<PAGE>
Dreyfus
Intermediate
Municipal Bond
Fund, Inc.
Annual Report
May 31, 1998
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Intermediate
Municipal Bond Fund, Inc. for the 12-month period ended May 31, 1998. Your Fund
produced a total return, including share price changes and dividend income
generated, of 8.04%,* and an annualized tax-free distribution rate per share of
4.84%.**
Economic Review
In recent months, economic developments overseas began to assert a more
vigorous influence on the U.S. economy. The first quarter of the 1998 calendar
year saw the U.S. trade deficit rising to a new high. Exports contracted due to
reduced foreign demand for U.S. products, which resulted in a marked rise in
business inventories; that could create a drag on future production as
stockpiles are depleted. At the same time, imports surged. Spurred by a strong
U.S. dollar and robust consumer spending, the increase in cheaper imports helped
dampen domestic inflation since American producers had to restrain their prices
in order to remain competitive. The suppressive effect of the trade deficit on
both domestic production and prices has been fortuitously in concert with the
direction of Federal Reserve Board (the "Fed") monetary policy.
The financial difficulties that began in Asia last year have now spread to
Latin America and beyond. That tenuous situation and the continued economic
instability in Russia have contributed to the Fed's status quo policy in
monetary matters since the Fed is concerned that any increase in short-term
interest rates would further unsettle world markets. The last increase in
short-term rates came in March 1997 when the Federal Open Market Committee (the
policy-making arm of the Fed) raised the target rate for Federal Funds by one
quarter of a percent to 5.5%.
Consumers, spurred by real wage gains and a healthy job market, continued to
spend freely in the retail sector during the reporting period. The buoyant stock
market, low unemployment rate and absence of inflation encouraged consumers to
spend. The market for so-called "big ticket" items has been strong: the housing
market was solid throughout the reporting period and continues to be, while car
and truck sales are at ten-year highs.
Unemployment (4.3% at the end of the reporting period) is at a 28-year low.
Inflation, at both consumer and producer levels, has been dormant. Workers are
benefiting from having their wages rise faster than inflation. The tight labor
market and upward pressure on wages, because of their potential for rekindling
inflation, have been major concerns of the Fed. The wage rate increase of 4.4%
during the 12 months ended April, compared to 3.7% and 3.1% in the two previous
years, illustrates the upward creep of wages.
Over the past few years, gains in worker productivity (output per hour of
work) have offset any incipient price pressures from rising wages. Enhanced by
the widespread use of technology, productivity rose 1.7% last year and 1.9% in
1996, compared to an average increase of only 1% for the period 1974-1995. These
gains are a key factor in the continuation of our high-growth, low-inflation
economy. However, productivity gains slowed to 1.1% during the first quarter,
the slowest pace in over a year. So far, our economy has been in a charmed
circle where even international financial crises have proven supportive of our
economic policies. As always, we remain alert for warning signs that the
delicate balance that now prevails in our economy might be disturbed.
Market Environment
The market environment for bonds has been very constructive. During the last
six months, yields on long-term, high-grade tax-exempt bonds have declined
marginally, while U.S. Treasury bond yields fell by over one-quarter of a
percent. Surely, it has been the uncertain impact of the Asian financial crisis
that has kept the Fed from pushing rates higher despite strong domestic economic
data. Spurred by the drop in rates, the issuance of new municipal securities
surged during the last several months. In fact, the volume of new issuance in
1997 rose 20% over the previous year, marking it as one of the
<PAGE>
most prolific years of issuance in history. So far, 1998 is on course to
eclipse last year's pace: through May, volume is up 50% from the previous year.
We believe that it is still too early to draw any conclusions regarding how
much the Asian crisis will impact the U.S. economy. Until a clearer picture
emerges from Asia, we believe investors will continue to find a positive
environment for fixed-income investments generally. The still strong and
expanding economy would normally be a cause for concern to inflation watchers.
However, it is generally believed that the Fed will refrain from taking any
interest rate actions that could exacerbate the Asian situation. We share this
view. While the most recent economic and employment data has been indicative of
a strengthening economy, inflation remains quiescent.
The fixed-income markets have now weathered the period of seasonal price
weakness that results from large debt issuance. Traditionally, as summer
approaches, the pressure from too much new-issue supply begins to abate. Given
this fact and the reasons cited above, we believe that the current environment
supports an outlook for steady monetary policy and well-anchored interest rates.
As long as inflation growth remains low, we don't anticipate the Fed reacting to
strong employment and economic data by raising rates. Instead, we believe that
the events in Asia, Russia and other emerging countries will be more
influential.
