Investment Grade Municipal Income Fund Inc. and Insured Municipal Income Fund Inc. Announce Board Approval to Partially Redeem Auction Preferred Shares

The Boards of Directors of Insured Municipal Income Fund Inc. (NYSE: PIF) and Investment Grade Municipal Income Fund Inc. (NYSE: PPM) (the "Funds”), each a registered closed-end management investment company, have approved the partial redemption of each Fund’s auction preferred shares (APS).

In total, the Boards approved the redemption of $15 million (300 shares) of Insured Municipal Income Fund Inc.’s APS and $10 million (200 shares) of Investment Grade Municipal Income Fund Inc.’s APS, which represent approximately 8.8% and 11.1%, respectively, of the Funds’ total outstanding APS. These partial redemptions will have the effect of decreasing the level of each Fund’s leverage.

Redemptions will be allocated pro rata within the various series of the APS for each Fund. The Depository Trust Company (DTC), the APS holder of record, will determine by a random lottery process how a partial redemption will be allocated among each participant broker-dealer. Each participant broker-dealer will then determine how to allocate redemptions among the relevant APS holders in its account. The Funds have been informed that under the pronouncements and recommendations made by the New York Stock Exchange and Financial Industry Regulatory Authority, UBS proprietary accounts held at UBS Financial Services Inc. will not receive any partial redemption unless all UBS client accounts are redeemed. Additionally, the Funds have been informed that for UBS proprietary positions not held at UBS Financial Services Inc., UBS Investment Bank will transfer the benefit of any redemption it might be allocated to clients of UBS Financial Services Inc. first.

The partial redemption of APS is subject to certain notice requirements. The necessary amounts to cover the partial redemption have been deposited with the auction agent today. As a result, the APS that are being redeemed will cease to accumulate dividends as of today. The APS will be redeemed on a redemption payment date that is two business days before the next dividend payment date for each series of the APS based on the following schedule:

We recognize shareholders’ concerns regarding the ongoing issues relating to the failed APS auctions. While the partial redemption of APS will provide a partial solution towards restoring liquidity, each Fund’s Board and UBS Global Asset Management (Americas) Inc. (the "Investment Adviser”), will continue to evaluate other alternatives that may be in the best interest of the Funds.

FORWARD LOOKING STATEMENTS

Certain statements made above may be forward-looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. The Investment Adviser and the Funds, and their affiliates, undertake no responsibility to update publicly or revise any forward-looking statements. The inclusion of any statement in this release does not constitute an admission that the events or circumstances described in such statement are material.