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<SEC-DOCUMENT>0001104659-08-008017.txt : 20080207
<SEC-HEADER>0001104659-08-008017.hdr.sgml : 20080207
<ACCEPTANCE-DATETIME>20080207152201
ACCESSION NUMBER:		0001104659-08-008017
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20080229
FILED AS OF DATE:		20080207
DATE AS OF CHANGE:		20080207
EFFECTIVENESS DATE:		20080207

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.
		CENTRAL INDEX KEY:			0000830487
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-05497
		FILM NUMBER:		08584976

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

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

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MUNICIPAL HIGH INCOME FUND INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SPECIAL OPPORTUNITIES MUNICIPAL FUND INC
		DATE OF NAME CHANGE:	19881025
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>a08-1266_1def14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>

<html>

<head>





</head>

<body lang="EN-US">

<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">UNITED STATES</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECURITIES
  AND EXCHANGE COMMISSION</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington,
  D.C. 20549</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="4" face="Times New Roman" style="font-size:14.0pt;font-weight:bold;">SCHEDULE 14A</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Proxy Statement
  Pursuant to Section 14(a) of<br>
  the Securities Exchange Act of 1934 (Amendment No. &nbsp;&nbsp;&nbsp;&nbsp;)</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed by the Registrant&nbsp;&nbsp;</font><font face="Wingdings">x</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Filed by a Party other than the Registrant</font>&nbsp;&nbsp;</font><font face="Wingdings">o</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box:</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
  </td>
  <td width="94%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:94.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preliminary Proxy Statement</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font> </p>
  </td>
  <td width="94%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:94.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Confidential, for Use of the Commission Only (as
  permitted by Rule 14a-6(e)(2))</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Wingdings" style="font-size:10.0pt;">x</font></p>
  </td>
  <td width="94%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:94.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Definitive Proxy Statement</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
  </td>
  <td width="94%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:94.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Definitive Additional Materials</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
  </td>
  <td width="94%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:94.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Soliciting Material Pursuant to &#167;240.14a-12</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Western Asset
  Municipal High Income Fund Inc.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Name of Registrant
  as Specified In Its Charter)</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Name of Person(s)
  Filing Proxy Statement, if other than the Registrant)</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Payment of Filing Fee (Check the appropriate box):</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Wingdings" style="font-size:10.0pt;">x</font></p>
  </td>
  <td width="94%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:94.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No fee required.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
  </td>
  <td width="94%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:94.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fee computed on table below per Exchange Act Rules 14a-6(i)(1)
  and 0-11.</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:4.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font></p>
  </td>
  <td width="90%" valign="top" style="padding:0in .7pt 0in .7pt;width:90.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title of each class of securities to which transaction applies:</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:4.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:4.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:90.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Aggregate number of securities to which transaction applies:</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:4.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:4.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:90.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Per unit price or other underlying value of transaction computed
  pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing
  fee is calculated and state how it was determined):</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:4.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:4.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:90.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Proposed maximum aggregate value of transaction:</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:4.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:4.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:90.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total fee paid:</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:4.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.3%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>
  </td>
  <td width="94%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:94.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fee paid previously with preliminary materials.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font> </p>
  </td>
  <td width="94%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:94.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.36%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font></p>
  </td>
  <td width="90%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:90.6%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amount Previously Paid:</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.36%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.6%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.36%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font></p>
  </td>
  <td width="90%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:90.6%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form, Schedule or Registration Statement No.:</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.36%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.6%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.36%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font></p>
  </td>
  <td width="90%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:90.6%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filing Party:</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.36%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.6%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.36%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font></p>
  </td>
  <td width="90%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:90.6%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date Filed:</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.36%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="90%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:90.6%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="38" style="border:none;"></td>
  <td width="33" style="border:none;"></td>
  <td width="2" style="border:none;"></td>
  <td width="675" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160; Set forth the amount on which
the filing fee is calculated and state how it was determined.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="3">WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.</font></p>
<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>620 Eighth Avenue, 49th Floor, New York, New York 10018</b></font></p>
<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>NOTICE OF ANNUAL MEETING OF STOCKHOLDERS</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">February 5, 2008</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2"><i>To the Stockholders:</i></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Notice is hereby given that the Annual Meeting of Stockholders of Western Asset Municipal High Income Fund Inc. (the ''Fund'') will be held at 620 Eighth Avenue, 49th Floor, New York, New York, on Friday, February 29, 2008 at 3:00 p.m., New York time, for the following purposes:</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2">1. To elect two (2) Class III Directors of the Fund (Proposal 1); and</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2">2. To consider and vote upon such other matters as may come before said meeting or any adjournments thereof.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The close of business on January 7, 2008 has been fixed as the record date (the "Record Date") for the determination of shareholders entitled to notice of and to vote at the meeting and any adjournments or postponements thereof.</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2">By Order of the Board of Directors,</font></p>
<p align="left">&nbsp;</p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2">Robert I. Frenkel<BR>Secretary</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>TO AVOID UNNECESSARY EXPENSE OF FURTHER SOLICITATION, WE URGE YOU to indicate voting instructions on the enclosed proxy, date and sign it and return it promptly in the envelope provided, no matter how large or how small your holdings may be.</b></font></p>
<hr size="3" width="100%" noshade color="gray" align="center">
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<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Instructions for Signing Proxy Cards</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The following general rules for signing proxy cards may be of assistance to you and may avoid the time and expense to the Fund involved in validating your vote if you fail to sign your proxy card properly.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">1. </font><font face="Times New Roman PS, Times New Roman, Times" size="2"><i>Individual Accounts:</i></font><font face="Times New Roman PS, Times New Roman, Times" size="2">  Sign your name exactly as it appears in the registration on the proxy card.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">2. </font><font face="Times New Roman PS, Times New Roman, Times" size="2"><i>Joint Accounts:</i></font><font face="Times New Roman PS, Times New Roman, Times" size="2">  Either party may sign, but the name of the party signing should conform exactly to the name shown in the registration on the proxy card.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">3. </font><font face="Times New Roman PS, Times New Roman, Times" size="2"><i>All Other Accounts:</i></font><font face="Times New Roman PS, Times New Roman, Times" size="2">  The capacity of the individual signing the proxy card should be indicated unless it is reflected in the form of registration.  For example:</font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td colspan="7" width="309" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Registration</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="176" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Valid Signature</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr>
<td colspan="11" width="493" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Corporate Accounts</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="25" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">(1</font></td>
<td colspan="1" width="19" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">)</font></td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="249" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">ABC Corp.</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="176" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">ABC Corp. (by John Doe, Treasurer)</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="25" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">(2</font></td>
<td colspan="1" width="19" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">)</font></td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="249" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">ABC Corp.</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="176" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">John Doe, Treasurer</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="25" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">(3</font></td>
<td colspan="1" width="19" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">)</font></td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="249" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">ABC Corp., c/o John Doe, Treasurer</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="176" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">John Doe</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="25" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">(4</font></td>
<td colspan="1" width="19" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">)</font></td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="249" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">ABC Corp. Profit Sharing Plan</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="176" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">John Doe, Trustee</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="11" width="493" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Trust Accounts</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="25" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">(1</font></td>
<td colspan="1" width="19" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">)</font></td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="249" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">ABC Trust</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="176" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">Jane B. Doe, Trustee</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="25" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">(2</font></td>
<td colspan="1" width="19" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">)</font></td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="249" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">Jane B. Doe, Trustee, u/t/d 12/28/78</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="176" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">Jane B. Doe</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="11" width="493" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Custodian or Estate Accounts</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="25" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">(1</font></td>
<td colspan="1" width="19" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">)</font></td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="249" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">John B. Smith, Cust., f/b/o John B. Smith, Jr. UGMA</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="176" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">John B. Smith</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="25" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">(2</font></td>
<td colspan="1" width="19" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">)</font></td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="249" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">John B. Smith</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="176" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="2">John B. Smith, Jr., Executor</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
</table>

