Citigroup Closed-End Funds

Issue Statement

NEW YORK-(Business Wire)-June 2, 2005

The following Citigroup closed-end funds - Salomon Brothers Capital
and Income Fund Inc., Salomon Brothers Emerging Markets Debt Fund
Inc., Salomon Brothers Emerging Markets Floating Rate Fund Inc.,
Salomon Brothers Emerging Markets Income Fund Inc., Salomon Brothers
Emerging Markets Income Fund II Inc., Salomon Brothers Global High
Income Fund Inc., Salomon Brothers Global Partners Income Fund Inc.,
Salomon Brothers Inflation Management Fund Inc., Salomon Brothers
Municipal Partners Fund Inc., Salomon Brothers Municipal Partners
Fund II Inc., The Salomon Brothers Fund Inc, Salomon Brothers High
Income Fund Inc, Salomon Brothers High Income Fund II Inc, Salomon
Brothers Variable Rate Strategic Fund Inc., Salomon Brothers 2008
Worldwide Dollar Government Term Trust Inc. and Salomon Brothers
Worldwide Income Fund Inc. - today issued the following statement:

On May 31, 2005, the U.S. Securities and Exchange Commission ("SEC")
issued an order in connection with the settlement of an administrative
proceeding against Smith Barney Fund Management LLC ("SBFM") and
Citigroup Global Markets Inc. ("CGMI") (each an affiliate of the
manager) relating to the appointment of an affiliated transfer agent
for the Smith Barney family of mutual funds (the "Affected Funds").

The SEC order finds that SBFM and CGMI willfully violated Section
206(1) of the Investment Advisers Act of 1940 ("Advisers Act").
Specifically, the order finds that SBFM and CGMI knowingly or
recklessly failed to disclose to the boards of the Affected Funds
in 1999 when proposing a new transfer agent arrangement with an
affiliated transfer agent that: First Data Investors Services Group
("First Data"), the Affected Funds' then-existing transfer agent,
had offered to continue as transfer agent and do the same work for
substantially less money than before; and that Citigroup Asset
Management ("CAM"), the Citigroup business unit that includes the
Fund's investment manager and other investment advisory companies,
had entered into a side letter with First Data under which CAM agreed
to recommend the appointment of First Data as sub-transfer agent to
the affiliated transfer agent in exchange, among other things, for a
guarantee by First Data of specified amounts of asset management and
investment banking fees to CAM and CGMI. The order also finds that
SBFM and CGMI willfully violated Section 206(2) of the Advisers Act
by virtue of the omissions discussed above and other misrepresentations
and omissions in the materials provided to the Affected Funds' boards,
including the failure to make clear that the affiliated transfer agent
would earn a high profit for performing limited functions while First
Data continued to perform almost all of the transfer agent functions,
and the suggestion that the proposed arrangement was in the Affected
Funds' best interests and that no viable alternatives existed. SBFM
and CGMI do not admit or deny any wrongdoing or liability. The
settlement does not establish wrongdoing or liability for purposes of
any other proceeding.
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The SEC censured SBFM and CGMI and ordered them to cease and desist from
 violations of Sections 206(1) and 206(2) of the Advisers Act. The order
requires Citigroup to pay $208.1 million, including $109 million in
disgorgement of profits, $19.1 million in interest, and a civil money
penalty of $80 million. Approximately $24.4 million has already been
paid to the Affected Funds, primarily through fee waivers. The remaining
$183.7 million, including the penalty, will be paid to the U.S. Treasury
and then distributed pursuant to a plan to be prepared by Citigroup and
submitted within 90 days of the entry of the order for approval by the
SEC. The order also requires that transfer agency fees received from the
Affected Funds since December 1, 2004 less certain expenses be placed in
escrow and provides that a portion of such fees may be subsequently
distributed in accordance with the terms of the order.

The order requires SBFM to recommend a new transfer agent contract to the
Affected Fund boards within 180 days of the entry of the order; if a
Citigroup affiliate submits a proposal to serve as transfer agent or
sub-transfer agent, an independent monitor must be engaged at the expense
of SBFM and CGMI to oversee a competitive bidding process. Under the order,
Citigroup must comply with an amended version of a vendor policy that
Citigroup instituted in August 2004. That policy, as amended, among other
things, requires that when requested by a Fund board, CAM will retain at
its own expense an independent consulting expert to advise and assist the
board on the selection of certain service providers affiliated with Citigroup.

At this time, there is no certainty as to how the proceeds of the settlement
will be distributed, to whom such distributions will be made, the methodology
by which such distribution will be allocated, and when such distribution will
be made. Although there can be no assurance, Citigroup does not believe that
this matter will have a material adverse effect on the Funds.

The Funds did not implement the transfer agent arrangement described above
and therefore will not receive any portion of the distributions.

Symbols: EDF, EFL, EHI, EMD, ESD, GFY, HIF, HIX, GDF, IMF, MNP, MPT, SBF,
SBG, SBW, SCD