Investment Grade Municipal Income Fund Inc. - Dividend Declaration and Portfolio Statistics

Investment Grade Municipal Income Fund Inc. (NYSE: PPM), a closed-end management investment company normally investing substantially all of its assets in a diversified portfolio of tax-exempt municipal obligations, with common and preferred shares outstanding, today announced that the Fund's Board of Directors has declared a dividend from net investment income of $0.0625 per share of common stock. The distribution is payable on April 29, 2005 to common shareholders of record as of April 21, 2005. The ex-dividend date is April 19, 2005. Under normal circumstances, the Fund invests at least 80% of its net assets in investment grade municipal obligations, the income from which is exempt from regular federal income tax. -0- Portfolio Statistics (% of total portfolio assets) as of March 31, 2005: Top Ten Top Five Sectors States/Commonwealths --------------------------------------- ---------------------------- Power 21.2% California 19.8% Hospital 10.9 Texas 10.4 Lease 10.7 New York 9.9 Water 8.9 North Carolina 5.8 University 7.9 Indiana 5.6 --------------------------------------- Puerto Rico 5.3 Total 59.6% Kentucky 4.3 Ohio 4.0 Characteristics New Jersey 3.9 --------------------------------------- Massachusetts 3.8 Net Asset Value $15.50 ---------------------------- Market Price $13.17 Total 72.8% April 2005 dividend (per common share) $0.0625 Leverage** 40.62% Credit Quality Weighted Average Maturity 11.49 yrs ---------------------------- Weighted Average Duration 4.34 yrs AAA/Aaa 40.3% Weighted Average Coupon 5.10% AA/Aa 19.1 --------------------------------------- A/A 10.5 BBB/Baa 10.9 SP1/MIG1 11.1 Price to Date Maturity/Call Non-Rated 8.1 Distribution ---------------------------- --------------------------------------- Total 100.0% 2005 11.1% 2006 0.7 2007 0.0 2008 3.8 Yields(*) 2009-2015 25.9 ---------------------------- 2016-2034 58.5 NAV Yield 4.84% --------------------------------------- Market Yield 5.69% Total 100.0% * NAV yield is calculated by multiplying the current month's net investment income dividend by 12 and dividing by the month-end net asset value. Market yield is calculated by multiplying the current month's net investment income dividend by 12 and dividing by the month-end market price. Prices and yields will vary. The Fund is actively managed and its portfolio composition will vary over time. ** As a percentage of total assets. Leverage may vary.