<p>&nbsp;</p>
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<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="3">WESTERN ASSET MUNICIPAL HIGH INCOME FUND INC.</font></p>
<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>620 Eighth Avenue, 49th Floor, New York, New York 10018</b></font></p>
<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>PROXY STATEMENT</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">This Proxy Statement is furnished in connection with the solicitation of proxies by the Board of Directors (the "Board") of Western Asset Municipal High Income Fund Inc. (the ''Fund'') for use at the Annual Meeting of Stockholders of the Fund to be held at 3:00 p.m., New York time, on Friday, February 29, 2008, at 620 Eighth Avenue, 49th Floor, New York, New York and at any adjournments or postponements thereof (the "Meeting"), for the purposes set forth in the accompanying Notice of Meeting of Stockholders (the "Notice").</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The cost of soliciting proxies and the expenses incurred in preparing this Proxy Statement will be borne by the Fund. Solicitation costs are expected to be approximately $18,</font><font face="Times New Roman PS, Times New Roman, Times" size="2">900. In addition, the Fund will reimburse brokerage firms or other record holders for their expenses in forwarding solicitation materials to beneficial owners of shares of the Fund. Proxy solicitations will be made primarily by mail, but proxy solicitations also may be made by telephone or personal interview conducted by officers, directors and employees of the Fund, the Fund's investment manager, Legg Mason Partners Fund Advisor, LLC ("LMPFA" or the "Manager"), which is an affiliate of Legg Mason, Inc.; Western Asset Management Company, the Fund's subadviser ("Western Asset"); and/or American Stock Transfer &amp; Trust Co., the Fund's transfer agent.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Annual Report of the Fund, including audited financial statements for the fiscal year ended October 31, 2007, has previously been furnished to all stockholders of the Fund. This Proxy Statement is first being mailed to stockholders on or about February 5, 2008. The Fund will provide additional copies of the annual report to any stockholder upon request by calling the Fund at 1-800-331-1710.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">If the enclosed Proxy is properly executed and returned in time to be voted at the Meeting, the shares of capital stock of the Fund (''Shares'') represented thereby will be voted in accordance with the instructions marked thereon. Unless instructions to the contrary are marked thereon, a proxy will be voted FOR the election of each nominee in Proposal 1. For purposes of determining the presence of a quorum for transacting business at the Meeting, abstentions will be treated as shares that are present but which have not been voted. Approval of Directors are elected by a plurality of the votes cast at a Meeting with a quorum present. Under the Fund's By-laws, a quorum is constituted by the presence in person or by proxy of the holders of a majority of the outstanding Shares entitled to vote at the Meeting. Because a plurality is measured by a proportion of the votes actually cast, abstentions will have no impact on the election of Directors. A
ny stockholder who has given a proxy has the right to revoke it at any time prior to its exercise either by attending the Meeting and voting his or her shares in person or by submitting a letter of revocation or a later-dated proxy to the Fund at the above address prior to the date of the Meeting.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">In the event that a quorum is not present at the Meeting, or in the event that a quorum is present but sufficient votes to elect Directors are not received, the persons named as proxies may propose one or more adjournments of the Meeting to permit further solicitations of proxies. In determining whether to adjourn the Meeting, the following factors may be considered: the nature of the proposal that is the subject of the Meeting; the percentage of votes actually cast; the percentage of negative votes actually cast; the nature of any further solicitation; and the information to be provided to stockholders with respect to the reasons for the solicitation. </font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>1</font></p>
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<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Any adjournment will require the affirmative vote of a majority of the Shares represented at the Meeting in person or by proxy. If an adjournment is proposed, the persons named as proxies will vote the Shares that they are entitled to vote in their discretion. A stockholder vote may be taken on the election of Directors prior to such adjournment if sufficient votes have been received and it is otherwise appropriate.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The close of business on January 7, 2008 has been fixed as the record date (the "Record Date") for the determination of stockholders entitled to notice of and to vote at the Meeting and all adjournments or postponements thereof.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Fund has one class of common stock, which has a par value of $.001 per Share.  As of the Record Date, there were 21,062,924.642</font><font face="Times New Roman PS, Times New Roman, Times" size="2"> Shares outstanding. Each stockholder is entitled to one vote for each Share held and a proportionate fraction of a vote for any fractional Share held.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">As of the Record Date, to the knowledge of the Fund and the Board, no single stockholder or ''group'' (as that term is used in Section 13(d) of the Securities and Exchange Act of 1934 (the ''Exchange Act'')) beneficially owned 5% or more </font><font face="Times New Roman PS, Times New Roman, Times" size="2">of the outstanding Shares of the Fund. As of the Record Date, Cede &amp; Co., as nominee of The Depository Trust Company, was the record holder of 19,713,178</font><font face="Times New Roman PS, Times New Roman, Times" size="2"> Shares, or 91.05</font><font face="Times New Roman PS, Times New Roman, Times" size="2">% of the Fund's outstanding Shares. As of the Record Date, the officers and Directors of the Fund as a group beneficially owned less than 1% of the outstanding Shares of the Fund.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">In order that a stockholder's Shares may be represented at the Meeting, stockholders should allow sufficient time for their proxies to be received on or before 3:00 p.m. on February 29, 2008.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">As of the Record Date, to the knowledge of the Fund, no shares or securities issued by Legg Mason, Inc., were held by Directors who are not "interested persons" of the Fund (the "Non-Interested Directors") as that term is used in the Investment Company Act of 1940, as amended (the "1940 Act").</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">LMPFA, the Fund's investment manager and administrator is located at 620 Eighth Avenue, New York, NY 10018. Western Asset, the Fund's subadviser, is located at 385 East Colorado Boulevard, Pasadena, CA 91101.</font></p>
<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Proposal 1: Election of Directors to the Board of Directors</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Board of Directors of the Fund is divided into three classes: Class I, Class II and Class III. The Directors serving in Class III have terms expiring at the Meeting; the current Class III Directors, Mr. William Hutchinson and Mr. Jeswald Salacuse, have each been nominated by the Board of Directors for election or reelection at the Meeting to serve for a term of three years (until the 2011 Annual Meeting of Stockholders) or until his successor has been duly elected and qualified or until he resigns or is otherwise removed. Class I</font><font face="Times New Roman PS, Times New Roman, Times" size="2"> Directors and Class II Directors will continue to serve until the year 2009 and year 2010 Annual Meeting of Stockholders, respectively, or thereafter when his or her successor has been duly elected and qualified or until he or she resigns or is otherwise removed.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Each nominee has consented to serve as a Director if elected at the Meeting. If a designated nominee declines or otherwise becomes unavailable for election, however, the proxy confers discretionary power on the persons named therein to vote in favor of a substitute nominee or nominees in their discretion.</font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>2</font></p>
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<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Certain information concerning the nominees is set forth below. All of the nominees are currently Directors of the Fund.  Except as indicated, each nominee or Director has held the office shown or other offices in the same company for the last five years.</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Persons Nominated for Election as Directors</b></font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td colspan="3" width="131" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Name, Address and <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Year of Birth</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="232" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Position<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Held with<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Fund</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="44" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Length<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>of Time<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Served</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1524" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Principal<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Occupations<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>During Past<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Five Years</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="76" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Number of <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Portfolios <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>in Fund <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Complex*<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Overseen<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>by Director <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>or Director<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Nominee</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="426" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Other<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Directorships <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Held by <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Director or <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Director <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Nominee</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr>
<td colspan="23" width="2441" align="center" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Nominees to serve as Class III Directors</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="23" width="2441" align="center" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>NON-INTERESTED DIRECTOR NOMINEES:</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="3" width="131" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">William R. Hutchinson<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">c/o Chairman of the Fund<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">620 Eighth Avenue &#150; 49th Floor<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10018<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Year of Birth: 1942</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="232" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Director and Member of Audit and Nominating Committees</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="44" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">1998</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1524" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">President, WR Hutchinson &amp; Associates, Inc. (oil industry consulting); formerly Group Vice President Mergers &amp; Acquisitions BP Amoco p.l.c.</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="60" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">22</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="426" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Director of Associated Banc-Corp.</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="3" width="131" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Jeswald W. Salacuse<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">c/o Chairman of the Fund<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">620 Eighth Avenue &#150; 49th Floor<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10018<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1938</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="232" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Director and Member of Audit and Nominating Committees</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="44" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">2007</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1524" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Henry J. Braker Professor of  Commercial Law and formerly Dean, The Fletcher School of Law &amp; Diplomacy, Tufts University</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="60" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">19</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="426" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Director of two registered investment companies advised by Blackstone Asia Advisors L.L.C. ("Blackstone Advisers")</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
</table>

