Board of Managed High Yield Plus Fund Inc. Appoints UBS Asset Management As Sub-Adviser; Declares Monthly Dividend.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 10, 2000

Managed High Yield Plus Fund Inc. ("Fund") (NYSE: HYF), a diversified closed-end investment company, announced that its Board of Directors has approved the appointment of UBS Asset Management (New York), Inc. ("UBS Asset Management NY") to serve as sub-adviser for the Fund's assets in connection with new investment management arrangements for the Fund.

Effective today, the Fund entered into a new interim management and administration contract with Mitchell Hutchins Asset Management Inc. ("Mitchell Hutchins"), and Mitchell Hutchins and UBS Asset Management NY entered into an interim sub-advisory contract under which UBS Asset Management NY will manage the Fund's assets subject to supervision and monitoring by Mitchell Hutchins. Under the interim management contract, the Fund will pay Mitchell Hutchins a fee at the annual rate of 0.70% of the Fund's average weekly total assets minus liabilities other than the aggregate indebtedness constituting leverage. That fee is identical to the fee payable by the Fund under its contract with Mitchell Hutchins that was in effect until today. Mitchell Hutchins (not the Fund) will pay a sub-advisory fee to UBS Asset Management NY under the interim sub-advisory contract.

UBS Asset Management NY is a part of the institutional asset management business of UBS AG known as UBS Asset Management. UBS Asset Management is a leading global investment management firm which worldwide has over $330 billion in assets under management and extensive experience in the high yield sector. The U.S. High Yield Team at UBS Asset Management NY, which assumes day-to-day portfolio management of the Fund effective today, is comprised of nine investment professionals headed by Marianne Rossi, CFA. Ms. Rossi is an Executive Director of UBS Asset Management and has 17 years of investment experience, with the last 12 years focused on the high yield market. Brian Storms, President and Chief Executive Officer of Mitchell Hutchins, said, "We are confident that our partnership with UBS Asset Management will add value to the Fund going forward."

Until today, Mitchell Hutchins has been directly responsible for the day-to-day management of the Fund pursuant to an investment advisory and administration contract with the Fund. That agreement has been terminated by mutual agreement of Mitchell Hutchins and the Fund's Board. The new interim contracts with Mitchell Hutchins and UBS Asset Management NY will terminate in 150 days. The Board will ask Fund shareholders to approve longer term contracts between Mitchell Hutchins and the Fund and between Mitchell Hutchins and UBS Asset Management NY at a Special Meeting of Shareholders to be held prior to the expiration of the 150 days. More complete descriptions of UBS Asset Management and of the new contracts will be provided in the proxy materials sent to Fund shareholders.

The Fund also announced that its Board of Directors has declared a dividend from net investment income of $0.1100 per share. The dividend is payable on October 31, 2000 to shareholders of record as of October 20, 2000. The ex-dividend date is October 18, 2000.

The Fund's primary investment objective is to seek high income. Its secondary investment objective is to seek capital appreciation.