PIF Special Opportunities Fund, Common Stock

Insured Municipal Income Fund Inc. (the “Fund”) (NYSE: PIF), 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 $0.0750 per share of common stock. The dividend is payable on September 30, 2009 to common shareholders of record as of September 24, 2009. The ex-dividend date is September 22, 2009. Under normal circumstances, the Fund invests at least 80% of its net assets in insured municipal obligations, the income from which is exempt from regular federal income tax.

Fund Commentary for the month of August 2009 from UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the Fund’s investment advisor until October 18, 2009:

The Barclays Capital Municipal Bond Index gained 1.71% in August, 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’s portfolio significantly outperformed its benchmark in August due to an underweight in shorter-term maturity issues.

A relative underweight to the IDR/PCR (industrial development revenue bonds and pollution control revenue bonds) sector hurt performance as it was the best-performing sector for the month. The Fund’s use of leverage benefited results, magnifying the impact of strong performance during the month.

Fundamental credit research remains a critical part of UBS Global AM’s investment process, and we maintained a focus on investments of high credit quality for the Fund accordingly.

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.

Characteristics as of August 31, 2009:*

Net asset value per common share     $ 13.99 Market price per common share     $ 13.34   NAV yield 6.43 % Market yield      

6.75

%

* 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.