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<SEC-DOCUMENT>0000891092-99-000667.txt : 19991101
<SEC-HEADER>0000891092-99-000667.hdr.sgml : 19991101
ACCESSION NUMBER:		0000891092-99-000667
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	19991215
FILED AS OF DATE:		19991029

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MUNIHOLDINGS INSURED FUND II INC
		CENTRAL INDEX KEY:			0001071899
		STANDARD INDUSTRIAL CLASSIFICATION:	 []
		IRS NUMBER:				223636347
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		
		SEC FILE NUMBER:	811-09191
		FILM NUMBER:		99737691

	BUSINESS ADDRESS:	
		STREET 1:		C/O MERRILL LYNCH ASSET MANAGEMENT
		STREET 2:		800 SCUDDERS MILL RD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
		BUSINESS PHONE:		6092823087

	MAIL ADDRESS:	
		STREET 1:		C/O MERRILL LYNCH ASSET MANAGEMENT
		STREET 2:		PO BOX 9011, INFO SYSTEMS SECT 2-B
		CITY:			PRINCETON
		STATE:			NJ
		ZIP:			08543-9011
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<DESCRIPTION>DEFINITIVE 14A
<TEXT>


<HTML>
<HEAD>
<TITLE>Definitive Proxy Statement</TITLE>
</HEAD>

<BODY>
<TABLE WIDTH=600><TR><TD>
      <P ALIGN=center><FONT SIZE=2><B>AS FILED WITH THE SECURITIES AND EXCHANGE
        COMMISSION ON OCTOBER 28, 1999</B></FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=2><B>SCHEDULE 14A<BR>(RULE
14A-101)<BR>INFORMATION REQUIRED IN PROXY STATEMENT<BR>SCHEDULE 14A INFORMATION</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=2><B>PROXY STATEMENT
PURSUANT TO SECTION 14(A) OF THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO.
&nbsp;&nbsp;&nbsp;&nbsp;)</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>Filed by the Registrant [X]</FONT></P></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>Filed by a Party other than the
Registrant [&nbsp;&nbsp;&nbsp;] </FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>Check the appropriate box:</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;] Preliminary Proxy Statement
</FONT></P></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;] Confidential, for Use of the
Commission Only (as permitted by Rule 14a-6(e)(2))
</FONT></P></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;[X] Definitive Proxy Statement
</FONT></P></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;] Definitive Additional Materials
</FONT></P></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;] Soliciting Material Pursuant to
Rule 14a-11(c) or Rule 14a-12</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P ALIGN=center><FONT SIZE=4><B>MuniHoldings Insured Fund II, Inc.</B></FONT></P>
    </TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD>
      <P ALIGN=center><FONT SIZE=2><B>PO BOX 9011<BR>
PRINCETON, NEW JERSEY 08543-9011</B></FONT></P></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><HR SIZE=1 noshade></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=1><B>(Name of Registrant as
Specified In Its Charter)</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=1 noshade></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=1><B>(Name of Person(s)
Filing Proxy Statement, if other than the Registrant)</B></FONT></P></TD></TR></TABLE><BR>


<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>Payment of Filing Fee (Check the
appropriate box):</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>[X] No fee required.</FONT></P></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>[&nbsp;&nbsp;&nbsp;] Fee computed on
table below per Exchange Act Rules 14a-6(i) (4) and 0-11.</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR>
    <TD height="31">
<OL><P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(1)
Title of each class of securities to which transaction applies:</FONT></P></OL></TD></TR></TABLE>

<TABLE WIDTH=600><TR>
    <TD height="31">
<OL><P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(2)
Aggregate number of securities to which transaction applies:</FONT></P></OL></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><OL><P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(3)
Per unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11</FONT></P></OL></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><OL><P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(4)
Proposed maximum aggregate value of transaction:</FONT></P></OL></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><OL><P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(5)
Total fee paid:</FONT></P></OL></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>[&nbsp;&nbsp;&nbsp;] Fee paid
previously with preliminary materials.</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>[&nbsp;&nbsp;&nbsp;] Check box if any
part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify
the previous filing by registration statement number, or the Form or Schedule
and the date of its filing.</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><OL><P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(1)
Amount Previously Paid:</FONT></P></OL></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><OL><P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(2)
Form, Schedule or Registration Statement No.:</FONT></P></OL></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><OL><P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(3)
Filing Party:</FONT></P></OL></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><OL><P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(4)
Date Filed:</FONT></P></OL></TD></TR></TABLE>


<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>Notes:</FONT></P></TD></TR></TABLE>

<TABLE WIDTH=100><TR><TD><BR><HR SIZE=1 noshade width=100></TD></TR></TABLE>

<TABLE WIDTH=600><TR VALIGN=TOP><TD WIDTH=3%><FONT SIZE=2>1</FONT></TD><TD WIDTH=3%></TD><TD WIDTH=94%><FONT SIZE=2>&nbsp;&nbsp; Set
forth the amount on which the filing fee is calculated and state how it was
determined.</FONT></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P ALIGN=CENTER><FONT SIZE=2> &nbsp; </FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE><BR><BR>


<TABLE WIDTH=600><TR><TD>
      <P ALIGN=center><FONT SIZE=3><B>MUNIHOLDINGS INSURED FUND II, INC.<BR>
        PO Box 9011<BR>
        Princeton, New Jersey 08543-9011</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><BR><HR SIZE=1 noshade width=150><BR></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=2><B>NOTICE OF 1999 ANNUAL
MEETING OF STOCKHOLDERS</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=2><B>December 15, 1999</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><BR><HR SIZE=1 noshade width=150><BR></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>T<font size="1">O</font> T<font size="1">HE</font> S<font size="1">TOCKHOLDERS
        OF</font> M<font size="1">UNIHOLDINGS </font>I<font size="1">NSURED </font>F<font size="1">UND</font>
        II, I<font size="1">NC</font>.:</FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE IS HEREBY given that
        the 1999 Annual Meeting of Stockholders (the &#147;Meeting&#148;) of MuniHoldings
        Insured Fund II, Inc. (the &#147;Fund&#148;) will be held at the offices
        of Merrill Lynch Asset Management, LP, 800 Scudders Mill Road, Plainsboro,
        New Jersey, on Wednesday, December 15, 1999 at 8:30 a.m. for the following
        purposes:</FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><OL>
        <P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(1) To elect a Board
          of Directors to serve for the ensuing year;</FONT></P>
      </OL></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD>
      <OL>
        <P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(2) To consider and
          act upon a proposal to ratify the selection of Ernst &amp; Young LLP
          to serve as independent auditors of the Fund for its current fiscal
          year; and</FONT></P>
      </OL>
    </TD></TR></TABLE>

<TABLE WIDTH=600><TR>
    <TD height="50">
      <OL>
        <P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(3) To transact such
          other business as may properly come before the Meeting or any adjournment
          thereof. </FONT></P>
      </OL>
    </TD></TR></TABLE>
<TABLE WIDTH=600><TR>
    <TD height="73">
      <P> <FONT SIZE=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;The Board of Directors has fixed the close of business
          on October 20, 1999 as the record date for the determination of stockholders
          entitled to notice of and to vote at the Meeting or any adjournment
          thereof.</FONT></P>

    </TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>&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 December 1, 1999, at the office of the Fund, 800 Scudders Mill Road,
Plainsboro, New Jersey. 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.</B> The enclosed proxy is being solicited
on behalf of the Board of Directors of the Fund.</FONT></P></TD></TR></TABLE><BR>

