Insured Municipal Income Fund Inc. Announces Recent Developments

Insured Municipal Income Fund, Inc. (NYSE: PIF) (the “Fund”) today announced that the Fund’s Board of Directors (the “Board”) has approved and will seek the approval of shareholders at a special meeting of shareholders anticipated to be held in November 2009 of the following matters: (i) to change the Fund’s fundamental investment objective from one of achieving a high level of current income that is exempt from federal income tax, consistent with the preservation of capital to one of providing total return; (ii) to change the investment policy of the Fund to permit, without limitation, investments in private and publicly issued U.S. and foreign listed securities of any kind including closed-end investment companies; and (iii) to have the Fund enter into an advisory agreement with Brooklyn Capital Management, LLC (the “Adviser”). The Adviser is a newly-formed limited liability company that is registered with the U.S. Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940 and is owned by Andrew Dakos, Phillip Goldstein and Steven Samuels. Messrs. Dakos and Goldstein were elected to the Fund’s Board on August 12, 2009 and, if the shareholders approve the new advisory agreement, will become “interested” directors, as defined under the Investment Company Act of 1940. Rajeev Das, who was also elected as a Director on August 12, 2009, is expected to be the senior portfolio manager for the Adviser, in which case he will also become an interested director.

The Board also announced that James Chadwick and Ben Harris have been appointed to the Board to serve as non-interested directors, effective September 1, 2009. The Fund’s shareholders will also be asked to elect Messrs. Chadwick and Harris at the special meeting of shareholders.

The Board also approved a change in the name of the Fund to “Special Opportunities Fund, Inc.,” subject to shareholder approval of the aforementioned proposals.

The Board also announced that the Fund intends to redeem all of the Fund’s preferred shares and Tender Option Bonds in due course and that it expects that a tender offer for the Fund’s common stock will commence prior to December 31, 2009. In order to fund the anticipated tender offer, the Board has directed UBS Global Asset Management (Americas) Inc., the Fund’s current investment adviser, to commence an orderly liquidation of the Fund’s portfolio securities.

It is anticipated that the Fund will mail a proxy statement to its shareholders on or about October 19, 2009.