<p>&nbsp;</p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">*&nbsp;&nbsp;The term "Fund Complex" means two or more registered investment companies that:</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">(a)&nbsp;&nbsp;Hold themselves out to investors as related companies for purposes of investment and investor services; or</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">(b)&nbsp;&nbsp;Have a common investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other registered investment companies.</font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>3</font></p>
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<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Directors Continuing in Office**</b></font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td colspan="3" width="131" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Name, Address and <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Year of Birth</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="232" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Position<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Held with<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Fund</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="44" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Length<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>of Time<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Served</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1524" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Principal<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Occupations<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>During Past<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Five Years</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="76" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Number of <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Portfolios <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>in Fund <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Complex***<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Overseen<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>by Director <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>or Director<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Nominee</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="426" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Other <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Directorships <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Held by <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Director or <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Director <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Nominee</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr>
<td colspan="23" width="2441" align="center" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Class I Directors</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="23" width="2441" align="center" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>NON-INTERESTED DIRECTORS:</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="3" width="131" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Carol L. Colman<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">c/o Chairman of the Fund<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">620 Eighth Avenue &#150; 49th Floor<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10018<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1946</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="232" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Director and Member of Audit and Nominating Committees</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="44" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">2007</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1524" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">President, Colman <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Consulting Co.</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="60" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">22</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="426" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">None</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="3" width="131" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Dr. Riordan Roett<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">c/o Chairman of the Fund<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">620 Eighth Avenue &#150; 49th Floor<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10018<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1938</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="232" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Director and Member of Audit and Nominating Committees</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="44" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">2007</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1524" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Professor and Director, Latin American Studies Program, Paul H. Nitze School of Advanced International Studies, The Johns Hopkins University</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="60" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">21</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="426" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">None</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="23" width="2441" align="center" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>INTERESTED DIRECTOR:</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="3" width="131" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">R. Jay Gerken*<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Legg Mason &amp; Co., LLC<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">("Legg Mason")<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">620 </font><font face="Times New Roman PS, Times New Roman, Times" size="1">Eighth Avenue<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10018<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Year of Birth: 1951</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="232" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Chairman, President and Chief Executive Officer</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="44" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">2002</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1524" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Managing Director of Legg Mason; Chairman, President and Chief Executive Officer of LMPFA; Chairman of the Board, Trustee or Director of 133 funds associated with LMPFA and its affiliates (since 2006); President and Chief Executive Officer of certain mutual funds associated with Legg Mason or its affiliates; formerly, Chairman, President and Chief Executive Officer, Travelers Investment Advisers, Inc. (2002 to 2005)</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="60" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">133</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="426" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Trustee, Consulting Group Capital Markets Fund</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
</table>

<p>&nbsp;</p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">*&nbsp;&nbsp;An "interested person" of the Fund, as defined in the 1940 Act because he is a Managing Director of Legg Mason, an affiliate of the Manager.</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">**&nbsp;&nbsp;Dwight Crane, who is currently serving as a Class III Director, will resign from the Board at the date on which the Director Nominees accept their elections and commence service as Directors.</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">***&nbsp;&nbsp;The term "Fund Complex" means two or more registered investment companies that:</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">(a)&nbsp;&nbsp;Hold themselves out to investors as related companies for purposes of investment and investor services; or</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">(b)&nbsp;&nbsp;Have a common investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other registered investment companies.</font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>4</font></p>
<hr size="3" width="100%" noshade color="gray" align="center">
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<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td colspan="3" width="131" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Name, Address and <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Year of Birth</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="232" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Position<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Held with<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Fund</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="44" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Length<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>of Time<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Served</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1524" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Principal<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Occupations<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>During Past<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Five Years</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="76" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Number of <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Portfolios <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>in Fund <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Complex***<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Overseen<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>by Director <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>or Director<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Nominee</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="426" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Other <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Directorships <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Held by <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Director or <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Director <BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Nominee</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr>
<td colspan="23" width="2441" align="center" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Class II Directors</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="23" width="2441" align="center" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>NON-INTERESTED DIRECTORS:</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="3" width="131" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Daniel P. Cronin<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">c/o Chairman of the Fund<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">620 Eighth Avenue &#150; 49th Floor<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10018<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1946</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="232" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Director and Member of Audit and Nominating Committees</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="44" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">2007</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1524" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Retired; formerly, Associate General Counsel, Pfizer, Inc. (pharmaceuticals)</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="60" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">22</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="426" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">None</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="3" width="131" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Paolo M. Cucchi<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">c/o Chairman of the Fund<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">620 Eighth Avenue &#150; 49th Floor<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10018<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1941</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="232" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Director and Member of Audit and Nominating Committees</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="44" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">2001</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1524" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Vice President and Dean of College of Liberal Arts at Drew University</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="60" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">22</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="426" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">None</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
<tr>
<td colspan="3" width="131" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Leslie H. Gelb<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">c/o Chairman of the Fund<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">620 Eighth Avenue &#150; 49th Floor<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10018<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1937</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="232" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Director and Member of Audit and Nominating Committees</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="44" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">2007</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1524" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">President Emeritus and <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Senior Board Fellow, The Council on Foreign <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Relations; formerly, <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Columnist, Deputy Editorial Page Editor and Editor, <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Op-Ed Page, </font><font face="Times New Roman PS, Times New Roman, Times" size="1"><i>The New York Times</i></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="60" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">21</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="3" width="426" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Director of two registered investment companies advised by Blackstone Advisors</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="24" height="8"></td></tr>
</table>

