Dreyfus Strategic Municipals, Inc. Semi-Annual Earnings Report for the Six-Month Period Ended March 31, 2006.

NEW YORK -- Dreyfus Strategic Municipals, Inc. (NYSE: LEO) reported the following financial information for the six-month period ended March 31, 2006 compared with the results for the six-month period ended March 31, 2005:

SIX-MONTH PERIOD ENDED MARCH 31:              2006              2005
--------------------------------              ----              ----
NET INVESTMENT INCOME
         TOTAL*                          $20,143,125       $19,637,415
         PER SHARE (COMMON STOCK)              $0.33             $0.32
NET INVESTMENT INCOME AFTER DIVIDENDS
PAID TO PREFERRED SHAREHOLDERS
         TOTAL                           $16,109,050       $17,227,332
         PER SHARE (COMMON STOCK)              $0.26             $0.28
NET ASSET VALUE AT END OF PERIOD
         NET OF PREFERRED STOCK         $562,946,735      $558,373,475
         PREFERRED STOCK OUTSTANDING    $285,000,000      $285,000,000
         PER SHARE (COMMON STOCK)               9.29             $9.22
NET ASSET VALUE AT BEGINNING OF PERIOD
         NET OF PREFERRED STOCK         $568,264,107      $556,235,057
         PREFERRED STOCK OUTSTANDING    $285,000,000      $285,000,000
         PER SHARE                             $9.38             $9.18

* Net Investment Income is based on U.S. generally accepted accounting
  principles. Income distributions are determined in accordance with
  income tax regulations, which may differ from U.S. generally
  accepted accounting principles.