Portfolio Overview
We took several approaches over the past year in response to the trading
range that the market established. We maintained a significant base of
high-income producing issues, which we believe helps to provide relatively
consistent returns through up and down markets. At times, we found it
advantageous to add to the weighting of discount paper, particularly as U.S.
Treasury yields were approaching 6%. As we have discussed in previous letters,
the intermediate sector of the yield curve continues to provide the investor
with returns that are very competitive when compared to the longer maturity
market. The record supply over the past six months enabled the Fund to purchase
specialty state paper that would normally come at a premium price relative to
the general market at more modest prices. The Fund's performance was also
enhanced by credit-rating upgrades and refundings. The Fund's 12-month total
return on May 31, 1998, of 8.04% compares very favorably to the Lipper
Intermediate Municipal Debt Funds Category Average of 7.35% over the same
period.***
Included with this report are financial statements relating to your Fund's
holdings and its financial condition. We hope you find them informative.
Very truly yours,
/s/ Richard J. Moynihan
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 18, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the net asset
value per share at the end of the period, adjusted for capital gain
distributions. Some income may be subject to the Federal Alternative
Minimum Tax (AMT) for certain shareholders.
*** Source: Lipper Analytical Services, Inc.
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc. May 31, 1998
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS INTERMEDIATE
MUNICIPAL BOND FUND, INC. AND THE LEHMAN BROTHERS
10-YEAR MUNICIPAL BOND INDEX
$22,296
Lehman Brothers
10-Year Municipal
[CHART] Bond Index*
Dollars $20,295
Dreyfus Intermediate
Municipal Bond Fund, Inc.
*Source: Lehman Brothers
Average Annual Total Returns
- -------------------------------------------------------------------------------
One Year Ended Five Years Ended Ten Years Ended
May 31, 1998 May 31, 1998 May 31, 1998
-------------- ---------------- ---------------
8.04% 5.77% 7.33%
- ----------------
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Intermediate
Municipal Bond Fund, Inc. on 5/31/88 to a $10,000 investment made in the
Lehman Brothers 10-Year Municipal Bond Index on that date. All dividends and
capital gain distributions are reinvested.
The Fund invests primarily in municipal securities and maintains a port
folio with a weighted-average maturity ranging between 3 and 10 years. The
Fund's performance shown in the line graph takes into account fees and
expenses. Unlike the Fund, the Lehman Brothers 10-Year Municipal Bond Index
is an unmanaged total return performance benchmark for the investment-
grade, 10-year tax exempt bond market, consisting of municipal bonds with
maturities of 9-12 years. The Index does not take into account charges, fees
and other expenses which, coupled with the potentially longer maturity of
the Index, can contribute to the Index potentially outperforming the Fund.
Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments--99.4% Amount Value
- ------------------------------------------------------------------------------ ------------- ------------
<S> <C> <C>
Alabama--.4%
Bay Minette Industrial Development Board, IDR, Refunding
(Coltec Industries, Inc) 6.50%, 2/15/2009.................................. $ 4,505,000 $ 4,757,100
Alaska--3.0%
Alaska Industrial Development and Export Authority, Revolving Fund
6.375%, 4/1/2008............................................................ 3,000,000 3,254,400
Alaska Housing Finance Corp., Refunding:
5.75%, 12/1/2009 (Insured; MBIA)............................................ 13,100,000 13,771,224
5.30%, 12/1/2012 (Insured; MBIA) ........................................... 2,500,000 2,562,800
Alaska Student Loan Corp., Student Loan Revenue:
5.45%, 7/1/2009 (Insured; AMBAC)............................................ 1,500,000 1,569,495
5.60%, 7/1/2011 (Insured; AMBAC)............................................ 4,700,000 4,952,155
5.70%, 7/1/2013 (Insured; AMBAC)............................................ 5,990,000 6,343,230
Anchorage, Electric Utility Revenue, Refunding:
6.50%, 12/1/2008 (Insured; MBIA)............................................ 2,755,000 3,218,529
6.50%, 12/1/2009 (Insured; MBIA)............................................ 2,910,000 3,426,816
Arizona--1.5%
Maricopa County Industrial Development Authority:
Hospital Facility Revenue, Refunding (Samaritan Health Services)
7.15%, 12/1/2004 (Insured; MBIA)......................................... 9,835,000 11,392,274