<OL><OL><OL><OL><OL><OL><OL><OL><OL>
<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>By Order of the Board of Directors</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
                        <P><FONT SIZE=2>BRADLEY J. LUCIDO <BR>
                          <I>Secretary</I></FONT></P></TD></TR></TABLE><BR>
</OL></OL></OL></OL></OL></OL></OL></OL></OL>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>Plainsboro, New Jersey <BR>
        Dated: October 29, 1999</FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE><BR><BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=3><B>PROXY STATEMENT</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P ALIGN=center><font size="2"><b>MUNIHOLDINGS INSURED FUND II, INC.<BR>
        PO Box 9011</b></font><FONT SIZE=2><B><BR>
        Princeton, New Jersey 08543-9011</B></FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><BR><HR SIZE=1 noshade width=150><BR></TD></TR></TABLE>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=3><B>1999 ANNUAL MEETING OF
STOCKHOLDERS<BR>December 15, 1999</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=2><B>INTRODUCTION</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR>
    <TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font size="2">This
        Proxy Statement is furnished in connection with the solicitation of proxies
        on behalf of the Board of Directors of MuniHoldings Insured Fund II, Inc.,
        a Maryland corporation (the </font><font size=2>&#147;</font><font size="2">Fund</font><font size=2>&#148;</font><font size="2">),
        to be voted at the 1999 Annual Meeting of Stockholders of the Fund (the
        </font><font size=2>&#147;</font><font size="2">Meeting</font><font size=2>&#148;</font><font size="2">),
        to be held at the offices of Merrill Lynch Asset Management, L.P. (</font><font size=2>&#147;</font><font size="2">MLAM</font><font size=2>&#148;</font><font size="2">),
        800 Scudders Mill Road, Plainsboro, New Jersey, on Wednesday, December
        15, 1999 at 11:30 a.m. The approximate mailing date of this Proxy Statement
        is November 2, 1999.</font></P>
      <p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">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, proxies
        will be voted <i>for</i> the election of the Board of Directors to serve
        for the ensuing year and <i>for </i>the ratification of the selection
        of independent auditors to serve for the Fund&#146;s current fiscal 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&#146;s address indicated
        above or by voting in person at the Meeting.</font></p>
      <p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">The
        Board of Directors has fixed the close of business on October 20, 1999
        as the record date (the </font><font size=2>&#147;</font><font size="2">Record
        Date</font><font size=2>&#148;</font><font size="2">) 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
        10,996,667&nbsp;shares of common stock, par value $.10 per share (</font><font size=2>&#147;</font><font size="2">Common
        Stock</font><font size=2>&#148;</font><font size="2">), and
        4,200 shares of auction market preferred stock, par value $.10 per share
        and liquidation preference of $25,000 per share plus an amount equal to
        accumulated but unpaid dividends thereon (</font><font size=2>&#147;</font><font size="2">AMPS</font><font size=2>&#148;</font><font size="2">).
        To the knowledge of the Fund, as of the Record Date, no person is the
        beneficial owner of more than five percent of the outstanding shares of
        Common Stock or five percent of the outstanding AMPS.</font></p>
      <p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">The
        Board of Directors of the Fund knows of no business other than that mentioned
        in Items 1 and 2 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.</font></p>
</TD></TR></TABLE><BR>
<BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE><BR><BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=2><B>ITEM 1. ELECTION OF
DIRECTORS</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><font size="2">At
        the Meeting, the Board of Directors 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:</font></P>
      <dir>
        <p><font size="2">(1) 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</font></p>
        <p><font size="2">(2) 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 five (5) persons designated as Directors
          to be elected by holders of Common Stock and AMPS.</font></p>
      </dir>
      <p><font size="2">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.</font></p>
      <p><font size=2>&nbsp;&nbsp; &nbsp; &nbsp;  Certain information concerning the nominees and the
        continuing Directors is set forth as follows:</font></p>
      </TD></TR></TABLE>
<table width=600>
  <tr>
    <td>
      <p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;<br>
        </font><font size="2"><b>To Be Elected By Holders
        of AMPS, Voting Separately as a Class:</b></font><b><font size=2> </font></b></p>
    </td>
  </tr>
</TABLE>
<BR>
<table cellpadding="0" cellspacing="0" border="0" width="620">
  <tr valign="BOTTOM">
    <th valign="bottom" height="62" width="144">&nbsp;</th>
    <th valign="bottom" height="62" width="4"><font size="1"></font></th>
    <th valign="bottom" height="62" width="36">&nbsp;</th>
    <th valign="bottom" height="62" width="4"><font size="1"></font></th>
    <th valign="bottom" height="62" width="155">&nbsp;</th>
    <th valign="bottom" height="62" width="4"><font size="1"></font></th>
    <th valign="bottom" height="62" width="69">&nbsp;</th>
    <th valign="bottom" height="62" colspan="3"><font size="1">Shares<br>
      Beneficially<br>
      Owned At<br>
      The Record Date </font>
      <hr width=95% size=1  noshade>
      </th>
  </tr>
  <tr valign="BOTTOM">
    <th valign="bottom" height="69" width="144"><font size="1">Name and Address
      of Nominee</font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="4"><font size="1"></font></th>
    <th valign="bottom" height="69" width="36"><font size="1">Age </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="4"><font size="1"></font></th>
    <th valign="bottom" height="69" width="155"><font size="1">Principal Occupation<br>
      During Past Five Years<br>
      and Public Directorships (1) </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="4"><font size="1"></font></th>
    <th valign="bottom" height="69" width="69"><font size="1">Director<br>
      Since </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="1"><font size="1"></font></th>
    <th valign="bottom" height="69" width="67"> <font size="1">Common<br>
      Stock </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="81"><font size="1">AMPS </font><font size="-1">
      <hr width=30% size=1  noshade>
      </font></th>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="top" colspan="10"><i><font size="2"> </font></i></td>
  </tr>
  <tr valign="BOTTOM">
    <td width="144" align="LEFT" valign="top"><font size=2>Walter
      Mintz<font size="1">(1)(2)</font></font><font size="2"><br>
      </font><font size=2>1114 Avenue of the Americas<br>
      </font><font size=2>New
      York, New York 10036</font><font size=2></font><font size=2></font></td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="36" align="RIGHT" valign="top">
      <div align="center"><font size=2>70</font></div>
    </td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="155" align="LEFT" valign="top"><font size=2>Special
      Limited Partner of</font><font size="2"> </font><font size=2>Cumberland
      Associates<br>
      </font><font size=2>(investment partnership) <br>
      since </font><font size=2>1982</font><font size="2">.<br>
      <br>
      </font></td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="69" align="LEFT" valign="top">
      <div align="center"><font size="2">1999</font></div>
    </td>
    <td width="1" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="67" align="center" valign="top"><font size=2>-0-</font></td>
    <td width="81" align="center" valign="top"><font size=2>-0-</font></td>
  </tr>
</TABLE>
<table cellpadding="0" cellspacing="0" border="0" width="620">
  <tr valign="BOTTOM">
    <td width="144" align="LEFT" valign="top"><font size=2>Melvin
      R. Seiden<font size="1">(1)(2)</font></font><font size="2"></font><font size="2"><br>
      </font><font size=2>780 Third Avenue<br>
      Suite 2502 </font><font size="2"><br>
      </font><font size=2>New York, New York 10017</font><font size=2></font></td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="36" align="RIGHT" valign="top">
      <div align="center"><font size=2>68</font></div>
    </td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="155" align="LEFT" valign="top"><font size=2></font><font size=2>Director
      of Silbanc Properties, Ltd. (real estate, investment and consulting) since
      1987; Chairman and President of </font><font size=2>Seiden</font><font size=2>
      </font><font size=2>&amp; de Cuevas, Inc. </font><font size=2>(private
      investment firm) from </font><font size=2>1964 to 1987.</font></td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="69" align="LEFT" valign="top">
      <div align="center"><font size="2">1999</font></div>
    </td>
    <td width="1" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="67" align="center" valign="top"><font size=2>-0-</font></td>
    <td width="81" align="center" valign="top"><font size=2>-0-</font></td>
  </tr>
</TABLE>
<p>&nbsp;</p>
<p>&nbsp;</p>
<TABLE WIDTH=600><TR><TD><P ALIGN=CENTER><FONT SIZE=2>2</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE>
<p>&nbsp;</p><table width=600>
  <tr>
    <td>
      <p><font size="2"><b>To Be Elected By Holders of Common Stock and AMPS,
        Voting Together as a Single Class:</b></font></p>
    </td>
  </tr>
</TABLE>
<table cellpadding="0" cellspacing="0" border="0" width="620">
  <tr valign="BOTTOM">
    <th valign="bottom" height="62" width="144">&nbsp;</th>
    <th valign="bottom" height="62" width="4"><font size="1"></font></th>
    <th valign="bottom" height="62" width="36">&nbsp;</th>
    <th valign="bottom" height="62" width="4"><font size="1"></font></th>
    <th valign="bottom" height="62" width="155">&nbsp;</th>
    <th valign="bottom" height="62" width="4"><font size="1"></font></th>
    <th valign="bottom" height="62" width="69">&nbsp;</th>
    <th valign="bottom" height="62" colspan="3"><font size="1">Shares<br>
      Beneficially<br>
      Owned At<br>
      The Record Date </font>
      <hr width=95% size=1  noshade>
    </th>
  </tr>
  <tr valign="BOTTOM">
    <th valign="bottom" height="69" width="144"><font size="1">Name and Address
      of Nominee</font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="4"><font size="1"></font></th>
    <th valign="bottom" height="69" width="36"><font size="1">Age </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="4"><font size="1"></font></th>
    <th valign="bottom" height="69" width="155"><font size="1">Principal Occupation<br>
      During Past Five Years<br>
      and Public Directorships (1) </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="4"><font size="1"></font></th>
    <th valign="bottom" height="69" width="69"><font size="1">Director<br>
      Since </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="1"><font size="1"></font></th>
    <th valign="bottom" height="69" width="67"> <font size="1">Common<br>
      Stock </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="81"><font size="1">AMPS </font><font size="-1">
      <hr width=30% size=1  noshade>
      </font></th>
  </tr>
</TABLE>
<table cellpadding="0" cellspacing="0" border="0" width="620">
  <tr valign="BOTTOM">
    <td width="144" align="LEFT" valign="top"><font size=2></font><font size=2>Terry
      K. Glenn<font size="1">(1)*</font><br>
      <font size=2>P.O. Box 9011</font><font size=2></font><font size=2><br>
      Princeton, New Jersey <br>
      08543-9011</font></font></td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="36" align="RIGHT" valign="top">
      <div align="center"><font size=2><font size=2>59</font></font></div>
    </td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="155" align="LEFT" valign="top"><font size=2><font size=2>Executive
      Vice President of </font><font size=2>MLAM and Fund Asset Management, L.P.
      (</font><font size=2>&#147;</font><font size=2>FAM</font><font size=2>&#148;</font><font size=2>)
      </font><font size=2>(which terms as used herein include their corporate
      predecessors)</font><font size=2> since 1983; Executive Vice President and
      </font><font size=2></font><font size=2>Director of Princeton Services,
      Inc. (</font><font size=2>&#147;</font><font size=2>Princeton Services</font><font size=2>&#148;</font><font size=2>)
      </font><font size=2>since 1993; President of Princeton </font><font size=2>Funds
      Distributor, Inc. (</font><font size=2>&#147;</font><font size=2>PFD</font><font size=2>&#148;</font><font size=2>)
      </font><font size=2>since 1986 and Director thereof </font><font size=2>since
      1991; President of Princeton </font><font size=2></font><font size=2>Administrators,
      LP since 1988.<br>
      <br>
      </font></font></td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="69" align="LEFT" valign="top">
      <div align="center"><font size="2">1999</font></div>
    </td>
    <td width="1" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="67" align="center" valign="top"><font size=2>-0-</font></td>
    <td width="81" align="center" valign="top"><font size=2>-0-</font></td>
  </tr>
</TABLE>
<table cellpadding="0" cellspacing="0" border="0" width="620">
  <tr valign="BOTTOM">
    <td width="144" align="LEFT" valign="top"><font size=2></font><font size=2>Joe
      Grills<font size="1">(1)(2)</font></font><font size="2"></font><font size=2><br>
      PO Box 98<br>
      <font size=2>Rapidan, Virginia 22733 </font><font size=2>
      </font></font></td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="36" align="RIGHT" valign="top">
      <div align="center"><font size=2>64</font></div>
    </td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="155" align="LEFT" valign="top"><font size=2>Member
      of the Committee of <font size=2>Investment of Employee Benefit
      </font><font size=2>Assets of the Financial </font><font size=2>Executives
      Institute (</font><font size=2>&#147;</font><font size=2>CIEBA</font><font size=2>&#148;</font><font size=2>)
      </font><font size=2>since 1986; Member of CIEBA&#146;s </font><font size=2>Executive
      Committee since 1988 </font><font size=2>and its Chairman from
      1991 to </font><font size=2>1992; Assistant Treasurer of </font><font size=2>International
      Business Machines </font><font size=2>Corporation (</font><font size=2>&#147;</font><font size=2>IBM</font><font size=2>&#148;</font><font size=2>)
      and Chief </font><font size=2>Investment Officer of IBM </font><font size=2>Retirement
      Funds from 1986 </font><font size=2>until 1993; Member of the
      </font><font size=2>Investment Advisory Committees </font><font size=2>of
      the State of New York Common </font><font size=2>Retirement
      Fund and the Howard </font><font size=2>Hughes Medical Institute
      since </font><font size=2>1997;</font><font size=2>
      </font><font size=2>Director, Duke Management </font><font size=2>Company
      since 1992 and </font><font size=2>Vice Chairman thereof since
      1998; </font><font size=2>Director, LaSalle Street</font><font size="2">
      </font><font size="2">Fund </font><font size="2">since
      1995; Directo</font><font size=2>r, Hotchkis </font><font size=2>and
      Wiley Mutual Funds</font><font size=2> </font><font size=2>since
      </font></font></td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="69" align="LEFT" valign="top">
      <div align="center"><font size="2">1999</font></div>
    </td>
    <td width="1" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="67" align="center" valign="top"><font size=2>-0-</font></td>
    <td width="81" align="center" valign="top"><font size=2>-0-</font></td>
  </tr>
</TABLE>
<br>
<TABLE WIDTH=600><TR><TD><P ALIGN=CENTER><FONT SIZE=2>3</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE>
<p><BR>
</p>
<table cellpadding="0" cellspacing="0" border="0" width="620">
  <tr valign="BOTTOM">
    <th valign="bottom" height="58" width="144">&nbsp;</th>
    <th valign="bottom" height="58" width="4"><font size="1"></font></th>
    <th valign="bottom" height="58" width="36">&nbsp;</th>
    <th valign="bottom" height="58" width="4"><font size="1"></font></th>
    <th valign="bottom" height="58" width="155">&nbsp;</th>
    <th valign="bottom" height="58" width="4"><font size="1"></font></th>
    <th valign="bottom" height="58" width="69">&nbsp;</th>
    <th valign="bottom" height="58" colspan="3"><font size="1">Shares<br>
      Beneficially<br>
      Owned At<br>
      The Record Date </font>
      <hr width=95% size=1  noshade>
    </th>
  </tr>
  <tr valign="BOTTOM">
    <th valign="bottom" height="69" width="144"><font size="1">Name and Address
      of Nominee</font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="4"><font size="1"></font></th>
    <th valign="bottom" height="69" width="36"><font size="1">Age </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="4"><font size="1"></font></th>
    <th valign="bottom" height="69" width="155"><font size="1">Principal Occupation<br>
      During Past Five Years<br>
      and Public Directorships (1) </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="4"><font size="1"></font></th>
    <th valign="bottom" height="69" width="69"><font size="1">Director<br>
      Since </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="1"><font size="1"></font></th>
    <th valign="bottom" height="69" width="67"> <font size="1">Common<br>
      Stock </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th valign="bottom" height="69" width="81"><font size="1">AMPS </font><font size="-1">
      <hr width=30% size=1  noshade>
      </font></th>
  </tr>
</TABLE>

