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.

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