PPM Investment Grade Municipal Income Fund

Investment Grade Municipal Income Fund Inc. (the “Fund”) (NYSE:PPM), a closed-end management investment company normally investing substantially all of its assets in a diversified portfolio of tax-exempt municipal obligations, with common and preferred shares outstanding, today announced that the Fund’s Board of Directors has declared a dividend from net investment income of $0.0725 per share of common stock. The dividend is payable on February 26, 2010 to common shareholders of record as of February 18, 2010. The ex-dividend date is February 16, 2010. Under normal circumstances, the Fund invests at least 80% of its net assets in investment grade municipal obligations, the income from which is exempt from regular federal income tax.

Fund Commentary for the month of January 2010 from UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the Fund’s investment advisor:

The Barclays Capital Municipal Bond Index (the “Index”) generated a 0.52% return in January, underperforming US Treasuries during the month. During this time, the lowest quality investment grade bonds outperformed all others, as BBB rated securities outperformed AAA, AA and A rated securities.

The Fund outperformed the Index (after factoring in the monthly dividend), with an overweight to intermediate maturity securities—which was the strongest performing segment of the yield curve—the largest driver of performance. Shorter-term securities fared less well, and our underweight to this area of the curve also generated positive results for the Fund. The Fund’s neutral weight to longer term securities benefited performance somewhat.

From a credit quality perspective, the Fund's significant underweight to AAA rated securities (versus the Index) generated positive performance during the month. With respect to sectors, a significant overweight to hospital bonds continued to benefit Fund performance, while an overweight to municipal leases was slightly negative. The Fund’s use of leverage continued to benefit results in January.

Disclaimers Regarding Fund Commentary - The Fund Commentary is intended to assist shareholders in understanding how the Fund performed during the month noted. Views and opinions were current as of the date of this press release. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the Fund and UBS Global AM reserve the right to change views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund’s future investment intent.

Characteristics as of January 31, 2010*

Net asset value per common share   $14.55 Market price per common share   $14.19

NAV yield

  5.98% Market yield   6.13%  

* Net asset value (NAV), market price and yields will fluctuate. NAV yield is calculated by multiplying the current month’s dividend by 12 and dividing by the month-end net asset value. Market yield is calculated by multiplying the current month’s dividend by 12 and dividing by the month-end market price.