Managed High Yield Plus Fund Inc.— Dividend Declaration, Fund Commentary, and Updated Price and Yield Information

Managed High Yield Plus Fund Inc. (the "Fund") (NYSE:HYF), a closed-end management investment company, today announced that the Fund’s Board of Directors has declared a dividend from net investment income of $0.0180 per share. The dividend is payable on May 29, 2009 to shareholders of record as of May 21, 2009. The ex-dividend date is May 19, 2009. Managed High Yield Plus Fund Inc. seeks high income and, secondarily, capital appreciation, primarily through investments in lower-rated, income producing debt and related equity securities.

Fund Commentary for the month of April 2009 from UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the Fund’s investment advisor:

The US high yield market rallied significantly in April, gaining 11.09% during the month, as measured by the Merrill Lynch US High Yield Cash Pay Constrained Index, the “Index”. This represents the best single month return since the Index, which is also the Fund’s benchmark, was developed. The Index ended the month with a spread over Treasury securities of 1367 basis points (i.e., 13.67%), which was 288 basis points (i.e., 2.88%) tighter than it had been at the end of March. (Spread is the difference between the yield paid on US Treasury bonds and higher-risk securities.) As was the case in recent months, the high yield market’s performance exhibited a correlation to that of the equity market. Since reaching a low on March 9, 2009, the equity market has returned 19.04%, as measured by the S&P 500 Index.

In April, the Fund benefited from an overweight to the Gaming sector, which rebounded after lagging in the first quarter of 2009. The Fund's positions in large issues with a higher degree of liquidity, as well as lower-priced bonds, also added to performance as the prices of these bonds were bid up following an influx of cash into the high yield market. In addition, the Fund’s use of leverage contributed positively to results, magnifying the impact of the strong security performance.

We recognize that there has been recent spread tightening, but we continue to believe that it is not fully reflective of the headwinds the high yield market faces from a weak global economy. In light of this, we plan to continue to position the Fund relatively defensively until we see evidence of an improving earnings outlook and a deceleration in the decline of asset prices.

Disclaimers Regarding Fund Commentary - The Fund Commentary is intended to assist shareholders in understanding how the Fund performed during the month noted. Views and opinions were current as of the date of this press release. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the Fund and UBS Global AM reserve the right to change views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund’s future investment intent.

Characteristics as of April 30, 2009:*

    
      
        
          Net Asset Value per share
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          $1.53
        
      
      
        
          Market Price per share
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          $1.30
        
      
      
        
          NAV Yield
        
        
        
        
        
        
        
        
        
        
          14.12%
        
      
      
        
          Market Yield
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          16.62%
        
      
    
    

* Net asset value (NAV), market price and yields will fluctuate. NAV yield is calculated by multiplying the current month’s dividend by 12 and dividing by the month-end net asset value. Market yield is calculated by multiplying the current month’s dividend by 12 and dividing by the month-end market price.