Citigroup Closed-End Funds Issue Statement

Citigroup Closed-End Funds Issue Statement 


NEW YORK, Oct. 25  /PRNewswire-FirstCall/ -- The following Citigroup closed-end
funds -- Citigroup Investments Corporate Loan Fund Inc., High Income
Opportunity Fund Inc., Intermediate Muni Fund, Inc., Managed High Income
Portfolio Inc., Managed Municipals Portfolio Inc., Municipal High Income Fund
Inc., Real Estate Income Fund Inc., Zenix Income Fund Inc., Salomon Brothers
Capital and Income Fund Inc., Salomon Brothers Emerging Markets Debt Fund Inc.,
Salomon Brothers Emerging Markets Floating Rate Fund Inc., Salomon Brothers
Emerging Markets Income Fund Inc., Salomon Brothers Emerging Markets Income
Fund II Inc., Salomon Brothers Global High Income Fund Inc., Salomon Brothers
Global Partners Income Fund Inc., Salomon Brothers Inflation Management Fund
Inc., Salomon Brothers Municipal Partners Fund Inc., Salomon Brothers Municipal
Partners Fund II Inc., The Salomon Brothers Fund Inc., Salomon Brothers High
Income Fund Inc., Salomon Brothers High Income Fund II Inc., Salomon Brothers
2008 Worldwide Dollar Government Term Trust Inc., and Salomon Brothers
Worldwide Income Fund Inc. -- today issued the following statement:

In connection with an investigation previously disclosed by Citigroup, the
Staff of the Securities and Exchange Commission (SEC) has notified Citigroup
Asset Management (CAM), the Citigroup business unit that includes the funds'
investment manager and other investment advisory companies; Citicorp Trust Bank
(CTB), an affiliate of CAM; Thomas W. Jones, the former CEO of CAM; and two
other individuals, one of whom is an employee and the other of whom is a former
employee of CAM, that the SEC Staff is considering recommending a civil
injunctive action and/or an administrative proceeding against each of them
relating to the creation and operation of an internal transfer agent unit to
serve various CAM-managed funds.

In 1999, CTB entered the transfer agent business.  CTB hired an unaffiliated
subcontractor to perform some of the transfer agent services. The
subcontractor, in exchange, had signed a separate agreement with CAM in 1998
that guaranteed investment management revenue to CAM and investment banking
revenue to a CAM affiliate.  The subcontractor's business was later taken over
by PFPC, and at that time the revenue guarantee was eliminated and a one-time
payment was made by the subcontractor to a CAM affiliate.

CAM did not disclose the revenue guarantee when the board of various CAM-
managed funds hired CTB as transfer agent.  Nor did CAM disclose to the boards
of the CAM-managed funds the one-time payment received by the subcontractor
when it was made.

In addition, the SEC Staff has indicated that it is considering action based on
the adequacy of the disclosures made to the fund boards that approved the
transfer agency arrangement, CAM's initiation and operation of and compensation
for the transfer agent business and CAM's retention of, and agreements with,
the unaffiliated sub-transfer agent.

Citigroup is cooperating fully in the investigation and will seek to resolve
the matter in discussions with the SEC Staff.  Although there can be no
assurance, Citigroup does not believe that this matter will have a material
adverse effect on the funds whose symbols are listed below.  As previously
disclosed, CAM has already agreed to pay the applicable funds, primarily
through fee waivers, a total of approximately $17 million (plus interest) that
is the amount of the revenue received by Citigroup relating to the revenue
guarantee.

The funds did not implement the contractual arrangement described above and
therefore will not receive any portion of such payment.

Symbols: EDF, EFL, EHI, EMD, ESD, HIF, HIO, HIX, GDF, IMF, MHF, MHY, MMU, MNP,
MPT, RIT, SBF, SBG, SBI, SBW, SCD, TLI, ZIF 

DATASOURCE: Citigroup Asset Management



CONTACT:  Brenda Grandell, Director, Closed-End Funds, [phone],

or Edward Giltenan, Head of Public Relations, [phone], both of

Citigroup Asset Management

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