Edgar Filing: NEUBERGER BERMAN INTERMEDIATE MUNICIPAL FUND INC

As filed with the Securities and Exchange Commission on January 5, 2009

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-21168

NEUBERGER BERMAN INTERMEDIATE MUNICIPAL FUND INC.
(Exact Name of the Registrant as Specified in Charter)

c/o Neuberger Berman Management LLC
605 Third Avenue, 2nd Floor
New York, New York 10158-0180

(Address of Principal Executive Offices – Zip Code)

Registrant's telephone number, including area code: (212) 476-8800

Robert Conti, Chief Executive Officer

c/o Neuberger Berman Management LLC

Neuberger Berman Intermediate Municipal Fund Inc.
605 Third Avenue, 2nd Floor

New York, New York 10158-0180

Arthur C. Delibert, Esq.

K&L Gates LLP

1601 K Street, N.W.

Washington, D.C. 20006-1600

(Names and Addresses of agents for service)

Date of fiscal year end: October 31, 2008

Date of reporting period: October 31, 2008

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders

Neuberger Berman
Intermediate Municipal Closed-End Funds

Neuberger Berman California Intermediate Municipal Fund Inc. (Ticker Symbol: NBW)

Neuberger Berman Intermediate Municipal Fund Inc. (Ticker Symbol: NBH)

Neuberger Berman New York Intermediate Municipal Fund Inc. (Ticker Symbol: NBO)

Annual Report

October 31, 2008

Contents

THE FUNDS

President's Letter					1

PORTFOLIO COMMENTARY

California Intermediate Municipal Fund Inc.					3

Intermediate Municipal Fund Inc.					3

New York Intermediate Municipal Fund Inc.					3

SCHEDULE OF INVESTMENTS

California Intermediate Municipal Fund Inc.					7

Intermediate Municipal Fund Inc.					10

New York Intermediate Municipal Fund Inc.					17

FINANCIAL STATEMENTS					22

FINANCIAL HIGHLIGHTS/PER SHARE DATA

California Intermediate Municipal Fund Inc.					34

Intermediate Municipal Fund Inc.					35

New York Intermediate Municipal Fund Inc.					36

Report of Independent Registered Public Accounting Firm					38

Distribution Reinvestment Plan					39

Directory					41

Directors and Officers					42

Proxy Voting Policies and Procedures					51

Quarterly Portfolio Schedule					51

Notice to Shareholders					51

Changes to By-Laws					51

Board Consideration of the Management and Sub-Advisory Agreements					52

"Neuberger Berman" and the Neuberger Berman logo are service marks of Neuberger Berman, LLC. "Neuberger Berman Management LLC" and the individual Fund names in this shareholder report are either service marks or registered service marks of Neuberger Berman Management LLC, formerly, Neuberger Berman Management Inc. ^_©2008 Neuberger Berman Management LLC. All rights reserved.

President's Letter

Dear Shareholder,

I am pleased to present to you this annual report for the Neuberger Berman Intermediate Municipal Closed-End Funds for the fiscal year ended October 31, 2008. The report includes portfolio commentary, listings of the Funds' investments, and their audited financial statements for the reporting period.

Each Fund's investment objective is to provide a high level of current income exempt from regular federal income tax and, for each state-specific fund, a high level of current income exempt from that state's personal income taxes (and, in the case of the New York Fund, New York City personal income tax).

We invest in intermediate-term municipal bonds because our experience and research indicate strongly that this maturity range has historically offered the best risk/reward profile on the yield curve, providing much of the return of longer-term bonds — with less volatility and risk.

We believe that our conservative investment philosophy and disciplined investment process will benefit you with superior tax exempt current income over the long term.

Since February 2008, the market for auction rate preferred securities (ARPS) has experienced significant disruption that has resulted in failed auctions for many of these securities, including the auction market preferred shares issued by the Funds. Over this same period, we have had extensive communications with investment and commercial banks, brokerage firms, investment industry organizations, legal and tax experts and regulatory organizations in an attempt to identify prudent solutions. We continue to devote considerable time exploring possible alternative financing structures that would allow for the continued use of leverage while also keeping in mind the interests of both the common and preferred shareholders of the Funds.

Thank you for your confidence in Neuberger Berman. We will continue to do our best to earn it.

Sincerely,

Robert Conti
President and CEO
Neuberger Berman California Intermediate Municipal Fund Inc.
Neuberger Berman Intermediate Municipal Fund Inc.
Neuberger Berman New York Intermediate Municipal Fund Inc.

Neuberger Berman Intermediate Municipal Closed-End Funds Portfolio Commentaries

For the fiscal year ended October 31, 2008, on a net asset value (NAV) basis, all three of the Neuberger Berman closed-end intermediate municipal bond funds posted negative returns, trailing their Barclays Capital 10-Year Municipal Bond Index benchmark but outperforming peers as represented by the Lipper Closed-End Intermediate Municipal Debt Funds Average. The Funds' exposure to lower-tier investment-grade quality municipal securities and some non-rated and below-investment-grade issues along with its use of leverage (strategies that have enhanced relative performance in more benign markets) undermined performance relative to the Funds' benchmark during this challenging period.

Typically, during periods of economic uncertainty, municipal securities might have benefited from investors' "flight to quality." However, the liquidation of highly leveraged hedge funds' large municipal securities positions, a breakdown of the auction rate securities market, the well publicized problems of municipal bond insurers, and a month-long "buyers' strike" in September combined to pressure municipal securities prices. At the market low in September, high grade municipal securities yields were 125% to 150% of comparable maturity U.S. Treasury yields, a reflection of investor discomfort as the financial markets unraveled.

However, a dismal September was followed by an October rally triggered largely in our view by investment grade municipal securities' enormous after-tax yield advantage over Treasuries. We note with interest that in October, California Governor Arnold Schwarzenegger indicated to the U.S. Treasury that California might have to borrow funds to meet the state's annual cash flow needs. That same month, a $4 billion issue of California Revenue Anticipation Notes was over-subscribed by 25%. We believe these are clear indications that investors have not lost confidence in the municipal securities market.

In this difficult environment, we continued to focus on monitoring credit quality of the securities in the portfolios and to diligently evaluate the credit worthiness and relative value of any new opportunities. We believe our in-house credit research will continue to help us avoid potholes and uncover emerging opportunities in the municipal securities market. All three Funds' portfolios were heavily weighted (79% or higher) in revenue bonds, the overwhelming majority backed by essential services projects. Essential services revenue bonds generally provide a yield advantage over general obligation bonds (GOs) and, in our opinion, their credit quality may be better, since some state and local government debt may be more vulnerable to downgrades resulting from declining property, sales and income taxes.

Over the course of the fiscal year, we maintained a relatively short portfolio duration in the four- to five-year range. However, the fact that portfolio holdings were distributed over the one- to 15-year maturity range rather than in the market's six- to eight-year maturity "sweet spot" undermined relative performance. Still, with today's steep yield curve, we are tempted to take advantage of more opportunities in the longer end of the yield curve.

After below-average issuance in fiscal 2008 (particularly in September, when the new issues calendar nearly dried up completely), and with many municipal entities needing to fund budget deficits, we expect new issuance to increase substantially in the year ahead. However, we believe demand bolstered by municipal securities' historically high after-tax yields will keep pace with supply. Also, we expect more muted selling by hedge funds to help support prices.

In closing, we could see more shocks to the financial system, a more prolonged and deeper recession than previously anticipated, and ongoing volatility in the financial markets. However, we are hopeful that a more aggressive response of global monetary authorities to the financial crisis and additional fiscal stimulus here and abroad will eventually prove effective.

California Intermediate Municipal Fund Inc.

For the fiscal year ended October 31, 2008, on a NAV basis, California Intermediate Municipal Fund returned (6.39%) compared to the Barclays Capital 10-Year Municipal Bond Index's (0.63%).

As of October 31, 2008, the Fund was comprised of 87.0% revenue bonds, 11.5% general obligation bonds, and 1.5% cash and cash equivalents. Bonds subject to the Alternative Minimum Tax (AMT) equaled 12.4% of assets. At the close of the reporting period, the Fund's duration was 5.2 years and its leverage position was 40.0% of assets.

Intermediate Municipal Fund Inc.

For the fiscal year ended October 31, 2008, on a NAV basis, Intermediate Municipal Fund returned (5.87%) compared to the Barclays Capital 10-Year Municipal Bond Index's (0.63%).

As of October 31, 2008, the Fund was comprised of 78.7% revenue bonds, 16.0% general obligation bonds, 3.8% pre-refunded/escrow bonds, and 1.5% cash and cash equivalents. Bonds subject to the Alternative Minimum Tax (AMT) equaled 11.4% of assets. At the close of the reporting period, the Fund's duration was 4.7 years and its leverage position was 40.0% of assets.

New York Intermediate Municipal Fund Inc.

For the fiscal year ended October 31, 2008, on a NAV basis, New York Intermediate Municipal Fund returned (6.50%) compared to the Barclays Capital 10-Year Municipal Bond Index's (0.63%).

As of October 31, 2008, the Fund was comprised of 93.5% revenue bonds, 3.7% general obligation bonds, and 2.8% cash and cash equivalents. Bonds subject to the Alternative Minimum Tax (AMT) equaled 19.6% of assets. At the close of the reporting period, the Fund's duration was 4.9 years and its leverage position was 40.4% of assets.

Sincerely,

James L. Iselin
Portfolio Manager

CALIFORNIA INTERMEDIATE

MUNICIPAL FUND

RATING DIVERSIFICATION

AAA/Government/ Government Agency					19.9%
AA					36.9
A					20.5
BBB					15.0
BB					1.3
B					0.0
CCC					0.5
Not Rated					5.9
Short Term					0.0

INTERMEDIATE MUNICIPAL FUND

RATING DIVERSIFICATION

AAA/Government/ Government Agency					27.5%
AA					28.4
A					16.6
BBB					15.8
BB					2.7
B					0.3
CCC					0.8
Not Rated					7.7
Short Term					0.2

NEW YORK INTERMEDIATE

MUNICIPAL FUND

RATING DIVERSIFICATION

AAA/Government/ Government Agency					18.3%
AA					35.6
A					10.3
BBB					17.5
BB					12.0
B					0.0
CCC					0.6
Not Rated					5.7
Short Term					0.0

PERFORMANCE HIGHLIGHTS

Neuberger Berman
	Inception				Average Annual Total Return
NAV^1,3,4,5	Date	1 Year			5 Year			Since Inception
California Intermediate Municipal Fund	09/24/2002		(6.39	%)		3.27	%		3.64	%
Intermediate Municipal Fund	09/24/2002		(5.87	%)		3.38	%		3.85	%
New York Intermediate Municipal Fund	09/24/2002		(6.50	%)		2.97	%		3.45	%
	Inception				Average Annual Total Return
Market Price^2,3,4,5	Date	1 Year			5 Year			Since Inception
California Intermediate Municipal Fund	09/24/2002		(13.69	%)		1.40	%		(0.31	%)
Intermediate Municipal Fund	09/24/2002		(9.95	%)		1.58	%		0.28	%
New York Intermediate Municipal Fund	09/24/2002		(14.30	%)		0.84	%		(0.40	%)

Closed-end funds, unlike open-end funds, are not continually offered. There is an initial public offering and, once issued, common shares of closed-end funds are sold in the open market through a stock exchange.

The composition, industries and holdings of the Funds are subject to change. Investment return will fluctuate. Past performance is no guarantee of future results.

Endnotes

1 Returns based on the net asset value (NAV) of the Funds.

2 Returns based on the market price of Fund shares on the American Stock Exchange.

3 A portion of the income from each Fund may be a tax preference item for purposes of the Federal Alternative Minimum Tax for certain investors.

4 Neuberger Berman Management LLC has contractually agreed to waive a portion of the management fees that it is entitled to receive from each Fund. Each undertaking lasts until October 31, 2011. Please see the notes to the financial statements for specific information regarding the rate of the management fees waived by Neuberger Berman Management LLC. Absent such a waiver, the performance of each Fund would be lower.

5 Unaudited performance data current to the most recent month-end are available at www.nb.com.

Glossary of Indices

*Barclays Capital 10-Year Municipal Bond Index:**				Barclays Capital 10-Year Municipal Bond Index is the 10-year (8-12) component of the Barclays Capital Municipal Bond Index, which is a rules based, market-value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must have a minimum credit rating of Baa. They must have an outstanding par value of at least $5 million and be issued as part of a transaction of at least $50 million. The bonds must have a dated-date after December 31, 1990 and must be at least one year from their maturity date. Remarketed issues, taxable municipal bonds, bonds with floating rates, and derivatives, are excluded from the benchmark.

Lipper Closed-End Intermediate Municipal Debt Funds Average:				The average of all closed-end mutual funds tracked by Lipper that invest in municipal debt issues with dollar-weighted average maturities of five to ten years.

* Effective November 3, 2008 Barclays Capital announced the combination of the existing Lehman Brothers indices with the Barclays Capital indices into a single platform under the "Barclays Capital Indices" name. The renamed Lehman Brothers indices will continue to operate under their existing methodology. The index name changes will be reflected in all updates going forward.