Hospital Systems Revenue, Refunding (Baptist Hospital)
5.20%, 9/1/2005 (Insured; MBIA).......................................... 3,125,000 3,296,500
Mesa Industrial Development Authority, Industrial Revenue
(TRW Vehicle Safety Systems, Inc. Project) 7.25%, 10/15/2004................ 5,000,000 5,424,400
California--6.2%
California, Veterans:
5.35%, 12/1/2013............................................................ 10,000,000 10,180,700
5.40%, 12/1/2014............................................................ 5,000,000 5,111,850
California Department of Veteran Affairs, Home Purchase Revenue
7.80%, 8/1/2001 (Prerefunded 8/1/1998) (a).................................. 5,000,000 5,133,350
California Higher Education Loan Authority, Student Loan Revenue, Refunding:
6.40%, 12/1/2003............................................................ 6,000,000 6,535,860
6.50%, 6/1/2005............................................................. 5,500,000 6,120,125
California Student Loan Marketing Corp., Student Loan Revenue:
6.70%, 7/1/2008............................................................. 2,500,000 2,711,025
6.75%, 7/1/2008............................................................. 2,500,000 2,720,150
California Statewide Community Development Administration:
5.05%, 5/15/2008 (b)........................................................ 3,000,000 3,009,240
5.10%, 5/15/2010 (b)........................................................ 8,000,000 8,024,640
Contra Costa County, COP, Refunding (Merrithew Memorial Hospital Project)
5.25%, 11/1/2010 (Insured; MBIA)............................................ 5,400,000 5,694,192
Los Angeles Harbor Department, Revenue 6.40%, 8/1/2012......................... 5,420,000 5,921,242
</TABLE>
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ------------
<S> <C> <C>
California (continued)
San Joaquin Hills, Transportation Corridor Agency, Toll Road Revenue, Refunding
Zero Coupon, 1/15/2006 (Insured; MBIA)...................................... $ 14,745,000 $ 10,579,538
Solano County, COP, Refunding (Justice Facility and Public Buildings Project)
5.875%, 10/1/2005........................................................... 10,000,000 10,501,000
Colorado--4.5%
Arapahoe County Capital Improvement Trust Fund, Highway Revenue
Zero Coupon, 8/31/2008 (Prerefunded 8/31/2005) (a).......................... 20,165,000 12,150,824
Colorado Health Facilities Authority, Revenue (Sisters of Charity - Levenworth)
5%, 12/1/2014 (Insured; MBIA)............................................... 2,000,000 1,991,100
Denver City and County, Airport Revenue:
7.50%, 11/15/2002........................................................... 6,080,000 6,781,389
8.75%, 11/15/2005........................................................... 3,840,000 4,482,125
8.75%, 11/15/2005 (Prerefunded 11/15/2001) (a).............................. 10,645,000 12,225,250
E-470 Public Highway Authority, Revenue, Refunding
Zero Coupon, 9/1/2010 (Insured; MBIA)....................................... 30,000,000 16,734,600
El Paso County School District (Number 11 Colorado Springs):
6.25%, 12/1/2009............................................................ 1,000,000 1,152,910
6.50%, 12/1/2010............................................................ 2,000,000 2,362,500
6.50%, 12/1/2011............................................................ 2,040,000 2,422,153
Connecticut--1.0%
Connecticut:
5.50%, 3/15/2008............................................................ 4,000,000 4,252,960
Special Revenue (Mashantucket Western Pequot Tribe):
6.50%, 9/1/2006 (c)...................................................... 5,000,000 5,668,738
5.60%, 9/1/2009 (c)...................................................... 1,000,000 1,037,120
5.70%, 9/1/2012 (c)...................................................... 2,400,000 2,480,376
District of Columbia--.9%
District of Columbia, Revenue (American University) 5.50%, 10/1/2011
(Insured; AMBAC)......................................................... 5,435,000 5,690,065
Metropolitan Airports Authority, General Airport Revenue
5.75%, 10/1/2011 (Insured; MBIA) ........................................... 5,750,000 6,222,305
Florida--3.1%
Dade County:
Aviation Revenue 5.90%, 10/1/2005 (Insured; AMBAC).......................... 10,830,000 11,647,448
Resource Recovery Facility Revenue, Refunding
5.20%, 10/1/2005 (Insured; AMBAC)........................................ 7,880,000 8,271,242
Florida School Boards Association, LR (Orange County School Board Project)
6.25%, 7/1/2005 (Insured; AMBAC, Prerefunded 7/1/2000) (a).................. 3,250,000 3,402,653
Greater Orlando Aviation Authority, Airport Facilities Revenue