<p>&nbsp;</p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">***&nbsp;&nbsp;The term "Fund Complex" means two or more registered investment companies that:</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">(a)&nbsp;&nbsp;Hold themselves out to investors as related companies for purposes of investment and investor services; or</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">(b)&nbsp;&nbsp;Have a common investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other registered investment companies.</font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>5</font></p>
<hr size="3" width="100%" noshade color="gray" align="center">
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<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The following table provides information concerning the dollar range of equity securities owned beneficially by each Director and nominee for election as Director as of December 31, 2006:</font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td colspan="3" width="116" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Name of Director/Nominee</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="125" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Dollar Range of Equity<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Securities in the Fund</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="163" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Aggregate Dollar Range of Equity<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Securities in All Funds Overseen<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>by Director/Nominee and<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Advised by LMPFA</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr>
<td colspan="11" width="412" align="center" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>NON-INTERESTED DIRECTORS/NOMINEES</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="3" width="116" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Carol L. Colman</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" valign="top">
&nbsp;</td>
<td colspan="1" width="97" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">None</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" valign="top">
&nbsp;</td>
<td colspan="1" width="135" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Over $100,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="3" width="116" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Dwight B. Crane</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="97" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">1&#150;$10,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" valign="top">
&nbsp;</td>
<td colspan="1" width="135" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Over $100,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="3" width="116" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Daniel P. Cronin</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" valign="top">
&nbsp;</td>
<td colspan="1" width="97" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">None</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" valign="top">
&nbsp;</td>
<td colspan="1" width="135" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Over $100,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="3" width="116" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Paolo M. Cucchi</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="97" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">1&#150;$10,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="135" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">10,001&#150;$50,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="3" width="116" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Leslie H. Gelb</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" valign="top">
&nbsp;</td>
<td colspan="1" width="97" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">None</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" valign="top">
&nbsp;</td>
<td colspan="1" width="135" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">None</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="3" width="116" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">William R. Hutchinson</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="97" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">1&#150;$10,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" valign="top">
&nbsp;</td>
<td colspan="1" width="135" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Over $100,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="3" width="116" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Riordan Roett</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" valign="top">
&nbsp;</td>
<td colspan="1" width="97" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">None</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="135" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">10,001&#150;$50,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="3" width="116" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Jeswald W. Salacuse</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" valign="top">
&nbsp;</td>
<td colspan="1" width="97" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">None</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="135" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">10,001&#150;$50,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="11" width="412" align="center" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>INTERESTED DIRECTOR</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
<tr>
<td colspan="3" width="116" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">R. Jay Gerken*</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="97" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">1&#150;$10,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" valign="top">
&nbsp;</td>
<td colspan="1" width="135" align="right" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Over $100,000</font></td>
<td colspan="1" width="8" valign="top">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr height="8"><td colspan="12" height="8"></td></tr>
</table>

<p>&nbsp;</p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="1">* Mr. Gerken is an "interested person" as defined in the 1940 Act because he is a Managing Director of Legg Mason, which is an affiliate of the Manager.</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Responsibilities of the Board of Directors</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Board of Directors is responsible for ensuring that the Fund is managed in the best interest of its stockholders. The Directors oversee the Fund's business by, among other things, meeting with the Fund's management and evaluating the performance of the Fund's service providers including LMPFA, Western Asset, the custodian and the transfer agent. As part of this process, the Directors consult with the Fund's independent auditors and with their own separate independent counsel.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Directors review the Fund's financial statements, performance and market price as well as the quality of the services being provided to the Fund. As part of this process, the Directors review the Fund's fees and expenses to determine if they are reasonable and competitive in light of the services being received and while also ensuring that the Fund continues to have access to high quality services in the future. Based on these reviews, the Directors periodically make suggestions to the Fund's management and monitor to ensure that responsive action is taken. The Directors also monitor potential conflicts of interest among the Fund, LMPFA and its affiliates and other funds and clients managed by LMPFA and Western Asset to ensure that the Fund is managed in a manner which is in the best interest of the Fund's stockholders.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">During the Fund's fiscal year ended October 31, 2007, four regular meetings and one special meeting of the Board were held. In the last fiscal year, each Director attended at least 75% of the regular and special meetings of the Board and each of the audit and nominating committee meetings held during the time he or she was a Director. The Fund does not have a formal policy regarding attendance by Directors at annual meetings but may consider a policy in the future. </font><font face="Times New Roman PS, Times New Roman, Times" size="2">One Board member attended the 2007 Annual Meeting of Stockholders.</font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>6</font></p>
<hr size="3" width="100%" noshade color="gray" align="center">
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<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Compensation</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Under the federal securities laws, and in connection with the Meeting, the Fund is required to provide to stockholders in connection with the Meeting information regarding compensation paid to the Directors by the Fund, as well as by the various other investment companies advised by LMPFA. The following table provides information concerning the compensation paid to each Director by the Fund during the fiscal year ended October 31, 2007 and the total compensation paid to each Director during the calendar year ended December 31, 2006. Certain of the Directors listed below are members of the Fund's Audit and Nominating Committees, as well as other committees of boards of certain other investment companies advised by LMPFA. Accordingly, the amounts provided in the table include compensation for service on all such committees. The Fund does not provide any pension or retirement benefits to Directors. In addition, no remuneration was paid during t
he fiscal year ended October 31, 2007 by the Fund to Mr. Gerken, who is an "interested person" as defined in the 1940 Act.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The following table shows the compensation paid by the Fund to each person who was a Director during the Fund's last fiscal year:</font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td colspan="3" width="99" align="left" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Name of<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Person</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="173" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Aggregate<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Compensation<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>from Fund<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>for the fiscal<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>year ended<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>10/31/07</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="104" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Total<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Compensation<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>from Fund and<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Fund Complex<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>for the year<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>ended 12/31/06</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="88" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Total Number<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>of Funds for<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Which Director<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Serves within<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Fund Complex</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="99" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" bgcolor="#cceeff">&nbsp;</td>
<td colspan="3" width="173" bgcolor="#cceeff" align="left" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Non-Interested Directors/Nominees</b></font></td>
<td colspan="1" bgcolor="#cceeff">&nbsp;</td>
<td colspan="7" width="200" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" bgcolor="#cceeff">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="99" align="left" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Carol L. Colman</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="145" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">4,487</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="76" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">298,050</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="72" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">22</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="99" bgcolor="#cceeff" align="left" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Dwight B. Crane*</font></td>
<td colspan="1" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="20" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="145" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">6,093</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="20" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="76" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">266,500</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="72" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">50</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="99" align="left" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Daniel P. Cronin</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="145" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">4,455</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="76" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">238,500</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="72" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">22</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="99" bgcolor="#cceeff" align="left" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Paolo M. Cucchi</font></td>
<td colspan="1" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="20" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="145" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">7,105</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="20" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="76" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">90,550</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="72" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">22</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="99" align="left" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Leslie H. Gelb</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="145" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">3,833</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="76" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">209,050</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="72" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">21</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="99" bgcolor="#cceeff" align="left" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">William R. Hutchinson</font></td>
<td colspan="1" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="20" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="145" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">7,562</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="20" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="76" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">402,550</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="72" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">22</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="99" align="left" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Riordan Roett</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="145" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">3,323</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="20" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="76" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">89,550</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="72" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">21</font></td>
<td colspan="1" width="8" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="99" bgcolor="#cceeff" align="left" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Jeswald W. Salacuse</font></td>
<td colspan="1" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="20" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="145" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">3,904</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="20" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="76" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">235,500</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="72" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">19</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="99" valign="bottom">
&nbsp;</td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="173" align="left" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Interested Director</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="7" width="200" valign="bottom">
&nbsp;</td>
<td colspan="1">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="99" bgcolor="#cceeff" align="left" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">R. Jay Gerken**</font></td>
<td colspan="1" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="20" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="145" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">0</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="20" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">$</font></td>
<td colspan="1" width="76" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">0</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="72" bgcolor="#cceeff" align="right" valign="bottom">
<font face="Times New Roman PS, Times New Roman, Times" size="1">133</font></td>
<td colspan="1" width="8" bgcolor="#cceeff" valign="bottom">
&nbsp;</td>
<td colspan="1" width="8" bgcolor="#cceeff">&nbsp;</td>
</tr>
</table>