Please note that the indices and averages do not take into account any fees and expenses or any tax consequences of investing in the individual securities that they track and that investors cannot invest directly in any index or average. Data about the performance of each index and average is prepared or obtained by Management and includes reinvestment of all dividends and capital gain distributions. Each Fund may invest in securities not included in its respective index or average.

Schedule of Investments California Intermediate Municipal Fund Inc.

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
Arizona (0.8%)
$	750	Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17	$	701
California (146.4%)
	270	Abag Fin. Au. Cert. of Participation Rev. (Channing House), Ser. 1999, 4.90%, due 2/15/09		270	^ß
	3,050	Abag Fin. Au. Cert. of Participation Rev. (Episcopal Homes Foundation), Ser. 1998, 5.13%, due 7/1/18		2,590	^ß
	1,000	Abag Fin. Au. Rev. (San Diego Hosp. Assoc.), Ser. 2003 C, 5.13%, due 3/1/18		867	^ß
	1,250	Alameda Co. Cert. of Participation Ref. Rev., Ser. 2001 A, (MBIA Insured), 5.38%, due 12/1/17		1,279
	1,285	Bay Area Governments Assoc. BART SFO Extension Rev. (Arpt. Premium Fare), Ser. 2002 A, (AMBAC Insured), 5.00%, due 8/1/21		1,231
	1,000	Burbank Pub. Svc. Dept. Elec. Rev., Ser. 1998, (FSA Insured), 5.13%, due 6/1/16		1,010
	365	California Co. Tobacco Securitization Agcy. Tobacco Settlement Asset-Backed Rev., Ser. 2002, 4.75%, due 6/1/19		358
	1,750	California Ed. Fac. Au. Ref. Rev. (Stanford Univ.), Ser. 2001 R, 5.00%, due 11/1/21		1,758	^ß
	2,000	California HFA Home Mtge. Rev., Ser. 2006 E, (FGIC Insured), 4.88%, due 2/1/17		1,791
	2,000	California Hlth. Fac. Fin. Au. Rev. (Catholic Healthcare West), Ser. 2004 I, 4.95%, due 7/1/26 Putable 7/1/14		1,914	^µß
	2,000	California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.), Ser. 2005, 5.00%, due 11/15/21		1,841	^ß
	1,000	California Hlth. Fac. Fin. Au. Rev. (Kaiser Permanente), Ser. 1998 B, 5.00%, due 10/1/20		1,006	^ß
	2,000	California Infrastructure & Econ. Dev. Bank Rev. (Bay Area Toll Bridges), Ser. 2003 A, (FGIC Insured), 5.00%, due 7/1/29 Pre-Refunded 1/1/28		2,032
	500	California Muni. Fin. Au. Ed. Rev. (American Heritage Ed. Foundation Proj.), Ser. 2006 A, 5.00%, due 6/1/16		438	^ß
	1,040	California Muni. Fin. Au. Rev. (Loma Linda Univ.), Ser. 2007, 5.00%, due 4/1/21		965
	200	California Poll. Ctrl. Fin. Au., Ref. PCR (Pacific Gas & Elec. Co.), Ser. 1997 B, (LOC: JP Morgan Chase), 1.10%, due 11/3/08		200	^µß
	4,000	California Poll. Ctrl. Fin. Au. Ref. PCR (Pacific Gas & Elec. Co.), Ser. 1996 A, (MBIA Insured), 5.35%, due 12/1/16		3,848	^ß
	1,500	California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Republic Svc., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23 Putable 12/1/17		1,299	^µß
	3,000	California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Waste Management, Inc. Proj.), Ser. 2005 C, 5.13%, due 11/1/23		2,103	^ß
	2,500	California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.75%, due 5/1/17 Pre-Refunded 5/1/12		2,764
	1,000	California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.38%, due 5/1/22 Pre-Refunded 5/1/12		1,093
	1,470	California St. Dept. of Wtr. Rev. (Ctrl. Valley Proj.), Ser. 2008 AE, 5.00%, due 12/1/20		1,478
	2,250	California St. G.O., Ser. 2002, 5.00%, due 10/1/17		2,278
	1,000	California St. Pub. Works Board Lease Rev. (Dept. of Gen. Svc.) (Cap. East End Complex), Ser. 2002 A, (AMBAC Insured), 5.25%, due 12/1/16		1,027
	1,095	California St. Pub. Works Board Lease Rev. (California Comm. Colleges), Ser. 2004 B, 5.50%, due 6/1/20		1,110
	3,000	California St. Pub. Works Board Lease Rev. (Regents of the Univ. of California, UCLA Replacement Hosp.), Ser. 2002 A, (FSA Insured), 5.38%, due 10/1/13		3,145
	1,000	California St. Univ. Fresno Assoc., Inc. Rev. (Auxiliary Organization Event Ctr.), Ser. 2002, 5.00%, due 7/1/12		1,066
	2,000	California Statewide CDA Cert. of Participation Rev. (Children's Hosp. Los Angeles), Ser. 1999, 5.13%, due 8/15/19		1,622	^ß
	1,630	California Statewide CDA Cert. of Participation Rev. (The Internext Group), Ser. 1999, 5.38%, due 4/1/17		1,496	^ß
	1,000	California Statewide CDA Hlth. Fac. Rev. (Adventist Hlth.), Ser. 2005 A, 5.00%, due 3/1/20		887	^ß
	5,000	California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.), Ser. 2003 A, 6.00%, due 10/1/16		5,120	^ß
	1,500	California Statewide CDA Rev. (California Baptist Univ.), Ser. 2007 A, 5.30%, due 11/1/18		1,170	^ß
	1,000	California Statewide CDA Rev. (Daughters of Charity Hlth.), Ser. 2005 G, 5.00%, due 7/1/22		760	^ß
	500	California Statewide CDA Rev. (Valley Care Hlth. Sys.), Ser. 2007 A, 4.80%, due 7/15/17		412	^ß
	1,020	Cerritos Pub. Fin. Au. Sub. Tax Allocation Rev. (Cerritos Redev. Proj.), Ser. 2002 B, 4.40%, due 11/1/16		958
	2,550	Contra Costa Comm. College Dist. G.O., Ser. 2002, (FGIC Insured), 5.25%, due 8/1/17		2,633
	1,365	Daly City Hsg. Dev. Fin. Agcy. Rev. Ref. (Franciscan Mobile Home Park), Ser. 2007 A, 5.00%, due 12/15/21		1,204	^ß

See Notes to Schedule of Investments 7

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
$	820	Folsom Pub. Fin. Au. Spec. Tax Rev., Ser. 2007 B, 4.40%, due 9/1/12	$	779
	250	Folsom Pub. Fin. Au. Spec. Tax Rev., Ser. 2007 B, 4.40%, due 9/1/13		233
	2,000	Fresno Joint Pwr. Fin. Au. Lease Rev. (Master Lease Proj.), Ser. 2008 A, 5.00%, due 4/1/23		1,896
	1,000	Fresno Unified Sch. Dist. Ref. G.O., Ser. 2002 A, (MBIA Insured), 6.00%, due 2/1/17		1,072
	2,835	Glendale Redev. Agcy. Tax Allocation Rev. (Central Glendale Redev. Proj.), Ser. 2002, (MBIA Insured), 5.00%, due 12/1/16		2,826
	2,480	Glendale Redev. Agcy. Tax Allocation Rev. (Central Glendale Redev. Proj.), Ser. 2002, (MBIA Insured), 5.25%, due 12/1/17		2,547
	1,000	Kings Canyon Joint Unified Sch. Dist. G.O., Ser. 2002, (FGIC Insured), 5.38%, due 8/1/17		1,024
	1,245	Long Beach Bond Fin. Au. Tax Allocation Rev. (Downtown, North Long Beach, Poly High, & West Beach Redev. Proj.), Ser. 2002 A, (AMBAC Insured), 5.38%, due 8/1/17 Pre-Refunded 8/1/12		1,352
	500	Long Beach Fin. Au. Rev., Ser. 1992, (AMBAC Insured), 6.00%, due 11/1/17		543
	1,275	Los Angeles Co. Long Beach Unified Sch. Dist. G.O., Ser. 2002 D, (FSA Insured), 5.00%, due 8/1/17 Pre-Refunded 8/1/10		1,347
	5,000	Los Angeles Dept. of Arpts. Rev. (Los Angeles Int'l Arpt.), Ser. 2002 A, (FGIC Insured), 5.25%, due 5/15/18		5,082
	500	Marin Co. Dixie Elementary Sch. Dist. G.O., Ser. 2000 A, (FSA Insured), 5.38%, due 8/1/17		515
	1,045	Marin Co. Muni. Wtr. Dist. Wtr. Ref. Rev., Ser. 2002, (AMBAC Insured), 5.00%, due 7/1/17		1,063
	1,090	Moreland Sch. Dist. Ref. G.O., Ser. 2002, (FGIC Insured), 5.13%, due 9/1/17		1,119
	1,000	Mountain House Pub. Fin. Au. Util. Sys. Rev., Ser. 2007, 5.00%, due 12/1/22		911
	535	Nevada & Placer Cos. Irrigation Dist. Cert. of Participation Rev., Ser. 2002, (FGIC Insured), 5.00%, due 1/1/16		532
	565	Nevada & Placer Cos. Irrigation Dist. Cert. of Participation Rev., Ser. 2002, (FGIC Insured), 5.00%, due 1/1/17		552
	500	Northstar Comm. Svcs. Dist. Spec. Tax (Comm. Facs. Dist. Number 1), Ser. 2006, 4.70%, due 9/1/18		425
	500	Northstar Comm. Svcs. Dist. Spec. Tax (Comm. Facs. Dist. Number 1), Ser. 2006, 4.75%, due 9/1/19		411
	1,045	Oakland G.O., Ser. 2002 A, (FGIC Insured), 5.00%, due 1/15/15		1,063
	1,210	Oakland G.O., Ser. 2002 A, (FGIC Insured), 5.00%, due 1/15/18		1,216
	605	Oakland Redev. Agcy. Rev. (Coliseum Area Redev. Proj.), Ser. 2003, 5.00%, due 9/1/16 Pre-Refunded 3/1/13		651
	635	Oakland Redev. Agcy. Rev. (Coliseum Area Redev. Proj.), Ser. 2003, 5.00%, due 9/1/17 Pre-Refunded 3/1/13		684
	1,290	Oakland Redev. Agcy. Sub. Tax Allocation Rev. (Central Dist. Redev. Proj.), Ser. 2003, (FGIC Insured), 5.50%, due 9/1/17		1,300
	1,445	Oceanside Cert. of Participation Ref. Rev., Ser. 2003 A, (AMBAC Insured), 5.25%, due 4/1/14		1,516
	3,890	Port of Oakland Ref. Rev., Ser. 2002 N, (MBIA Insured), 5.00%, due 11/1/13		3,794
	2,655	Riverside Co. Eastern Muni. Wtr. Dist. Cert. of Participation Wtr. & Swr. Rev., Ser. 2001 A, (FGIC Insured), 5.00%, due 7/1/19		2,664
	440	Roseville Stone Point Comm. Fac. District Number 1 Special Tax Rev., Ser. 2003, 5.70%, due 9/1/17		411
	400	Sacramento Co. Sanitation Dist. Fin. Au. Rev., Ser. 2000 A, 5.60%, due 12/1/17		400
	2,600	Sacramento Muni. Util. Dist. Elec. Rev., Ser. 1997 K, (AMBAC Insured), 5.70%, due 7/1/17		2,794
	830	San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003 B, 4.80%, due 9/1/15		819
	820	San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003 B, 4.90%, due 9/1/16		800
	2,000	San Diego Unified Sch. Dist. G.O., Ser. 2002 D, (FGIC Insured), 5.25%, due 7/1/21		2,117
	1,500	San Francisco City & Co. Int'l Arpt. Rev., Ser. 1999 23A, (FGIC Insured), 5.25%, due 5/1/16		1,453
	5,000	San Francisco City & Co. Redev. Agcy. Lease Ref. Rev. (George R. Moscone Convention Ctr.), Ser. 2003, (FSA Insured), 5.00%, due 7/1/17		5,120
	1,000	San Jose Arpt. Ref. Rev., Ser. 2003 B, (FSA Insured), 5.00%, due 3/1/11		1,026
	1,615	San Jose Arpt. Ref. Rev., Ser. 2003 B, (FSA Insured), 5.00%, due 3/1/12		1,658
	2,500	San Jose Fin. Au. Lease Rev. (Civic Ctr. Proj.), Ser. 2002 B, (AMBAC Insured), 5.25%, due 6/1/17		2,579
	925	San Jose Multi-Family Hsg. Rev. (Fallen Leaves Apts. Proj.), Ser. 2002 J1, (AMBAC Insured), 4.95%, due 12/1/22		760	^ß
	4,000	San Mateo Co. Joint Pwr. Fin. Au. Lease Rev. (Youth Svc. Campus), Ser. 2008 A, 5.25%, due 7/15/28		3,871
	1,620	Santa Clara Co. Fremont Union High Sch. Dist. G.O., Ser. 2002 C, (FSA Insured), 5.00%, due 9/1/20 Pre-Refunded 9/1/12		1,741
	1,000	Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev., Ser. 2003, 6.13%, due 3/1/13		957	^ñ
	525	Sierra View Local Hlth. Care Dist. Rev., Ser. 2007, 4.40%, due 7/1/13		505
	505	Sierra View Local Hlth. Care Dist. Rev., Ser. 2007, 4.50%, due 7/1/14		482
	3,905	Solano Co. Cert. of Participation Rev., Ser. 2002, (MBIA Insured), 5.25%, due 11/1/17 Pre-Refunded 11/1/12		4,245
	835	South Gate Pub. Fin. Au. Tax Allocation Rev. (South Gate Redev. Proj. Number 1), Ser. 2002, (XLCA Insured), 5.00%, due 9/1/16		832
	400	Southern California Pub. Pwr. Au. Rev. (Natural Gas Proj. Number 1), Ser. 2007 A, 5.00%, due 11/1/18		322