6.40%, 10/1/2004 (Insured; FGIC)............................................ 8,940,000 9,801,190
Jacksonville Health Facilities Authority, HR (Charity Obligation Group)
5.20%, 8/15/2013 (Insured; MBIA)............................................ 2,150,000 2,214,694
</TABLE>
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ------------
<S> <C> <C>
Florida (continued)
Palm Beach County, Solid Waste IDR (Okeelanta Power L.P. Project)
6.50%, 2/15/2009 (d)........................................................ $ 3,600,000 $ 2,880,000
Pinellas County, RRR 5.10%, 10/1/2003 (Insured; MBIA).......................... 2,915,000 3,028,539
Georgia--.5%
Atlanta, Airport Facilities Revenue, Refunding 6%, 1/1/2007 (Insured; AMBAC)... 5,780,000 6,430,886
Hawaii--.3%
Hawaii, Airports System Revenue 7.50%, 7/1/2005 (Insured; FGIC)................ 3,000,000 3,242,670
Illinois--6.6%
Arlington Heights, MFHR (Brook Run Association, L.P. Project)
5.05%, 12/1/2007 (Insured; FGIC)............................................ 4,000,000 4,001,680
Carol Stream, First Mortgage Revenue, Refunding (Windsor Park Manor Project):
5.50%, 12/1/1998............................................................ 520,000 521,758
6.50%, 12/1/2007............................................................ 3,000,000 3,192,150
Chicago Building Acquisition, COP 5.25%, 1/1/2012 (Insured; FSA)............... 4,460,000 4,624,574
Chicago O'Hare International Airport:
Passenger Facility Charge Revenue 5.50%, 1/1/2008 (Insured; AMBAC).......... 5,000,000 5,369,600
Special Facility Revenue, Refunding (International Terminal)
7.50%, 1/1/2005 (Prerefunded 1/1/2000) (a)............................... 905,000 970,169
Hoffman Estates, Tax Increment Revenue (Area Economic Development Project):
7.50%, 11/15/2003 (LOC; Union Bank of Switzerland, Prerefunded 11/15/2000)(a,e) 5,145,000 5,663,976
Refunding 5.25%, 11/15/2009................................................. 10,000,000 10,238,900
Illinois Development Finance Authority:
PCR, Refunding (Common Education Co.) 4.40%, 12/1/2006 (Insured; AMBAC)..... 15,000,000 14,896,950
Providers Facility Acquisition Revenue (Community Rehabilitation):
8.25%, 9/1/2000.......................................................... 2,910,000 3,117,067
5%, 7/1/2006............................................................. 2,765,000 2,749,433
Refunding:
5.60%, 7/1/2003....................................................... 1,485,000 1,562,636
5.60%, 7/1/2004....................................................... 1,000,000 1,053,620
5.90%, 7/1/2009....................................................... 1,325,000 1,407,654
Illinois Educational Facilities Authority, Revenue, Refunding
(Illinois Institute of Technology) 6.60%, 12/1/2009......................... 2,665,000 2,977,418
Illinois Health Facilities Authority, Revenue:
(Catholic Health Co. Addolorata Project) 7.625%, 7/1/1999................... 620,000 642,345
(Central Dupage Health Wyndemere Retirement Community)
6.125%, 11/1/2007 (Insured; MBIA)........................................ 4,400,000 4,747,644
(Evangelical Hospital):
6.75%, 4/15/2007......................................................... 2,035,000 2,305,329
6.75%, 4/15/2007 (Prerefunded 4/15/2002) (a)............................. 1,055,000 1,170,449
(Southern Illinois Hospital Services) 6.50%, 3/1/2007
(Insured; MBIA, Prerefunded 3/1/2002) (a)................................ 4,000,000 4,398,200
</TABLE>
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ------------
<S> <C> <C>
Illinois (continued)
Illinois Health Facilities Authority, Revenue (continued):
(Swedish American Hospital) 7.30%, 4/1/2007
(Insured; AMBAC, Prerefunded 4/1/2000) (a)................................. $ 4,000,000 $ 4,306,960
Illinois Student Assistance Commission, Student Loan Revenue 5.75%, 3/1/2007... 3,365,000 3,549,200
Normal, EDR, Refunding (Dayton - Hudson Corp. Project) 6.75%, 11/1/2001........ 3,400,000 3,655,952
Indiana--8.1%
Boonville Junior High School Building Corp., First Mortgage Revenue, Refunding
6.80%, 7/1/2005............................................................. 3,100,000 3,448,378
Brownsburg School Building Corp., First Mortgage, Revenue:
5.80%, 8/1/2008 (Insured; FSA, Prerefunded 2/1/2005) (a).................... 2,650,000 2,928,754
5.90%, 8/1/2009 (Insured; FSA, Prerefunded 2/1/2005) (a).................... 2,895,000 3,216,200
Central High School Building Corp., First Mortgage Revenue, Refunding
5.50%, 8/1/2009 (Insured; AMBAC)............................................ 3,960,000 4,250,466
Indiana Bond Bank (Hendricks Special Hospital Program) 6.90%, 4/1/2006......... 3,000,000 3,309,420
Indiana Development Finance Authority, PCR, Refunding