<table cellpadding="0" cellspacing="0" border="0" width="620">
  <tr valign="BOTTOM">
    <td width="144" align="LEFT" valign="top"><font size=2></font><font size=2>Joe
      Grills, con<font size=2>&#146;</font>t<font size=2>
      </font></font></td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="36" align="RIGHT" valign="top">
      <div align="center"></div>
    </td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="150" align="LEFT" valign="top">
      <p align="left"></p>
      <div align="left"><font size="2">1996;
        Director, Kimco Realty </font><font size="2"></font><font size="2">Corporation
        since 1997;</font><font size="2">
        </font><font size="2">Member </font><font size="2"></font><font size="2">of
        the Investment</font><font size="2">
        </font><font size="2">Advisory </font><font size="2"></font><font size="2">Committee
        of the</font><font size="2">
        </font><font size="2">Virginia </font><font size="2"></font><font size="2">Retirement
        System</font><font size="2">
        </font><font size="2">since 1998;
        </font><font size="2"></font><font size="2">Director,
        Montpelier </font><font size="2"></font><font size="2">Foundation
        since 1998.</font><font size=2><font size=2>
        <br>
        <br>
        </font></font></div>
      </td>
    <td width="4" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="69" align="LEFT" valign="top">
      <div align="center"><font size="2">1999</font></div>
    </td>
    <td width="1" align="LEFT" valign="top"><font size="2"></font></td>
    <td width="67" align="center" valign="top"><font size=2>-0-</font></td>
    <td width="81" align="center" valign="top"><font size=2>-0-</font></td>
  </tr>
</TABLE>
<table cellpadding="0" cellspacing="0" border="0" width="620">
  <tr valign="BOTTOM">
    <td width="162" align="LEFT" valign="top" height="240">
      <p><font size=2></font><font size=2>Robert S. Salomon, Jr.<font size="1">(1)(2)</font></font> <br>
        <font size=2>106
        Dolphin Cove Quay<br>
        Stamford, Connecticut 06902</font></p>
      </td>
    <td width="9" align="LEFT" valign="top" height="240"><font size="2"></font></td>
    <td width="30" align="RIGHT" valign="top" height="240">
      <div align="center"><font size=2>62</font></div>
    </td>
    <td width="10" align="LEFT" valign="top" height="240"><font size="2"></font></td>
    <td width="161" align="LEFT" valign="top" height="240">
      <p align="left"></p>
      <div align="left"></div>
      <div align="left"><font size=2><font size=2>Principal
        of STI Management</font><font size=2>(investment adviser)
        since 1994; </font><font size=2>Chairman and CEO of Salomon
        </font><font size=2>Brothers Asset Management </font><font size=2>from
        1992 until 1995; Monthly </font><font size=2>columnist with
        the <i>Forbes </i></font><font size=2>Magazine since 1992;
        Chairman </font><font size=2>of Salomon Brothers equity </font><font size=2>mutual
        funds from 1992 until </font><font size=2>1995; Director
        of Stock Research </font><font size=2>and U.S. Equity Strategist
        at </font><font size=2>Salomon Brothers Inc. from 1975 </font><font size=2>until
        1991; Trustee, The </font><font size=2>Common Fund since
        1980.</font><font size=2> <br>
        <br>
        </font></font></div>
    </td>
    <td width="1" align="LEFT" valign="top" height="240"><font size="2"></font></td>
    <td width="72" align="LEFT" valign="top" height="240">
      <div align="center"><font size="2">1999</font></div>
    </td>
    <td width="1" align="LEFT" valign="top" height="240"><font size="2"></font></td>
    <td width="69" align="center" valign="top" height="240"><font size=2>-0-</font></td>
    <td width="105" align="center" valign="top" height="240"><font size=2>-0-</font></td>
  </tr>
</TABLE>
<table cellpadding="0" cellspacing="0" border="0" width="620">
  <tr valign="BOTTOM">
    <td width="144" align="LEFT" valign="top" height="100"><font size=2></font><font size=2>Stephen
      B. Swensrud<font size="1">(1)(2)</font></font><font size="2"></font><font size=2><br>
      24 Federal Street<br>
      Suite 400<br>
      Boston, Massachusetts 02110</font></td>
    <td width="4" align="LEFT" valign="top" height="100"><font size="2"></font></td>
    <td width="36" align="RIGHT" valign="top" height="100">
      <div align="center"><font size=2>66</font></div>
    </td>
    <td width="4" align="LEFT" valign="top" height="100"><font size="2"></font></td>
    <td width="150" align="LEFT" valign="top" height="100">
      <p align="left"></p>
      <div align="left"></div>
      <div align="left"><font size=2>Chairman of Fernwood Advisors
        </font><font size=2>(investment adviser) since 1996; </font><font size=2>Principal
        of Fernwood Associates </font><font size=2>(financial consultant)
        since 1975; Chairman, Department of Manufacturing, RPP Corporation since
        1999; Director, Department of Telecommunications; International Mobile
        Communications, Inc. since 1999.<br>
        </font></div>
    </td>
    <td width="4" align="LEFT" valign="top" height="100"><font size="2"></font></td>
    <td width="69" align="LEFT" valign="top" height="100">
      <div align="center"><font size="2">1999</font></div>
    </td>
    <td width="1" align="LEFT" valign="top" height="100"><font size="2"></font></td>
    <td width="67" align="center" valign="top" height="100"><font size=2>-0-</font></td>
    <td width="81" align="center" valign="top" height="100"><font size=2>-0-</font></td>
  </tr>
</TABLE>
<table cellpadding="0" cellspacing="0" border="0" width="620">
  <tr valign="BOTTOM">
    <td width="144" align="LEFT" valign="top" height="94"><font size=2>Arthur
      Zeikel<font size="1">(1)*</font><br>
      <font size=2>300 Woodland Avenue</font><font size=2></font><br>
      <font size=2>Westfield, New Jersey 07090</font></font><font size=2></font></td>
    <td width="4" align="LEFT" valign="top" height="94"><font size="2"></font></td>
    <td width="36" align="RIGHT" valign="top" height="94">
      <div align="center"><font size=2>67</font></div>
    </td>
    <td width="4" align="LEFT" valign="top" height="94"><font size="2"></font></td>
    <td width="150" align="LEFT" valign="top" height="94">
      <p align="left"></p>
      <div align="left"></div>
      <div align="left"><font size=2>Chairman of FAM and MLAM <font size=2>from
        1997 to 1999; President of FAM and MLAM from 1977 to </font><font size=2>1997;
        Chairman of Princeton </font><font size=2>Services from 1997 to 1999 </font></font></div>
    </td>
    <td width="4" align="LEFT" valign="top" height="94"><font size="2"></font></td>
    <td width="69" align="LEFT" valign="top" height="94">
      <div align="center"><font size="2">1999</font></div>
    </td>
    <td width="1" align="LEFT" valign="top" height="94"><font size="2"></font></td>
    <td width="67" align="center" valign="top" height="94"><font size=2>-0-</font></td>
    <td width="81" align="center" valign="top" height="94"><font size=2>-0-</font></td>
  </tr>
</TABLE>
<p>&nbsp;</p>
<TABLE WIDTH=600><TR><TD><P ALIGN=CENTER><FONT SIZE=2>4</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE>
<p>&nbsp;</p>
<table cellpadding="0" cellspacing="0" border="0" width="620">
  <tr valign="BOTTOM">
    <td width="144" align="LEFT" valign="top" height="95"><font size=2>Arthur
      Zeikel, cont&#146;d<font size=2></font></font><font size=2></font></td>
    <td width="4" align="LEFT" valign="top" height="95"><font size="2"></font></td>
    <td width="36" align="RIGHT" valign="top" height="95">
      <div align="center"><font size=2> </font></div>
    </td>
    <td width="4" align="LEFT" valign="top" height="95"><font size="2"></font></td>
    <td width="150" align="LEFT" valign="top" height="95">
      <p align="left"></p>
      <div align="left"></div>
      <div align="left"><font size=2><font size=2>and
        Director thereof since 1993; </font><font size=2>President
        of Princeton Services </font><font size=2>from 1993 to 1997;
        Executive </font><font size=2>Vice President of Merrill Lynch
        </font><font size=2>&amp; Co., Inc. (</font><font size=2>&#147;</font><font size=2>ML
        &amp; Co.</font><font size=2>&#148;</font><font size=2>)
        from </font><font size=2>1990 to 1999.</font></font></div>
    </td>
    <td width="4" align="LEFT" valign="top" height="95"><font size="2"></font></td>
    <td width="69" align="LEFT" valign="top" height="95">
      <div align="center"><font size="2"> </font></div>
    </td>
    <td width="1" align="LEFT" valign="top" height="95"><font size="2"></font></td>
    <td width="67" align="center" valign="top" height="95"><font size=2>
      </font></td>
    <td width="81" align="center" valign="top" height="95"><font size=2>
      </font></td>
  </tr>
</TABLE>
<p><font size="2">&#151;&#151;&#151;&#151;</font></p>
<TABLE WIDTH=600><TR VALIGN=TOP>
    <TD WIDTH=3%><font size="1">(1)</font><FONT SIZE=2> </FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=94%><font size="1">Each of the nominees and continuing directors
      is a director, trustee or member of an advisory board of one or more additional
      investment companies for which FAM or MLAM acts as investment adviser. See
      &#147;Compensation of Directors&#148; below.</font></TD>
  </TR></TABLE>

