Insured Municipal Income Fund Inc. ("Fund") (NYSE:PIF), 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 its performance for the second quarter and fiscal year-to-date ended September 30, 2004. Under normal circumstances, the Fund invests at least 80% of its net assets in insured municipal obligations, the income from which is exempt from regular federal income tax.

For the second quarter ended September 30, 2004, the Fund's earnings from net investment income were $4,208,713, equal to $0.20 per common share. After dividends paid to preferred shareholders, the Fund's earnings from net investment income available to common shareholders were $3,595,803, equal to $0.17 per common share. Total net realized and unrealized gains from investment transactions were $11,362,064, equal to $0.55 per common share, for the same period. This compares to earnings from net investment income of $4,341,473, equal to $0.21 per common share before dividends paid to preferred shareholders; $4,019,845, equal to $0.19 per common share after dividends paid to preferred shareholders; and total net realized and unrealized losses from investment transactions of ($4,973,084), equal to ($0.24) per common share, for the second quarter ended September 30, 2003.

For the six months ended September 30, 2004, the Fund's earnings from net investment income were $8,248,334, equal to $0.40 per common share. After dividends paid to preferred shareholders, the Fund's earnings from net investment income available to common shareholders were $7,080,994, equal to $0.34 per common share. Total net realized and unrealized losses from investment transactions were ($1,864,239), equal to ($0.08) per common share, for the same period. This compares to earnings from net investment income of $8,854,391, equal to $0.43 per common share before dividends paid to preferred shareholders; $8,126,886, equal to $0.39 per common share after dividends paid to preferred shareholders; and total net realized and unrealized losses from investment transactions of ($1,439,003), equal to ($0.07) per common share, for the six months ended September 30, 2003.

On September 30, 2004, total net assets of the Fund were $524,740,076. Net assets applicable to common shareholders were $314,740,076. The net asset value per common share was $15.26, based on 20,628,363 common shares outstanding, which represents a decrease of 2.55% from the net asset value per common share of $15.66, ($323,084,088 applicable to 20,628,363 common shares outstanding) on September 30, 2003.