FAM that provide services to the
      Fund. For the Fund's most recent fiscal year, the independent auditors did not
      render any professional services for financial information systems design and
      implementation services to the Fund, FAM, and entities controlling, controlled
      by or under common control with FAM that provide services to the Fund. The
      Committee determined that the provision of audit related services under clause
      (ii) and the provision of non-audit services under clause (iii) are compatible
      with maintaining the independence of the independent auditors. Representatives
      of D&amp;T are expected to be present at the Meeting and will have an
      opportunity to make a statement if they so desire and to respond to questions
      from stockholders.
    </P>
    <TABLE CELLPADDING="0" WIDTH="100%">
      <TR ALIGN="center" VALIGN="bottom">
        <TH>Audit Fees Charged<BR>to the Fund<HR SIZE="1"></TH>
        <TH>Other Audit Related Fees<BR>Charged to the Fund<HR SIZE="1"></TH>
        <TH>Other Fees<HR SIZE="1"></TH>
      </TR>
      <TR ALIGN="center" VALIGN="bottom">
        <TD ALIGN="CENTER">$30,350</TD>
        <TD>$25,600</TD>
        <TD>$5,441,400</TD>
      </TR>
    </TABLE>
    <P ALIGN="left">
      <B>Address of Investment Adviser </B>
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal office of FAM is
      located at 800 Scudders Mill Road, Plainsboro, New Jersey 08536.
    </P>
    <P ALIGN="left">
      <B>Annual Report Delivery </B>
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Fund will furnish, without
      charge, a copy of its annual report for the fiscal year ended October 31, 2001
      to any stockholder upon request.</B> Such requests should be directed to
      MuniVest Fund II, Inc., P.O. Box. 9011, Princeton, New Jersey 08543-9011,
      Attention: Alice A. Pellegrino, Secretary, or to 1-800-637-3863.
    </P>
    <P ALIGN="center">
      10
    </P>
    <PAGE>
    <P ALIGN="left">
      <B>Stockholder Proposals </B>
    </P>
    <P>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a stockholder intends to present a
      proposal at the 2003 Annual Meeting of Stockholders of the Fund, which is
      anticipated to be held in April 2003, and desires to have the proposal included
      in the Fund's proxy statement and form of proxy for that meeting, the
      stockholder must deliver the proposal to the offices of the Fund by November
      21, 2002. The persons named as proxies in the proxy materials for the 2003
      Annual Meeting of Stockholders may exercise discretionary authority with
      respect to any stockholder proposal presented at such meeting if written notice
      of such proposal has not been received by the Fund by February 11, 2003.
      Written proposals and notices should be sent to the Secretary of the Fund
      (addressed to 800 Scudders Mill Road, Plainsboro, New Jersey 08536).
    </P>
    <TABLE WIDTH="100%" CELLPADDING="0">
      <TR>
        <TD WIDTH="652"></TD>
        <TD WIDTH="581">By Order of the Board of Directors</TD>
      </TR>
      <TR>
        <TD WIDTH="652"></TD>
        <TD WIDTH="581"></TD>
      </TR>
      <TR>
        <TD WIDTH="652"></TD>
        <TD WIDTH="581">A<FONT SIZE="-2">LICE</FONT> A. P<FONT
          SIZE="-2">ELLEGRINO</FONT><BR><I>S<FONT SIZE="-2">ECRETARY</FONT> </I></TD>
      </TR>
      <TR>
        <TD WIDTH="652"></TD>
        <TD WIDTH="581"></TD>
      </TR>
      <TR>
        <TD WIDTH="652">Dated: March 21, 2002 </TD>
        <TD WIDTH="581"></TD>
      </TR>
    </TABLE>
    <P ALIGN="center">
      11
    </P>
    <PAGE>
    <H3 ALIGN="RIGHT">COMMON STOCK </H3>
    <H3 ALIGN="CENTER">MUNIVEST FUND II, INC. <BR><FONT SIZE="2">P.O. BOX 9011
      <BR>PRINCETON, NEW JERSEY 08543-9011</FONT> </H3>