(Inland Steel Company Project Number 13):
5.75%, 10/1/2011......................................................... 10,900,000 11,411,864
7.25%, 11/1/2011......................................................... 10,330,000 11,825,060
Indiana Health Facility Financing Authority, HR, Refunding
(Clarian Health Partners, Inc.): 5.50%, 2/15/2010........................... 3,000,000 3,159,900
5.50%, 2/15/2011............................................................ 5,000,000 5,236,700
Indiana Municipal Power Agency, Power Supply Systems Revenue, Refunding
5.70%, 1/1/2006 (Insured; MBIA)............................................. 8,400,000 9,125,928
Indiana Transportation Finance Authority, Airport Facilities LR (United Air):
6.50%, 11/1/2007............................................................ 2,575,000 2,833,633
6.50%, 11/1/2007 (Prerefunded 11/1/2002) (a)............................... 2,675,000 2,971,684
Indianapolis Local Public Improvement Bond Bank, Refunding:
6.20%, 2/1/2003............................................................. 2,100,000 2,270,814
6.30%, 2/1/2004............................................................. 2,800,000 3,071,628
6.40%, 2/1/2005............................................................. 3,000,000 3,334,290
6.50%, 1/1/2011 (Insured; FSA).............................................. 6,415,000 7,546,093
Knox County Hospital Association, LR 5.65%, 7/1/2008 (Insured; MBIA)........... 4,150,000 4,400,909
Logansport School Building Corp., First Mortgage Revenue
7.30%, 1/15/2007 (Prerefunded 1/15/2000) (a)................................ 4,750,000 5,082,880
North Montgomery Elementary School Building Corp., First Mortgage Revenue,
Refunding 6.50%, 7/1/2006................................................... 5,665,000 6,487,785
Plymouth, Multi-School Building Corp., Refunding
(First Mortgage-Plymouth Community School) 5.50%, 7/1/2005 (Insured; MBIA) . 3,000,000 3,208,380
Westfield, High School Building Corp., First Mortgage Revenue
5.45%, 7/15/2009 (Insured; AMBAC, Prerefunded 7/15/2002) (a) ............... 5,000,000 5,446,250
Refunding 5.25%, 7/5/2013 (Insured; AMBAC)................................... 3,000,000 3,066,030
</TABLE>
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ------------
<S> <C> <C>
Iowa--1.4%
Ames, HR, Refunding (Mary Greeley Medical Center Project)
6.25%, 8/15/2006 (Insured; AMBAC)........................................... $ 4,320,000 $ 4,720,205
Council Bluffs, IDR, Refunding (Cargill, Inc. Project) 7%, 3/1/2007............ 4,400,000 4,848,624
Iowa Student Loan Liquidity Corp., Student Loan Revenue:
6.35%, 3/1/2001(Insured; Guaranteed Student Loans).......................... 3,400,000 3,580,846
6.65%, 3/1/2003 (Insured; Guaranteed Student Loans)......................... 4,900,000 5,330,318
Kentucky--1.3%
Jefferson County, Health Facilities Revenue, Refunding (Alliant Health Systems):
5%, 10/1/2011 (Insured; MBIA)............................................... 3,155,000 3,206,710
5%, 10/1/2013 (Insured; MBIA)............................................... 2,510,000 2,518,459
Kenton County Airport Board, Airport Revenue
(Cincinnati/Northern Kentucky International)
5.75%, 3/1/2009 (Insured; MBIA)............................................. 3,710,000 4,027,353
Mount Sterling, LR (Kentucky League Cities Funding) 5.625%, 3/1/2003........... 6,500,000 6,850,675
Louisiana--1.6%
Louisiana, Refunding 5%, 4/15/2004 (Insured; AMBAC)............................ 10,000,000 10,386,000
Louisiana Public Facilities Authority, Revenue:
8.05%, 11/15/2012 (f)....................................................... 4,430,000 4,925,407
8.05%, 11/15/2012 (Prerefunded 11/15/2002) (a,f)............................ 3,635,000 4,137,939
(Louisiana Association of Independent Colleges and Universities)
6.50%, 12/1/2002.......................................................... 2,155,000 2,316,539
Maine--.4%
Maine Educational Loan Marketing Corp., Student Loan Revenue, Refunding
6.90%, 11/1/2003............................................................ 4,330,000 4,567,112
Massachusetts--2.7%
Boston Industrial Development Financing Authority, Sewage Facility Revenue
(Harbor Electric Energy Co. Project) 7.10%, 5/15/2002....................... 3,125,000 3,336,500
Massachusetts, Municipal Wholesale Electric Supply System Revenue, Refunding
6.75%, 7/1/2008............................................................. 5,000,000 5,457,750
Massachusetts, Refunding 6.40%, 8/1/2003....................................... 3,175,000 3,499,358
Massachusetts, Water Pollution Abatement Revenue (New Bedford Loan Program)
5.50%, 2/1/2008............................................................. 6,950,000 7,454,987
Massachusetts Housing Finance Agency:
