PPM Investment Grade Municipal Income Fund

Investment Grade Municipal Income Fund Inc. (the "Fund") (NYSE: PPM) today announced that it will hold a special meeting of shareholders solely for the purpose of considering a proposal to liquidate and dissolve the Fund (the “Liquidation Proposal”) in lieu of the previously announced annual meeting (the “2010 Annual Meeting”).

The Fund has received indications that Western Investment LLC (“Western”) and Karpus Investment Management (“Karpus”) each would be willing to support the Liquidation Proposal, subject to their review of the proxy materials to be issued for the special meeting. Western and Karpus each owns a substantial percentage of the Fund’s common stock.

The Fund’s Board of Directors (the “Board”) determined to cancel the previously scheduled 2010 Annual Meeting, and schedule the special meeting, after Western and Karpus each indicated support for the Liquidation Proposal and a desire to proceed to a special meeting solely for the purpose of considering the Liquidation Proposal. The Board believes that it would be in the best interests of the Fund and all of its shareholders to hold a special meeting solely to consider the Liquidation Proposal, in order to attempt to prevent a possibly lengthy and costly confrontation with Western and/or Karpus, each of which had submitted their own proposals to be considered at the 2010 Annual Meeting. Proceeding in this manner should help avoid a contested meeting, which could result in an expensive “proxy battle.” A contested meeting would make it more difficult and expensive for the Fund and its proxy solicitor to solicit votes on the Liquidation Proposal, which already was on the agenda for the 2010 Annual Meeting. The Fund’s 2009 Annual Meeting had been contested.

The Fund had previously scheduled its 2010 Annual Meeting for February 11, 2010 for the purpose of considering: (1) the election of directors; (2) the Liquidation Proposal; (3) a proposal from Karpus that the Fund conduct a tender offer for all of its outstanding shares; and (4) a proposal from Western recommending that the Fund’s board be prohibited from retaining UBS Global Asset Management (Americas) Inc. and certain other entities as investment manager for the Fund. The Fund also had received notice of Western’s intent to nominate its own slate of individuals for election to the Fund’s Board at the 2010 Annual Meeting.

If the Liquidation Proposal is approved, the Fund does not intend to hold an annual meeting later in 2010, but instead management will proceed to liquidate and dissolve the Fund. If the Liquidation Proposal is not approved, the Fund will call an annual meeting for 2010, and Western and Karpus have each informed the Fund that they intend to have each of their shareholder proposals considered at that time.

The special meeting is scheduled to be held on February 23, 2010. The Fund has set Tuesday, December 29, 2009, as the record date for determination of the shareholders entitled to vote at the special meeting and any adjournment or postponement thereof.

Further information regarding the Liquidation Proposal will be included in the Fund’s proxy materials for the special meeting which are expected to be mailed to all shareholders shortly after the record date.

Investment Grade Municipal Income Fund (NYSE:PPM)
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