PPM Investment Grade Municipal Income Fund

Investment Grade Municipal Income Fund Inc. (the "Fund") (NYSE: PPM) today announced the timing of (i) the redemption in full of all of its outstanding auction preferred stock (“APS”) and (ii) payment of the final liquidating distribution to common stockholders. As previously announced, these steps are being taken in connection with the liquidation of the Fund pursuant to a Plan of Liquidation approved by stockholders on February 23, 2010.

The Fund will redeem in full all of its outstanding APS and will pay APS holders their liquidation preference of $50,000 per share (plus accumulated but unpaid dividends up to and including the date of redemption) based on the following schedule:

                         

Series of

APS

   

CUSIP

Number

   

Redemption

Price

   

Number of Shares

Redeemed

   

Redemption Date

Series A     695931204     $50,000     582     April 16, 2010 Series B     695931303     $50,000     582     April 19, 2010 Series C     461368201     $50,000     436     April 20, 2010                

The redemption of APS is subject to certain notice requirements. The necessary amounts to cover the redemption are expected to be deposited with the auction agent on the applicable redemption date listed above for each series of the APS. Upon the deposit of such amounts with the auction agent, the APS that are being redeemed will cease to accumulate dividends.

The Fund will pay a final liquidating distribution to common stockholders consisting of a pro rata portion of the remaining assets of the Fund (plus accumulated but unpaid dividends up to and including the record date for the distribution) on May 10, 2010, to stockholders of record as of May 5, 2010. All common stockholders as of the close of business on May 5, 2010 are entitled to receive a liquidating distribution. Although unlikely, it is possible that these dates may be extended if necessary or appropriate in connection with the orderly liquidation of the Fund or to protect the interests of Fund stockholders (for example, in the case of an unforeseen market crisis). It is anticipated that trading on the New York Stock Exchange in shares of the Fund’s common stock will cease on May 6, 2010 (i.e., the last day of trading will be May 5, 2010).