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THE VOYAGEUR ARIZONA MUNICIPAL INCOME FUND, INC.

 MINNEAPOLIS, July 26 /PRNewswire/ -- Voyageur Fund Managers, Inc. today announced The Voyageur Arizona Municipal Income Fund, Inc. (AMEX: VAZ) second quarter Manager's Quarterly Report.
 The Economy and Interest Rates: Interest rates continued their downward trend, as bond prices rallied strongly in the second quarter. Economic data continued to confirm our previous belief that inflation is under control and will remain subdued over the coming months. Different versions of Clinton's deficit reduction package have passed the House and Senate and a final plan is expected out of the Conference Committee sometime in early August. It is expected to have the affect of slowing economic growth and thereby creating a favorable environment for long term bonds. Voyageur continues to believe that interest rates will decline modestly and bonds will rally.
 Municipals: Falling interest rates have fueled several municipal refinancings and the tax exempt bond market has consequently experienced an all-time high in supply. During the first six months of the year, muni new issuance reached $144.76 billion. This record high in the supply of bonds has caused the market to become "cheap" on an after-tax basis when compared to taxable investments. Many individuals and institutions have begun to recognize the undervalued status of municipals and have been aggressively buying tax free bonds. Despite strong demand, supply remains heavy.
 In Voyageur's opinion, the supply of refinancings is finite and will abate in the near future. The bulk of the new supply is coming from refinancing and most issuers have already taken advantage of low interest rates. From here, we would need to see rates move substantially lower to enable the refinancing of 1992 and 1993 issues. We think it is very unlikely that rates can drop an additional 200 basis points from the present level of 6.60 percent on the 30-year treasury. Therefore, we expect the supply to slow in the coming months as the remaining refinancings are completed. Demand should remain healthy in light of Clinton's proposed higher tax rates. The supply/demand imbalance will correct and the shortage of munis will cause the municipal sector to perform very well relative to other taxable, fixed income investments.
 The Fund: The portfolio was fully invested at June 30, 1993, in long term Arizona municipal bonds. Call protection continues to be very important, and Voyageur has purchased or swapped bonds throughout the quarter to achieve optimal call protection. The average call date is approximately 9.5 years, which we expect will contribute to strong fund performance in a climate of moderately declining interest rates. All of the bonds are extremely high quality: 100 percent of the portfolio is rated "A" or better; approximately 65.47 percent of the bonds are rated "AAA," and 29.86 rated "AA" by either Moody's or Standard & Poor's. Narrow quality spreads indicate that high quality bonds offer much better value than lower rated bonds. Voyageur remains committed to the higher investment grade credits. The fund is well diversified in terms of sectors, with the largest concentration in education (27.19 percent), water and sewer (16.96 percent), general obligation (15.07 percent), transportation (11.19 percent) and contains no bonds that are subject to the alternative minimum tax.
 MARKET PRICE/NAV/AVERAGE DAILY VOLUME DATA
 Month End April May June
 Market Price 15.125 15.00 15.00
 NAV 13.92 13.79 14.15
 Avg. Daily Vol. 2,600 1,773 1,976
 DIVIDEND DATA
 April May June
 Div. amt. N/A $.06875 $.06875
 SECTOR WEIGHTINGS/CREDIT QUALITIES
 6/30/93
 Special Utilities 2 pct.
 Public Power 6 pct.
 Water & Sewer 17 pct.
 Transportation 11 pct.
 Industrial 3 pct.
 Housing 8 pct.
 Health Care 11 pct.
 General Obligations 15 pct.
 Education 27 pct.
 HOLDINGS (FIVE LARGEST)
 1. Tucson AZ Water - FGIC
 2. Tucson AZ Street & Highway User Rev - MBIA
 3. Arizona State Univ. Rev. Rfdg Series A
 4. Phoenix AZ G.O.
 5. Tempe Multi Family Mtg Rev IDA FHA
 PORTFOLIO STATISTICS
 Weighted average maturity 21 years
 Duration 11.83 years
 Percent AMT --
 Average Cost Price 99.245
 Average Market Price 100.998
 Average Coupon 5.676 pct.
 Par Value $65.6 million
 Voyageur Fund Managers acts as the investment adviser to 18 open-end investment companies, five closed-end investment companies and numerous private accounts with combined total assets of over $5.0 billion.
 -0- 7/26/93
 /CONTACT: John S. Doering of Voyageur Asset Management, 612-376-7048/
 (VAZ)


CO: Voyageur Fund Distributors, Inc.; Voyageur Arizona Municipal Income
 Fund, Inc. ST: Minnesota, Arizona IN: FIN SU:


DS -- MN099 -- 6106 07/27/93 09:36 EDT
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Date:Jul 27, 1993
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