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 June 30, 2009 to shareholders of record as of June 25, 2009. The ex-dividend date is June 23, 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 May 2009 from UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the Fund’s investment advisor:

The market for US dollar-denominated high yield securities rallied during May, gaining 6.96% during the month, as measured by the Merrill Lynch US High Yield Cash Pay Constrained Index, the “Index.” This continued the rally which began in mid-March, with the market drawing strength from the US banking “stress test” results – which investors interpreted as an indication that the worst of the financial crisis may be over.

The Index ended the month with a spread over Treasury securities of 1153 basis points (i.e., 11.53%), which represented a tightening of 214 basis points (i.e., 2.14 %) for the month. (Spread is the difference between the yield paid on US Treasury bonds and higher-risk securities.) The rally was broad-based, with all sectors of the high yield market providing positive returns, with the exception of the Cable Television sector. CCC rated issues performed strongly, leading the way with a 13.3% return, while B and BB rated issues returned 6.3% and 4.9%, respectively, as measured by the Index.

In May, the Fund outperformed the Index due largely to an overweight to CCC rated issues as well as an overweight to the Gaming sector, both of which outperformed. In addition, the Fund’s use of leverage contributed positively to results, magnifying the impact of the market’s strong performance during the month.

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 maintain our current overall risk positioning, and anticipate only increasing risk when 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 May 31, 2009:*

    
      
        
          Net Asset Value per share
        
        
           
        
        
          $1.70
        
      
      
        
          Market Price per share
        
        
           
        
        
          $1.52
        
      
      
        
          NAV Yield
        
        
        
        
          12.71%
        
      
      
        
          Market Yield
        
        
           
        
        
          14.21%
        
      
    
    

* 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.