Housing Revenue, Refunding:
6.30%, 7/1/2007 (Insured; AMBAC)......................................... 3,040,000 3,227,446
6.35%, 7/1/2008 (Insured; AMBAC)......................................... 3,265,000 3,465,928
6.40%, 7/1/2009 (Insured; AMBAC)......................................... 3,565,000 3,837,794
Residential Development 6.125%, 11/15/2008 (Insured; FNMA).................. 5,000,000 5,284,600
Michigan--6.3%
Detroit Local Development Finance Authority, Refunding:
5.25%, 5/1/2006............................................................. 2,570,000 2,689,325
5.20%, 5/1/2010............................................................. 5,745,000 5,926,025
</TABLE>
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ------------
<S> <C> <C>
Michigan (continued)
Greater Detroit Resource Recovery Authority, Revenue, Refunding:
Series A 6.25%, 12/13/2008 (Insured; AMBAC)................................. $ 11,000,000 $ 12,586,310
Series B 6.25%, 12/13/2008 (Insured; AMBAC)................................. 7,755,000 8,873,349
Michigan Hospital Finance Authority, Revenue, Refunding:
(Genesys Health System) 8.10%, 10/1/2013 (Prerefunded 10/1/2005) (a)........ 10,000,000 12,526,300
(Genesys Regional Medical) 5.30%, 10/1/2011................................. 10,840,000 11,001,733
(McLaren Obligated Group) 7.375%, 9/15/2008 (Prerefunded 9/15/2001) (a)..... 6,925,000 7,748,106
Michigan Strategic Fund:
LOR (WMX Technologies, Inc. Project) 6%, 12/1/2013.......................... 10,500,000 11,033,085
SWDR (Genesee Power Station Project) 7.125%, 1/1/2006....................... 7,500,000 8,027,625
Wayne State University, University Revenues, Refunding
5.40%, 11/15/2006 (Insured; AMBAC).......................................... 3,105,000 3,283,289
Mississippi--.3%
Mississippi Development Bank, Special Obligation, Refunding
(Adams County HR Project) 5.75%, 7/1/2010 (Insured; FSA)..................... 3,445,000 3,707,165
Missouri--2.6%
Joplin Industrial Development Authority, Revenue, Refunding
(Catholic Health Initiatives):
5.50%, 12/1/2009............................................................ 3,185,000 3,385,145
5.625%, 12/1/2010........................................................... 3,340,000 3,563,012
Phelps City Industrial Development Authority, Industrial Revenue, Refunding
(Excel Corp. Project) 7%, 12/1/2000......................................... 4,500,000 4,800,015
Saint Louis, Airport Improvement Revenue, Refunding
(Lambert-Saint Louis International Airport) 6%, 7/1/2005 (Insured; FGIC).... 9,675,000 10,406,237
Saint Louis Municipal Finance Corp., Leasehold Revenue, Refunding:
5.375%, 7/15/2003 (LOC; Sanwa Bank, Ltd.) (e)............................... 5,075,000 5,297,285
5.50%, 7/15/2004 (LOC; Sanwa Bank, Ltd.) (e)................................ 6,835,000 7,212,087
Montana--.2%
Montana Health Facilities Authority, Revenue (Sisters of Charity - Levenworth)
5%, 12/1/2014 (Insured; MBIA)............................................... 3,250,000 3,255,460
Nebraska--.2%
Albion, IDR, Refunding (Cargill, Inc. Project) 7%, 12/1/2000................... 2,600,000 2,781,012
Nevada--.9%
Clark County, Passenger Facility Charge Revenue
(Las Vegas McCarran International Airport):
5.95%, 7/1/2005 (Insured; AMBAC)......................................... 6,365,000 6,988,388
5.80%, 7/1/2009 (Insured; MBIA).......................................... 4,250,000 4,592,720
New Jersey--1.6%
New Jersey Building Authority, Building Revenue, Refunding 5%, 6/15/2009....... 8,900,000 9,144,305
New Jersey Economic Development Authority, Waste Paper Recycling Revenue
(Marcal Paper Mills, Inc. Project):
5.75%, 2/1/2004.......................................................... 2,815,000 2,943,786
8.50%, 2/1/2010.......................................................... 2,930,000 3,470,907
</TABLE>
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ------------
<S> <C> <C>
New Jersey (continued)
Orange Township 6.60%, 2/1/2007 (Insured; FSA)................................. $ 5,600,000 $ 6,158,768
New Mexico--1.4%
New Mexico Educational Assistance Foundation, Student Loan Revenue:
6.60%, 3/1/2005............................................................. 9,205,000 10,034,186
6.70%, 3/1/2006............................................................. 8,315,000 9,085,218
New York--8.4%
City University of New York, COP, Refunding (John Jay College) 5.75%, 8/15/2004 5,970,000 6,376,676
New York City:
7.30%, 2/1/2001............................................................. 5,000,000 5,394,092
7.50%, 2/1/2001............................................................. 3,000,000 3,244,770
5.10%, 6/1/2002.............................................................
