PIF Special Opportunities Fund, Common Stock

Insured Municipal Income Fund Inc. (the “Fund”) (NYSE: PIF), a closed-end management investment company, today announced that the Fund’s Board of Directors (“Board”) has declared a dividend from net investment income of $0.0750 per share of common stock. The dividend is payable on October 30, 2009 to common shareholders of record as of October 22, 2009. The ex-dividend date is October 20, 2009.

The Fund’s Board also announced that it does not intend to declare further distributions to common stockholders until after the completion of the previously announced tender offer, which is expected to commence sometime later this year, unless a dividend/distribution is determined by the Board to be necessary or appropriate to avoid possible adverse tax consequences to the Fund or its shareholders. After the tender offer is completed, the Board will determine and publicly announce the Fund’s future distribution policy.

Portfolio statistics as of September 30, 20091

            Top ten states/commonwealths          

Percentage of totalinvestments

Illinois 14 .0% New York 11 .2 California 11 .1

Texas

8 .2

Florida

7 .3 Connecticut 6 .4 Puerto Rico 4 .7 Alaska 4 .6 Louisiana 4 .0

Washington

          3 .4 Total 74 .9%  

Yields2

            NAV yield 6 .08% Market yield 6 .37%    

Top five sectors

         

Percentage of totalinvestments

General obligations 21 .6% Water 9 .7 Power 9 .6 Tolls 7 .7 Hospital           6 .9 Total 55 .5%  

Credit quality3

            AAA 46 .5% AA 11 .3 A 12 .3 A-1 26 .3 Nonrated           3 .6 Total 100 .0%   Characteristics            

Net asset value per share2

$14 .80

Market price per share2

$14 .14 Weighted average maturity 10.48 years

Weighted average modified duration4

2.83 years

Weighted average coupon5

3 .2 % Subject to Alternative Minimum Tax (AMT) 5 .5 %

Leverage6

29 .8 %   Stated maturity schedule          

Percentage of totalinvestments

2009 26 .3% 2010 0 .0 2011 0 .0 2012 0 .0 2013 0 .0 2014–2024 26 .0 2025–2048           47 .7 Total           100 .0%  

1 The Fund is actively managed and its portfolio composition will vary over time.

2 Net asset value (NAV), market price and yields will fluctuate. NAV yield is calculated by multiplying the current month’s dividend by 12 and dividing by the month-end net asset value. Market yield is calculated by multiplying the current month’s dividend by 12 and dividing by the month-end market price.

3 Credit quality ratings shown are based on those assigned by Standard & Poor's ("S&P"), a division of The McGraw-Hill Companies, Inc. S&P is an independent rating agency.

4 Modified duration is the change in the price of a security, expressed in years, expected in response to each 1% change in the yield to maturity of the portfolio's holdings.

5 Weighted by par.

6 Includes leverage attributable to the Fund’s Auction Preferred Shares (“APS”) as a percentage of total assets. As previously announced, all of the Fund’s leverage, either via APS or its tender option bond program, was terminated in October.