<TABLE WIDTH=600><TR VALIGN=TOP>
    <TD WIDTH=3%><font size="1">(2)</font><FONT SIZE=2> </FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=94%><font size="1">Member of the Audit Committee of the Board of
      Directors.</font></TD>
  </TR></TABLE>

<TABLE WIDTH=600><TR VALIGN=TOP>
    <TD WIDTH=3%><font size="1">*</font><FONT SIZE=2> </FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=94%><font size="1">Interested person, as defined in the Investment
      Company Act of 1940 (the &#147;Investment Company Act&#148;), of the Fund.</font></TD>
  </TR></TABLE>

<BR>

<TABLE WIDTH=600><TR>
    <TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><font size=2><i>Committee
        and Board of Directors&#146; Meetings.</i></font><font size=2>
        The Board of Directors has a standing Audit Committee, which consists
        of the Directors who are not </font><font size=2>&#147;</font><font size=2>interested
        persons</font><font size=2>&#148;</font><font size=2> of
        the Fund within the meaning of the Investment Company Act. The principal
        purpose of the Audit Committee is to review the scope of the annual audit
        conducted by the Fund&#146;s independent auditors and the evaluation by such
        auditors of the accounting procedures followed by the Fund. The non-interested
        Directors have retained independent legal counsel to assist them in connection
        with these duties. The Board of Directors does not have a nominating committee.</font></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font size=2>During
        the fiscal year ended September 30, 1999, the Board of Directors held
        four meetings and the Audit 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 and, if a member, of
        the total number of meetings of the Audit Committee held during such period.</font></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR>
    <TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;</FONT><font size=2><i>Compliance
        with Section 16(a) of the Securities Exchange Act of 1934.</i></font><font size=2>
        </font><font size=2>Section 16(a) of the Securities Exchange
        Act of 1934, as amended (the </font><font size=2>&#147;</font><font size=2>Exchange
        Act</font><font size=2>&#148;</font><font size=2>), requires
        the Fund&#146;s officers and directors and persons who own more than ten percent
        of a registered class of the Fund&#146;s equity securities, to file reports
        of ownership and changes in ownership on Forms 3, 4 and 5 with the Securities
        and Exchange Commission (</font><font size=2>&#147;</font><font size=2>SEC</font><font size=2>&#148;</font><font size=2>)
        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.</font></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font size=2>Based
        solely on the Fund&#146;s review of the copies of such forms, and amendments
        thereto, furnished to it during or with respect to its most recent fiscal
        year, and written representations from certain reporting persons that
        they were not required to file Form 5 with respect to the most recent
        fiscal year, the Fund believes that, except as noted below, all of its
        officers, directors, greater than ten percent beneficial owners and other
        persons subject to Section 16 of the Exchange Act due to the requirements
        of Section 30 of the Investment Company Act, (i.e</font><font size=2>.,</font><font size=2>
        any advisory board member, investment adviser or affiliated person of
        the Fund&#146;s investment adviser), have complied with all filing requirements
        applicable to them with respect to transactions during the Fund&#146;s most
        recent fiscal year, except that Arthur Zeikel, Robert S. Salomon, Jr.,
        Joe Grills, Walter Mintz, Stephen B. Swensrud and Melvin R. Seiden inadvertently
        made late Form 3 filings reporting their election as Directors of the
        Fund and Debra Landsman-Yaros inadvertently made a late Form 3 filing
        reporting her election as Senior Vice President of FAM, which reports
        indicated that they owned no shares of the Fund.</font><br>
      </P>
      </TD></TR></TABLE>
<table width=600>
  <tr>
    <td>
      <p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2><i>Interested
        Persons.</i></font><font size=2> </font><font size=2>The
        Fund considers Mr. Zeikel and Mr. Glenn to be </font><font size=2>&#147;</font><font size=2>interested
        persons</font><font size=2>&#148;</font><font size=2> of
        the Fund within the meaning of Section 2(a)(19) of the Investment Company
        Act due to the positions each holds or has held with FAM and its affiliates
        and/or due to their ownership of securities issued by ML &amp; Co. Mr.
        Glenn is the President of the Fund.<br>
        </font></p>
    </td>
  </tr>
</TABLE>
<table width=600>
  <tr>
    <td>
      <p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2><i>Compensation
        of Directors.</i> FAM, the Fund&#146;s investment adviser, pays all compensation
        of all officers of the Fund and all Directors of the Fund who are affiliated
        with ML &amp; Co. or its subsidiaries. The Fund pays each Director not
        affiliated with FAM (each a </font><font size=2>&#147;</font><font size=2>non-interested
        Director</font><font size=2>&#148;</font><font size=2>) a
        fee of $1,500 per year plus $250 per meeting attended, together with such
        Director&#146;s actual out-of-pocket expenses relating to attendance at meetings.
        The Fund also pays each member of its Audit Committee, which consists
        of all the non-interested Directors, a fee of $1,500 per year plus $250
        per meeting attended, together with such Director&#146;s out-of-pocket expenses
        relating to attendance at meetings. These fees and expenses aggregated
        $20,214 for the fiscal year ended September 30, 1999.</font></p>
    </td>
  </tr>
</TABLE>
<p><BR>
</p>
<TABLE WIDTH=600><TR><TD><P ALIGN=CENTER><FONT SIZE=2>5</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE><BR>
<BR>
<BR>