See Notes to Schedule of Investments 8

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
$	1,250	Sunnyvale Sch. Dist. G.O. (Election 2004), Ser. 2005 A, (FSA Insured), 5.00%, due 9/1/21	$	1,235
	1,300	Tulare Local Hlth. Care Dist., Ser. 2007, 5.00%, due 11/1/20		1,062
				129,329
Florida (0.8%)
	750	Miami Beach Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09		744	^ß
Guam (0.8%)
	700	Guam Gov't Waterworks Au. Wtr. & Wastewater Sys. Rev., Ser. 2005, 5.50%, due 7/1/16		676
Louisiana (2.7%)
	1,500	Morehouse Parish Ref. PCR (Int'l Paper Co. Proj.), Ser. 2001 A, 5.25%, due 11/15/13		1,341	^ß
	1,250	Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30		1,052
				2,393
New York (1.4%)
	1,000	Nassau Co. IDA Continuing Care Retirement Comm. Rev. (The Amsterdam Harborside), Ser. 2007 A, 5.88%, due 1/1/18		868	^ß
	500	New York City IDA Liberty Rev. (7 World Trade Ctr., LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15		415
				1,283
North Carolina (1.6%)
	1,405	North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev., Ser. 2003 A, 5.50%, due 1/1/14		1,441
Pennsylvania (1.0%)
	1,000	Cumberland Co. West Shore Area Au. Hosp. Rev. (Holy Spirit Hosp. of the Sisters of Christian Charity Proj.), Ser. 2001, 6.00%, due 1/1/18		906	^ß
Puerto Rico (5.6%)
	1,000	Puerto Rico Ind., Tourist, Ed., Med. & Env. Ctrl. Fac. Rev. (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A, (ACA Insured), 5.25%, due 8/1/15		924	^ß
	3,000	Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, (FSA Insured), 5.25%, due 8/1/17		3,018
	1,000	Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, (FSA Insured), 5.25%, due 8/1/21		966
				4,908
Texas (1.4%)
	900	Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13		779	^µß
	500	Dallas-Fort Worth Int'l Arpt. Fac. Imp. Corp. Rev., Ser. 2004 A1, 6.15%, due 1/1/16		439	^ß
				1,218
Virgin Islands (2.1%)
	250	Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22		195
	750	Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22		725
	1,000	Virgin Islands Wtr. & Pwr. Au. Elec. Sys. Ref. Rev., Ser. 1998, 5.30%, due 7/1/18		911
				1,831
		Total Investments (164.6%) (Cost $153,120)		145,430	^##
		Cash, receivables and other assets, less liabilities (2.2%)		1,901
		Liquidation Value of Auction Market Preferred Shares [(66.8%)]		(59,000	)
		Total Net Assets Applicable to Common Shareholders (100.0%)	$	88,331

See Notes to Schedule of Investments 9

Schedule of Investments Intermediate Municipal Fund Inc.

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
Alabama (1.6%)
$	4,210	DCH Hlth. Care Au. Hlth. Care Fac. Rev., Ser. 2002, 5.25%, due 6/1/14	$	4,239
Arizona (3.8%)
	1,465	Arizona Energy Management Svcs. (Main) LLC Energy Conservation Rev. (Arizona St. Univ. Proj.-Main Campus), Ser. 2002, (MBIA Insured), 5.25%, due 7/1/17		1,507
	2,000	Arizona St. Trans. Board Hwy. Rev., Ser. 2008 A, 5.00%, due 7/1/26		1,975
	2,265	Arizona Wtr. Infrastructure Fin. Au. Rev. (Wtr. Quality), Ser. 2008 A, 5.00%, due 10/1/22		2,293
	1,255	Salt Verde Fin. Corp. Sr. Gas Rev., Ser. 2007, 5.25%, due 12/1/20		971
	1,750	Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17		1,636
	2,325	Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2006, 5.05%, due 7/15/18		1,872
				10,254
California (8.1%)
	3,500	California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Republic Svcs., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23 Putable 12/1/17		3,032	^µß
	2,000	California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Waste Management, Inc. Proj.), Ser. 2005 C, 5.13%, due 11/1/23		1,402	^ß
	2,500	California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.75%, due 5/1/17 Pre-Refunded 5/1/12		2,764
	3,460	California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.38%, due 5/1/22 Pre-Refunded 5/1/12		3,783
	1,500	California St. Pub. Works Board Lease Rev., Ser. 2002 A, (AMBAC Insured), 5.25%, due 12/1/17		1,525
	1,240	California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.), Ser. 2003 A, 6.00%, due 10/1/16		1,270	^ß
	1,270	California Statewide CDA Rev. (California Baptist Univ.), Ser. 2007 A, 5.30%, due 11/1/18		991	^ßØØ
	2,800	Golden St. Tobacco Securitization Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2003 A1, 6.25%, due 6/1/33		2,990
	2,080	Oakland Redev. Agcy. Sub. Tax Allocation Rev. (Central Dist. Redev. Proj.), Ser. 2003, (FGIC Insured), 5.50%, due 9/1/18		2,069
	740	San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003 B, 5.00%, due 9/1/17		714
	1,500	Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev., Ser. 2006, 4.88%, due 3/1/16		1,362	^ñ
				21,902
Colorado (5.9%)
	4,220	Colorado Springs Util. Sys. Sub. Lien Ref. Rev., Ser. 2002 A, (AMBAC Insured), 5.38%, due 11/15/18		4,355
	1,785	Denver City & Co. Arpt. Sys. Ref. Rev., Ser. 1991 D, (XLCA Insured), 7.75%, due 11/15/13		1,902
	4,000	Denver City & Co. Arpt. Sys. Ref. Rev., Ser. 2002 E, (FGIC Insured), 5.25%, due 11/15/14		3,896
	1,000	Pub. Au. for Colorado Energy Natural Gas Purchase Rev., Ser. 2008, (LOC: Merrill Lynch Capital Markets), 6.13%, due 11/15/23		813
	4,610	Thornton Cert. of Participation, Ser. 2002, (AMBAC Insured), 5.38%, due 12/1/16 Pre-Refunded 12/1/12		4,986
				15,952
Connecticut (0.9%)
	2,400	Mashantucket Western Pequot Tribe Spec. Rev., Sub. Ser. 1997 B, 5.70%, due 9/1/12		2,305	^ñ
District of Columbia (2.1%)
	4,495	Dist. of Columbia (Washington, D.C.) Ref. G.O., Ser. 2002 C, (XLCA Insured), 5.25%, due 6/1/13		4,688
	1,000	Metro. Washington Dist. of Columbia Arpt. Au. Sys., Ser. 2008 A, 5.50%, due 10/1/18		939
				5,627
Florida (8.2%)
	2,335	Fiddlers Creek Comm. Dev. Dist. Number 2 Spec. Assessment Rev., Ser. 2003 A, 6.00%, due 5/1/16		1,986
	1,750	Miami Beach Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09		1,735	^ß
	8,140	Orange Co. Sales Tax Ref. Rev., Ser. 2002 A, (FGIC Insured), 5.13%, due 1/1/18		8,226

See Notes to Schedule of Investments 10

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
$	2,085	Palm Beach Co. Hlth. Fac. Au. Hosp. Ref. Rev. (BRCH Corp. Oblig. Group), Ser. 2001, 5.00%, due 12/1/12	$	1,955	^ß
	7,000	Palm Beach Co. Sch. Board Cert. of Participation, Ser. 2001 B, (AMBAC Insured), 5.38%, due 8/1/17		7,182
	1,000	Sarasota Co. Util. Sys. Ref. Rev., Ser. 2002 C, (FGIC Insured), 5.25%, due 10/1/20		990
				22,074
Georgia (3.1%)
	4,575	Henry Co. Wtr. & Swr. Au. Wtr. & Swr. Ref. Rev., Ser. 2002 A, (MBIA Insured), 5.13%, due 2/1/17		4,803
	1,000	Main Street Natural Gas, Inc. Gas Proj. Rev., Ser. 2007 B, 5.00%, due 3/15/14		873
	2,710	Newnan Hosp. Au. Rev. Anticipation Cert. (Newnan Hosp., Inc. Proj.), Ser. 2002, (MBIA Insured), 5.50%, due 1/1/18		2,770	^ß
				8,446
Illinois (13.2%)
	3,000	Bartlett Tax Increment Ref. Rev. (Quarry Redev. Proj.), Ser. 2007, 5.35%, due 1/1/17		2,652
	5,940	Chicago G.O., Ser. 2002 A, (AMBAC Insured), 5.38%, due 1/1/17 Pre-Refunded 7/1/12		6,388
	180	Chicago G.O. (Unrefunded Bal.), Ser. 2002 A, (AMBAC Insured), 5.38%, due 1/1/17		186
	1,500	Chicago Metro. Wtr. Reclamation Dist. Cap. Imp. G.O., Ser. 2002 C, 5.38%, due 12/1/16 Pre-Refunded 12/1/12		1,617	^ØØ
	1,970	Cook Co. Township High Sch. Dist. Number 225 Northfield Township, Ser. 2008, 5.00%, due 12/1/25		1,934
	5,130	Illinois Ed. Fac. Au. Rev. (Field Museum of Natural History), Ser. 2002, 4.30%, due 11/1/36 Putable 11/1/13		5,078	^µß
	4,000	Illinois Fin. Au. Rev. (Clare Oaks Proj.), Ser. 2006 A, 5.75%, due 11/15/16		3,565	^ß
	5,000	Illinois G.O., Ser. 2002, (MBIA Insured), 5.25%, due 10/1/14		5,250
	3,000	Illinois Hlth. Fac. Au. Rev. (Loyola Univ. Hlth. Sys.) (Unrefunded Bal.), Ser. 1997 A, (MBIA Insured), 6.00%, due 7/1/14		3,302	^ß
	1,670	Illinois Metro. Pier & Exposition Au. Dedicated St. Tax Ref. Rev., Ser. 1998 A, (FGIC Insured), 5.50%, due 6/15/17		1,810
	2,000	Kane, Cooke, & DuPage Cos. Elgin Sch. Dist. Number U-46 G.O., Ser. 1998, (FSA Insured), 5.35%, due 1/1/15		2,076
	2,250	Southwestern Illinois Local Gov't Dev. Au. Rev., (Collinsville Ltd.), Ser. 2007, 5.00%, due 3/1/25		1,722
				35,580
Indiana (10.2%)
	1,995	Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2001 A, 5.38%, due 2/1/17 Pre-Refunded 2/1/13		2,176
	760	Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2001 B, 5.25%, due 2/1/18 Pre-Refunded 2/1/13		818
	8,005	Indiana Bond Bank Rev. (Unrefunded Bal. Revolving Fund Prog.), Ser. 2001 A, 5.38%, due 2/1/17		8,313
	2,800	Indiana Bond Bank Rev. (Unrefunded Bal. Revolving Fund Prog.), Ser. 2002 B, 5.25%, due 2/1/18		2,891
	4,000	Indiana Hlth. & Ed. Fac. Fin. Au. Hosp. Ref. Rev. (Clarian Hlth. Oblig. Group), Ser. 2006 B, 5.00%, due 2/15/21		3,420	^ß
	1,000	Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev., Ser. 2003 B, (MBIA Insured), 5.25%, due 1/1/18		1,023
	2,050	Indiana St. Hlth. Fac. Fin. Au. Rev. (Hlth. Sys. Sisters of St. Francis), Ser. 2001, 5.35%, due 11/1/15		2,076	^ß
	1,065	Indiana St. Recreational Dev. Comm. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 7/1/18		1,086
	1,125	Indiana St. Recreational Dev. Comm. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 7/1/19		1,141
	2,580	Indianapolis Local Pub. Imp. Rev. (Indianapolis Arpt. Au. Proj.), Ser. 2003 A, (FSA Insured), 5.63%, due 1/1/17		2,481
	2,000	Jasper Hosp. Au. Hosp. Fac. Ref. Rev. (Mem. Hosp. & Hlth. Care Ctr. Proj.), Ser. 2002, (Radian Insured), 5.50%, due 11/1/17		2,034	^ß
				27,459
Iowa (2.6%)
	1,000	Coralville Urban Renewal Rev., Tax Increment, Ser. 2007 C, 5.00%, due 6/1/15		1,004
	3,000	Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.30%, due 6/1/25 Pre-Refunded 6/1/11		3,151
	3,000	Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed Rev., Ser. 2005 C, 5.38%, due 6/1/38		1,915