<p>&nbsp;</p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="1">*&nbsp;&nbsp;Mr. Crane's term as Director will end effective February 29, 2008.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="1">**&nbsp;&nbsp;Designates a Director who is an "interested person" of the Fund as defined under the 1940 Act because he is a Managing Director of Legg Mason, the parent company of the Fund's investment manager.</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Section 16(a) Beneficial Ownership Reporting Compliance</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Section 16(a) of the Exchange Act and Section 30(h) of the 1940 Act require the Fund's officers and Directors, any persons who beneficially own more than 10% of the Fund's outstanding Shares, as well as LMPFA, Western Asset and certain of their affiliated persons, to file reports of ownership with the Securities and Exchange Commission (the "SEC") and the New York Stock Exchange, Inc. (the "NYSE"). Based solely upon its review of the copies of such forms received by it and representations from certain such persons, the Fund believes that during its fiscal year ended October 31, 2007, all filing requirements applicable to such persons were met.</font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>7</font></p>
<hr size="3" width="100%" noshade color="gray" align="center">
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<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Committees of the Board of Directors</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Fund has a separately designated standing Audit Committee. The Fund's Audit Committee is composed of all Directors who are not "interested persons" of the Fund, LMPFA, Western Asset or their affiliates within the meaning of the 1940 Act, and who are "independent" as defined in the NYSE listing standards applicable to closed-end funds, namely Ms. Colman and Messrs. Crane, Cronin, Cucchi, Gelb, Hutchinson, Roett and Salacuse. The principal functions of the Audit Committee are to (a) assist Board oversight of (i) the integrity of the Fund's financial statements, (ii) the Fund's compliance with legal and regulatory requirements, (iii) the qualifications and independence of the Fund's independent registered public accounting firm, and (iv) the performance of the Fund's internal audit functions and independent registered public accounting firm; (b) approve, and recommend to the Independent Board Members (as such term is defined in the Audit Co
mmittee Charter) for their ratification, the selection, appointment, retention or termination of the Fund's independent registered public accounting firm, as well as approving the compensation thereof; (c) approve all audit and permissible non-audit services provided to the Fund and certain other persons by such independent registered public accounting firm; and (d) prepare the report required to be prepared by the Audit Committee pursuant to SEC rules for inclusion in the Annual Proxy Statement. This Committee met five times during the fiscal year ended October 31, 2007. The Board of Directors of the Fund has determined that all members of the Fund's Audit Committee are financially literate. Mr. Hutchinson has been designated as the audit committee financial expert within the meaning of the rules adopted and implemented under Section 407 of the Sarbanes-Oxley Act of 2002. The Amended and Restated Audit Committee Charter was filed as Annex A, to the Fund's proxy statement dated February 5, 2007.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Fund has a separately designated standing Nominating Committee. The Nominating Committee, the principal function of which is to select and nominate candidates for election or appointment by the Board as Directors of the Fund, is currently composed of Ms. Colman and Messrs. Crane, Cronin, Cucchi, Gelb, Hutchinson, Roett and Salacuse. Only Directors who are not "interested persons" of the Fund as defined in the 1940 Act and who are "independent" as defined in the NYSE listing standards applicable to closed-end funds are members of the Nominating Committee. The Nominating Committee may consider nominees recommended by a shareholder as it deems appropriate. Shareholders who wish to recommend a nominee should send recommendations to the Fund's Secretary that include all information relating to such person that is required to be disclosed in solicitations of proxies for the election of Directors. A recommendation must be accompanied by a writt
en consent of the individual to stand for election if nominated by the Board of Directors and to serve if elected by the shareholders. The Nominating Committee met four times during the Fund's fiscal year ended October 31, 2007. At a meeting held on November 14, 2007, the Nominating Committee nominated Messrs. Hutchinson and Salacuse for election at the Meeting. The Nominating Committee Charter was filed as Annex B to the Fund's proxy statement dated February 5, 2007.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Nominating Committee identifies potential nominees through its network of contacts, and may also engage, if it deems appropriate, a professional search firm. The Committee meets to discuss and consider such candidates' qualifications and then chooses a candidate by majority vote. The Nominating Committee does not have specific, minimum qualifications for nominees and has not established specific qualities or skills that it regards as necessary for one or more of the Fund's Directors to possess (other than any qualities or skills that may be required by applicable law, regulation or listing standard). However, as set forth in the Nominating Committee </font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>8</font></p>
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<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Charter, in evaluating a person as a potential nominee to serve as a Director of the Fund, the Committee may consider the following factors, among any others it may deem relevant:</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">&#149; whether or not the person is an "interested person" as defined in the 1940 Act and whether the person is otherwise qualified under applicable laws and regulations to serve as a Director of the Fund;</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">&#149; whether or not the person has any relationships that might impair his or her independence, such as any business, financial or family relationships with Fund management, the Manager of the Fund, Fund service providers or their affiliates;</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">&#149; whether or not the person serves on boards of, or is otherwise affiliated with, competing financial service organizations or their related mutual fund complexes;</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">&#149; whether or not the person is willing to serve, and willing and able to commit the time necessary for the performance of the duties of a Director of the Fund;</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">&#149; the contribution which the person can make to the Board and the Fund (or, if the person has previously served as a Director of the Fund, the contribution which the person made to the Board during his or her previous term of service), with consideration being given to the person's business and professional experience, education and such other factors as the Committee may consider relevant;</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">&#149; the character and integrity of the person; and</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">&#149; whether or not the selection and nomination of the person would be consistent with the requirements of the Fund's retirement policies.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The names of the principal officers of the Fund are listed in the table below together with certain additional information. Each of the officers of the Fund will hold such office until a successor is voted upon by the Board of Directors.</font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td colspan="3" width="133" align="left" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Name, Address and Age</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="233" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Position</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="60" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Term of<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Office and<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Length of<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Time Served</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1110" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Principal Occupations During Past Five Years</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="133" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">R. Jay Gerken<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Legg Mason <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">620 Eighth Avenue &#150; 49th Floor <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10018<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1951</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="233" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Chief Executive Officer, Chairman of the Board and President</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="60" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since 2002</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1110" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">(See table of "Directors Continuing in Office")</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="16" height="8"></td></tr>
<tr>
<td colspan="3" width="133" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Kaprel Ozsolak<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Legg Mason <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">125 </font><font face="Times New Roman PS, Times New Roman, Times" size="1">Broad Street <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10004<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1965</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="233" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Chief Financial Officer and Treasurer</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="60" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since 2004</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1110" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Director of Legg Mason; Chief Financial Officer and Treasurer of certain mutual funds associated with Legg Mason; Controller of certain mutual funds associated with Legg Mason or its predecessors (from 2002 to 2004)</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="16" height="8"></td></tr>
<tr>
<td colspan="3" width="133" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Steven Frank<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Legg Mason <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">125 </font><font face="Times New Roman PS, Times New Roman, Times" size="1">Broad Street <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10004<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1967</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="233" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Controller</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="60" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since 2005</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1110" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Vice President of Legg Mason (since 2002); Controller of certain mutual funds associated with Legg Mason; Assistant Controller of Legg Mason or its predecessors (from 2001 to 2005)</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="16" height="8"></td></tr>
</table>