5.25%, 8/1/2011............................................................. 3,930,000 4,018,111
Refunding:
5.80%, 8/1/2008.......................................................... 5,725,000 6,200,519
6.25%, 8/1/2009.......................................................... 7,000,000 7,825,860
6.375%, 8/15/2009........................................................ 23,935,000 26,687,764
6.375%, 8/15/2009 (Prerefunded 8/15/2005)(a)............................. 1,065,000 1,212,428
5.25%, 8/1/2011.......................................................... 4,260,000 4,358,704
5%, 8/1/2012............................................................. 11,680,000 11,626,389
New York State Dormitory Authority, Revenues (Department of Health):
5.50%, 7/1/2010............................................................. 2,000,000 2,091,280
5.625%, 7/1/2011............................................................ 3,240,000 3,398,760
Mental Health Service Facilities, Refunding 6%, 8/15/2006...................... 6,940,000 7,615,054
New York State Energy, Research and Development Authority,
Service Contract Revenue, Refunding (Western New York Nuclear Service
Center Project) 5.20%, 4/1/2002 (Insured; CapMac).......................... 5,085,000 5,270,552
New York State Thruway Authority, Service Contract Revenue
(Local Highway and Bridge) 5.75%, 4/1/2006.................................. 5,625,000 6,023,363
New York State Urban Development Corp., Revenue (Correctional Facilities)
5.25%, 1/1/2010............................................................. 4,520,000 4,630,514
Triborough Bridge and Tunnel Authority, General Purpose Revenue, Refunding
6.75%, 1/1/2009............................................................. 5,100,000 6,050,793
North Carolina--3.9%
North Carolina Eastern Municipal Power Agency, Power System Revenue, Refunding:
5%, 1/1/2002................................................................ 4,860,000 4,945,973
5.125%, 1/1/2003............................................................ 7,320,000 7,498,315
7%, 1/1/2008................................................................ 4,115,000 4,766,240
6.125%, 1/1/2009............................................................ 7,425,000 8,092,136
North Carolina Medical Care Commission, Health Care Facilities Revenue
(First Mortgage-Deerfield) 5.30%, 11/1/2004................................. 5,840,000 5,986,117
</TABLE>
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ------------
<S> <C> <C>
North Carolina (continued)
North Carolina Municipal Power Agency, Electric Revenue, Refunding
(Number 1 Catawba):
6%, 1/1/2004................................................................ $ 2,000,000 $ 2,147,720
5.25%, 1/1/2009............................................................. 5,000,000 5,161,800
5.50%, 1/1/2010............................................................. 10,000,000 10,529,800
Northampton County Industrial Facilities and Pollution Control Financing Authority,
SWDR (Champion International Project) 8.05%, 11/1/2004...................... 3,000,000 3,193,980
Ohio--2.0%
Cincinnati Student Loan Funding Corp., Student Loan Revenue, Refunding
7.20%, 8/1/2003............................................................. 3,210,000 3,430,013
Cleveland, Airport Systems Revenue:
5.50%, 1/1/2005 (Insured; FSA).............................................. 1,000,000 1,055,560
5.125%, 1/1/2010 (Insured; FSA) ............................................ 1,700,000 1,741,752
Cuyahoga County, HR, Refunding (Metrohealth System)
5.25%, 2/15/2010 (Insured; MBIA)............................................ 5,160,000 5,453,501
Franklin County, HR, Refunding (Holy Cross Health Systems)
5.20%, 6/1/2005 (Insured; MBIA)............................................. 2,930,000 3,086,228
Lorain, Hospital Improvement Revenue, Refunding (Lakeland Community Hospital, Inc.)