<TABLE WIDTH=600><TR>
    <TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font size=2>The
        following table sets forth for the fiscal year ended September 30, 1999
        compensation paid by the Fund to the non-interested Directors and, for
        the calendar year ended December 31, 1998, the aggregate compensation
        paid by all investment companies advised by FAM and its affiliate, MLAM
        (</font><font size=2>&#147;</font><font size=2>FAM/MLAM Advised
        Funds</font><font size=2>&#148;</font><font size=2>), to
        the non-interested Directors.</font></P>
    </TD></TR></TABLE><BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="595">
  <TR VALIGN="BOTTOM">
    <TH COLSPAN="2"><font size="1">Name of Director </font>
      <HR WIDTH=95% SIZE=1  noshade>
    </TH>
    <TH COLSPAN="2"><font size="1">Compensation<BR>
      From Fund </font>
      <HR WIDTH=95% SIZE=1  noshade>
    </TH>
    <TH COLSPAN="2"><font size="1">Pension or<BR>
      Retirement Benefits<BR>
      Accrued as Part<BR>
      of Fund Expenses </font>
      <HR WIDTH=95% SIZE=1  noshade>
    </TH>
    <TH COLSPAN="2"><font size="1">Aggregate<BR>
      Compensation<BR>
      From Fund and<BR>
      FAM/MLAM Advised<BR>
      Funds Paid to Directors </font>
      <HR WIDTH=95% SIZE=1  noshade>
    </TH>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="34%" ALIGN="LEFT"><font size="2">Joe Grills<font size="1">(1)</font></font></TD>
    <TD WIDTH="12%" ALIGN="LEFT"><font size="2"></font></TD>
    <TD WIDTH="15%" ALIGN="RIGHT"><font size=2>$4,250</font></TD>
    <TD WIDTH="8%" ALIGN="LEFT"><font size="2"></font></TD>
    <TD ALIGN="LEFT" WIDTH="11%">
      <div align="right"><font size="2">None</font></div>
    </TD>
    <TD ALIGN="LEFT" WIDTH="5%"><font size="2"></font></TD>
    <TD WIDTH="12%" ALIGN="RIGHT"><font size="2">$198,333</font></TD>
    <TD WIDTH="3%" ALIGN="LEFT">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="LEFT" width="34%"><font size="2">Walter Mintz<font size="1">(1)</font></font></TD>
    <TD ALIGN="LEFT" width="12%"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="15%"><font size=2>$4,250</font></TD>
    <TD ALIGN="LEFT" width="8%"><font size="2"></font></TD>
    <TD ALIGN="LEFT" width="11%">
      <div align="right"><font size="2">None</font></div>
    </TD>
    <TD ALIGN="LEFT" width="5%"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="12%"><font size="2">$178,583</font></TD>
    <TD ALIGN="LEFT" width="3%">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="LEFT" width="34%"><font size="2">Robert S. Salomon, Jr.<font size="1">(1)</font></font></TD>
    <TD ALIGN="LEFT" width="12%"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="15%"><font size=2>$4,250</font></TD>
    <TD ALIGN="LEFT" width="8%"><font size="2"></font></TD>
    <TD ALIGN="LEFT" width="11%">
      <div align="right"><font size="2">None</font></div>
    </TD>
    <TD ALIGN="LEFT" width="5%"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="12%"><font size="2">$178,583</font></TD>
    <TD ALIGN="LEFT" width="3%">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="LEFT" width="34%"><font size="2">Melvin R. Seiden<font size="1">(1)</font></font></TD>
    <TD ALIGN="LEFT" width="12%"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="15%"><font size=2>$4,250</font></TD>
    <TD ALIGN="LEFT" width="8%"><font size="2"></font></TD>
    <TD ALIGN="LEFT" width="11%">
      <div align="right"><font size="2">None</font></div>
    </TD>
    <TD ALIGN="LEFT" width="5%"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="12%"><font size="2">$178,583</font></TD>
    <TD ALIGN="LEFT" width="3%">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="LEFT" width="34%"><font size="2">Stephen B. Swensrud<font size="1">(1)</font></font></TD>
    <TD ALIGN="LEFT" width="12%"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="15%"><font size=2>$4,250</font></TD>
    <TD ALIGN="LEFT" width="8%"><font size="2"></font></TD>
    <TD ALIGN="LEFT" width="11%">
      <div align="right"><font size="2">None</font></div>
    </TD>
    <TD ALIGN="LEFT" width="5%"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="12%"><font size="2">$195,583</font></TD>
    <TD ALIGN="LEFT" width="3%">&nbsp;</TD>
  </TR>
</TABLE>