<p>&nbsp;</p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>9</font></p>
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<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td colspan="3" width="133" align="left" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Name, Address and Age</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="233" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Position</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="60" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Term of<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Office and<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Length of<BR></b></font><font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Time Served</b></font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1110" align="center" valign="bottom" style="border:none; border-bottom:solid windowtext 1pt;padding:0pt .7pt 0pt 0pt;">
<font face="Times New Roman PS, Times New Roman, Times" size="1"><b>Principal Occupations During Past Five Years</b></font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr>
<td colspan="3" width="133" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Ted P. Becker<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Legg Mason <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">620 Eighth Avenue &#150; 49th Floor <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">New York, NY 10018<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1951</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="233" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Chief Compliance Officer</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="60" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since 2006</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1110" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Managing Director of Compliance at Legg Mason (2005-Present); Chief Compliance Officer of certain mutual funds associated with Legg Mason (since 2006); Chief Compliance Officer of LMPFA and certain affiliates; Managing Director of Compliance at Citigroup Asset Management ("CAM") (2002-2005)</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="16" height="8"></td></tr>
<tr>
<td colspan="3" width="133" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">John Chiota<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Legg Mason <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">300 First Stamford Place <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Stamford, CT 06902<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1968</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="233" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Chief Anti-Money Laundering Compliance Officer</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="60" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since 2006</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1110" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Vice President of Legg Mason (since 2004); Chief Anti-Money Laundering Compliance Officer of mutual funds associated with Legg Mason (since 2006); prior to August 2004, Chief AML Compliance Officer with TD Waterhouse</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="16" height="8"></td></tr>
<tr>
<td colspan="3" width="133" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Robert I. Frenkel<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Legg Mason <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">300 First Stamford Place <BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Stamford, CT 06902<BR></font><font face="Times New Roman PS, Times New Roman, Times" size="1">Birth year: 1954</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="233" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Secretary</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="60" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Since 2003</font></td>
<td colspan="1">&nbsp;</td>
<td colspan="3" width="1110" align="left" valign="top">
<font face="Times New Roman PS, Times New Roman, Times" size="1">Managing Director and General Counsel, Global Mutual Funds for Legg Mason and its predecessor (since 1994); Secretary and Chief Legal Officer of mutual funds associated with Legg Mason (since 2003); formerly, Secretary of Citi Fund Management (2001-2004)</font></td>
<td colspan="1">&nbsp;</td>
</tr>
<tr height="8"><td colspan="16" height="8"></td></tr>
</table>

<p>&nbsp;</p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>THE </b></font><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>BOARD OF DIRECTORS, INCLUDING ALL THE NON-INTERESTED DIRECTORS, RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE ELECTION OF ALL NOMINEES TO THE BOARD.</b></font></p>
<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Report of the Audit Committee</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">At a meeting of the Audit Committee on December 20, 2007, the Audit Committee reported that it: (i) reviewed and discussed the Fund's audited financial statements with management; (ii) discussed with KPMG LLP ("KMPG"), the Fund's independent registered public accounting firm, the matters required to be discussed by Statement on Auditing Standards No. 61; and (iii) received written confirmation from KPMG that it is independent and disclosures regarding such independence, as required by Independence Standards Board Standard No. 1, and discussed with KPMG the firm's independence. Based on the review and discussions referred to in items (i) through (iii) above, the Audit Committee recommended to the Board of Directors (and the Board approved) that the audited financial statements be included in the Fund's annual report for the Fund's fiscal year ended October 31, 2007.</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2">Submitted by the Audit Committee of the Fund's Board of Directors</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2">Dwight B. Crane<BR>Carol L. Colman<BR>Daniel P. Cronin<BR>Paolo M. Cucchi<BR>Leslie H. Gelb<BR>William R. Hutchinson<BR>Riordan Roett<BR>Jeswald W. Salacuse</font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>10</font></p>
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<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Representatives of KPMG are not expected to be present at the Meeting but have been given the opportunity to make a statement if they so desire and will be available should any matter arise requiring their presence.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Audit Fees.</b></font><font face="Times New Roman PS, Times New Roman, Times" size="2"> Fees for the annual audit of the Fund's financial statements by KPMG for the fiscal year ended October 31, 2007 and the fiscal year ended October 31, 2006 were $37,000 and $33,250, respectively.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Audit-Related Fees.</b></font><font face="Times New Roman PS, Times New Roman, Times" size="2"> Fees for services related to the audit of the Fund's financial statements rendered by KPMG for the fiscal year ended October 31, 2007 and fiscal year ended October 31, 2006 were $3,722 and $0, respectively.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Tax Fees.</b></font><font face="Times New Roman PS, Times New Roman, Times" size="2"> Fees for services rendered by KPMG for tax compliance for the fiscal year ended October 31, 2007 and the fiscal year ended October 31, 2006 were $5,200 and $0, respectively. These amounts represent aggregate fees paid for tax compliance, tax advice and tax planning services, which include the filing and amendment of federal, state and local income tax returns, timely tax qualification review and tax distribution and analysis planning rendered by KPMG to the Fund.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>All Other Fees.</b></font><font face="Times New Roman PS, Times New Roman, Times" size="2"> There were no other fees billed to KPMG for services rendered to the Fund for the last two fiscal years.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Pre-Approval Policies and Procedures.</b></font><font face="Times New Roman PS, Times New Roman, Times" size="2"> The Audit Committee Charter requires that the Audit Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund's independent registered public accounting firm to the Manager and any service providers controlling, controlled by or under common control with the Manager that provide ongoing services to the Fund ( "Covered Service Providers") if the engagement relates directly to the operations and financial reporting of the Fund. The Audit Committee may implement policies and procedures by which such services are approved other than by the full Committee.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Audit Committee may not approve non-audit services that the Committee believes may impair the independence of the independent registered public accounting firm. As of the date of the approval of the Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent registered public accounting firm, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management fu
nctions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Pre-approval by the Audit Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Manager and any Covered Service Provider constitutes not more than 5% of the total amount of revenues paid to the independent registered public accounting firm during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Manager and (c) any Covered Service Provider during the fiscal year in which the services are provided that would not have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are </font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>11</font></p>
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<p><font face="Times New Roman PS, Times New Roman, Times" size="2">promptly brought to the attention of the Audit Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">There were no services rendered by KPMG to the Fund for which the pre-approval requirement was waived.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Aggregate Non-Audit Fees.</b></font><font face="Times New Roman PS, Times New Roman, Times" size="2"> The aggregate non-audit fees billed by KPMG for non-audit services rendered to the Fund, LMPFA and Covered Service Providers for the fiscal year ended October 31, 2007 and the fiscal year ended October 31, 2006 were $0 and $0, respectively.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Fund's Audit Committee has considered whether the provision of non-audit services that were rendered by KPMG to LMPFA and Covered Service Providers which were not pre-approved (i.e., not requiring pre-approval) is compatible with maintaining KPMG's independence. All services provided by KPMG to the Fund, LMPFA or Covered Service Providers which were required to be pre-approved were pre-approved as required.</font></p>
<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Stockholder Proposals and Other Stockholder Communications</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Stockholder proposals intended to be presented at the 2009 Annual Meeting of Stockholders of the Fund must be received by September 28, 2008 to be included in the proxy statement and the form of proxy relating to that meeting, as the Fund expects that the 2009 Annual Meeting will be held in February of 2009. The submission by a stockholder of a proposal for inclusion in the proxy statement does not guarantee that it will be included. Any stockholder who desires to submit a proposal at the 2009 Annual Meeting of Stockholders without including such proposal in the Fund's proxy statement must deliver written notice thereof to the Secretary of the Fund (addressed to c/o Legg Mason, 620 Eighth Avenue, 49th Floor, New York, New York 10018) during the period from November 28, 2008 to December 30, 2008. However, if the 2009 Annual Meeting of Stockholders is held earlier than January 31, 2009, or later than April 30, 2009, such written notice must be
 delivered to the Secretary of the Fund during the period from 90 days before the date of the 2009 Annual Meeting to the later of 60 days prior to the date of the 2009 Annual Meeting or 10 days following the public announcement of the date of the 2009 Annual Meeting. Stockholder proposals are subject to certain regulations under the federal securities laws.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Fund's Audit Committee has established guidelines and procedures regarding the receipt, retention and treatment of complaints regarding accounting, internal accounting controls or auditing matters (collectively, "Accounting Matters"). Persons with complaints or concerns regarding Accounting Matters may submit their complaints to the Fund's Chief Compliance Officer ("CCO"). Persons who are uncomfortable submitting complaints to the CCO, including complaints involving the CCO, may submit complaints directly to the Fund's Audit Committee Chair (together with the CCO, "Complaint Officers"). Complaints may be submitted on an anonymous basis.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The CCO may be contacted at:</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2">Legg Mason<BR>Compliance Department<BR>620 Eighth Avenue, 49th Floor<BR>New York, NY 10018</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Complaints may also be submitted by telephone at 1-800-742-5274. Complaints submitted through this number will be received by the CCO.</font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>12</font></p>
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<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Fund's Audit Committee Chair may be contacted at:</font></p>
<p align="left"><font face="Times New Roman PS, Times New Roman, Times" size="2">Western Asset Municipal High Income Fund Inc.<BR>Audit Committee Chair<BR>c/o Robert K. Fulton, Esq.<BR>Stradley Ronon Stevens &amp; Young, LLP<BR>2600 One Commerce Square<BR>Philadelphia, PA 19103</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">A stockholder who wishes to send any other communications to the Board should also deliver such communications to the Secretary of the Fund, Robert I. Frenkel, 300 First Stamford Place, 2nd Floor, Stamford, CT 06902. The Secretary is responsible for determining, in consultation with other officers of the Fund, counsel, and other advisers as appropriate, which shareholder communications will be relayed to the Board.</font></p>
<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Additional Information</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Legg Mason, Inc.'s sole business is asset management, with on-the-ground management capabilities located around the world and assets under management as of September 30, 2007 aggregating approximately $1 trillion.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">Legg Mason, Inc. is a global asset management firm, structured as a holding company. The firm is headquartered in Baltimore, Maryland.</font></p>
<p align="center"><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>Other Matters to Come Before the Meeting</b></font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">The Board does not intend to present any other business at the Meeting, nor is the Fund aware of any stockholder proposals. If, however, any other matters are properly brought before the Meeting, the persons named as proxies in the accompanying form of proxy will vote thereon in accordance with their judgment, to the extent permissible under applicable law.</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2">February 5, 2008</font></p>
<p><font face="Times New Roman PS, Times New Roman, Times" size="2"><b>IT IS IMPORTANT THAT PROXIES BE RETURNED PROMPTLY. STOCKHOLDERS WHO DO NOT EXPECT TO ATTEND THE MEETING ARE THEREFORE URGED TO COMPLETE AND SIGN, DATE AND RETURN THE PROXY CARD AS SOON AS POSSIBLE IN THE ENCLOSED POSTAGE-PAID ENVELOPE.</b></font></p>
<p align="center"><font size="2" face="Times New Roman PS, Times New Roman, Times"><br>13</font></p>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ANNUAL MEETING OF SHAREHOLDERS OF</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="4" face="Times New Roman" style="font-size:14.0pt;font-weight:bold;">WESTERN
ASSET MUNICIPAL HIGH</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="4" face="Times New Roman" style="font-size:14.0pt;font-weight:bold;">INCOME
FUND INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">February&nbsp;29, 2008</font></b></p>

