Board of Managed High Yield Plus Fund Inc. Authorizes Preliminary Filing for ``Three-for-One'' Non-Transferable Rights Offering.

NEW YORK -- Managed High Yield Plus Fund Inc. ("Fund") (NYSE: HYF) announced today that its Board of Directors has authorized the filing of a preliminary registration statement for a "three-for-one" non-transferable rights offering to the Fund's shareholders. The rights offering would only commence upon subsequent approval by the Fund's Board of Directors and the SEC's determination to make the Fund's registration statement effective. The final terms of the offer will depend on market conditions at the time the rights offering commences. The offer would be made only by means of a prospectus. The commencement of the offer will be announced through the public media and the definitive terms of the offer, including the subscription price, will be included in the prospectus.

Once the offer commences, shareholders of the Fund as of the record date for the offer will receive rights which would allow them to purchase additional shares of the Fund at a discount to the Fund's market price. These record date shareholders would receive one right for each Fund share held on the record date, and three rights would be needed to purchase each additional share that is part of the offer.

The Fund's investment adviser is UBS Global Asset Management (US) Inc., and Fund shares are traded on the New York Stock Exchange under the symbol "HYF." The Fund's primary investment objective is to seek high income. The Fund's secondary investment objective is to seek capital appreciation. There can be no assurance that these objectives will be met.

The rights and the underlying shares described in the Fund's registration statement may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or a solicitation for an offer to buy these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the laws of any such state.

Although Fund shares have traded at a premium for some time, shares of closed-end funds frequently trade at a discount to net asset value. The price of the Fund's shares is determined by market factors, many of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade at, below or above net asset value.

This press release and the registration statement filed with the SEC may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Fund's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in the forward-looking statements including, in particular, the risks and uncertainties described in the Fund's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Fund undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release or in the registration statement does not constitute an admission by the Fund or any other person that the events or circumstances described in such statement are material.