<TABLE WIDTH=100><TR><TD><BR><HR SIZE=1 noshade width=100></TD></TR></TABLE>

<TABLE WIDTH=600><TR VALIGN=TOP>
    <TD WIDTH=3% height="91"><FONT SIZE=2><font size="1">(1)</font> </FONT></TD>
    <TD WIDTH=3% height="91"></TD>
    <TD WIDTH=94% height="91"><font size=1>The Directors serve on the boards of
      other FAM/MLAM Advised Funds as follows: Mr. Grills (24 registered investment
      companies consisting of 56 portfolios); Mr. Mintz (22 registered investment
      companies consisting of 43 portfolios); Mr. Salomon (22 registered investment
      companies consisting of 43 portfolios); Mr. Seiden (22 registered investment
      companies consisting of 43 portfolios); Mr. Swensrud (25 registered investment
      companies consisting of 58 portfolios).</font></TD>
  </TR></TABLE>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Officers of the Fund.</I>
        The Board of Directors has elected six officers of the Fund. The following
        sets forth information concerning each of these officers:</FONT></P>
    </TD></TR></TABLE><BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="598">
  <TR VALIGN="BOTTOM">
    <TH COLSPAN="3" height="48"><font size="1">Name and Principal Occupation </font><FONT SIZE="-1">
      <HR WIDTH=95% SIZE=1  noshade>
      </FONT></TH>
    <TH COLSPAN="2" height="48"><font size="-1"> </font><font size="1">Office</font><font size="-1">
      <hr width=90% size=1  noshade>
      </font><font size="1"> </font><FONT SIZE="-1"> </FONT></TH>
    <TH COLSPAN="2" height="48"><font size="1">Age</font><font size="1"> </font><FONT SIZE="-1">
      <HR WIDTH=90% SIZE=1  noshade>
      </FONT></TH>
    <TH width="11" height="48"><font size="1"></font></TH>
    <TH width="75" height="48"><font size="1">Officer Since </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></TH>
  </TR>
  <TR VALIGN="TOP">
    <TD ALIGN="LEFT" colspan="3" height="17"><font size="2">Terry K. Glenn</font></TD>
    <TD ALIGN="RIGHT" height="17" colspan="2">
      <div align="center"><font size="2">President</font><font size="2"></font><font size="2"></font></div>
    </TD>
    <TD ALIGN="LEFT" colspan="2" height="17">
      <div align="center"><font size="2">59</font></div>
    </TD>
    <TD WIDTH="11" ALIGN="LEFT" height="17">&nbsp;</TD>
    <TD WIDTH="75" ALIGN="LEFT" height="17">
      <div align="center"><font size="2">1999*</font></div>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="87">&nbsp;</TD>
    <TD WIDTH="14" ALIGN="LEFT" height="87"><font size="2"><br>
      <br>
      </font></TD>
    <TD WIDTH="319" ALIGN="LEFT" height="87"><font size="2">Executive Vice President
      of FAM and MLAM since 1983; Executive Vice President and Director of Princeton
      Services since 1993; President of Princeton Funds Distributor, Inc. (&#147;PFD&#148;)
      since 1986 and Director thereof since 1991; President of Princeton Administrators,
      LP since 1988.</font></TD>
    <TD ALIGN="RIGHT" height="87" colspan="2">
      <div align="center"></div>
    </TD>
    <TD ALIGN="LEFT" height="87" colspan="2">
      <div align="center"></div>
    </TD>
    <TD WIDTH="11" ALIGN="LEFT" height="87">&nbsp;</TD>
    <TD WIDTH="75" ALIGN="LEFT" height="87">
      <div align="center"><br>
      </div>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="20">&nbsp;</TD>
    <TD ALIGN="LEFT" height="20" colspan="2"><font size="2">Vincent R. Giordano</font></TD>
    <TD ALIGN="RIGHT" height="20" colspan="2">
      <div align="center"><font size="2">Senior Vice President</font><font size="2"></font></div>
    </TD>
    <TD ALIGN="LEFT" height="20" colspan="2">
      <div align="center"><font size="2">55</font></div>
    </TD>
    <TD WIDTH="11" ALIGN="LEFT" height="20">&nbsp;</TD>
    <TD WIDTH="75" ALIGN="LEFT" height="20">
      <div align="center"><font size="2">1999</font></div>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="47">&nbsp;</TD>
    <TD ALIGN="LEFT" height="47" WIDTH="14">&nbsp;</TD>
    <TD ALIGN="LEFT" height="47" WIDTH="319"><font size="2">Senior Vice President
      of FAM and MLAM since 1984; Senior Vice President of Princeton Services
      since 1993. </font></TD>
    <TD ALIGN="RIGHT" height="47" colspan="2">
      <div align="center"></div>
    </TD>
    <TD ALIGN="LEFT" height="47" colspan="2">
      <div align="center"></div>
    </TD>
    <TD WIDTH="11" ALIGN="LEFT" height="47">&nbsp;</TD>
    <TD WIDTH="75" ALIGN="LEFT" height="47">
      <div align="center"></div>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="16">&nbsp;</TD>
    <TD ALIGN="LEFT" height="16" colspan="2">&nbsp;</TD>
    <TD ALIGN="RIGHT" height="16" colspan="2">&nbsp;</TD>
    <TD ALIGN="LEFT" height="16" colspan="2">&nbsp;</TD>
    <TD WIDTH="11" ALIGN="LEFT" height="16">&nbsp;</TD>
    <TD WIDTH="75" ALIGN="LEFT" height="16">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="16">&nbsp;</TD>
    <TD ALIGN="LEFT" height="16" colspan="8">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="16">&nbsp;</TD>
    <TD ALIGN="center" height="16" colspan="8"><font size="2">6</font></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="16">&nbsp;</TD>
    <TD ALIGN="LEFT" height="16" colspan="8">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="16">&nbsp;</TD>
    <TD ALIGN="LEFT" height="16" colspan="8">
      <hr size=5 noshade>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="16">&nbsp;</TD>
    <TD ALIGN="LEFT" height="16" colspan="8">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="16">&nbsp;</TD>
    <TD ALIGN="LEFT" height="16" colspan="8">&nbsp;</TD>
  </TR>
  <tr valign="BOTTOM">
    <th colspan="3" height="48"><font size="1">Name and Principal Occupation </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
    <th colspan="2" height="48"><font size="-1"> </font><font size="1">Office</font><font size="-1">
      <hr width=90% size=1  noshade>
      </font><font size="1"> </font><font size="-1"> </font></th>
    <th colspan="2" height="48"><font size="1">Age</font><font size="1"> </font><font size="-1">
      <hr width=90% size=1  noshade>
      </font></th>
    <th width="11" height="48"><font size="1"></font></th>
    <th width="75" height="48"><font size="1">Officer Since </font><font size="-1">
      <hr width=95% size=1  noshade>
      </font></th>
  </tr>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="16">&nbsp;</TD>
    <TD ALIGN="LEFT" height="16" colspan="2"><font size=2>Kenneth A. Jacob</font></TD>
    <TD ALIGN="RIGHT" height="16" colspan="2">
      <div align="center"><font size="2">Vice President</font></div>
    </TD>
    <TD ALIGN="LEFT" height="16" colspan="2">
      <div align="center"><font size=2>48</font></div>
    </TD>
    <TD WIDTH="11" ALIGN="LEFT" height="16">
      <div align="center"></div>
    </TD>
    <TD WIDTH="75" ALIGN="LEFT" height="16">
      <div align="center"><font size=2>1999</font></div>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="59">&nbsp;</TD>
    <TD ALIGN="LEFT" height="59" WIDTH="14">&nbsp;</TD>
    <TD ALIGN="LEFT" height="59" WIDTH="319"><font size=2>First Vice President
      of MLAM since 1997; Vice President of FAM and MLAM from 1984 to 1997; Vice
      President of FAM since 1984.</font><font size="2"></font></TD>
    <TD ALIGN="RIGHT" height="59" colspan="2">
      <div align="center"></div>
    </TD>
    <TD ALIGN="LEFT" height="59" colspan="2">
      <div align="center"></div>
    </TD>
    <TD WIDTH="11" ALIGN="LEFT" height="59">
      <div align="center"></div>
    </TD>
    <TD WIDTH="75" ALIGN="LEFT" height="59">
      <div align="center"></div>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="17">&nbsp;</TD>
    <TD ALIGN="LEFT" height="17" colspan="2"><font size=2>Robert A. DiMella</font></TD>
    <TD ALIGN="RIGHT" height="17" colspan="2">
      <div align="center"><font size=2>Vice President</font></div>
    </TD>
    <TD ALIGN="LEFT" height="17" colspan="2">
      <div align="center"><font size=2>33</font></div>
    </TD>
    <TD WIDTH="11" ALIGN="LEFT" height="17">
      <div align="center"></div>
    </TD>
    <TD WIDTH="75" ALIGN="LEFT" height="17">
      <div align="center"><font size="2">1999</font></div>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="1" ALIGN="LEFT" height="78">&nbsp;</TD>
    <TD ALIGN="LEFT" height="78" WIDTH="14">&nbsp;</TD>
    <TD ALIGN="LEFT" height="78" WIDTH="319"><font size="2">Vice President of
      MLAM since 1997; Assistant Portfolio Manager of MLAM from 1993 to 1995;
      Assistant Portfolio Manager with Prudential Investment Advisers from 1991
      to 1993.</font> </TD>
    <TD ALIGN="RIGHT" height="78" colspan="2">&nbsp;</TD>
    <TD ALIGN="LEFT" height="78" colspan="2">&nbsp;</TD>
    <TD WIDTH="11" ALIGN="LEFT" height="78">&nbsp;</TD>
    <TD WIDTH="75" ALIGN="LEFT" height="78">&nbsp;</TD>
  </TR>
</TABLE>


