SCD LMP Capital and Income Fund Inc

Salomon Brothers Capital and Income Fund Inc. (NYSE:SCD) as of March 31, 2006 -0- *T Investment Objective: The Fund's Investment objective is total return with an emphasis on income. Portfolio Composition --------------------- Common Stocks & Convertible Securities 56.6% Emerging Market Debt 15.9 Corporate High Yield 13.6 (Below investment grade) Debt Investment Grade Debt* 11.5 Cash & Other 2.4 *When the Fund establishes a segregated account in which it maintains cash and/or liquid securities equal in value to its obligations in respect of the mortgage dollar rolls, the mortgage dollar rolls will not be considered a borrowing or a "senior security" for purposes of the asset coverage requirements under the 1940 Act. Top 10 Holdings (of total portfolio) ------------------------------------ TRAINS, 7.651% due 6/15/15 1.7% Russian Federation 5% due 3/31/30 1.5 Federal Republic of Brazil, 8% due 1/15/18 1.4 Total SA, Sponsored ADR 1.3 Nexen Inc. 1.1 United Mexican States, 8.125% due 12/30/19 1.0 General Electric Co. 1.0 FHLMC, 6% due 2/1/34 1.0 Ciena Corp., 3.75% due 2/1/08 1.0 Brazil, DCB, 5.25% due 4/15/12 1.0 COMMON STOCK & CONVERTIBLE SECURITIES (of total portfolio) Sector Allocations ------------------ Financials (includes REITs) 15.8% Health Care 7.8 Energy 6.8 Information Technology 6.5 Consumer Discretionary 6.1 Industrials 4.3 Telecommunication Services 3.1 Utilities 2.5 Consumer Staples 2.2 Materials 1.4 FIXED INCOME Top Five Emerging Market Debt Countries: ---------------------------------------- Brazil 3.0% Mexico 3.0 Russia 1.9 Turkey 1.1 Peru 0.8 Top Five High Yield Industries: ------------------------------- Consumer Discretionary 4.2% Materials 2.1 Telecommunication Services 1.0 Utilities 0.9 Energy 0.7 Top Investment Grade Sectors ---------------------------- Asset-backed Securities 9.8% Portfolio Credit Breakdown (% of fixed income): ----------------------------------------------- A and above 28.8% BBB 28.9 BB 6.6 B 31.3 CCC & Below 4.4 Currency Allocation: -------------------- US Dollar: 100% Leverage: 24.96% Inception Date: February 24, 2004 Inception Price: $20.00 Total Assets: $661.442 million Market Price: $17.38 NAV: $20.86 (Daily NAV is available on market quotation systems using the symbol XSCDX.) Dividend Rate*: $0.1000 per share Frequency: Monthly *T *Pursuant to its managed distribution policy, the Fund intends to make regular monthly distributions to shareholders at a fixed rate per common share, which rate may be adjusted from time to time by the Fund's Board of Directors. Under the Fund's managed distribution policy, if, for any monthly distribution, net investment income and net realized capital gains is less than the amount of the distribution, the difference will be distributed from the Fund's assets (and constitute a "return of capital"). Salomon Brothers Capital and Income Fund Inc., a non-diversified investment management company traded on the New York Stock Exchange under the symbol "SCD," is managed by Salomon Brothers Asset Management Inc, a wholly owned subsidiary of Legg Mason, Inc. For more information, call 1-888-777-0102, or consult the Fund's web site at www.leggmason.com/InvestorServices. Note: On December 1, 2005, Citigroup Inc. ("Citigroup") sold substantially all of its worldwide asset management business, Citigroup Asset Management ("CAM"), to Legg Mason, Inc. ("Legg Mason"). As part of this transaction, the investment adviser for the fund(s) referenced herein became a wholly owned subsidiary of Legg Mason. Under a licensing agreement between Citigroup and Legg Mason, the names of the funds, the names of any classes of shares of funds, and the names of investment advisers of the funds, as well as all logos, trademarks, and service marks related to Citigroup or any of its affiliates ("Citi Marks") are licensed for use by Legg Mason. Citi Marks include, but are not limited to, "Smith Barney," "Salomon Brothers," "Citi," and "Citigroup Asset Management". Legg Mason and its affiliates, as well as the Fund's investment adviser, are not affiliated with Citigroup. All Citi Marks are owned by Citigroup, and are licensed for use until no later than one year after the date of the licensing agreement.