See Notes to Schedule of Investments 11

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
$	1,005	Kirkwood Comm. College Iowa New Jobs Training Cert. (Merged Area X), Ser. 2007 1B, 5.00%, due 6/1/17	$	976
				7,046
Louisiana (1.1%)
	2,500	Morehouse Parish Ref. PCR (Int'l Paper Co. Proj.), Ser. 2001 A, 5.25%, due 11/15/13		2,234	^ß
	1,000	Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30		842
				3,076
Maryland (0.4%)
	1,000	Maryland St. Hlth. & Higher Ed. Fac. Au. Rev. (Union Hosp. of Cecil Co.), Ser. 2002, 5.50%, due 7/1/14		1,000	^ß
Massachusetts (8.9%)
	3,000	Massachusetts Port Au. Spec. Fac. Rev. (Delta Air Lines, Inc. Proj.), Ser. 2001 A, (AMBAC Insured), 5.50%, due 1/1/19		2,018	^ß
	1,850	Massachusetts St. G.O., Ser. 2002 E, (MBIA Insured), 5.38%, due 1/1/18 Pre-Refunded 1/1/13		1,987	^ØØ
	2,450	Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Caritas Christi Oblig. Group), Ser. 1999 A, 5.70%, due 7/1/15		2,285	^ß
	2,420	Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Milford-Whitinsville Reg. Hosp.), Ser. 1998 C, 5.75%, due 7/15/13		2,326	^ß
	4,935	Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (New England Med. Ctr. Hosp.), Ser. 2002 H, (FGIC Insured), 5.38%, due 5/15/16 Pre-Refunded 5/15/12		5,278	^ß
	5,030	Massachusetts St. Wtr. Poll. Abatement Trust Rev. (MWRA Prog.), Ser. 2002 A, 5.25%, due 8/1/19		5,141
	2,775	Massachusetts St. Wtr. Poll. Abatement Trust Rev. (Unrefunded Bal. Rev. Pool Prog.), Ser. 2001 7, 5.25%, due 2/1/16		2,881
	2,000	Massachusetts St. Wtr. Poll. Abatement Trust. Rev. (Pool Prog.), Ser. 2001 7, 5.25%, due 2/1/16 Pre-Refunded 8/1/11		2,123
				24,039
Michigan (5.2%)
	3,075	Detroit Sch. Dist. Sch. Bldg. & Site Imp. G.O., Ser. 2002 A, (FGIC Insured), 5.50%, due 5/1/15 Pre-Refunded 5/1/13		3,357
	1,070	Ingham & Clinton Cos. East Lansing Bldg. Au. Ref. G.O., Ser. 1999, 5.25%, due 10/1/16		1,081
	1,375	Macomb Co. New Haven Comm. Sch. Bldg. & Site G.O., Ser. 2002, 5.25%, due 5/1/17 Pre-Refunded 11/1/12		1,481
	1,500	Michigan St. Bldg. Au. Rev. (Fac. Prog.), Ser. 2001 II, 5.50%, due 10/15/18 Pre-Refunded 10/15/11		1,612
	3,850	Royal Oak Hosp. Fin. Au. Hosp. Ref. Rev. (William Beaumont Hosp.), Ser. 1996, 6.25%, due 1/1/12		3,966	^ß
	2,000	Summit Academy North Pub. Sch. Academy Ref. Rev., Ser. 2005, 5.25%, due 11/1/20		1,633
	975	Summit Academy Pub. Sch. Academy Ref. Rev., Ser. 2005, 6.00%, due 11/1/15		904
				14,034
Minnesota (2.4%)
	2,000	Freeborn Co. Hsg. & Redev. Au. Lease Rev. (Criminal Justice Ctr. Proj.), Ser. 2002, 5.38%, due 2/1/17		2,034
	2,000	Maple Grove Hlth. Care Sys. Rev. (Maple Grove Hosp. Corp.), Ser. 2007, 5.00%, due 5/1/17		1,884	^ß
	2,540	St. Paul Port Au. Lease Rev. (Office Bldg. at Cedar Street), Ser. 2002, 5.00%, due 12/1/17		2,600
				6,518
Mississippi (0.6%)
	1,500	Mississippi Dev. Bank Spec. Oblig. (Wilkinson Co. Correctional), Ser. 2008 D, 5.00%, due 8/1/15		1,526	^ß
Missouri (5.0%)
	3,495	Bi State Dev. Agcy. Metro. Dist. Rev. (Metrolink Cross Co. Extension Proj.), Ser. 2002 B, (FSA Insured), 5.25%, due 10/1/16		3,603
	2,000	Boone Co. Hosp. Ref. Rev. (Boone Hosp. Ctr.), Ser. 2002, 5.05%, due 8/1/20		1,750	^ß
	2,425	Branson Dev. Fin. Board Infrastructure Fac. Board Rev., Ser. 2003 A, 5.00%, due 12/1/17		2,265

See Notes to Schedule of Investments 12

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
$	725	Branson Ind. Dev. Au. Ltd. Oblig. Tax Increment Rev. (Branson Landing-Retail Proj.), Ser. 2005, 5.25%, due 6/1/21	$	582
	2,000	Missouri St. Env. Imp. & Energy Res. Au. Wtr. Poll. Ctrl. & Drinking Wtr. Rev., Ser. 2002 B, 5.50%, due 7/1/16		2,122
	435	Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev., Ser. 2001 II, (FHA Insured), 5.25%, due 12/1/16		427	^a
	110	Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev., Ser. 2001 III, (FHA Insured), 5.05%, due 12/1/15		109
	2,965	Missouri St. Univ. Auxiliary Enterprise Sys. Rev., Ser. 2007 A, (XLCA Insured), 5.00%, due 4/1/26		2,609
				13,467
Nebraska (0.3%)
	1,025	Central Plains Energy Proj. Rev. (Nebraska Gas Proj. Number 1), Ser. 2007 A, 5.00%, due 12/1/14		871	^ØØ
Nevada (4.6%)
	5,335	Clark Co. Passenger Fac. Charge Ref. Rev. (Las Vegas-McCarran Int'l Arpt. Proj.), Ser. 2002 A, (MBIA Insured), 5.25%, due 7/1/10		5,385
	4,355	Las Vegas Valley Wtr. Dist. Ref. & Wtr. Imp. G.O., Ser. 2003 A, (FGIC Insured), 5.25%, due 6/1/16		4,523
	2,295	Truckee Meadows Wtr. Au. Wtr. Rev., Ser. 2001 A, (FSA Insured), 5.50%, due 7/1/15		2,387
				12,295
New Hampshire (1.6%)
	2,310	New Hampshire Hlth. Ed. Fac. Au. Rev. (Univ. Sys. of New Hampshire), Ser. 2001, (AMBAC Insured), 5.38%, due 7/1/17 Pre-Refunded 7/1/11		2,473	^ØØ
	1,700	New Hampshire Hlth. Ed. Fac. Au. Rev. (Univ. Sys. of New Hampshire) (Unrefunded Bal.), Ser. 2001, (AMBAC Insured), 5.38%, due 7/1/17		1,760
				4,233
New Jersey (6.5%)
	5,000	New Jersey Bldg. Au. St. Bldg. Ref. Rev., Ser. 2002 B, (FSA Insured), 5.25%, due 12/15/15		5,229
	1,500	New Jersey Econ. Dev. Au. Cigarette Tax Rev., Ser. 2004, 5.63%, due 6/15/19		1,308
	700	New Jersey Econ. Dev. Au. Retirement Comm. Rev. Ref. (Seabrook Village, Inc. Fac.), Ser. 2006, 5.25%, due 11/15/26		499	^ß
	6,900	New Jersey Ed. Fac. Au. Rev. (Stevens Institute of Technology), Ser. 2002 C, 5.25%, due 7/1/17 Pre-Refunded 7/1/13		7,433	^ß
	4,000	New Jersey Hlth. Care Fac. Fin. Au. Rev. (Somerset Med. Ctr. Issue), Ser. 2003, 5.50%, due 7/1/18		3,109	^ß
				17,578
New York (4.7%)
	870	Lyons Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004, 5.50%, due 9/1/14		920
	3,250	New York City G.O., Ser. 2002 C, 5.50%, due 8/1/15		3,382
	2,580	New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002 A, (ACA Insured), 5.50%, due 6/1/14		2,475	^ß
	750	New York City IDA Civic Fac. Rev. (Vaughn College of Aeronautics and Technology), Ser. 2006 A, 5.00%, due 12/1/21		582	^ß
	2,750	New York City IDA Liberty Rev. (7 World Trade Ctr., LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15		2,281
	1,250	New York Liberty Dev. Corp. Rev. (Nat'l Sports Museum Proj.), Ser. 2006 A, 6.13%, due 2/15/19		149	^#‡
	1,700	New York St. Dorm. Au. Personal Income Tax Rev., Ser. 2003 A, 5.38%, due 3/15/20 Pre-Refunded 3/15/13		1,854
	1,000	New York St. Mtge. Agcy. Homeowner Mtge. Rev., Ser. 2006-132, (LOC: Dexia Credit Locale de France), 1.90%, due 11/3/08		1,000	^µ
				12,643
North Dakota (1.6%)
	4,100	Fargo Hlth. Sys. Rev. (Meritcare Obligated Group), Ser. 2002 A, (AMBAC Insured), 5.63%, due 6/1/17		4,259	^ß

See Notes to Schedule of Investments 13

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
Ohio (1.4%)
$	3,760	Ohio Air Quality Dev. Au. Env. Imp. Ref. Rev. (USX Corp. Proj.), Ser. 1995, 5.00%, due 11/1/15 Putable 11/1/11	$	3,748	^µß
Pennsylvania (6.3%)
	1,765	Cumberland Co. West Shore Area Au. Hosp. Rev. (Holy Spirit Hosp. of the Sisters of Christian Charity Proj.), Ser. 2001, 6.05%, due 1/1/19		1,582	^ß
	565	Delaware River Joint Toll Bridge Comm. Sys. Rev., Ser. 2003, 5.25%, due 7/1/18 Pre-Refunded 7/1/13		610
	435	Delaware River Joint Toll Bridge Comm. Sys. Rev. (Unrefunded Bal.), Ser. 2003, 5.25%, due 7/1/18		445
	2,000	Lancaster Co. Hosp. Au. Rev. (Brethren Village Proj.), Ser. 2008 A, 6.10%, due 7/1/22		1,617	^ß
	2,000	Lehigh Co. Gen. Purp. Au. Rev. (KidsPeace Oblig. Group), Ser. 1998, 6.00%, due 11/1/23		1,383	^ß
	5,000	Montgomery Co. Higher Ed. & Hlth. Au. Hosp. Rev. (Abington Mem. Hosp. Proj.), Ser. 2002 A, 5.00%, due 6/1/19		4,476	^ß
	1,000	Pennsylvania Econ. Dev. Fin. Au. Res. Rec. Ref. Rev. (Colver Proj.), Ser. 2005 G, 5.13%, due 12/1/15		892
	2,000	Philadelphia Arpt. Ref. Rev. (Philadelphia Arpt. Sys.), Ser. 1998 A, (FGIC Insured), 5.38%, due 6/15/14		1,984
	1,480	Sayre Hlth. Care Fac. Au. Rev., (Guthrie Hlth. Proj.), Ser. 2002 A, 5.75%, due 12/1/21 Pre-Refunded 12/1/11		1,605	^ß
	520	Sayre Hlth. Care Fac. Au. Rev. (Unrefunded Bal.), (Guthrie Hlth. Proj.), Ser. 2002 A, 5.75%, due 12/1/21		491	^ß
	2,000	Westmoreland Co. IDA Gtd. Rev. (Nat'l Waste & Energy Corp., Valley Landfill Expansion Proj.), Ser. 1993, 5.10%, due 5/1/18 Putable 5/1/09		1,988	^µß
				17,073
South Carolina (5.9%)
	1,100	Charleston Co. Sch. Dist. G.O., Ser. 2001, (FSA Insured), 5.00%, due 2/1/18		1,121
	2,140	Mt. Pleasant Town Waterworks & Swr. Sys. Ref. & Imp. Rev., Ser. 2002, (FGIC Insured), 5.25%, due 12/1/17		2,206
	2,345	South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev. (Palmetto Hlth. Alliance), Ser. 2003 A, 6.00%, due 8/1/13		2,341	^ß
	2,000	South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev. (Palmetto Hlth. Alliance), Ser. 2003 A, 6.13%, due 8/1/23		1,830	^ß
	4,665	South Carolina St. Pub. Svc. Au. Rev., Ser. 2002 B, (FSA Insured), 5.38%, due 1/1/18		4,804
	3,500	Union Co. IDR (Federal Paper Board Co., Inc. Proj.), Ser. 1989, 4.55%, due 11/1/09		3,515	^ß
				15,817
Tennessee (2.3%)
	1,655	Knox Co. Hlth. Ed. & Hsg. Fac. Board Hosp. Fac. Rev., Ser. 2002 A, (FSA Insured), 5.50%, due 1/1/18 Pre-Refunded 1/1/13		1,792	^ß
	1,360	Knox Co. Hlth. Ed. & Hsg. Fac. Board Hosp. Fac. Rev. (Unrefunded Bal.), Ser. 2002 A, (FSA Insured), 5.50%, due 1/1/18		1,415	^ß
	3,085	Memphis-Shelby Co. Arpt. Au. Spec. Fac. Ref. Rev. (Federal Express Corp.), Ser. 2002, 5.05%, due 9/1/12		2,969	^ß
				6,176
Texas (23.8%)
	4,145	Anson Ed. Fac. Corp. Std. Hsg. Rev. (Univ. of Texas at Dallas-Waterview Park Proj.), Ser. 2002, (ACA Insured), 5.00%, due 1/1/23		3,077	^ß
	920	Austin Convention Enterprises, Inc. Convention Ctr. Hotel First Tier Rev., Ser. 2001 A, 6.38%, due 1/1/16 Pre-Refunded 1/1/11		982
	3,300	Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13		2,857	^µß
	1,000	Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 D, 5.40%, due 10/1/29 Putable 10/1/14		790	^µß
	3,600	Corpus Christi Tax & Muni. Hotel Occupancy Tax G.O., Ser. 2002, (FSA Insured), 5.50%, due 9/1/17		3,752
	2,100	Dallas-Fort Worth Int'l Arpt. Fac. Imp. Corp. Rev., Ser. 2004 A1, 6.15%, due 1/1/16		1,845	^ß
	1,935	Dallas-Fort Worth Int'l Arpt. Imp. Rev., Ser. 2004 B, (FSA Insured), 5.50%, due 11/1/18		1,800
	1,750	Ector Co. Hosp. Dist. Hosp. Rev., Ser. 2002 A, 5.63%, due 4/15/16		1,720
	1,745	Ector Co. Hosp. Dist. Hosp. Rev., Ser. 2002 A, 5.63%, due 4/15/17		1,682
	2,300	Harris Co. Perm. Imp. Ref. G.O., Ser. 2008 B, 5.00%, due 10/1/19		2,347
	2,900	Harris Co. Toll Road Sr. Lien Rev., Ser. 2008 B, 5.00%, due 8/15/33		2,626
	2,210	Harris Co. Toll Road Sr. Lien Rev., (Unrefunded Bal.), Ser. 2002, (FSA Insured), 5.38%, due 8/15/16		2,299
	4,790	Harris Co. Toll Road Sr. Lien Rev., Ser. 2002, (FSA Insured), 5.38%, due 8/15/16 Pre-Refunded 8/15/12		5,172