<p style="margin:0in 0in .0001pt 262.55pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please
date, sign and mail<br>
your proxy card in the<br>
envelope provided as soon<br>
as possible.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="22%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:22.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman"><img width="9" height="27" src="g12661bii001.jpg"></font></p>
  </td>
  <td width="56%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:56.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please detach along
  perforated line and mail in the envelope provided.</font></p>
  </td>
  <td width="20%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:20.9%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman"><img width="9" height="27" src="g12661bii001.jpg"></font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.44%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman"><img width="18" height="15" src="g12661bii002.jpg"></font></p>
  </td>
  <td width="53%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:53.2%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20200000000000001000 &nbsp;5</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0in .7pt 0in .7pt;width:27.94%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">022908</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.44%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in .7pt;width:6.98%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="1" cellspacing="0" cellpadding="0" width="100%" style="border:none;border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="24" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="24" valign="top" style="border:none;padding:0in 0in 0in 0in;width:100.0%;">
  <p align="center" style="font-size:10.0pt;line-height:8.0pt;margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:6.0pt;font-weight:bold;">PLEASE SIGN, DATE AND RETURN
  PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK
  AS SHOWN HERE &nbsp;&nbsp;</font></b><b><font size="1" style="font-size:6.5pt;font-weight:bold;">&nbsp;</font></b><font face="Wingdings">x</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="24" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="16" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:50.68%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:7.0pt;font-weight:bold;">The Board of Directors recommends a vote &#147;FOR&#148;
  the following proposal:</font></b></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" colspan="7" valign="top" style="border:none;padding:0in 0in 0in 0in;width:21.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:7.0pt;">1.Election of Directors:</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:7.0pt;">2. Any other business
  that may properly come before the Meeting.</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" colspan="7" valign="top" style="border:none;padding:0in 0in 0in 0in;width:21.82%;">
  <p style="line-height:9.0pt;margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:7.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="line-height:9.0pt;margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:7.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="line-height:9.0pt;margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:7.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="line-height:9.0pt;margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:7.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="line-height:9.0pt;margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:7.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="49%" colspan="8" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="line-height:9.0pt;margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:7.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" colspan="2" rowspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-weight:bold;"><img width="23" height="22" src="g12661bii003.jpg"></font></b></p>
  </td>
  <td width="17%" colspan="5" valign="top" style="border:none;padding:0in 0in 0in 0in;width:17.48%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:7.0pt;font-weight:bold;">NOMINEES:</font></b></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="17%" colspan="5" valign="top" style="border:none;padding:0in 0in 0in 0in;width:17.48%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:7.0pt;font-weight:bold;">FOR ALL NOMINEES</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" colspan="8" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:28.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:7.0pt;"><img width="16" height="11" src="g12661bii004.jpg">&nbsp;William R. Hutchinson</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:7.0pt;">The persons named as
  proxies are authorized to vote in their discretion on any other business </font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" colspan="7" valign="top" style="border:none;padding:0in 0in 0in 0in;width:21.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" colspan="8" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:28.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:7.0pt;"><img width="16" height="11" src="g12661bii004.jpg">&nbsp;Jeswald W. Salacuse</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:7.0pt;">that may properly come
  before the Meeting.</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:4.24%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-weight:bold;"><img width="23" height="22" src="g12661bii003.jpg"></font></b></p>
  </td>
  <td width="17%" colspan="6" valign="top" style="border:none;padding:0in 0in 0in 0in;width:17.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:7.0pt;font-weight:bold;">WITHHOLD AUTHORITY<br>
  FOR ALL NOMINEES</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:7.0pt;"><br>
  </font><b><font size="1" style="font-size:8.0pt;font-weight:bold;">Please
  Complete, Sign and Date hereon and Mail in Accompanying Postpaid Envelope.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:4.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="17%" colspan="6" valign="top" style="border:none;padding:0in 0in 0in 0in;width:17.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:4.24%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-weight:bold;"><img width="23" height="22" src="g12661bii003.jpg"></font></b></p>
  </td>
  <td width="17%" colspan="6" valign="top" style="border:none;padding:0in 0in 0in 0in;width:17.6%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">FOR ALL EXCEPT</font></b></p>
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(See instructions below)</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:4.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="17%" colspan="6" valign="top" style="border:none;padding:0in 0in 0in 0in;width:17.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:4.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="17%" colspan="6" valign="top" style="border:none;padding:0in 0in 0in 0in;width:17.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:4.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="17%" colspan="6" valign="top" style="border:none;padding:0in 0in 0in 0in;width:17.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:4.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="17%" colspan="6" valign="top" style="border:none;padding:0in 0in 0in 0in;width:17.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" colspan="7" valign="top" style="border:none;padding:0in 0in 0in 0in;width:21.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" colspan="7" valign="top" style="border:none;padding:0in 0in 0in 0in;width:21.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" colspan="7" valign="top" style="border:none;padding:0in 0in 0in 0in;width:21.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="4" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" colspan="4" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.16%;">
  <p style="line-height:6.0pt;margin:0in 0in .0001pt;"><b><u><font size="1" face="Times New Roman" style="font-size:6.0pt;font-weight:bold;">INSTRUCTION:</font></u></b></p>
  </td>
  <td width="41%" colspan="12" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:41.5%;">
  <p style="line-height:6.0pt;margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:6.0pt;">To withhold
  authority to vote for any individual nominee(s), mark &#147;<b>FOR ALL
  EXCEPT</b>&#148; </font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="line-height:6.0pt;margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.16%;">
  <p style="line-height:6.0pt;margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="12" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:41.5%;">
  <p style="line-height:6.0pt;margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:6.0pt;">and fill in the
  circle next to each nominee you wish to withhold, as shown here:&nbsp;&nbsp;</font><font size="1"><img width="11" height="10" src="g12661bii005.jpg"></font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="line-height:6.0pt;margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" colspan="16" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:50.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:6.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" colspan="5" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:12.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="5" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" colspan="5" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:12.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="5" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" colspan="5" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:12.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="5" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="9%" colspan="5" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:12.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="5" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" colspan="5" rowspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.12%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Please check the box to the
  right if<br>
  you will be attending the Meeting.</font></b></p>
  </td>
  <td width="12%" colspan="3" rowspan="2" valign="top" style="border:none;padding:0in 0in 0in 0in;width:12.2%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-weight:bold;"><img width="23" height="22" src="g12661bii003.jpg"></font></b></p>
  </td>
 </tr>
 <tr>
  <td width="9%" colspan="5" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="5" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:12.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="43%" colspan="14" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:7.5pt;">To change the address on your account, please check
  the box at right and&nbsp;&nbsp; indicate your
  new address in the address space above. Please note that changes to the
  registered name(s) on the account may not be submitted via this method.</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:6.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="1" face="Times New Roman" style="font-size:7.0pt;font-weight:bold;"><img width="23" height="22" src="g12661bii003.jpg">&nbsp;&nbsp;</font></b></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="43%" colspan="14" valign="top" style="border:none;padding:0in 0in 0in 0in;width:43.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" style="border:none;padding:0in 0in 0in 0in;width:6.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="49%" colspan="8" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" colspan="6" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.74%;">
  <p style="margin:4.0pt 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Signature of Stockholder</font></p>
  </td>
  <td width="17%" colspan="3" valign="top" style="border:solid windowtext 1.0pt;border-left:none;padding:0in 0in 0in 0in;width:17.8%;">
  <p style="margin:4.0pt 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="4" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.36%;">
  <p align="center" style="margin:4.0pt 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Date:</font></p>
  </td>
  <td width="12%" colspan="5" valign="top" style="border:solid windowtext 1.0pt;border-left:none;padding:0in 0in 0in 0in;width:12.1%;">
  <p style="margin:4.0pt 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="17%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:17.02%;">
  <p align="center" style="margin:4.0pt 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Signature of
  Stockholder</font></p>
  </td>
  <td width="15%" valign="top" style="border:solid windowtext 1.0pt;border-right:none;padding:0in 0in 0in 0in;width:15.94%;">
  <p style="margin:4.0pt 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:4.68%;">
  <p align="center" style="margin:4.0pt 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Date:</font></p>
  </td>
  <td width="9%" colspan="2" valign="top" style="border:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.34%;">
  <p style="margin:4.0pt 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="15%" colspan="6" valign="top" style="border:none;padding:0in 0in 0in 0in;width:15.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:6.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:11.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="4" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" colspan="4" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="7" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" colspan="3" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:6.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:6.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Note:</b><br>
  </font><font size="1" style="font-size:4.0pt;"><br>
  </font><img width="18" height="15" src="g12661bii002.jpg">&nbsp;&nbsp;&nbsp;</p>
  </td>
  <td width="90%" colspan="20" valign="top" style="border:none;padding:0in 0in 0in 0in;width:90.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:6.0pt;">Please sign exactly as your name or names appear on
  this Proxy. When shares are held jointly, each holder should sign. When
  signing as executor, administrator, attorney, trustee or guardian, please
  give full title as such. If the signer is a corporation, please sign full
  corporate name by duly authorized officer, giving full title as such. If
  signer is a partnership, please sign in partnership name by authorized
  person.</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:3.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><br><img width="18" height="15" src="g12661bii002.jpg"></font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="32" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="17" style="border:none;"></td>
  <td width="19" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="48" style="border:none;"></td>
  <td width="46" style="border:none;"></td>
  <td width="5" style="border:none;"></td>
  <td width="83" style="border:none;"></td>
  <td width="27" style="border:none;"></td>
  <td width="6" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="21" style="border:none;"></td>
  <td width="20" style="border:none;"></td>
  <td width="4" style="border:none;"></td>
  <td width="49" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="16" style="border:none;"></td>
  <td width="127" style="border:none;"></td>
  <td width="119" style="border:none;"></td>
  <td width="14" style="border:none;"></td>
  <td width="21" style="border:none;"></td>
  <td width="47" style="border:none;"></td>
  <td width="23" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="81%" valign="top" style="padding:0in .7pt 0in .7pt;width:81.04%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:4.96%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in .7pt 0in .7pt;width:14.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman"><img width="18" height="15" src="g12661bii002.jpg"></font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WESTERN
ASSET MUNICIPAL HIGH INCOME FUND INC.</font></b></p>

