Managed High Yield Plus Fund Inc.--Dividend declaration, fund commentary and statistics

Managed High Yield Plus Fund Inc. (the "Fund") (NYSE: HYF), a closed-end management investment company, today announced that the Fund's Board of Directors has declared a dividend from net investment income of $0.0180 per share. The dividend is payable on October 30, 2009 to shareholders of record as of October 22, 2009. The ex-dividend date is October 20, 2009. Managed High Yield Plus Fund Inc. seeks high income and, secondarily, capital appreciation, primarily through investments in lower-rated, income producing debt and related equity securities.

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

The market for US dollar-denominated high yield securities continued to exhibit strength, returning 5.85% during the month, as measured by the Merrill Lynch US High Yield Cash Pay Constrained Index, the "Index." As of September 30, the market, as measured by the Index, returned 48.16% year to date, with CCC-rated and distressed issues leading the way. The Index ended the month with a spread over Treasury securities of 781 basis points (i.e., 7.81%), which represented a tightening of 110 basis points (i.e., 1.10%) during the month. (Spread is the difference between the yield paid on US Treasury bonds and higher-risk securities.)

In September, the distressed and CCC-rated sectors led the way, outperforming the other sectors of the market. Credit-sensitive sectors also performed strongly, with the building materials, broadcasting, publishing and technology sectors outperforming. However, the energy, food and cable television sectors lagged. The Fund outperformed its Index for the month mainly due to an overweight in the broadcasting, publishing and technology sectors. In addition, the Fund's use of leverage magnified the effects of these sectors' outperformance, adding to returns.

Looking ahead, we expect that many investors are likely to view the improving economy as an opportunity to add risk to their portfolios. With the Federal Reserve appearing set to keep rates low for an extended period, we expect that an improving economy and a positive refinancing environment is likely to lead to lower defaults. As we anticipate that spreads are likely to tighten, we will seek to invest in higher-coupon instruments, based on our expectation that the interest income component of returns--as opposed to price appreciation--will become a larger component of high yield returns going forward.

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 holdings, including coupon and maturity      Percentage of total portfolio assets
Coleman Cable, Inc., 9.875% 10/01/12                 3.0%
Jacobs Entertainment, Inc., 9.750% 06/15/14          3.0%
Sanmina-SCI Corp., 8.125% 03/01/16                   2.4%
Exopack Holding Corp., 11.250% 02/01/14              2.3%
Stanadyne Corp., 10.000% 08/15/14                    2.3%
Citizens Communications, 9.000% 08/15/31             2.3%
Cellu Tissue Holdings, Inc., 11.500% 06/01/14        2.2%
Pokagon Gaming Authority, 10.375% 06/15/14           2.1%
Mobile Services/Storage Group, 9.750% 08/01/14       2.1%
Southern States Cooperative, Inc., 10.500% 11/01/11  2.1%
Total                                                23.8%

Top five industries
Gaming                                 13.6%
Media-non cable                        7.4%
Building Materials                     6.8%
Electric-generation                    6.1%
Health care                            5.9%
Total                                  39.8%
Credit quality(2)
Ba/BB and higher                       20.5%
B/B                                    54.2%
Caa/CCC and lower                      24.5%
Equity/preferred                       0.6%
Cash equivalents                       0.2%
Total                                  100.0%
Other characteristics
Net asset value per share(3)           $2.02
Market price per share(3)              $1.81
Weighted average maturity              6.6 Yrs
Weighted average modified duration(4)  3.7 Yrs
Weighted average coupon(5)             8.4%
Leverage(6)                            18.4%
Yields(3)
NAV yield                              10.69%
Market yield                           11.93%

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

(2) Credit quality ratings are from Moody's, unless that rating is unavailable. If so, the default credit quality rating will be from Standard & Poor's; if that is unavailable, an internal rating from UBS Global AM will be used. Standard & Poor's ("S&P") is a division of The McGraw-Hill Companies, Inc.

(3) 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.

(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) As a percentage of total assets. Leverage may vary.

SOURCE: Managed High Yield Plus Fund Inc.

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

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