See Notes to Schedule of Investments 14

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
$	610	HFDC Central Texas, Inc. Retirement Fac. Rev., Ser. 2006 A, 5.25%, due 11/1/15	$	538	^ß
	3,235	Houston Arpt. Sys. Sub. Lien. Ref. Rev., Ser. 2001 A, (FGIC Insured), 5.50%, due 7/1/16		3,114
	4,955	Houston Pub. Imp. Ref. G.O., Ser. 2002, (MBIA Insured), 5.25%, due 3/1/17		5,094
	1,000	Houston Pub. Imp. Ref. G.O., Ser. 2008 A, 5.00%, due 3/1/20		997	^Ø
	4,780	North Central Hlth. Fac. Dev. Corp. Hosp. Ref. Rev. (Baylor Hlth. Care Sys. Proj.), Ser. 1998, 5.10%, due 5/15/13		4,869	^ß
	950	Northwest Texas Independent Sch. Dist. Sch. Bldg., Ser. 2002, (PSF Insured), 5.50%, due 8/15/17 Pre-Refunded 2/15/13		1,035
	50	Northwest Texas Independent Sch. Dist. Sch. Bldg. (Unrefunded Bal.), Ser. 2002, (PSF Insured), 5.50%, due 8/15/17		52
	20	San Antonio Cert. of Obligation G.O., Ser. 2002, 5.00%, due 2/1/14 Pre-Refunded 2/1/12		21
	6,795	San Antonio Independent Sch. Dist. Unlimited Tax G.O., Ser. 2001 B, (PSF Insured), 5.38%, due 8/15/17		6,989
	1,240	San Antonio Unrefunded Balance Cert. of Obligation G.O. (Unrefunded Bal.), Ser. 2002, 5.00%, due 2/1/14		1,286
	500	San Leanna Ed. Fac. Corp. Higher Ed. Ref. Rev., (St. Edwards Univ. Proj.), Ser. 2007, 5.00%, due 6/1/19		416	^ß
	910	Southmost Reg. Wtr. Auth. Wtr. Supply Contract Rev., Ser. 2002, (MBIA Insured), 5.50%, due 9/1/19 Pre-Refunded 9/1/12		986
	1,000	Southmost Reg. Wtr. Auth. Wtr. Supply Contract Rev. (Unrefunded Bal.), Ser. 2002, (MBIA Insured), 5.50%, due 9/1/19		1,026
	4,200	Tarrant Reg. Wtr. Dist. Wtr. Ref. & Imp. Rev., Ser. 2002, (FSA Insured), 5.38%, due 3/1/16		4,401
	300	Texas Std. Hsg. Corp. Std. Hsg. Rev. (Midwestern St. Univ. Proj.), Ser. 2002, 5.50%, due 9/1/12		313
	1,000	Trinity River Au. Imp. & Ref. Rev. (Tarrant Co. Wtr. Proj.), Ser. 2003, (MBIA Insured), 5.50%, due 2/1/16 Pre-Refunded 2/1/13		1,087
	1,085	Tyler Hlth. Fac. Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg. Hlth. Care Ctr. Proj.), Ser. 2003, 5.25%, due 7/1/13		1,022
				64,195
Utah (0.4%)
	1,200	Uintah Co. Muni. Bldg. Au. Lease Rev., Ser. 2008, 5.25%, due 6/1/20		1,151
Virgin Islands (0.7%)
	1,000	Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22		779
	1,500	Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2004, 5.88%, due 7/1/22		1,139	^ß
				1,918
Virginia (1.0%)
	2,620	Peninsula Ports Au. Res. Care Fac. Ref. Rev. (VA Baptist Homes), Ser. 2006 C, 5.25%, due 12/1/21		2,011	^ß
	1,000	Virginia Beach Dev. Au. Residential Care Fac. Mtge. Ref. Rev. (Westminster-Canterbury of Hampton Roads, Inc.), Ser. 2005, 5.00%, due 11/1/22		737	^ß
				2,748
Washington (10.7%)
	8,800	Energy Northwest Elec. Ref. Rev. (Proj. Number 3), Ser. 2001 A, (FSA Insured), 5.50%, due 7/1/17		9,113
	5,000	King & Snohomish Cos. Northshore Sch. Dist. Number 417 G.O., Ser. 2002, (FSA Insured), 5.50%, due 12/1/17 Pre-Refunded 6/1/12		5,417
	6,250	Port of Seattle Sub. Lien Rev., Ser. 2002 B, (FGIC Insured), 5.50%, due 9/1/16		6,013
	1,000	Skagit Co. Pub. Hosp. Dist. Number 1 Ref. Rev., Ser. 2007, 5.63%, due 12/1/25		759
	1,000	Skagit Co. Pub. Hosp. Dist. Ref. Rev., Ser. 2003, 6.00%, due 12/1/23		811
	1,625	Skagit Co. Pub. Hosp. Dist. Ref. Rev., Ser. 2003, 6.00%, due 12/1/18		1,411
	2,500	Tacoma Wtr. Sys. Rev., Ser. 2001, (FGIC Insured), 5.13%, due 12/1/19		2,526
	3,125	Washington St. Hlth. Care Fac. Au. Rev. (Yakima Valley Mem. Hosp. Assoc.), Ser. 2002, (ACA Insured), 5.00%, due 12/1/17		2,658	^ß
				28,708

See Notes to Schedule of Investments 15

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
West Virginia (0.4%)
$	1,000	West Virginia Sch. Bldg. Au. Excess Lottery Rev., Ser. 2008, 5.00%, due 7/1/19	$	984
Wisconsin (6.0%)
	1,290	Badger Tobacco Asset Securitization Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2002, 6.13%, due 6/1/27		1,217
	1,900	Univ. of Wisconsin Hosp. & Clinics Au. Hosp. Rev., Ser. 2002 B, 5.50%, due 4/1/12		1,925
	1,370	Wisconsin Hlth. & Ed. Fac. Au. Rev. (Aurora Med. Group, Inc. Proj.), Ser. 1996, (FSA Insured), 6.00%, due 11/15/11		1,480	^ß
	1,000	Wisconsin Hlth. & Ed. Fac. Au. Rev., (Franciscan Sisters Hlth. Care), Ser. 2007, 5.00%, due 9/1/14		933	^ß
	7,205	Wisconsin St. G.O., Ser. 2002 C, (MBIA Insured), 5.25%, due 5/1/17 Pre-Refunded 5/1/12		7,696
	2,780	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Kenosha Hosp. & Med. Ctr., Inc. Proj.), Ser. 1999, 5.50%, due 5/15/15		2,785	^ß
				16,036
Wyoming (1.5%)
	4,895	Wyoming Comm. Dev. Au. Hsg. Rev., Ser. 2006 6, 5.00%, due 12/1/21		4,029
Other (1.6%)
	2,000	MuniMae Subordinated Cumulative Perpetual Preferred Shares, Ser. C, 4.70%, due 6/30/49 Putable 9/30/09		1,978	^ñ
	3,000	Non-Profit Pfd. Fdg. Trust I, Ser. 2006 C, 4.72%, due 9/15/37		2,340	^Ñ
				4,318
		Total Investments (164.6%) (Cost $465,924)		443,324	^##
		Cash, receivables and other assets, less liabilities (2.0%)		5,377
		Liquidation Value of Auction Market Preferred Shares [(66.6%)]		(179,400	)
		Total Net Assets Applicable to Common Shareholders (100.0%)	$	269,301

See Notes to Schedule of Investments 16

Schedule of Investments New York Intermediate Municipal Fund Inc.

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
Arizona (0.7%)
$	500	Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17	$	467
California (1.3%)
	1,000	Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev., Ser. 2003, 6.13%, due 3/1/13		957	^ñ
Florida (0.7%)
	500	Miami Beach Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09		496	^ß
Guam (0.7%)
	500	Guam Gov't Waterworks Au. Wtr. & Wastewater Sys. Rev., Ser. 2005, 5.50%, due 7/1/16		483
Louisiana (2.4%)
	1,000	Morehouse Parish Ref. PCR (Int'l Paper Co. Proj.), Ser. 2001 A, 5.25%, due 11/15/13		894	^ß
	1,000	Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30		842
				1,736
New York (152.6%)
	3,000	Albany IDA Civic Fac. Rev. (Charitable Leadership Foundation Ctr. for Med. Science Proj.), Ser. 2002 A, 6.00%, due 7/1/19		2,706
	1,000	Buffalo & Fort Erie Pub. Bldg. Au. Toll Bridge Sys. Rev., Ser. 2005, (LOC: Bank of Nova Scotia), 4.00%, due 1/1/25 Putable 7/1/10		1,013	^µ
	500	Cattaraugus Co. IDA (St. Bonaventure Univ. Proj.), Ser. 2006 A, 5.00%, due 5/1/23		406	^ß
	1,000	Dutchess Co. IDA Civic Fac. Ref. Rev. (Marist College Proj.), Ser. 2003 A, 5.15%, due 7/1/17		1,019	^ß
	2,000	Dutchess Co. IDA Ind. Dev. Rev. (IBM Proj.), Ser. 1999, 5.45%, due 12/1/29 Putable 12/1/09		2,063	^ß
	500	Essex Co. IDA Solid Waste Disp. Rev. (Int'l Paper Co. Proj.), Ser. 2005 A, 5.20%, due 12/1/23		343	^ß
	2,000	Long Island Pwr. Au. Elec. Sys. Gen. Rev., Ser. 1998 A, (FSA Insured), 5.50%, due 12/1/13		2,205
	1,050	Long Island Pwr. Au. Elec. Sys. Gen. Rev., Ser. 2006 E, (FGIC Insured), 5.00%, due 12/1/21		1,055
	1,000	Lyons Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004, 5.50%, due 9/1/14		1,057
	750	Madison Co. IDA Civic Fac. Rev. (Oneida Hlth. Sys., Inc. Proj.), Ser. 2007, 5.25%, due 2/1/27		575	^ß
	1,000	Monroe Co. IDA Civic Fac. Rev. (Highland Hosp. Rochester), Ser. 2005, 5.00%, due 8/1/15		933	^ß
	980	Monroe Co. IDA Std. Hsg. Rev. (Collegiate Hsg. Foundation—Rochester Institute of Technology Proj.), Ser. 1999 A, 5.25%, due 4/1/19		842	^ß
	1,000	Monroe Co. Newpower Corp. Pwr. Fac. Rev., Ser. 2003, 5.10%, due 1/1/16		928
	1,000	Monroe Co. Pub. Imp. Ref. G.O., Ser. 1996, 6.00%, due 3/1/13		1,069
	1,125	Nassau Co. IDA Continuing Care Retirement Comm. Rev. (The Amsterdam Harborside), Ser. 2007 A, 5.88%, due 1/1/18		976	^ß
	1,000	New York City G.O., Ser. 2002 A, 5.75%, due 8/1/16		1,039
	750	New York City G.O., Ser. 2002 C, 5.50%, due 8/1/15		780
	1,410	New York City Hlth. & Hosp. Corp. Rev., Ser. 2002 A, (FSA Insured), 5.50%, due 2/15/13		1,471	^ß
	4,000	New York City Hsg. Dev. Corp. Multi-Family Hsg. Rev., Ser. 2002 E-2, 5.05%, due 11/1/23		3,320
	1,000	New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002 A, (ACA Insured), 5.50%, due 6/1/15		945	^ß
	1,030	New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002 A, (ACA Insured), 5.50%, due 6/1/17		947	^ß
	2,920	New York City IDA Civic Fac. Rev. (Packer Collegiate Institute Proj.), Ser. 2002, (AMBAC Insured), 5.00%, due 6/1/22		2,923	^ß
	750	New York City IDA Civic Fac. Rev. (Vaughn College of Aeronautics and Technology), Ser. 2006 A, 5.00%, due 12/1/21		582	^ß
	1,000	New York City IDA IDR (Brooklyn Navy Yard Cogeneration Partners, L.P. Proj.), Ser. 1997, 6.20%, due 10/1/22		910	^ß
	750	New York City IDA Liberty Rev. (7 World Trade Ctr., LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15		622