<table cellpadding="0" cellspacing="0" border="0" width="600">
  <tr valign="TOP">
    <td align="LEFT" colspan="3" height="17"><font size="2">Donald C. Burke</font></td>
    <td align="RIGHT" height="104" colspan="2" rowspan="2">
      <div align="center"><font size="2">Vice President <br>
        and Treasurer</font><font size="2"></font><font size="2"></font></div>
      <div align="center"></div>
    </td>
    <td align="LEFT" colspan="2" height="17">
      <div align="center"><font size="2">39</font></div>
    </td>
    <td width="11" align="LEFT" height="17">&nbsp;</td>
    <td width="77" align="LEFT" height="17">
      <div align="center"><font size="2">1999</font></div>
    </td>
  </tr>
  <tr valign="TOP">
    <td width="1" align="LEFT" height="87">&nbsp;</td>
    <td width="14" align="LEFT" height="87"><font size="2"><br>
      <br>
      </font></td>
    <td width="319" align="LEFT" height="87"><font size="2">Senior Vice President
      and Treasurer of FAM and MLAM since 1999; Senior Vice President and Treasurer
      of Princeton Services since 1999; Vice President of PFD since 1999; First
      Vice President of MLAM from 1997 to 1999; Vice President of MLAM from 1990
      to 1997; Director of Taxation of MLAM since 1990.<br>
      <br>
      </font></td>
    <td align="LEFT" height="87" colspan="2">
      <div align="center"></div>
    </td>
    <td width="11" align="LEFT" height="87">&nbsp;</td>
    <td width="77" align="LEFT" height="87">
      <div align="center"><br>
      </div>
    </td>
  </tr>
  <tr valign="TOP">
    <td width="1" align="LEFT" height="17">&nbsp;</td>
    <td width="333" align="LEFT" height="17" colspan="2"><font size="2">Bradley
      J. Lucido</font></td>
    <td align="RIGHT" height="17" colspan="2">
      <div align="center"><font size="2">Secretary</font></div>
    </td>
    <td align="LEFT" height="17" colspan="2">
      <div align="center"><font size="2">33</font></div>
    </td>
    <td width="11" align="LEFT" height="17">
      <div align="center"><font size="2"></font></div>
    </td>
    <td width="77" align="LEFT" height="17">
      <div align="center"><font size="2">1999</font></div>
    </td>
  </tr>
  <tr valign="TOP">
    <td width="1" align="LEFT" height="41">&nbsp;</td>
    <td width="14" align="LEFT" height="41">&nbsp;</td>
    <td width="319" align="LEFT" height="41"><font size="2">Vice President of
      MLAM since 1999; attorney with MLAM since 1995; attorney in private practice
      from 1991 to 1995. </font></td>
    <td align="RIGHT" height="41" colspan="2">&nbsp;</td>
    <td align="LEFT" height="41" colspan="2">&nbsp;</td>
    <td width="11" align="LEFT" height="41">&nbsp;</td>
    <td width="77" align="LEFT" height="41">&nbsp;</td>
  </tr>
</TABLE>
<p>&nbsp; </p>
<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><font size="2"><i>Stock
        Ownership.</i> At the Record Date, the Directors and officers of the Fund
        as a group (12 persons) owned an aggregate of less than 1% of the Common
        Stock of the Fund outstanding at such date and owned none of the AMPS
        outstanding at such date. At such date, Mr. Zeikel, a Director of the
        Fund, and Mr. Glenn, a Director and officer 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.</font></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=2><B>ITEM 2. RATIFICATION
OF THE SELECTION OF INDEPENDENT AUDITORS</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR>
    <TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><font size=2>The Board
        of Directors of the Fund, including a majority of the Directors who are
        not interested persons of the Fund, has selected the firm of Ernst &amp;
        Young <font size="1">LLP</font> (</font><font size=2>&#147;</font><font size=2>E&amp;Y</font><font size=2>&#148;</font><font size=2>),
        independent auditors, to examine the financial statements of the Fund
        for the current fiscal year. The Fund knows of no direct or indirect financial
        interest of such firm in the Fund. Such appointment is subject to ratification
        or rejection by the stockholders of the Fund. Unless a contrary specification
        is made, the accompanying proxy will be voted in favor of ratifying the
        selection of such auditors.</font></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR>
    <TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font size=2>E&amp;Y
        also acts as independent auditors for other investment companies for which
        FAM acts as investment adviser. The fees received by E&amp;Y from these
        other entities are substantially greater, in the aggregate, than the fees
        received by it from the Fund. The Board of Directors of the Fund considered
        the fact that E&amp;Y has been retained as the independent auditors for
        such other entities in its evaluation of the independence of E&amp;Y with
        respect to the Fund.</font></P>
    </TD></TR></TABLE>
<table width="600" border="0">
  <tr>
    <td height="50"><font size=2>
      <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representatives of E&amp;Y are expected
        to be present at the meeting and will have the opportunity to make a statement
        if they so desire and to respond to questions from stockholders.</p>
      </font></td>
  </tr>
</TABLE>
<BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=CENTER><FONT SIZE=2>7</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE><BR><BR>
<BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=2><B>ADDITIONAL INFORMATION</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;</FONT><font size="2">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.</font></P>
      <p><font size="2">In order to obtain the necessary quorum at
        the Meeting (i.e., a majority of the shares of each class of the Fund&#146;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 D.F.
        King &amp; Co., Inc. to assist in the solicitation of proxies at a cost
        to the Fund of approximately $3,500, plus out-of-pocket expenses.</font></p>
      <p><font size="2">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 </font><font size=2>&#147;</font><font size="2">FOR</font><font size=2>&#148;</font><font size="2">
        the Director nominees and </font><font size=2>&#147;</font><font size="2">FOR</font><font size=2>&#148;</font><font size="2">
        the ratification of the independent auditors. </font></p>
      <p><font size="2">With respect to Item 1. </font><font size=2>&#147;</font><font size="2">Election
        of Directors,</font><font size=2>&#148;</font><font size="2">
        holders of AMPS, voting separately as a class, are entitled to elect the
        two Directors designated above 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: (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.</font></p>
      <p><font size="2">With respect to Item 2. </font><font size=2>&#147;</font><font size="2">Ratification
        of the Selection of Independent Auditors,</font><font size=2>&#148;</font><font size="2">
        assuming a quorum is present, approval will require the affirmative vote
        of a majority of the votes cast by the holders of shares of Common Stock
        and the AMPS represented present in person or by proxy at the Meeting
        and entitled to vote, voting together as a single class.</font></p>
      <p><font size="2">Broker-dealer firms, including Merrill Lynch,
        Pierce, Fenner &amp; Smith Incorporated (</font><font size=2>&#147;</font><font size="2">MLPF&amp;S&#146;</font><font size=2>&#148;</font><font size="2">),
        holding Fund shares in </font><font size=2>&#147;</font><font size="2">street
        name</font><font size=2>&#148;</font><font size="2"> for
        the benefit of their customers and clients, will request the instructions
        of such customers and clients on how to vote their shares on each Item
        before the Meeting. The 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) and ratification of the
        selection of independent auditors (Item 2) if no instructions have been
        received prior to the date specified in the broker-dealer firm&#146;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 votes present for purposes of determining whether
        the necessary quorum of stockholders exists. Proxies that are returned
        but that are marked </font><font size=2>&#147;</font><font size="2">abstain</font><font size=2>&#148;</font><font size="2">
        or on which a broker-dealer has declined to vote on any proposal (</font><font size=2>&#147;</font><font size="2">broker
        non-votes</font><font size=2>&#148;</font><font size="2">)
        will be counted as present for the purposes of a quorum. MLPF&amp;S has
        advised the Fund that except as limited by agreement or applicable law,
        it intends to vote shares held in its name for which no instructions have
        been received 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. Abstentions and broker non-votes, therefore,
        will not have an effect on the vote on Item 1 or Item 2. </font></p>
</TD></TR></TABLE><BR>
<TABLE WIDTH=600><TR><TD><P ALIGN=CENTER><FONT SIZE=2>8</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE><BR><BR>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2><B>Address of Investment Adviser</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
principal office of FAM is located at 800 Scudders Mill Road, Plainsboro, New
Jersey 08536.</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2><B>Annual Report Delivery</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will furnish, without
        charge, a copy of its annual report for the fiscal year ended September
        30, 1999 to any stockholder upon request. Such requests should be directed
        to MuniHoldings Insured Fund II, Inc., PO Box 9011, Princeton, New Jersey
        08543-9011, Attention: Bradley J. Lucido, Secretary, or to 1-800-456-4587
        ext. 123. </FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2><B>Stockholder Proposals</B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a stockholder intends to
        present a proposal at the 2000 Annual Meeting of Stockholders of the Fund
        and desires to have the proposal included in the Fund&#146;s proxy statement
        and form of proxy for that meeting, the stockholder must deliver the proposal
        to the offices of the Fund by June 30, 2000.</FONT></P>
    </TD></TR></TABLE><BR>

<OL><OL><OL><OL><OL><OL><OL><OL><OL>
<TABLE WIDTH=600><TR><TD><P><FONT SIZE=2>By Order of the Board of Directors</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
                        <P><FONT SIZE=2>BRADLEY J. LUCIDO<BR>
                          <I>Secretary</I></FONT></P></TD></TR></TABLE><BR>
</OL></OL></OL></OL></OL></OL></OL></OL></OL>
<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>Dated: October 29, 1999</FONT></P>
    </TD></TR></TABLE><BR>


<TABLE WIDTH=600><TR><TD><P ALIGN=CENTER><FONT SIZE=2>9</FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE><BR><BR>

<TABLE WIDTH=600>
  <TR>
    <TD width="526">
      <P ALIGN=center><FONT SIZE=2><B>MUNIHOLDINGS INSURED FUND II, INC.<BR>
        PO Box 9011 <BR>
        Princeton, New Jersey 08543-9011 <BR>
        PROXY</B></FONT></P>
    </TD>
    <TD width="62" valign="top">
      <p><b><font size="2">COMMON<br>
        STOCK </font></b></p>
      </TD>
  </TR>
</TABLE>
<BR>

<TABLE WIDTH=600><TR><TD><P ALIGN=center><FONT SIZE=2><B><I>This proxy is
solicited on behalf of the Board of Directors</I></B></FONT></P></TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby appoints
        Terry K. Glenn, Donald C. Burke and Bradley J. Lucido as proxies, each
        with the power to appoint his substitute, and hereby authorizes each of
        them to represent and to vote, as designated on the reverse hereof, all
        the shares of Common Stock of MuniHoldings Insured Fund II, Inc. (the
        &#147;Fund&#148;) held of record by the undersigned on October 20, 1999
        at the Annual Meeting of Stockholders of the Fund to be held on December
        15, 1999 or any adjournment thereof.</FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR>
    <TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>This proxy when properly
        executed will be voted in the manner directed herein by the undersigned
        stockholder. If no direction is made, this proxy will be voted &#147;FOR&#148;</B>
        <B> Proposals 1 and 2.</B></FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By signing and dating the
        reverse side of this card, you authorize the proxies to vote each proposal
        as marked, or if not marked, to vote &#147;FOR&#148; each proposal, and
        to use their discretion to vote for any other matter as may properly come
        before the meeting or any adjournment thereof. If you do not intend to
        personally attend the meeting, please complete and return this card at
        once in the enclosed envelope.</FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD>
      <P align=right><FONT SIZE=2>(Continued and to be signed on the reverse side)</FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE>
<p><BR>
  <BR>
</p>
<table width=600>
  <tr>
    <td colspan="5">
      <p><font size="2"><b>Please mark boxes</b>: [&nbsp;&nbsp;&nbsp;] or [X]
        in blue or black ink.</font></p>
    </td>
  </tr>
  <tr valign="top">
    <td width="102"><font size="2">1. ELECTION OF &nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS</font></td>
    <td width="6">&nbsp;</td>
    <td width="243"><font size="2"><b>FOR</b> all nominees listed below<br>
      (except as marked to the contrary below)[&nbsp;&nbsp;&nbsp;]</font></td>
    <td width="1">&nbsp;</td>
    <td width="224"><font size="2"><b>WITHHOLD AUTHORITY </b><br>
      to vote for all nominees listed below [&nbsp;&nbsp;&nbsp;]<br>
      </font></td>
  </tr>
</TABLE>
<TABLE WIDTH=600><TR>
    <TD>
      <P><FONT SIZE=2><b><i>(INSTRUCTION: To withhold authority to vote for any
        individual nominee, strike a line through the nominee&#146;s name in the
        list below.)</i></b><br>
        Terry K. Glenn, Joe Grills, Robert S. Salomon, Jr., Stephen B. Swensrud
        and Arthur Zeikel</FONT></P>
    </TD></TR></TABLE>
<BR>