<p style="margin:0in 0in .0001pt 58.1pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
OF THE FUND</font></b></p>

<p style="margin:0in 0in .0001pt 18.45pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:25.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned hereby appoints
R. Jay Gerken, Robert I. Frenkel, William J. Renahan, Todd Lebo, Grace Sinn,
Robert Nelson, Michael Kocur and Marc De Oliveira and each of them, attorneys
and proxies for the undersigned, with full power of substitution and revocation
to represent the undersigned and to vote on behalf of the undersigned all
shares of Western Asset Municipal High Income Fund Inc. (the &#147;Fund&#148;) which the
undersigned is entitled to vote at the Annual Meeting of Stockholders of the
Fund to be held at Legg Mason, 620 Eighth Avenue, 49<sup>th</sup> Floor, New
York, New York on February&nbsp;29, 2008, at 3:00&nbsp;p.m., Eastern Standard
Time and at any adjournments thereof. The undersigned hereby acknowledges
receipt of the Notice of Meeting and accompanying proxy statement and hereby
instructs said attorneys and proxies to vote said shares as indicated
hereon.&#160; In their discretion, the proxies
are authorized to vote upon such other business as may properly come before the
Meeting.&#160; A majority of the proxies
present and acting at the Meeting in person or by substitute (or, if only one
shall be so present, then that one) shall have and may exercise all of the
power and authority of said proxies hereunder.&#160;
The undersigned hereby revokes any proxy previously given.</font></p>

<p style="margin:0in 0in .0001pt 1.5pt;text-autospace:none;text-indent:26.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">This proxy, if properly executed,
will be voted in the manner directed by&#160;
the stockholder. If no direction is made, this proxy will be voted FOR
the election of the nominees as director.</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 96.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please refer to the proxy
statement for a discussion of the Proposal.</font></p>

<p style="margin:0in 0in .0001pt 96.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 130.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(Continued
and to be signed on the reverse side.)</font></b></p>

<p style="margin:0in 0in .0001pt 130.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="67%" valign="top" style="padding:0in 0in 0in 0in;width:67.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman"><img width="21" height="17" src="g12661bii006.jpg"></font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in 0in 0in 0in;width:6.58%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.36%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14475&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.34%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman"><img width="21" height="17" src="g12661bii006.jpg"></font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 130.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\mrafiq\08-1266-1\task2669351\1266-1-bi.htm',USER='105345',CD='Feb  6 23:15 2008' -->


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-----END PRIVACY-ENHANCED MESSAGE-----