See Notes to Schedule of Investments 17

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
$	2,000	New York City IDA Spec. Fac. Rev. (Term. One Group Assoc. Proj.), Ser. 2005, 5.50%, due 1/1/19 Putable 1/1/16	$	1,916	^µß
	1,000	New York City Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev., Ser. 2008 CC, 5.13%, due 6/15/30		971
	960	New York City Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev., Ser. 1992 A, (AMBAC Insured), 5.88%, due 6/15/13		1,070
	4,000	New York City Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev., Ser. 2002 D, 5.25%, due 6/15/15		4,170
	3,000	New York City Transitional Fin. Au. Ref. Rev., Ser. 2002 B, 5.25%, due 2/1/29		3,095
	2,025	New York City Transitional Fin. Au. Ref. Rev., Ser. 2002 C, (AMBAC Insured), 5.25%, due 8/1/17		2,084
	750	New York Liberty Dev. Corp. Rev. (Nat'l Sports Museum Proj.), Ser. 2006 A, 6.13%, due 2/15/19		90	^#‡
	2,000	New York St. Dorm. Au. Court Fac. Lease Rev. (New York City Issue), Ser. 2003 A, 5.50%, due 5/15/17 Pre-Refunded 5/15/13		2,193
	1,675	New York St. Dorm. Au. Insured Rev. (Long Island Univ.), Ser. 2003 A, (Radian Insured), 5.25%, due 9/1/15		1,708	^ß
	1,600	New York St. Dorm. Au. Insured Rev. (The Culinary Institute of America), Ser. 1999, (MBIA Insured), 5.38%, due 7/1/15		1,630	^ß
	3,000	New York St. Dorm. Au. Ref. Rev. (North Gen. Hosp. Proj.), Ser. 2003, 5.75%, due 2/15/17		3,087	^ß
	1,125	New York St. Dorm. Au. Rev. (City Univ. Sys. Proj.), Ser. 1995 A, 5.63%, due 7/1/16		1,176
	1,010	New York St. Dorm. Au. Rev. (Columbia Univ. Proj.), Ser. 2001 A, 5.25%, due 7/1/16 Pre-Refunded 7/1/11		1,085	^ß
	2,985	New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.), Ser. 2001, 5.75%, due 7/1/14		2,806	^ß
	2,000	New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.), Ser. 2001, 5.75%, due 7/1/16		1,815	^ß
	2,000	New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth.), Ser. 2000 C, 5.50%, due 7/1/26		1,557	^ß
	1,980	New York St. Dorm. Au. Rev. (New York Med. College Proj.), Ser. 1998, (MBIA Insured), 5.00%, due 7/1/21		1,943	^ß
	525	New York St. Dorm. Au. Rev. (New York Methodist Hosp.), Ser. 2004, 5.25%, due 7/1/18		448	^ß
	500	New York St. Dorm. Au. Rev. (North Shore-Long Island Jewish Oblig. Group), Ser. 2003, 5.00%, due 5/1/18		463	^ß
	2,855	New York St. Dorm. Au. Rev. (Rivington House Hlth. Care Fac.), Ser. 2002, (SONYMA Insured), 5.25%, due 11/1/15		2,861	^ß
	2,410	New York St. Dorm. Au. Rev. (Rochester Institute of Technology Proj.), Ser. 2002 A, (AMBAC Insured), 5.25%, due 7/1/19		2,445	^ß
	3,000	New York St. Dorm. Au. Rev. (SS Joachim & Anne Residence Proj.), Ser. 2002, (LOC: Allied Irish Bank), 4.60%, due 7/1/16		2,767
	900	New York St. Dorm. Au. Rev. Non St. Supported Debt (Montefiore Med. Ctr.), Ser. 2008, (FHA Insured), 5.00%, due 8/1/21		878	^ß
	1,000	New York St. Dorm. Au. Rev. Non St. Supported Debt (NYU Hosp. Ctr.), Ser. 2006 A, 5.00%, due 7/1/20		793	^ß
	1,135	New York St. Dorm. Au. Rev. Non St. Supported Debt (NYU Hosp. Ctr.), Ser. 2007 B, 5.25%, due 7/1/24		872	^ß
	250	New York St. Dorm. Au. Rev. Secured Hosp. Ref. Rev. (Brookdale Hosp. Med. Ctr.), Ser. 1998 J, 5.20%, due 2/15/16		250	^ß
	3,900	New York St. Dorm. Au. Rev. St. Personal Income Tax Rev., Ser. 2003 A, 5.38%, due 3/15/17 Pre-Refunded 3/15/13		4,253
	5,000	New York St. Energy Res. & Dev. Au. Fac. Rev. (Consolidated Edison Co. of New York, Inc. Proj.), Ser. 2001, 4.70%, due 6/1/36 Putable 10/1/12		4,978	^µß
	1,500	New York St. Env. Fac. Corp. Solid Waste Disp. Rev. (Waste Management, Inc. Proj.), Ser. 2004 A, 4.45%, due 7/1/17 Putable 7/1/09		1,482	^µß
	1,000	New York St. Env. Fac. Corp. St. Clean Wtr. & Drinking Wtr. Rev., Ser. 2008-B, 5.00%, due 6/15/28		973
	2,000	New York St. Mtge. Agcy. Homeowner Mtge. Rev., Ser. 1997-67, 5.70%, due 10/1/17		1,970
	2,000	New York St. Pwr. Au. Rev., Ser. 2002 A, 5.25%, due 11/15/16 Pre-Refunded 11/15/12		2,156
	250	New York St. Urban Dev. Corp. Correctional & Youth Fac. Svc. Rev., Ser. 2002 C, 4.00%, due 1/1/20 Putable 1/1/11		251	^µ
	2,000	Niagara Co. IDA Civic Fac. Rev. (Niagara Univ. Proj.), Ser. 2001 A, (Radian Insured), 5.50%, due 11/1/16		2,047	^ß
	2,500	Niagara Co. IDA Solid Waste Disp. Fac. Ref. Rev. (American Ref.-Fuel Co. of Niagara), Ser. 2001 C, 5.63%, due 11/15/24 Putable 11/15/14		2,246	^µß
	3,000	Port Authority of NY & NJ Rev., Ser. 2002, (AMBAC Insured), 5.50%, due 12/15/12		3,134
	1,000	Saratoga Co. IDA Civic Fac. Rev. (Saratoga Hosp. Proj.), Ser. 2007 B, 5.00%, due 12/1/22		800	^ß
	3,000	Triborough Bridge & Tunnel Au. Gen. Purp. Ref. Rev., Ser. 2002 B, 5.25%, due 11/15/18		3,080
	2,000	Triborough Bridge & Tunnel Au. Rev., Ser. 2008 D, 5.00%, due 11/15/23		1,990
	1,535	Ulster Co. Res. Rec. Agcy. Solid Waste Sys. Ref. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 3/1/16		1,600
	500	United Nations Dev. Corp. Sr. Lien. Ref. Rev., Ser. 2004 A, 5.25%, due 7/1/17		501

See Notes to Schedule of Investments 18

PRINCIPAL AMOUNT		SECURITY^@	VALUE^†
(000's omitted)			(000's omitted)
$	1,000	Westchester Co. IDA Continuing Care Retirement Comm. Rev. (Kendal on Hudson Proj.), Ser. 2003 B, 5.70%, due 1/1/34 Putable 1/1/10	$	989	^µß
	1,000	Yonkers IDA Civic Fac. Rev. (Comm. Dev. Properties-Yonkers, Inc.), Ser. 2001 A, 6.25%, due 2/1/16 Pre-Refunded 2/1/11		1,061	^ß
				108,413
Pennsylvania (2.0%)
	1,590	Cumberland Co. West Shore Area Au. Hosp. Rev. (Holy Spirit Hosp. of the Sisters of Christian Charity Proj.), Ser. 2001, 5.90%, due 1/1/17		1,448	^ß
Puerto Rico (1.4%)
	1,060	Puerto Rico Ind. Tourist Ed. Med. & Env. Ctrl. Fac. Rev. (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A, (ACA Insured), 5.25%, due 8/1/16		964	^ß
Texas (1.5%)
	800	Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13		693	^µß
	400	Dallas-Fort Worth Int'l Arpt. Fac. Imp. Corp. Rev., Ser. 2004 A-1, 6.15%, due 1/1/16		351	^ß
				1,044
Virgin Islands (1.3%)
	250	Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22		195
	750	Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22		724
				919
		Total Investments (164.6%) (Cost $124,019)		116,927	^##
		Cash, receivables and other assets, less liabilities (3.3%)		2,378
		Liquidation Value of Auction Market Preferred Shares [(67.9%)]		(48,250	)
		Total Net Assets Applicable to Common Shareholders (100.0%)	$	71,055

See Notes to Schedule of Investments 19

Notes to Schedule of Investments

† Investments in securities by Neuberger Berman California Intermediate Municipal Fund Inc. ("California"), Neuberger Berman Intermediate Municipal Fund Inc. ("Intermediate"), and Neuberger Berman New York Intermediate Municipal Fund Inc. ("New York") (individually a "Fund", and collectively, the "Funds") are valued daily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include considerations such as: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. If a valuation is not available from an independent pricing service, the funds seek to obtain quotations from principal market makers. If such quotations are not readily available, securities a re valued using methods each Fund's Board of Directors has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding. Short-term debt securities with less than 60 days until maturity may be valued at cost which, when combined with interest earned, approximates market value.

## At October 31, 2008, selected Fund information on a U.S. federal income tax basis was as follows:

(000's omitted) Neuberger Berman	Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
California	$	153,120	$	953	$	8,643	$	(7,690	)
Intermediate		465,924		4,177		26,777		(22,600	)
New York		124,019		583		7,675		(7,092	)

@ At time of investment, municipal securities purchased by the Funds are within the four highest rating categories (with respect to at least 80% of total assets) assigned by a nationally recognized statistical rating organization ("NRSRO") such as Moody's Investors Service, Inc., Standard & Poor's, or Fitch Investors Services, Inc. or, where not rated, are determined by the Funds' investment manager to be of comparable quality. Approximately 76%, 71%, and 64% of the municipal securities held by California, Intermediate, and New York, respectively, have credit enhancement features backing them, which the Funds may rely on, such as letters of credit, insurance, or guarantees. Without these credit enhancement features the securities may or may not meet the quality standards of the Funds. Pre-refunded bonds are supported by securities in escrow issued or guaranteed by the U.S. Government, its agencies, or instrumental ities. The amount escrowed is sufficient to pay the periodic interest due and the principal of these bonds. Putable bonds give the Funds the right to sell back the issue on the date specified.

ß Security is guaranteed by the corporate or non-profit obligor.

ñ Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be liquid. At October 31, 2008, these securities amounted to approximately $957,000 or 1.1% of net assets applicable to common shareholders for California, approximately $5,645,000 or 2.1% of net assets applicable to common shareholders for Intermediate, and approximately $957,000 or 1.3% of net assets applicable to common shareholders for New York.

Ñ These securities have been deemed by the investment manager to be illiquid. At October 31, 2008, these securities amounted to $2,340,000 or 0.9% of net assets for Intermediate.

µ Floating rate securities are securities whose yields vary with a designated market index or market rate. These securities are shown at their current rates as of October 31, 2008.

See Notes to Financial Statements 20

Notes to Schedule of Investments (cont'd)

a Security is subject to a guarantee provided by Bayerische Landesbank, backing 100% of the total principal.

Ø All or a portion of this security was purchased on a when-issued basis. At October 31, 2008, these securities amounted to $997,000 or 0.4% of net assets applicable to common shareholders for Intermediate.

ØØ All or a portion of this security is segregated as collateral for when-issued purchase commitments.

# Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be illiquid and restricted. At October 31, 2008, these securities amounted to approximately $149,000 or 0.1% of net assets applicable to common shareholders for Intermediate and approximately $90,000 or 0.1% for New York.

(000's omitted)	Restricted Security	Acquisition Date		Acquisition Cost		Acquisition Cost Percentage of Net Assets Applicable to Common Shareholders as of Acquisition Date			Value as of October 31, 2008		Fair Value Percentage of Net Assets Applicable to Common Shareholders as of October 31, 2008
Intermediate	New York Liberty Dev. Corp. Rev. (Nat'l Sports Museum Proj.), Ser. 2006 A, 6.13%, due 2/15/19		8/4/2006	$	1,250		0.4	%	$	149		0.1	%
New York	New York Liberty Dev. Corp. Rev. (Nat'l Sports Museum Proj.), Ser. 2006 A, 6.13%, due 2/15/19		8/4/2006		750		0.9			90		0.1

‡ Security is in default.