<TABLE WIDTH=600><TR>
    <TD>
      <P><FONT SIZE=2>2. Proposal to ratify the selection of Ernst &amp; Young
        LLP as the independent auditors of the Fund to serve<br>
        &nbsp;&nbsp;&nbsp; for the current fiscal year.</FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR>
    <TD>
      <P ALIGN=left><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;FOR </B>[&nbsp;&nbsp;&nbsp;]<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AGAINST
        </B>[&nbsp;&nbsp;&nbsp;]<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ABSTAIN
        </B>[&nbsp;&nbsp;&nbsp;]</FONT></P>
    </TD></TR></TABLE><BR>

<TABLE WIDTH=600><TR>
    <TD>
      <P><FONT SIZE=2>3. In the discretion of such proxies, upon such other business
        as may properly come before the meeting or any<br>
        &nbsp;&nbsp;&nbsp; adjournment thereof.</FONT></P>
    </TD></TR></TABLE><BR>

<OL><OL><OL><OL><OL><OL><OL><OL>
<TABLE WIDTH=300>
  <TR>
    <TD>
      <P><FONT SIZE=2>Please sign exactly as name appears hereon. When shares
        are 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>
        </FONT></P>
    </TD>
  </TR>
  <TR>
    <TD height="25"><font size=2>Dated: _______________________________, 1999</font></TD>
  </TR>
                  <TR valign="bottom">
                    <TD height="30"><font size=2>X ________________________________________</font></TD>
  </TR>
  <TR valign="top">
    <TD height="26">
      <div align="center"><font size="1">Signature</font></div>
    </TD>
  </TR>
                  <TR valign="bottom">
                    <TD height="33"><font size=2>X ________________________________________</font></TD>
  </TR>
  <TR valign="top">
    <TD>
      <div align="center"><font size="1">Signature, if held jointly</font></div>
    </TD>
  </TR>
</TABLE>
</OL></OL></OL></OL></OL></OL></OL></OL>

<BR>
<BR>

<TABLE WIDTH=600><TR><TD>
      <P><FONT SIZE=2><B>Sign, Date and Return Proxy Card Promptly Using the Enclosed
        Envelope.</B></FONT></P>
    </TD></TR></TABLE>
<BR>
<TABLE WIDTH=600><TR><TD><HR SIZE=5 noshade></TD></TR></TABLE>
<br>
<table width=600>
  <tr>
    <td width="461">
      <p align=center><font size=2><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MUNIHOLDINGS
        INSURED FUND II, INC.<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;PO Box 9011 <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;Princeton, New Jersey 08543-9011 <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        PROXY</b></font></p>
    </td>
    <td width="127" valign="top"><b><font size="2">AUCTION
      MARKET<br>
      PREFERRED STOCK</font></b></td>
  </tr>
</TABLE>
<br>
<table width=600>
  <tr>
    <td>
      <p align=center><font size=2><b><i>This proxy is solicited on behalf of
        the Board of Directors</i></b></font></p>
    </td>
  </tr>
</TABLE>
<br>
<table width=600>
  <tr>
    <td>
      <p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby appoints
        Terry K. Glenn, Donald C. Burke and Bradley J. Lucido as proxies, each
        with the power to appoint his substitute, and hereby authorizes each of
        them to represent and to vote, as designated on the reverse hereof, all
        the shares of Auction Market Preferred Stock of MuniHoldings Insured Fund
        II, Inc. (the &#147;Fund&#148;) held of record by the undersigned on October
        20, 1999 at the Annual Meeting of Stockholders of the Fund to be held
        on December 15, 1999 or any adjournment thereof.</font></p>
    </td>
  </tr>
</TABLE>
<br>
<table width=600>
  <tr>
    <td>
      <p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>This proxy when properly
        executed will be voted in the manner directed herein by the undersigned
        stockholder. If no direction is made, this proxy will be voted</b> <b>&#147;FOR&#148;
        Proposals 1 and 2.</b></font></p>
    </td>
  </tr>
</TABLE>
<br>
<table width=600>
  <tr>
    <td>
      <p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By signing and dating the
        reverse side of this card, you authorize the proxies to vote each proposal
        as marked, or if not marked, to vote &#147;FOR&#148; each proposal, and
        to use their discretion to vote for any other matter as may properly come
        before the meeting or any adjournment thereof. If you do not intend to
        personally attend the meeting, please complete and return this card at
        once in the enclosed envelope.</font></p>
    </td>
  </tr>
</TABLE>
<br>
<table width=600>
  <tr>
    <td>
      <p align=right><font size=2>(Continued and to be signed on the reverse side)</font></p>
    </td>
  </tr>
</TABLE>
<br>
<table width=600>
  <tr>
    <td>
      <hr size=5 noshade>
    </td>
  </tr>
</TABLE>
<p><br>
  <br>
</p>
<table width=600>
  <tr>
    <td colspan="5">
      <p><font size="2"><b>Please mark boxes</b>: [&nbsp;&nbsp;&nbsp;] or [X]
        in blue or black ink.</font></p>
    </td>
  </tr>
  <tr valign="top">
    <td width="102"><font size="2">1. ELECTION OF<br>
      &nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS</font></td>
    <td width="6">&nbsp;</td>
    <td width="243"><font size="2"><b>FOR</b> all nominees listed below<br>
      (except as marked to the contrary below)[&nbsp;&nbsp;&nbsp;]</font></td>
    <td width="1">&nbsp;</td>
    <td width="224"><font size="2"><b>WITHHOLD AUTHORITY </b><br>
      to vote for all nominees listed below [&nbsp;&nbsp;&nbsp;]<br>
      </font></td>
  </tr>
</TABLE>
<table width=600>
  <tr>
    <td>
      <p><font size=2><b><i>(INSTRUCTION: To withhold authority to vote for any
        individual nominee, strike a line through the nominee&#146;s name in the
        list below.)</i></b><br>
        Terry K. Glenn, Joe Grills, Walter Mintz, Robert S. Salomon, Jr., Melvin
        R. Seiden, Stephen B. Swensrud and Arthur Zeikel</font></p>
    </td>
  </tr>
</TABLE>
<br>
<table width=600>
  <tr>
    <td>
      <p><font size=2>2. Proposal to ratify the selection of Ernst &amp; Young
        LLP as the independent auditors of the Fund to serve<br>
        &nbsp;&nbsp;&nbsp; for the current fiscal year.</font></p>
    </td>
  </tr>
</TABLE>
<br>
<table width=600>
  <tr>
    <td>
      <p align=left><font size=2><b>&nbsp;&nbsp;&nbsp;&nbsp;FOR </b>[&nbsp;&nbsp;&nbsp;]<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AGAINST
        </b>[&nbsp;&nbsp;&nbsp;]<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ABSTAIN
        </b>[&nbsp;&nbsp;&nbsp;]</font></p>
    </td>
  </tr>
</TABLE>
<br>
<table width=600>
  <tr>
    <td>
      <p><font size=2>3. In the discretion of such proxies, upon such other business
        as may properly come before the meeting or any<br>
        &nbsp;&nbsp;&nbsp; adjournment thereof.</font></p>
    </td>
  </tr>
</TABLE>
<br>
<ol>
  <ol>
    <ol>
      <ol>
        <ol>
          <ol>
            <ol>
              <ol>
                <table width=300>
                  <tr>
                    <td>
                      <p><font size=2>Please sign exactly as name appears hereon.
                        When shares are 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>
                        </font></p>
                    </td>
                  </tr>
                  <tr>
                    <td height="25"><font size=2>Dated: _______________________________,
                      1999</font></td>
                  </tr>
                  <tr valign="bottom">
                    <td height="30"><font size=2>X ________________________________________</font></td>
                  </tr>
                  <tr valign="top">
                    <td height="26">
                      <div align="center"><font size="1">Signature</font></div>
                    </td>
                  </tr>
                  <tr valign="bottom">
                    <td height="33"><font size=2>X ________________________________________</font></td>
                  </tr>
                  <tr valign="top">
                    <td>
                      <div align="center"><font size="1">Signature, if held jointly</font></div>
                    </td>
                  </tr>
                </TABLE>
              </ol>
            </ol>
          </ol>
        </ol>
      </ol>
    </ol>
  </ol>
</ol>
<br>
<br>
<table width=600>
  <tr>
    <td>
      <p><font size=2><b>Sign, Date and Return Proxy Card Promptly Using the Enclosed
        Envelope.</b></font></p>
    </td>
  </tr>
</TABLE>
<br>
<table width=600>
  <tr>
    <td>
      <hr size=5 noshade>
    </td>
  </tr>
</TABLE>
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