NEW YORK, June 17 /PRNewswire-FirstCall/ -- AllianceBernstein National Municipal Income Fund, Inc. ("ANMIF"; NYSE: AFB) and Alliance California Municipal Income Fund, Inc. ("ACMIF"; NYSE: AKP), each a registered closed-end investment company (the "Funds"), announced today that they intend to use alternative financing to partially redeem additional Auction Preferred Shares ("Preferred Shares") at a redemption price of $25,000 per share, plus accumulated but unpaid dividends. In early June, ANMIF and ACMIF redeemed $39,600,000 or 13.9% and $4,200,000 or 5.2%, respectively, of their outstanding Preferred Shares. The additional partial redemptions announced today will be for approximately $3,175,000 or 1.3% and $4,250,000 or 5.5%, respectively, of ANMIF's and ACMIF's outstanding Preferred Shares. As a result of these redemptions, ANMIF and ACMIF will have redeemed 15% and 10.4%, respectively, of their original outstanding Preferred Shares. The partial redemptions will be made on a pro rata basis. As with the previous partial redemptions of Preferred Shares, the Funds intend to finance the partial redemptions through the use of tender option bonds ("TOBs"). The Funds currently expect that the use of TOBs will reduce their costs of leverage. The redemption of the Preferred Shares is subject to certain notice and other requirements and the condition that the TOB transactions be completed. The Funds intend to redeem the Preferred Shares on a redemption date that is two days before the next dividend payment date for each series of the Preferred Shares according to the following schedule: FUND REDEMPTION DATE ANMIF - Series M July 11, 2008 - Series T July 7, 2008 - Series W July 8, 2008 - Series TH July 9, 2008 ACMIF - Series M July 11, 2008 - Series T July 7, 2008 As announced previously, constraints in the availability of bonds suitable for TOBs and other considerations may limit the Funds' ability to redeem their Preferred Shares. The Funds intend to use TOBs to finance partial redemptions of their Preferred Shares opportunistically and are not required to redeem any Preferred Shares. The Funds will continue to rely on the Preferred Shares for a portion of their leverage exposure and may pursue other liquidity solutions for the Preferred Shares. DATASOURCE: AB National Municipal Income Fund, Inc.; Alliance Cal Municipal Fund CONTACT: Shareholder Contact - 800-221-5672 Web site: http://www.alliancebernstein.com/

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