Investment Grade Municipal Income Fund Announces Dividend Declaration,
Short-Term Capital Gain Distribution, Long-Term Capital Gain Distribution and
Updated Price & Yield Information
UBS Global Asset Management

New York, December 10, 2007—Investment Grade Municipal Income Fund Inc. (the “Fund”) (PPM), a closed-end management investment company normally investing substantially all of its assets in a diversified portfolio of tax-exempt municipal obligations, with common and preferred shares outstanding, today announced that the Fund’s Board of Directors has declared a dividend from net investment income of $0.0525 per share of common stock, a distribution from short-term capital gains of $0.0032 per share of common stock and a distribution from long-term capital gains of $0.1138 per share of common stock for an aggregate dividend/distribution of $0.1695 per share of common stock. The dividend/distribution is payable on December 31, 2007 to common shareholders of record as of December 20, 2007. The exdividend/distribution date is December 18, 2007. Under normal circumstances, the Fund invests at least 80% of its net assets in investment grade municipal obligations, the income from which is exempt from regular federal income tax.

Characteristics as of November 30, 2007:*

Net asset value   $15.00 Market price       $12.92

NAV yield           4.20% Market yield       4.88%

* 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.

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