Intermediate Muni Fund Inc. Issues Statement

Intermediate Muni Fund Inc. Issues Statement 


NEW YORK, Dec. 1  /PRNewswire-FirstCall/ -- Intermediate Muni Fund Inc., which
is traded on the American Stock Exchange under the symbol "SBI," issued today
the following statement:

The Fund has received the following information from Citigroup Asset Management
("CAM"), the Citigroup business unit which includes the Fund's Investment
Manager and other investment advisory companies, all of which are indirect,
wholly-owned subsidiaries of Citigroup.  CAM is reviewing its entry, through an
affiliate, into the transfer agent business in the period 1997-1999.  As CAM
currently understands the facts, at the time CAM decided to enter the transfer
agent business, CAM sub-contracted for a period of five years certain of the
transfer agency services to a third party and also concluded a revenue guarantee
agreement with this sub-contractor providing that the sub-contractor would
guarantee certain benefits to CAM or its affiliates (the "Revenue Guarantee
Agreement").  In connection with the subsequent purchase of the sub-contractor's
business by an affiliate of the current sub-transfer agent (PFPC Inc.) used by
CAM on many of the funds it manages, this Revenue Guarantee Agreement was
amended eliminating those benefits in exchange for arrangements that included a
one-time payment from the sub-contractor.

The Boards of CAM-managed funds (the "Boards") were not informed of the Revenue
Guarantee Agreement with the sub-contractor at the time the Boards considered
and approved the transfer agent arrangements. Nor were the Boards informed of
the subsequent amendment to the Revenue Guarantee Agreement when that occurred.

CAM has begun to take corrective actions.  CAM will pay to the applicable funds
$16 million (plus interest) that CAM and its affiliates received from the
Revenue Guarantee Agreement and its amendment.  CAM also plans an independent
review to verify that the transfer agency fees charged by CAM were fairly priced
as compared to competitive alternatives. CAM is instituting new procedures and
making changes designed to ensure no similar arrangements are entered into in
the future.

CAM has briefed the SEC, the New York State Attorney General and other
regulators with respect to this matter, as well as the U.S. Attorney who is
investigating the matter.  CAM is cooperating with governmental authorities on
this matter.

The Fund's transfer agent is PFPC Inc., which is not affiliated with CAM.

Intermediate Muni Fund Inc., a diversified investment management company, is
managed by Smith Barney Fund Management LLC, an indirect wholly owned subsidiary
of Citigroup Inc. 

DATASOURCE: Intermediate Muni Fund Inc.



CONTACT:  Brenda Grandell, Director, Closed-End Funds of Citigroup Asset

Management, [phone], or Investor Relations, 1-888-735-6507

Copyright