    <H3 ALIGN="center">P R O X Y </H3>
    <P ALIGN="center">
      <B>This proxy is solicited on behalf of the Board of Directors</B>
    </P>
    <P ALIGN="left">
      The undersigned hereby appoints Donald C. Burke, Terry K. Glenn and
      Alice&nbsp;A. Pellegrino as proxies, each with the power to appoint his or her
      substitute, and hereby authorizes each of them to represent and to vote, as
      designated on the reverse hereof, all of the Common Stock of MuniVest Fund II,
      Inc. (the &#147;Fund&#148;) held of record by the undersigned on
      February&nbsp;28, 2002 at the annual meeting of stockholders of the Fund to be
      held on April&nbsp;25, 2002 or any adjournment thereof.
    </P>
    <BLOCKQUOTE><B> This proxy when properly executed will be voted in the
      manner directed herein by the undersigned stockholder. If no direction is made,
      this proxy will be voted FOR Proposal &nbsp;1. </B></BLOCKQUOTE>
    <P ALIGN="left">
      By signing and dating the reverse side of this card, you authorize the
      proxies to vote for each proposal as marked, or if not marked, to vote
      &#147;FOR&#148; Proposal 1, and to use their discretion to vote for any other
      matter as may properly come before the meeting or any adjournment thereof. If
      you do not intend to personally attend the meeting, please complete and return
      this card at once in the enclosed envelope.
    </P>
    <P ALIGN="RIGHT">
      <FONT SIZE="2">(Continued and to be signed on the reverse side)</FONT>
    </P>
    <PAGE>
    <P>
      Please mark boxes * or
      <IMG SRC="x1-76243_xbox.gif" WIDTH="12" HEIGHT="12" BORDER="0"> in blue or
      black ink.
    </P>
    <TABLE WIDTH="100%">
      <TR VALIGN="TOP">
        <TD WIDTH="246" VALIGN="TOP" HEIGHT="49">1. ELECTION OF DIRECTORS</TD>
        <TD WIDTH="18" VALIGN="TOP" HEIGHT="49"></TD>
        <TD WIDTH="347" VALIGN="TOP" HEIGHT="49"><B>FOR </B>all nominees listed
          below (except as marked to the contrary below)<IMG
          SRC="x1-76243_box.gif" WIDTH="16" HEIGHT="16"></TD>
        <TD VALIGN="TOP" WIDTH="5" HEIGHT="49"></TD>
        <TD VALIGN="TOP" WIDTH="379" HEIGHT="49"><B>WITHHOLD AUTHORITY</B> to
          vote<BR> for all nominees listed <BR>below.
          <IMG SRC="x1-76243_box.gif" WIDTH="16" HEIGHT="16"></TD>
      </TR>
    </TABLE>
    <P>
      <B> <I>(INSTRUCTION: To withhold authority to vote for any individual
      nominee, strike a line through the nominee's name in the list below.) </I></B>
    </P>
    <P>
      Terry K. Glenn, Cynthia A. Montgomery, Charles C. Reilly, Kevin A. Ryan,
      Roscoe S. Suddarth and Edward D. Zinbarg
    </P>
    <TABLE WIDTH="100%">
      <TR>
        <TD COLSPAN="3">2. In the discretion of such proxies, upon such other
          business as may properly come before the meeting or any adjournment thereof.
          </TD>
      </TR>
    </TABLE>
    <TABLE WIDTH="100%">
      <TR>
        <TD WIDTH="540"></TD>
        <TD WIDTH="461"><BR>Please sign exactly as name appears hereon. When
          stock is held by joint tenants, both should sign. When signing as attorney or
          as executor, administrator, trustee or guardian, please give full title as
          such. If a corporation, please sign in full corporate name by president or
          other authorized officer. If a partnership, please sign in partnership name by
          authorized person.<BR><BR></TD>
      </TR>
      <TR>
        <TD WIDTH="540">&nbsp;</TD>
        <TD
        WIDTH="461">Dated:____________________________________________________,
          2002</TD>
      </TR>
      <TR>
        <TD WIDTH="540">&nbsp;</TD>
        <TD
        WIDTH="461"><BR>x________________________________________________________________</TD>

