SCD LMP Capital and Income Fund Inc

LMP Capital and Income Fund Inc., which is listed on the New York Stock Exchange under the symbol "SCD," today announced a new, higher quarterly distribution rate of $0.1500 per common share payable December 30, 2010. The Board of Directors of the Fund also approved the new quarterly distribution rate of $0.1500 per share for calendar year 2011.

The December distribution schedule appears below:

Month     Ex-Date     Record Date     Payable Date     Amount December 12/21/2010 12/23/2010 12/30/2010 $0.1500

The Fund had previously paid a quarterly distribution of $0.1300 per share; the December 2010 distribution represents an increase of 15.4% over the prior 2010 distribution rate.

During 2010, the Fund’s managers continued along the path they began in 2009: reducing the Fund’s exposure to fixed income and increasing the Fund’s exposure to high quality, relatively high yielding equities. Consistent with this continued shift, the managers who are responsible for making allocation decisions between investments in fixed income and equity securities continue to believe that equities are more attractive than fixed income at this point in time, given the low interest rate environment and relatively high level of equity dividend yields. Additionally, the Fund’s managers took advantage of the Fund’s low borrowing costs and the pullback in equity markets over the summer to opportunistically increase the Fund’s debt leverage to $100 million, which is equivalent to a leverage ratio of approximately 20%.

The Fund’s managers also continued to place an emphasis on companies which, in their opinion, possess sound or improving balance sheets and strong free cash flows, coupled with attractive business models. The Fund's managers believe that these high-quality, dividend-paying companies can be attractive candidates for long-term investment. During 2010, many of the Fund’s equity holdings raised their dividends, increasing the income earned by the Fund.

During 2010, many areas in the fixed income market saw the emergence of record low yields. The Fund’s managers capitalized on the strong performance in the fixed income market by further reducing the fixed income portion of the portfolio. The proceeds of these sales were redeployed in equities with the aforementioned characteristics. The Fund's managers will continue to assess the fixed income markets and may increase the allocation to this sector when they believe better opportunities present themselves.

These portfolio actions resulted in the Fund earning significantly more income, which formed the basis of the increase in the distribution rate. As they have in 2009 and 2010, the Fund's distributions in 2011 are likely to continue to rely heavily on net investment income generated by the portfolio. Short-term and long-term capital gains and returns of capital are not likely to be a significant factor in the composition of the distributions.

In addition to the beneficial effect that these portfolio actions have had on the income stream generated by the portfolio, they have also driven strong performance from a total return perspective. The Fund returned 7.1% based on net asset value and 14.4% based on market price for the nine-month period ending September 30, 2010.

Under the terms of the Fund's managed distribution policy, the Fund seeks to maintain a consistent quarterly distribution level that may be paid in part or in full from net investment income and realized capital gains, or a combination thereof. Shareholders should note, however, that if the Fund's aggregate net investment income and net realized capital gains are less than the amount of the quarterly distribution level, the difference will be distributed from the Fund's assets and will constitute a return of the shareholder's capital. A return of capital is not taxable as a dividend; rather it reduces a shareholder's tax basis in his or her shares of the Fund. The Board of Directors may reduce the Fund's quarterly distribution rate in the future or terminate or suspend the managed distribution policy at any time. Any such reduction in the quarterly distribution rate, termination or suspension could have an adverse effect on the market price.

Based on the Fund's accounting records as of the date of this press release, the Fund estimates that approximately 100% of the cumulative fiscal year-to-date distributions through December 2010 are sourced from net investment income. The estimated components of each distribution will be provided to shareholders of record in a separate notice.

Please note that neither this press release nor the separate notice should be used for tax reporting purposes and that each is being provided to announce the amount and estimated source of the Fund's distributions that have been declared by the Board of Directors. In early 2011, after definitive information is available, the Fund will send shareholders a Form 1099-DIV, if applicable, specifying how the distributions paid by the Fund during the prior calendar year should be characterized for purposes of reporting the distributions on a shareholder's tax return (e.g., ordinary income, long-term capital gain or return of capital).

LMP Capital and Income Fund Inc. is a non-diversified, closed-end management investment company. Legg Mason Partners Fund Advisor, LLC, a wholly-owned subsidiary of Legg Mason, Inc., serves as the Fund's investment manager. The Fund is sub-advised by ClearBridge Advisors, LLC and Western Asset Management Company, affiliates of the investment manager.

Contact the Fund at 1-888-777-0102 for additional information, or consult the Fund's web site at www.leggmason.com/cef.

Data and commentary provided in this press release are for informational purposes only. Legg Mason and its affiliates do not engage in selling shares of the Fund.