See Notes to Financial Statements 21

Statements of Assets and Liabilities

Neuberger Berman Intermediate Municipal Closed-End Funds
(000's omitted except per share amounts)

	CALIFORNIA INTERMEDIATE MUNICIPAL FUND			INTERMEDIATE MUNICIPAL FUND			NEW YORK INTERMEDIATE MUNICIPAL FUND
	October 31, 2008			October 31, 2008			October 31, 2008
Assets
Investments in securities, at market value* (Note A)— see Schedule of Investments:	$	145,430		$	443,324		$	116,927
Cash		—			332			890
Interest receivable		2,420			7,962			2,053
Prepaid expenses and other assets		7			8			2
Total Assets		147,857			451,626			119,872
Liabilities
Due to custodian		30			—			—
Distributions payable—preferred shares		10			562			146
Distributions payable—common shares		362			1,123			298
Payable for securities purchased		—			996			—
Payable to investment manager—net (Notes A & B)		6			19			5
Payable to administrator (Note B)		38			115			31
Accrued expenses and other payables		80			110			87
Total Liabilities		526			2,925			567
Auction Market Preferred Shares Series A & B at liquidation value
3,000, 8,000 and 3,000 shares authorized; 2,360, 7,176 and 1,930 shares issued and outstanding for California, Intermediate and New York, respectively;
$.0001 par value, $25,000 liquidation value per share (Note A)		59,000			179,400			48,250
Net Assets applicable to Common Shareholders at value	$	88,331		$	269,301		$	71,055
Net Assets applicable to Common Shareholders consist of:
Paid-in capital—common shares	$	96,455		$	293,853		$	79,175
Distributions in excess of net investment income		(270	)		(696	)		(220	)
Accumulated net realized gains (losses) on investments		(164	)		(1,256	)		(808	)
Net unrealized appreciation (depreciation) in value of investments		(7,690	)		(22,600	)		(7,092	)
Net Assets applicable to Common Shareholders at value	$	88,331		$	269,301		$	71,055
Common Shares Outstanding ($.0001 par value; 999,997,000, 999,992,000 and 999,997,000 shares authorized for California, Intermediate and New York, respectively)		6,799			20,705			5,582
Net Asset Value Per Common Share Outstanding	$	12.99		$	13.01		$	12.73
*Cost of Investments:	$	153,120		$	465,924		$	124,019

See Notes to Financial Statements 22

Statements of Operations

Neuberger Berman Intermediate Municipal Closed-End Funds
(000's omitted)

	CALIFORNIA INTERMEDIATE MUNICIPAL FUND			INTERMEDIATE MUNICIPAL FUND			NEW YORK INTERMEDIATE MUNICIPAL FUND
	For the Year Ended October 31, 2008			For the Year Ended October 31, 2008			For the Year Ended October 31, 2008
Investment Income:
Income (Note A)
Interest income	$	7,270		$	22,726		$	6,099
Expenses:
Investment management fees (Note B)		391			1,190			318
Administration fees (Note B)		469			1,428			382
Auction agent fees (Note B)		150			457			123
Audit fees		54			54			54
Basic maintenance expense (Note B)		25			25			25
Custodian fees (Note B)		74			124			63
Insurance expense		4			12			3
Legal fees		42			96			38
Shareholder reports		22			34			23
Stock exchange listing fees		3			8			2
Stock transfer agent fees		13			13			12
Directors' fees and expenses		36			36			36
Miscellaneous		29			42			35
Total expenses		1,312			3,519			1,114
Investment management fees waived (Note B)		(313	)		(952	)		(254	)
Expenses reduced by custodian fee expense offset arrangement (Note B)		(5	)		(4	)		(2	)
Total net expenses		994			2,563			858
Net investment income (loss)	$	6,276		$	20,163		$	5,241
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		66			(232	)		(270	)
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		(10,828	)		(31,724	)		(8,636	)
Net gain (loss) on investments		(10,762	)		(31,956	)		(8,906	)
Distributions to Preferred Shareholders		(2,117	)		(6,742	)		(1,732	)
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations	$	(6,603	)	$	(18,535	)	$	(5,397	)

See Notes to Financial Statements 23

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Statements of Changes in Net Assets

Neuberger Berman Intermediate Municipal Closed-End Funds (000's omitted)
	CALIFORNIA INTERMEDIATE MUNICIPAL FUND						INTERMEDIATE MUNICIPAL FUND						NEW YORK INTERMEDIATE MUNICIPAL FUND
	Year Ended October 31, 2008			Year Ended October 31, 2007			Year Ended October 31, 2008			Year Ended October 31, 2007			Year Ended October 31, 2008			Year Ended October 31, 2007
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
From Operations:
Net investment income (loss)	$	6,276		$	6,370		$	20,163		$	20,201		$	5,241		$	5,307
Net realized gain (loss) on investments		66			69			(232	)		(127	)		(270	)		11
Change in net unrealized appreciation (depreciation) of investments		(10,828	)		(2,451	)		(31,724	)		(6,974	)		(8,636	)		(1,858	)
Distributions to Preferred Shareholders From (Note A):
Net investment income		(2,117	)		(2,028	)		(6,742	)		(6,687	)		(1,732	)		(1,673	)
Net increase (decrease) in net assets applicable to common shareholders resulting from operations		(6,603	)		1,960			(18,535	)		6,413			(5,397	)		1,787
Distributions to Common Shareholders From (Note A):
Net investment income		(4,349	)		(4,668	)		(13,475	)		(13,783	)		(3,580	)		(3,750	)
From Capital Share Transactions (Note D):
Proceeds from reinvestment of dividends		—			108			—			—			—			56
Total net proceeds from capital share transactions		—			108			—			—			—			56
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders		(10,952	)		(2,600	)		(32,010	)		(7,370	)		(8,977	)		(1,907	)
Net Assets Applicable to Common Shareholders:
Beginning of year		99,283			101,883			301,311			308,681			80,032			81,939
End of year	$	88,331		$	99,283		$	269,301		$	301,311		$	71,055		$	80,032
Distributions in excess of net investment income at end of year	$	(270	)	$	(80	)	$	(696	)	$	(642	)	$	(220	)	$	(149	)

See Notes to Financial Statements 25

Notes to Financial Statements Intermediate Municipal Closed-End Funds

Note A—Summary of Significant Accounting Policies:

1 General: Neuberger Berman California Intermediate Municipal Fund Inc. ("California"), Neuberger Berman Intermediate Municipal Fund Inc. ("Intermediate"), and Neuberger Berman New York Intermediate Municipal Fund Inc. ("New York") (individually a "Fund" and, collectively, the "Funds") were organized as Maryland corporations on July 29, 2002. California and New York are registered as non-diversified, closed-end management investment companies and Intermediate is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. Each Fund's Board of Directors may classify or re-classify any unissued shares of capital stock into one or mo re classes of preferred stock without the approval of shareholders.

The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Neuberger Berman Management LLC ("Management") to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.

Management, the investment manager of the Funds, and Neuberger Berman, LLC ("Neuberger"), the Funds' sub-adviser, are wholly owned subsidiaries of Lehman Brothers Holdings Inc. ("Lehman Brothers"), a publicly owned holding company. On September 15, 2008, Lehman Brothers filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. On December 1, 2008, Lehman Brothers and NBSH Acquisition, LLC ("NBSH") entered into an agreement (the "Purchase Agreement") pursuant to which a group consisting of portfolio managers, the management team and certain key employees and senior professionals of the Investment Management Division of Lehman Brothers ("Management Members") will acquire a majority interest in Neuberger Berman's business and the fixed income and certain alternative asset management businesses of Lehman Brothers' Investment Management Division (together with Neuberger Berman, the "Acquired Businesses") (t he "Proposed Acquisition"). Lehman Brothers will retain a 49% voting interest in the Acquired Businesses. On December 3, 2008, Lehman Brothers selected NBSH as the successful bidder in the public auction for the Acquired Businesses, which was overseen by the bankruptcy court having jurisdiction over the Lehman Brothers matter. The transaction is subject to certain conditions and approvals, including final approval by the bankruptcy court.

These events, while affecting Lehman Brothers, have not had a material impact on the Funds or their operations. Management and Neuberger will continue to operate in the ordinary course of business as the investment manager and sub-adviser of the Funds.

Included in the Acquired Businesses are Management and Neuberger. The consummation of the Proposed Acquisition could be deemed an "assignment" of the Funds' Management and Sub-Advisory Agreements which would, by law, automatically terminate those agreements. Accordingly, the Funds' Boards of Directors, including the Directors who are not "interested persons" of the investment manager and its affiliates or the Funds, are engaged in a review of the new Management Agreements and Sub-Advisory Agreements for the Funds. The new agreements also will require the approval of the Funds' shareholders.

2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Funds' Schedule of Investments.

3 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions are recorded on the basis of identified cost and stated separately in the Statements of Operations.

4 Income tax information: Each Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. Therefore, no federal income or excise tax provision is required.

The Funds have adopted the provisions of Financial Accounting Standards Board Interpretation No. 48 ("FIN 48") "Accounting for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109". FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken, or expected to be taken, in a tax return. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as an income tax expense in the Statements of Operations. The Funds are subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2005—2007. As of October 31, 2008, the Funds did not have any unrecognized tax benefits.

Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund as a whole.

As determined on October 31, 2008, there were no permanent differences resulting from different book and tax accounting reclassified at fiscal year-end.

The tax character of distributions paid during the years ended October 31, 2008 and October 31, 2007 were as follows:

	Distributions Paid From:
	Tax-Exempt Income				Ordinary Income				Total
	2008		2007		2008		2007		2008		2007
California	$	6,458,574	$	6,689,147	$	7,760	$	6,563	$	6,466,334	$	6,695,710
Intermediate		20,178,654		20,429,346		38,868		40,416		20,217,522		20,469,762
New York		5,304,908		5,418,857		6,228		4,701		5,311,136		5,423,558

As of October 31, 2008, the components of distributable earnings (accumulated losses) on a U.S federal income tax basis were as follows:

	Undistributed Tax-Exempt Income		Undistributed Ordinary Income		Undistributed Long-Term Gain		Unrealized Appreciation (Depreciation)			Loss Carryforwards and Deferrals			Total
California	$	102,299	$	—	$	—	$	(7,690,412	)	$	(163,782	)	$	(7,751,895	)
Intermediate		988,618		—		—		(22,600,016	)		(1,256,493	)		(22,867,891	)
New York		224,211		—		—		(7,092,151	)		(807,589	)		(7,675,529	)

The differences between book basis and tax basis distributable earnings is attributable primarily to timing differences of dividends payable and distribution payments.

To the extent each Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of each Fund not to distribute such gains. As determined at October 31, 2008, the Funds had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:

	Expiring in:
	2011		2012		2013		2014		2015		2016
California	$	—	$	159,305	$	4,477	$	—	$	—	$	—
Intermediate		509,968		328,363		58,816		—		126,780		232,566
New York		362,560		156,636		18,838		—		—		269,555

During the year ended October 31, 2008, California utilized capital loss carryforwards of $66,302.

5 Distributions to shareholders: Each Fund earns income, net of expenses, daily on its investments. It is the policy of each Fund to declare and pay monthly distributions. Distributions from net realized capital gains, if any, are normally distributed in December. Distributions to common shareholders are recorded on the ex-date. Distributions to preferred shareholders are accrued and determined as described in Note A-7.

Subsequent to October 31, 2008, each Fund declared three monthly distributions to common shareholders payable December 15, 2008, January 15, 2009 and February 13, 2009 to shareholders of record on November 28, 2008, December 31, 2008 and January 30, 2009, with ex-dates of November 25, 2008, December 29, 2008 and January 28, 2009, as follows:

	Distribution per share
California	$	0.053294
Intermediate		0.054217
New York		0.053430

6 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Fund are charged to that Fund. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributed to a Fund are allocated among the Funds and the other investment companies in the complex or series thereof on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly.

7 Financial Leverage: On October 21, 2002, the Funds re-classified unissued shares of capital stock into several series of Auction Market Preferred Shares ("AMPS"), as follows:

	Series A Shares		Series B Shares
California		1,500		1,500
Intermediate		4,000		4,000
New York		1,500		1,500

On December 13, 2002, the Funds issued several series of AMPS, as follows:

	Series A Shares		Series B Shares
California		1,180		1,180
Intermediate		3,588		3,588
New York		965		965

All shares of each series of AMPS have a liquidation preference of $25,000 per share plus any accumulated unpaid distributions, whether or not earned or declared by the Fund, but excluding interest thereon ("Liquidation Value"). Distributions to AMPS shareholders, which are cumulative, are accrued daily. It is the policy of each Fund to pay distributions every 7 days for each Fund's AMPS Series A and every 28 days for each Fund's AMPS Series B, unless in a special rate period.

