Investment Grade Municipal Income Fund Inc.-- Dividend Declaration, Fund Commentary and Statistics

Investment Grade Municipal Income Fund Inc. (the "Fund") (NYSE: 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 $0.0725 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. 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.

Fund Commentary for the month of September 2009 from UBS Global Asset Management (Americas) Inc. ("UBS Global AM"), the Fund's investment advisor

The Barclays Capital Municipal Bond Index gained 3.59% in September, outperforming US Treasuries during the month. During this time, BBB-rated and A-rated securities outperformed their AA- and AAA- rated counterparts as lower-quality municipal bonds rallied. At the same time, longer-maturity municipals outperformed intermediate-maturity and shorter-maturity municipals significantly.

The Fund significantly outperformed its benchmark in September, due to a relative underweight to shorter-term maturity issues. In addition, an overweight to the long end (20+ years) of the yield curve benefited performance. From a credit quality perspective, the Fund's overweight to AA-rated securities detracted from relative performance, while a significant underweight to AAA-rated securities helped relative performance during the month.

A slight relative underweight to both the IDR/PCR (industrial development revenue bonds and pollution control revenue bonds) sector and the tobacco sector hurt relative performance, especially as tobacco was the best-performing sector for the month. In addition, an overweight to hospitals benefited relative performance. The Fund's use of leverage benefited results, magnifying the impact of strong performance during the month.

Disclaimers Regarding Fund Commentary - The Fund Commentary is intended to assist shareholders in understanding how the Fund performed during the month noted. Views and opinions were current as of the date of this press release. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the Fund and UBS Global AM reserve the right to change views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent.

Portfolio statistics as of September 30, 2009(1)
Top ten states                                      Percentage of total investments
California                                          13.3%
Texas                                               12.6
Illinois                                            8.9
New York                                            8.0
Washington                                          6.8
North Carolina                                      5.8
Michigan                                            5.2
South Carolina                                      5.1
Ohio                                                4.8
New Jersey                                          4.8
Total                                               75.3%
Yields(2)
NAV yield                                           5.78%
Market yield                                        6.07%
Top five sectors                                    Percentage of total investments
University                                          15.9%
Hospital                                            15.2
Airport                                             12.4
Power                                               11.5
Lease                                               8.0
Total                                               63.0%
Credit quality(3)
AAA                                                 12.5%
AA                                                  36.0
A                                                   23.6
BBB                                                 16.1
A-1+                                                0.3
Nonrated                                            11.5
Total                                               100.0%

Portfolio statistics as of September 30, 2009 continued(1)
Characteristics
Net asset value per share(2)                $15.06
Market price per share(2)                   $14.34
Weighted average maturity                   14.81 years
Weighted average modified duration (4)      5.14 years
Weighted average coupon(5)                  5.65%
Subject to Alternative Minimum Tax (AMT)    14.92%
Leverage(6)                                 39.0%
Stated maturity schedule                    Percentage of total investments
2009                                        0.3%
2010                                        0.0
2011                                        0.0
2012                                        0.0
2013                                        0.6
2014-2024                                   56.7
2025-2045                                   42.4
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 both the Fund's Auction Preferred Shares and the Tender Option Bond Program as a percentage of total assets. Leverage may vary.

SOURCE: Investment Grade Municipal Income Fund Inc.

UBS Global Asset Management 
Closed-End Funds Desk, 888-793 8637

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