Fitch Affirms Intermediate Muni Fund Pfd Share Rtgs.

NEW YORK -- Fitch Ratings affirms the 'AAA' ratings on the following Intermediate Muni Fund Inc. municipal auction-rate cumulative preferred stock:

--Municipal auction rate cumulative preferred stock 2,000 shares series M.

The affirmation is based on the fund's consistent compliance with asset coverage and preferred share basic maintenance amount tests, as well as the quality and experience of the asset manager.

The Intermediate Muni Fund, Inc. (AMEX:SBI) is a closed-end management investment company, which invests primarily in U.S. municipal securities. The fund is registered under the Investment Company Act of 1940, which permits closed-end funds to borrow funds through the issuance of debt and preferred stock. Under the 1940 Act, closed-end funds may borrow up to 50% of the fund's value through the issuance of preferred shares and debt. The fund's current outstanding preferred share issuance equates to roughly 26% of its net asset value and the fund has no outstanding debt.

The fund is managed by Smith Barney Fund Management LLC, an indirect wholly owned subsidiary of Citigroup Inc.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site at www.fitchratings.com.