      </TR>
      <TR>
        <TD WIDTH="540">&nbsp;</TD>
        <TD
        WIDTH="461">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Signature</B></TD>
      </TR>
      <TR>
        <TD WIDTH="540">&nbsp;</TD>
        <TD
        WIDTH="461"><BR>x________________________________________________________________</TD>

      </TR>
      <TR>
        <TD WIDTH="540">&nbsp;</TD>
        <TD WIDTH="461">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Signature, if
          held jointly</B></TD>
      </TR>
    </TABLE>
    <P>
      <B>Sign, Date and Return the Proxy Card Promptly Using the Enclosed
      Envelope. </B>
    </P>
    <P ALIGN="CENTER">
      2
    </P>
    <HR SIZE="4"> <PAGE>
    <TABLE WIDTH="100%">
      <TR>
        <TD WIDTH="371">&nbsp;</TD>
        <TD WIDTH="219"><FONT SIZE="+1"><B>AUCTION MARKET <BR>PREFERRED STOCK
          </B></FONT></TD>
      </TR>
    </TABLE>
    <H3 ALIGN="RIGHT"></H3>
    <H3 ALIGN="CENTER">MUNIVEST FUND II, INC. <BR><FONT SIZE="2">P.O. BOX 9011
      <BR>PRINCETON, NEW JERSEY 08543-9011</FONT> </H3>
    <H3 ALIGN="center">P R O X Y </H3>
    <P ALIGN="center">
      <B>This proxy is solicited on behalf of the Board of Directors</B>
    </P>
    <P ALIGN="left">
      The undersigned hereby appoints Donald C. Burke, Terry K. Glenn and
      Alice&nbsp;A. Pellegrino as proxies, each with the power to appoint his or her
      substitute, and hereby authorizes each of them to represent and to vote, as
      designated on the reverse hereof, all of the Auction Market Preferred Stock of
      MuniVest Fund II, Inc. (the &#147;Fund&#148;) held of record by the undersigned
      on February&nbsp;28, 2002 at the annual meeting of stockholders of the Fund to
      be held on April&nbsp;25, 2002 or any adjournment thereof.
    </P>
    <BLOCKQUOTE><B> This proxy when properly executed will be voted in the
      manner directed herein by the undersigned stockholder. If no direction is made,
      this proxy will be voted FOR Proposal &nbsp;1. </B></BLOCKQUOTE>
    <P ALIGN="left">
      By signing and dating the reverse side of this card, you authorize the
      proxies to vote for each proposal as marked, or if not marked, to vote
      &#147;FOR&#148; Proposal 1, and to use their discretion to vote for any other
      matter as may properly come before the meeting or any adjournment thereof. If
      you do not intend to personally attend the meeting, please complete and return
      this card at once in the enclosed envelope.
    </P>
    <P ALIGN="RIGHT">
      <FONT SIZE="2"><B>(Continued and to be signed on the reverse
      side)</B></FONT>
    </P>
    <HR SIZE="4"> <PAGE>
    <P>
      Please mark boxes * or
      <IMG SRC="x1-76243_xbox.gif" WIDTH="12" HEIGHT="12" BORDER="0"> in blue or
      black ink.
    </P>
    <TABLE WIDTH="100%">
      <TR>
        <TD WIDTH="258" VALIGN="TOP">1. ELECTION OF DIRECTORS</TD>
        <TD WIDTH="363"><B>FOR</B> all nominees listed below (except as marked
          to the contrary below) <IMG SRC="x1-76243_box.gif" WIDTH="16" HEIGHT="16"></TD>

        <TD WIDTH="376"><B>WITHHOLD AUTHORITY</B> to vote for all nominees
          listed below. <IMG SRC="x1-76243_box.gif" WIDTH="16" HEIGHT="16"></TD>
      </TR>
    </TABLE>
    <P>
      <B><I>( INSTRUCTION: To withhold authority to vote for any individual
      nominee, strike a line through the nominee's name in the list below.) </I></B>
    </P>
    <P>
      Ronald W. Forbes, Terry K. Glenn, Cynthia A. Montgomery, Charles C.
      Reilly, Kevin A. Ryan, Roscoe S. Suddarth, Richard R.West and Edward D.
      Zinbarg.
    </P>
    <TABLE WIDTH="100%">
      <TR>
        <TD COLSPAN="3">2. In the discretion of such proxies, upon such other
          business as may properly come before the meeting or any adjournment thereof.
          </TD>
      </TR>
    </TABLE>
    <TABLE WIDTH="100%">
      <TR>
        <TD WIDTH="540"></TD>
        <TD WIDTH="500"><BR>Please sign exactly as name appears hereon. When
          stock is held by joint tenants, both should sign. When signing as attorney or
          as executor, administrator, trustee or guardian, please give full title as
          such. If a corporation, please sign in full corporate name by president or
          other authorized officer. If a partnership, please sign in partnership name by
          authorized person.</TD>
      </TR>
      <TR>
        <TD WIDTH="540">&nbsp;</TD>
        <TD WIDTH="500">&nbsp;</TD>
      </TR>
      <TR>
        <TD WIDTH="540"></TD>
        <TD WIDTH="500">Dated:
          __________________________________________________, 2002</TD>
      </TR>
      <TR>
        <TD WIDTH="540"></TD>
        <TD
         WIDTH="500"><BR>x________________________________________________________________</TD>

      </TR>
      <TR>
        <TD WIDTH="540"></TD>
        <TD
         WIDTH="500">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Signature</B></TD>

      </TR>
      <TR>
        <TD WIDTH="540"></TD>
        <TD
         WIDTH="500"><BR>x________________________________________________________________</TD>

      </TR>
      <TR>
        <TD WIDTH="540"></TD>
        <TD
         WIDTH="500">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Signature,
          if held jointly</B></TD>
      </TR>
    </TABLE>
    <P>
      <B> Sign, Date and Return the Proxy Card Promptly Using the Enclosed
      Envelope. </B>
    </P>
    <P ALIGN="CENTER">
      2
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