In the absence of a special rate period, distribution rates are reset every 7 days for each Fund's AMPS Series A, based on the results of an auction. For the year ended October 31, 2008, distribution rates ranged from:

	Distribution Rate
California		2.48	% – 12.57%
Intermediate		2.46	% – 12.26%
New York		2.51	% – 11.35%

In the absence of a special rate period, distribution rates are reset every 28 days for each Fund's AMPS Series B, based on the results of an auction. For the year ended October 31, 2008, distribution rates ranged from:

	Distribution Rate
California		2.58	% – 8.65%
Intermediate		2.62	% – 8.68%
New York		2.51	% – 8.45%

The Funds declared distributions to AMPS shareholders for the period November 1, 2008 to November 30, 2008 for each series of the AMPS as follows:

	Series A Shares		Series B Shares
California	$	46,888	$	69,076
Intermediate		139,855		223,973
New York		38,961		62,394

Since February 2008, the market for auction rate preferred securities has experienced an unprecedented number of failed auctions. A failed auction occurs when sellers outnumber bidders and, as a result, sellers cannot sell all, and in many cases any, of their auction rate preferred securities. When a failed auction occurs, the distribution rate for auction rate preferred securities sets to a maximum rate, which is typically determined according to a formula applied to a "base" rate. Historically, if there were not a sufficient number of bids to purchase all the auction rate preferred securities submitted to be sold in an auction, one or more broker-dealers would voluntarily allocate their own capital to purchase the remaining auction rate preferred securities. In doing so, the broker-dealer(s) would prevent a failed auction and, therefore, payment of distributions at the maximum rate. Earlier this year, most broker-d ealers ceased allocating their capital to auctions for auction rate preferred securities, resulting in the unprecedented number of failed auctions.

Beginning in February 2008, the auctions for the Funds' AMPS have consistently failed. Although the failed auctions have resulted in a current lack of liquidity for preferred shareholders, they are not an event of default for the Funds nor have they affected the credit quality of the AMPS, which all continue to be rated AAA/Aaa. The Funds have paid, and continue to pay, distribution rates on their AMPS that are set at the maximum rate, which is 110% of the base rate (the base rate is the greater of an "AA" rated composite commercial paper rate or the taxable equivalent of a short-term municipal bond rate) as a result of the failed auctions.

If auctions continue to fail and the maximum rate increases due to changes in short term interest rates, the Funds' returns for common shareholders could be adversely affected. The Funds continue to monitor developments in the AMPS market and consider the interests of the common and preferred shareholders when evaluating any potential solutions.

The Funds may redeem shares of each series of AMPS, in whole or in part, on the second business day preceding any distribution payment date at Liquidation Value.

The Funds are also subject to certain restrictions relating to the AMPS. Failure to comply with these restrictions could preclude the Funds from declaring any distributions to common shareholders or repurchasing common shares and/or could trigger the mandatory redemption of AMPS at Liquidation Value.

The holders of AMPS are entitled to one vote per share and will vote with holders of common shares as a single class, except that the AMPS will vote separately as a class on certain matters, as required by law or a Fund's charter. The holders of a Fund's AMPS, voting as a separate class, are entitled at all times to elect two Directors of the Fund, and to elect a majority of the Directors of the Fund if the Fund fails to pay distributions on AMPS for two consecutive years.

8 Concentration of risk: The ability of the issuers of the debt securities held by the Funds to meet their obligations may be affected by economic developments, including those particular to a specific industry or region. California

and New York normally invest substantially all of their assets in municipal bonds of issuers located in the state of California and the state of New York, respectively. The value of each of these Funds' securities are more susceptible to adverse economic, political, regulatory or other factors affecting the issuers of such municipal bonds than a fund that does not limit its investments to such issuers.

9 Indemnifications: Like many other companies, the Funds' organizational documents provide that their officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, both in some of their principal service contracts and in the normal course of their business, the Funds enter into contracts that provide indemnifications to other parties for certain types of losses or liabilities. Each Fund's maximum exposure under these arrangements is unknown as this could involve future claims against each Fund.

Note B—Management Fees, Administration Fees, and Other Transactions With Affiliates:

Each Fund retains Management as its investment manager under a Management Agreement. For such investment management services, each Fund pays Management a fee at the annual rate of 0.25% of its average daily Managed Assets. Managed Assets equal the total assets of the Fund, less liabilities other than the aggregate indebtedness entered into for purposes of leverage. For purposes of calculating Managed Assets, the Liquidation Value of any AMPS outstanding is not considered a liability.

Management has contractually agreed to waive a portion of the management fees it is entitled to receive from each Fund at the following annual rates:

Year Ended October 31,		% of Average Daily Managed Assets
	2008		0.20
	2009		0.15
	2010		0.10
	2011		0.05

Management has not agreed to waive any portion of its fees beyond October 31, 2011.

For the year ended October 31, 2008, such waived fees amounted to $312,709, $951,940, and $254,337 for California, Intermediate, and New York, respectively.

Each Fund retains Management as its administrator under an Administration Agreement. Each Fund pays Management an administration fee at the annual rate of 0.30% of its average daily Managed Assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under the agreement.

Neuberger is retained by Management to furnish it with investment recommendations and research information without added cost to each Fund. Several individuals who are officers and/or Directors of each Fund are also employees of Neuberger and/or Management.

Each Fund has an expense offset arrangement in connection with its custodian contract. For the year ended October 31, 2008, the impact of this arrangement was a reduction of expenses of $4,826, $4,360, and $2,220 for California, Intermediate, and New York, respectively.

In connection with the settlement of each AMPS auction, each Fund pays, through the auction agent, a service fee to each participating broker-dealer based upon the aggregate liquidation preference of the AMPS held by the broker-dealer's customers. For any auction preceding a rate period of less than one year, the service fee is paid at the annual rate of 1/4 of 1%; for any auction preceding a rate period of one year or more, the service fee is paid at a rate agreed to by each Fund and the broker-dealer.

In order to satisfy rating agencies' requirements, each Fund is required to provide each rating agency a report on a monthly basis verifying that each Fund is maintaining eligible assets having a discounted value equal to or greater than the Preferred Shares Basic Maintenance Amount, which is a minimum level set by each rating agency as one of the conditions to maintain the AAA/Aaa rating on the AMPS. "Discounted value" refers to the fact that the rating agencies require each Fund, in performing this calculation, to discount portfolio securities below their face value, at rates determined by the rating agencies. Each Fund pays a fee to State Street for the preparation of this report which is reflected in the Statements of Operations under the caption "Basic maintenance expense."

Note C—Securities Transactions:

During the year ended October 31, 2008, there were purchase and sale transactions (excluding short-term securities) as follows:

(000's omitted)	Purchases		Sales
California	$	22,023	$	22,979
Intermediate		40,952		38,087
New York		12,453		12,533

Note D—Capital:

At October 31, 2008, the common shares outstanding and the common shares of each Fund owned by Neuberger were as follows:

	Common Shares Outstanding		Common Shares Owned by Neuberger
California		6,799,354		6,981
Intermediate		20,705,124		6,981
New York		5,582,218		6,981

Transactions in common shares for the years ended October 31, 2008 and October 31, 2007, were as follows:

	Reinvestment of Dividends and Distributions				Net Increase in Common Shares Outstanding
	2008		2007		2008		2007
California		—		7,373		—		7,373
Intermediate		—		—		—		—
New York		—		3,816		—		3,816

Note E—Recent Accounting Pronouncements:

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of October 31, 2008, the Funds do not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain of the measurements reported in the statement of operations for a fiscal period.

In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement No. 133" ("FAS 161"), was issued. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity's results of operations and financial position. In September 2008, FASB Staff Position No. 133-1 and FASB Interpretation No. 45-4 (the "FSP"), "Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161" was issued and is effective for fiscal years and interim periods ending after November 15, 2008. The FSP amends F ASB Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities," to require disclosures by sellers of credit derivatives, including credit derivatives embedded in hybrid instruments. The FSP also clarifies the effective date of FAS 161, whereby disclosures required by FAS 161 are effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The impact on the Funds' financial statement disclosures, if any, is currently being assessed.

Note F—Recent Market Events

Recent events have resulted in fixed income instruments experiencing liquidity issues, increased price volatility, credit downgrades and increased likelihood of default. Due to the market turbulence, some investors have turned to the safety of securities issued or guaranteed by the U.S. Treasury, causing the prices of these securities to rise and their yields to decline.

The U.S. federal government and certain foreign governments have acted to calm credit markets and increase confidence in the U.S. and world economies. The U.S. government is injecting liquidity into certain large financial services companies and establishing programs to assist in the purchase of money market instruments. The ultimate effect of these efforts is, of course, not yet known.

Financial Highlights

California Intermediate Municipal Fund

The following table includes selected data for a share outstanding throughout each year and other performance information derived from the Financial Statements.

	Year Ended October 31,
	2008			2007			2006			2005			2004
Common Share Net Asset Value, Beginning of Year	$	14.60		$	15.00		$	14.68		$	15.06		$	14.36
Income From Investment Operations Applicable to Common Shareholders:
Net Investment Income (Loss)^¢		.92			.94			.94			.91			.91
Net Gains or Losses on Securities (both realized and unrealized)		(1.58	)		(.35	)		.37			(.40	)		.67
Common Share Equivalent of Distributions to Preferred Shareholders From: Net Investment Income^¢		(.31	)		(.30	)		(.27	)		(.14	)		(.13	)
Total From Investment Operations Applicable to Common Shareholders		(.97	)		.29			1.04			.37			1.45
Less Distributions to Common Shareholders From:
Net Investment Income		(.64	)		(.69	)		(.72	)		(.75	)		(.75	)
Common Share Net Asset Value, End of Year	$	12.99		$	14.60		$	15.00		$	14.68		$	15.06
Common Share Market Value, End of Year	$	10.73		$	13.08		$	14.65		$	13.75		$	13.47
Total Return, Common Share Net Asset Value^†		(6.39	)%		2.16	%		7.51	%		2.96	%		10.97	%
Total Return, Common Share Market Value^†		(13.69	)%		(6.29	)%		12.10	%		7.82	%		9.63	%
Ratios/Supplemental Data^††
Net Assets Applicable to Common Shareholders, End of Year (in millions)	$	88.3		$	99.3		$	101.9		$	99.7		$	102.3
Preferred Shares, at Liquidation Value ($25,000 per share liquidation preference) (in millions)	$	59.0		$	59.0		$	59.0		$	59.0		$	59.0
Ratio of Gross Expenses to Average Net Assets Applicable to Common Shareholders^#		1.03	%		.94	%		.93	%		.96	%		.96	%
Ratio of Net Expenses to Average Net Assets Applicable to Common Shareholders^‡		1.02	%		.94	%		.93	%		.96	%		.96	%
Ratio of Net Investment Income (Loss) Excluding Preferred Share Distributions to Average Net Assets Applicable to Common Shareholders		6.45	%		6.36	%		6.36	%		6.08	%		6.24	%
Ratio of Preferred Share Distributions to Average Net Assets Applicable to Common Shareholders		2.17	%		2.02	%		1.86	%		.91	%		.86	%
Ratio of Net Investment Income (Loss) Including Preferred Share Distributions to Average Net Assets Applicable to Common Shareholders		4.28	%		4.34	%		4.50	%		5.17	%		5.38	%
Portfolio Turnover Rate		14	%		3	%		3	%		3	%		3	%
Asset Coverage Per Preferred Share, End of Year^@	$	62,432		$	67,108		$	68,208		$	67,273		$	68,383

See Notes to Financial Highlights 34

Financial Highlights

Intermediate Municipal Fund

The following table includes selected data for a share outstanding throughout each year and other performance information derived from the Financial Statements.

	Year Ended October 31,
	2008			2007			2006			2005			2004
Common Share Net Asset Value, Beginning of Year	$	14.55		$	14.91		$	14.68		$	15.11		$	14.44
Income From Investment Operations Applicable to Common Shareholders:
Net Investment Income (Loss)^¢		.97			.98			.97			.95			.94
Net Gains or Losses on Securities (both realized and unrealized)		(1.53	)		(.35	)		.30			(.43	)		.65
Common Share Equivalent of Distributions to Preferred Shareholders From: Net Investment Income^¢		(.33	)		(.32	)		(.29	)		(.15	)		(.12	)
Total From Investment Operations Applicable to Common Shareholders		(.89	)		.31			.98			.37			1.47
Less Distributions to Common Shareholders From:
Net Investment Income		(.65	)		(.67	)		(.75	)		(.80	)		(.80	)
Common Share Net Asset Value, End of Year	$	13.01		$	14.55		$	14.91		$	14.68		$	15.11
Common Share Market Value, End of Year	$	11.00		$	12.86		$	14.22		$	13.62		$	13.70
Total Return, Common Share Net Asset Value^†		(5.87	)%		2.48	%		7.22	%		2.93	%		10.91	%
Total Return, Common Share Market Value^†		(9.95	)%		(5.03	)%		10.22	%		5.32	%		8.94	%
Ratios/Supplemental Data^††
Net Assets Applicable to Common Shareholders, End of Year (in millions)	$	269.3		$	301.3		$	308.7		$	303.9		$	312.8
Preferred Shares, at Liquidation Value ($25,000 per share liquidation preference) (in millions)	$	179.4		$	179.4		$	179.4		$	179.4		$	179.4
Ratio of Gross Expenses to Average Net Assets Applicable to Common Shareholders^#		.87	%		.79	%		.78	%		.80	%		.82	%
Ratio of Net Expenses to Average Net Assets Applicable to Common Shareholders^‡		.86	%		.78	%		.78	%		.80	%		.82	%
Ratio of Net Investment Income (Loss) Excluding Preferred Share Distributi