Filer: Excelsior Income Shares, Inc.
                                 Pursuant to Rule 425 under the Securities
                                 Act of 1933
                                 Subject Company: Excelsior Income Shares, Inc.
                                 Registration No. 811-02363

COMPANY
CONTACTS:         Debra Potter           Andrew Blum
                  Investor Relations     Media Relations
                  PEC Corp.              Tel.: 212-410-2495
                  Tel.: 201-447-1552


                   INSTITUTIONAL SHAREHOLDERS SERVICES ADVISES
                  CONTINUES TO SUPPORT EIS FUND'S CURRENT BOARD

NEW  YORK,  NY,  Sept.  10  --  EIS  Fund  (NYSE:   EIS)  today  announced  that
Institutional  Shareholder  Services (ISS), a leading  independent  proxy voting
advisory  firm and a division of Thomson  Financial,  has issued an analysis and
opinion  on a number  of  major  issues  currently  up for  shareholders  vote -
including  possible  liquidation  and a proposal by a dissident  shareholder  to
replace the Fund's Board of  Directors.  The votes will be counted at the Fund's
Annual Shareholder's Meeting scheduled for Wednesday, September 12, 2001.

In its analysis of EIS Fund's  current  Board of Directors  and the  liquidation
proposal,   ISS  stated,  "ISS  does  not  find  it  advisable  to  liquidate  a
cost-effective,  successful  and viable fund. As for the board to lead the fund,
there seems no reason to replace the current  management team. The fund has been
led  successfully  for a number of years.  Furthermore,  the mere  presence of a
proposal to liquidate demonstrates that the current board listens to shareholder
concerns.  There is no real  reason to  suggest  that  this  will  change in the
future."

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In addition, ISS reiterated its prior positive assessment of the Fund, "It seems
that  the fund  has  indeed  met the  needs  of its  shareholders.  The fund has
consistently  ranked  near the top of its peer group in total  returns  over the
last ten years.  Further,  the fund has done an  excellent  job of  keeping  its
expenses low. The fund has an expense ratio of 55 basis points,  which is on the
low end for any investment category.  Further, the current board indeed seems to
be appropriately independent."

Although the Board of Directors of EIS Fund has not made a recommendation on the
liquidation issue, it has indicated that it is committed to liquidating the Fund
as soon as possible,  in the event shareholders approve the plan of liquidation.
The Board of Directors  asks that all  shareholders  cast their vote and contact
Georgeson Shareholder Communications, Inc., the Fund's proxy solicitor, at (800)
223-2064 with any questions or to obtain proxy materials.

If the Fund had been  liquidated as of August 31, 2001, each  shareholder  would
have received approximately $18.41 per share, which reflects $18.51 in NAV minus
estimated liquidation expenses of $0.10 per share ($200,000 total for the Fund).
Thus, if the Fund had been  liquidated on July 31, each  shareholder  would have
received  approximately  $18.34  per share  (not the  $18.43  per share that was
stated in the proxy statement).  Of course, actual liquidation expenses,  market
values and portfolio transaction costs may vary, affecting liquidation proceeds.


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EIS Fund is the name under which  Excelsior  Income  Shares,  Inc., a closed-end
bond fund organized under the laws of New York, does business.