Investment Grade Municipal Income Fund Inc. ("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 its performance for the fourth quarter and fiscal year ended September 30, 2004. 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.

For the fourth quarter ended September 30, 2004, the Fund's earnings from net investment income were $2,430,748, equal to $0.23 per common share. After dividends paid to preferred shareholders, the Fund's earnings from net investment income available to common shareholders were $2,109,199, equal to $0.20 per common share. Total net realized and unrealized gains from investment transactions were $6,458,708, equal to $0.62 per common share, for the same period. This compares to earnings from net investment income of $2,196,616, equal to $0.21 per common share before dividends paid to preferred shareholders; $2,023,714, equal to $0.20 per common share after dividends paid to preferred shareholders; and total net realized and unrealized losses from investment transactions of ($1,903,358), equal to ($0.18) per common share, for the fourth quarter ended September 30, 2003.

For the fiscal year ended September 30, 2004, the Fund's earnings from net investment income were $9,641,849, equal to $0.93 per common share. After dividends paid to preferred shareholders, the Fund's earnings from net investment income available to common shareholders were $8,778,031, equal to $0.85 per common share. Total net realized and unrealized gains from investment transactions were $1,572,984, equal to $0.14 per common share before distributions paid from net realized gains to common and preferred shareholders. After distributions paid from net realized gains to common and preferred shareholders, total net realized and unrealized losses were ($3,861,898), equal to ($0.38) per common share. This compares to earnings from net investment income of $9,881,410, equal to $0.95 per common share before dividends paid to preferred shareholders; $9,138,667, equal to $0.88 per common share after dividends paid to preferred shareholders; total net realized and unrealized gains from investment transactions of $1,334,232, equal to $0.13 per common share before distributions paid from net realized gains to common and preferred shareholders; and ($762,679), equal to ($0.07) per common share after distributions paid from net realized gains to common and preferred shareholders, for the year ended September 30, 2003.

On September 30, 2004, total net assets of the Fund were $273,737,024. Net assets attributable to common shareholders were $163,737,024. The net asset value per common share was $15.81, based on 10,356,667 common shares outstanding, which represents a decrease of 3.07% from the net asset value per common share of $16.31, ($168,887,747 attributable to 10,356,667 common shares outstanding) on September 30, 2003.