Insured Municipal Income Fund Inc.-Dividend declaration, fund commentary, and statistics

NEW YORK--(Business Wire)--
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 July 31, 2009 to common shareholders of
record as of July 23, 2009. The ex-dividend date is July 21, 2009. The amount of
this dividend more closely reflects the current earnings of the Fund. In June,
the Fund paid a monthly dividend of $0.0650 per share of common stock. 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 June 2009 from UBS Global Asset Management
(Americas) Inc. ("UBS Global AM"), the Fund`s investment advisor:

The Barclays Capital Municipal Bond Index declined 0.94% in June,
underperforming US Treasuries during the month. During this time, lower-quality
securities (e.g., those rated A and BBB) underperformed their higher-rated
counterparts (e.g., those rated AAA and AA), while shorter-maturity municipals
outperformed longer-maturity municipals.

The Fund`s portfolio underperformed its benchmark in June, partially due to its
yield curve positioning. A relative underweight to seven-year and under
municipal bonds hurt performance as this area outperformed other areas of the
yield curve. In addition, a relative overweight to 10- to 15-year municipal
bonds detracted from performance as that area of the yield curve underperformed.

An overweight exposure to the transportation sector benefited performance, while
a relative underweight to the IDR/PCR (industrial development revenue bonds and
pollution control revenue) sector lessened the negative impact of that sector's
underperformance. The Fund`s use of leverage contributed negatively to results,
magnifying the impact of weak performance during the month.

However, the Fund's continued focus on higher-quality securities (e.g., those
rated at least AA or above) helped relative performance as those issues
performed strongly 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.

Given recent budgetary issues in the state of California, we believe that it's
important to point out that the Fund does not hold any direct obligations of the
state. The bonds in the Fund's portfolio issued in California are geographically
diversified throughout the state, and consist of essential service bonds (water
and power), as well as general obligations of major cities within California.

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 June 30, 20091

Top ten states Percentage of total
investments
Illinois 16.9 %
California 13.7
New York 13.3
Texas 10.8
Florida 7.6
Washington 7.2
Pennsylvania 4.5
Maine 3.5
Michigan 2.6
South Carolina 2.4
Total 82.5 %

Yields2
NAV yield 6.75 %
Market yield 7.32 %

Top five sectors Percentage of total
investments
Water 21.0 %
Airport 17.0
General obligations 15.0
Tolls 9.0
Power 7.8
Total 69.8 %

Credit quality3
AAA 48.5 %
AA 17.0
A 20.2
BBB 6.6
A-1 1.6
Nonrated 6.1
Total 100.0 %

Portfolio statistics as of June 30, 2009, continued1

Characteristics
Net asset value per share2 $13.34
Market price per share2 $12.30
Weighted average maturity 15.46 years
Weighted average modified duration4 6.69 years
Weighted average coupon5 5.55 %
Subject to Alternative Minimum Tax (AMT) 17.82 %
Leverage6 40.8 %

Stated maturity schedule Percentage of total
investments
2009 1.6 %
2010 0.0
2011 0.0

2012
0.0
2013 0.0
2014-2024 51.2

2025-2048
47.2
Total 100.0 %

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

2 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.

3 Credit quality ratings shown are based on those assigned by Standard & Poor's
("S&P"), a division of The McGraw-Hill Companies, Inc. S&P is an independent
rating agency.

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 Includes leverage attributable to both the Fund`s Auction Preferred Shares and
the Tender Option Bond Program as a percentage of total assets. Leverage may
vary.

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

Copyright Business Wire 2009