LMP Capital and Income Fund Inc. as of December 31, 2010

LMP Capital and Income Fund Inc. (NYSE: SCD) announces its portfolio composition as of December 31, 2010.

Investment Objective: The Fund’s Investment objective is total return with an emphasis on income.

Portfolio Composition1:

Asset Allocation

Equities

83.9%

Investment Grade Corporate Bonds

8.9%

Mortgage-Backed Securities

4.0%

Government

2.3%

Cash & Other Securities

0.9%

Equity Sector Allocation2

        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Financials
        
        
        
        
        
        
        
        
        
        
          14.2%
        
      
      
        
          Utilities
        
        
        
        
        
        
        
        
        
        
          10.8%
        
      
      
        
          Consumer Staples
        
        
        
        
        
        
        
        
        
        
          10.3%
        
      
      
        
          Energy
        
        
        
        
        
        
        
        
        
        
          9.9%
        
      
      
        
          Industrials
        
        
        
        
        
        
        
        
        
        
          9.6%
        
      
      
        
          Telecommunication Services
        
        
        
        
        
        
        
        
        
        
          7.2%
        
      
      
        
          Consumer Discretionary
        
        
        
        
        
        
        
        
        
        
          6.6%
        
      
      
        
          Health Care
        
        
        
        
        
        
        
        
        
        
          5.6%
        
      
      
        
          Information Technology
        
        
        
        
        
        
        
        
        
        
          5.1%
        
      
      
        
          Materials
        
        
        
        
        
        
        
        
        
        
          3.3%
        
      
      
        
          Other
        
        
        
        
        
        
        
        
        
        
          0.1%
        
      
      
        
           
        
      
      
        
          

Top Ten Equity Holdings2

        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Verizon Communications Inc.
        
        
        
        
        
        
        
        
        
        
          3.1%
        
      
      
        
          Spectra Energy Corp.
        
        
        
        
        
        
        
        
        
        
          3.0%
        
      
      
        
          H.J. Heinz Co.
        
        
        
        
        
        
        
        
        
        
          3.0%
        
      
      
        
          Procter & Gamble Co.
        
        
        
        
        
        
        
        
        
        
          2.9%
        
      
      
        
          NextEra Energy Inc.
        
        
        
        
        
        
        
        
        
        
          2.7%
        
      
      
        
          Total SA
        
        
        
        
        
        
        
        
        
        
          2.6%
        
      
      
        
          Johnson & Johnson
        
        
        
        
        
        
        
        
        
        
          2.6%
        
      
      
        
          Annaly Capital Management Inc.
        
        
        
        
        
        
        
        
        
        
          2.6%
        
      
      
        
          Kimberly-Clark Corp.
        
        
        
        
        
        
        
        
        
        
          2.6%
        
      
      
        
          Waste Management Inc.
        
        
        
        
        
        
        
        
        
        
          2.5%
        
      
      
        
           
        
      
      
        
          

Fixed Income Credit Quality Allocation3, 4

        
        
        
        
        
        
        
        
        
        
        
      
      
        
          AAA
        
        
        
        
        
        
        
        
        
        
          62.5%
        
      
      
        
          AA
        
        
        
        
        
        
        
        
        
        
          5.0%
        
      
      
        
          A
        
        
        
        
        
        
        
        
        
        
          10.5%
        
      
      
        
          BBB
        
        
        
        
        
        
        
        
        
        
          7.3%
        
      
      
        
          B
        
        
        
        
        
        
        
        
        
        
          7.3%
        
      
      
        
          CCC
        
        
        
        
        
        
        
        
        
        
          13.0%
        
      
      
        
          CC
        
        
        
        
        
        
        
        
        
        
          0.8%
        
      
      
        
          C
        
        
        
        
        
        
        
        
        
        
          0.9%
        
      
      
        
          NR
        
        
        
        
        
        
        
        
        
        
          -7.2%
        
      
      
        
           
        
      
      
        
          

Fixed Income – Statistics4

Average Life (years)

        
        
        
        
        
        
        
        
        
        
          7.8
        
      
      
        
          

Effective Duration (years)

        
        
        
        
        
        
        
        
        
        
          5.2
        
      
      
        
          

Average Coupon (%)

        
        
        
        
        
        
        
        
        
        
          4.2
        
      
      
        
           
        
      
      
        
          

Portfolio Statistics:

Inception Date

        
        
        
        
        
        
        
        
        
        
          February 24, 2004
        
      
      
