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Western Asset Municipal High Income Fund Inc. Announces Changes to Non-
Fundamental Investment Policies

NEW YORK - (BUSINESS WIRE) - November 19, 2007

Western Asset Municipal High Income Fund Inc. (NYSE: MHF) today
announced changes to non-fundamental investment policies relating to the
types of securities and maturities in which the Fund may invest. These
changes, which will be effective on December 19, 2007, are intended to
provide the portfolio managers with additional flexibility to meet the
Fund's investment objective and address developments in the market since
the Fund commenced operations in 1988, but there is no expectation that
dramatic changes in the Fund's portfolio composition or investment
approach will result.

Under the Fund's amended non-fundamental investment policies recommended
by Fund management and approved by the Board of Directors, the Fund may,
under normal market conditions, invest in non-publicly traded municipal
securities, zero-coupon municipal obligations and non-appropriation or
other municipal lease obligations. Previously, the Fund had the ability
to invest up to 30% of its assets in non-publicly traded securities, up
to 25% of its total assets in zero-coupon municipal obligations and no
more than 10% of its assets in non-appropriation municipal lease
obligations, although it could invest without limit in other municipal
lease obligations.

In addition, the Board of Directors approved a change to a non-
fundamental investment policy that permits the Fund to invest in
municipal obligations of any maturity. Previously, the Fund had
indicated that it would generally invest in long-term municipal bonds
and that it expected the weighted average maturity of its portfolio to
exceed ten years.

Additional Information About Non-Publicly Traded Securities, Zero-Coupon
Obligations and Non-Appropriation Lease Obligations

Under the Fund's amended non-fundamental policies, the Fund may, under
normal market conditions, invest in non-publicly traded municipal
securities. The manager believes that non-publicly traded securities,
which may be considered speculative, often provide attractive high
yields. The sale of securities that are not traded publicly is typically
restricted under the federal securities laws. As a result, the Fund may
be forced to sell these securities at less than fair market value or may
not be able to sell them at all when the manager believes it desirable
to do so. Should the fund desire to sell any of these securities when a
ready buyer is not available at a price the Fund deems representative of
their value, the value of the Fund's net assets could be adversely
affected.

Under the Fund's amended non-fundamental investment policies, the Fund
may, under normal market conditions, also invest in zero-coupon
municipal obligations. Zero coupon municipal obligations are debt
obligations that do not entitle the holder to any periodic payments
prior to maturity and are issued and traded at a discount from their
face amounts. The discount varies depending on the time remaining until
maturity, prevailing interest rates, liquidity of the security and
perceived credit quality of the issuer. Zero coupon municipal
obligations may be created by investment banks under proprietary
programs in which they strip the interest component from the principal
component and sell both separately. The market prices of zero coupon
securities are generally more volatile than the market prices of
securities that pay interest periodically and are likely to respond to
changes in interest rates to a greater degree than do securities having
similar maturities and credit quality that do pay periodic interest.

In addition, under the Fund's amended non-fundamental investment
policies, the Fund may, under normal market conditions, invest in
participations in lease obligations or installment purchase contract
obligations of municipal authorities or entities that contain "non-
appropriation" clauses ("non-appropriation municipal lease
obligations"). Although lease obligations do not constitute general
obligations of the municipality for which the municipality's taxing
power is pledged, a lease obligation is ordinarily backed by the
municipality's covenant to budget for, appropriate and make the payments
due under the lease obligation. However, certain lease obligations
contain "non-appropriation" clauses, which provide that the municipality
has no obligation to make lease or installment purchase payments in
future years unless money is appropriated for such purpose on a yearly
basis. In addition to the "non-appropriation" risk, these securities
represent a relatively new type of financing that has not yet developed
the depth of marketability associated with more conventional securities.
Although "non-appropriation" lease obligations are secured by the leased
property, disposition of the property in the event of foreclosure might
prove difficult. In addition, the tax treatment of such obligations in
the event of non-appropriation is unclear.

Western Asset Municipal High Income Fund Inc., a diversified, closed-end
management investment company, is managed by Legg Mason Partners Fund
Advisor, LLC, a wholly-owned subsidiary of Legg Mason, Inc., and is sub-
advised by Western Asset Management Company, an affiliate of the
investment manager.

Contact the Fund at 1-888-777-0102 for additional information, or
consult the Fund's web site at www.leggmason.com.

Brenda Grandell, Director, Closed End Funds, Legg Mason & Co., LLC, 212-
291-3775
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