        
          

Inception Price

        
        
        
        
        
        
        
        
        
        
          $20.00
        
      
      
        
          

Total Assets5

        
        
        
        
        
        
        
        
        
        
          $518,635,158
        
      
      
        
          

Net Assets

        
        
        
        
        
        
        
        
        
        
          $418,635,158
        
      
      
        
          

Loans2

        
        
        
        
        
        
        
        
        
        
          19.28%
        
      
      
        
          

Preferred Shares2

        
        
        
        
        
        
        
        
        
        
          0.00%
        
      
      
        
          

Reverse Repos2

        
        
        
        
        
        
        
        
        
        
          0.00%
        
      
      
        
           
        
      
      
        
          

Market Price

        
        
        
        
        
        
        
        
        
        
          $12.45
        
      
      
        
          

NAV

        
        
        
        
        
        
        
        
        
        
          $13.70
        
      
      
        
          

(Daily NAV is available on market quotation systems using the symbol XSCDX.)

Distribution Rate6

        
        
        
        
        
        
        
        
        
        
          $0.1500 per share
        
      
      
        
          

Frequency

        
        
        
        
        
        
        
        
        
        
          Quarterly
        
      
    
    
      
        
          1
        
        
           
        
        
          Portfolio holdings and weightings are historical and are presented 
          here for informational purposes only. They are subject to change at 
          any time. Negative allocations and allocations in excess of 100% are 
          primarily due to the Fund's unsettled trade activity.
        
      
      
        
        
        
        
        
           
        
      
      
        
          2
        
        
        
        
          Percentage based on the total portfolio.
        
      
      
        
        
        
        
        
           
        
      
      
        
          3
        
        
        
        
          

Credit quality is a measure of a bond issuer's ability to repay interest and principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by Standard and Poor's, Moody's Investors Service and/or Fitch Ratings, Ltd. For this purpose, if two or more of the agencies have assigned differing ratings to a security, the highest rating is used. Securities that are unrated by all three agencies are reflected as such. The credit quality of the investments in the Fund's portfolio does not apply to the stability or safety of the Fund. These ratings are updated monthly and may change over time. Please note, the Fund itself has not been rated by an independent rating agency.

        
      
      
        
           
        
      
      
        
          4
        
        
        
        
          Percentage based on the portion of the portfolio managed by Western 
          Asset.
        
      
      
        
        
        
        
        
           
        
      
      
        
          5
        
        
        
        
          The difference between total assets and net assets, if any, is due 
          primarily to the Fund’s use of borrowings; net assets do not include 
          borrowings. The Fund may employ leverage in the form of loans, 
          preferred stock, reverse repurchase agreements and/or other 
          instruments. When the Fund engages in transactions that have a 
          leveraging effect on the Fund’s portfolio, the value of the Fund 
          will be more volatile and all other risks will tend to be compounded.
        
      
      
        
        
        
        
        
           
        
      
      
        
          6
        
        
        
        
          Pursuant to its managed distribution policy, the Fund intends to 
          make regular quarterly distributions to shareholders of its common 
          stock at a fixed rate per common share, which may be adjusted from 
          time to time by the Fund's Board of Directors. Under the Fund's 
          managed distribution policy, if, for any distribution, the total of 
          net investment income and net realized capital gain is less than the 
          amount of the distribution, the difference will be distributed from 
          the Fund's assets (and will constitute a "return of capital"). The 
          Board of Directors may terminate the managed distribution policy at 
          any time, including when certain events would make part of any 
          return of capital taxable to shareholders. Any such termination 
          could have an adverse effect on the market price for the Fund's 
          shares.
        
      
    
    

LMP Capital and Income Fund Inc., a non-diversified closed-end investment management company traded on the New York Stock Exchange under the symbol “SCD,” is advised by Legg Mason Partners Fund Advisor, LLC, a wholly owned subsidiary of Legg Mason, Inc. and is sub-advised by ClearBridge Advisors, LLC and Western Asset Management Company, affiliates of the advisor.

An investment in the Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Fixed income securities are subject to credit risk, inflation risk, call risk, and interest rate risks. As interest rates rise, bond prices fall, reducing the value of the Fund's share price.

Data and commentary provided in this press release are for informational purposes only. Legg Mason and its affiliates do not engage in selling shares of the Fund.

For more information, please call Fund Investor Relations at 888-777-0102, or consult the Fund’s web site at www.leggmason.com/cef.

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