6.50%, 11/15/2012........................................................... 3,860,000 4,370,369
Montgomery County, HR, Refunding (Grandview Hospital and Medical Center):
5.25%, 12/1/2003............................................................ 2,250,000 2,322,068
5.25%, 12/1/2004............................................................ 2,250,000 2,323,125
5.375%, 12/1/2005........................................................... 2,400,000 2,491,464
Oklahoma--.5%
Washington County Medical Authority, Revenue, Refunding
(Jane Phillips Medical Center Project) 5.50%, 11/1/2010 (Insured; Connie Lee) 6,175,000 6,506,165
Pennsylvania--5.8%
Lehigh County General Purpose Authority, Revenue (Wiley House):
8.65%, 11/1/2004............................................................ 3,905,000 4,089,902
9.375%, 11/1/2006........................................................... 6,615,000 7,302,299
Lancaster County Solid Waste Management Authority, Resource Recovery System Revenue
5.25%, 12/15/2011 (Insured; AMBAC).......................................... 9,565,000 9,921,201
Pennsylvania, COP, Refunding 5.40%, 7/1/2009 (Insured; AMBAC) ................. 5,000,000 5,171,250
Pennsylvania Economic Development Financing Authority, RRR (Northampton Generating):
6.40%, 1/1/2009............................................................. 10,500,000 11,132,625
6.50%, 1/1/2013............................................................. 2,000,000 2,134,500
Refunding 6.75%, 1/1/2007................................................... 7,000,000 7,647,220
Pennsylvania Higher Educational Facilities Authority, Health Services Revenue,
Refunding (University of Pennsylvania):
5.60%, Series A, 1/1/2010................................................ 10,000,000 10,671,700
5.60%, Series B, 1/1/2010................................................ 4,350,000 4,642,190
Philadelphia Hospitals and Higher Education Facilities Authority, Revenue
(Community Mental Health/Retardation) 8.875%, 6/15/2009..................... 12,745,000 14,149,117
</TABLE>
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ------------
<S> <C> <C>
Rhode Island--1.5%
Rhode Island Health and Educational Building Corp., Hospital Financing Revenue,
Refunding (Lifespan Obligation Group):
5.75%, 5/15/2007 (Insured; MBIA)......................................... $ 4,805,000 $ 5,231,252
5.75%, 5/15/2008 (Insured; MBIA)......................................... 5,560,000 6,075,523
Rhode Island Housing and Mortgage Finance Corp.:
(Homeownership Opportunity) 7.30%, 10/1/2008................................ 4,820,000 5,313,713
(Refunding-Rental Housing Program):
5.65%, 10/1/2007......................................................... 2,175,000 2,259,695
5.65%, 10/1/2008......................................................... 1,350,000 1,398,614
South Carolina--2.4%
Charleston County, Health Facilities Revenue (Espiscopal Church Project)
5.40%, 4/1/2004.......................................................... 5,000,000 5,082,350
Charleston County, Hospital Facilities Improvement Revenue, Refunding
(Medical Society Health Project) 5.50%, 10/1/2005 (Insured; MBIA)........... 7,945,000 8,518,470
Charleston County, RRR, Refunding (Foster Wheeler) 5%, 1/1/2007 (Insured; AMBAC) 2,685,000 2,770,007
Lexington County Health Services District, Inc., HR, Refunding
5%, 11/1/2012 (Insured; FSA)................................................ 1,710,000 1,712,291
Oconee County, PCR, Refunding (Engelhard Corp. Project) 5.375%, 5/1/2006....... 6,000,000 6,323,880
Piedmont Municipal Power Agency, Electric Revenue, Refunding
6.25%, 1/1/2004 (Insured; FGIC)............................................. 4,050,000 4,388,436
York County, PCR (Bowater, Inc. Project) 7.625%, 3/1/2006...................... 2,900,000 3,433,890
Texas--9.0%
Austin, Independent School District, Refunding 5.60%, 8/1/2019................. 6,615,000 7,111,257
Cass County Industrial Development Corp., PCR, Refunding
(International Paper Co.) 5.35%, 4/1/2012................................... 3,750,000 3,914,063
Ennis IDC, Revenue, Refunding (Cargill, Inc. Project) 6.15%, 11/1/2003......... 2,450,000 2,634,314
Gulf Coast Waste Disposal Authority, SWDR, Refunding (Quaker Oats Co. Project)
5.70%, 5/1/2006............................................................. 2,210,000 2,366,004
Harris County Health Facilities Development Corp., HR, Refunding:
(Memorial Hermann Hospital System Project) 5.50%, 6/1/2012 (Insured; FSA)... 8,795,000 9,362,014
(Memorial Hospital System Project) 6%, 6/1/2008 (Insured; MBIA)............. 3,000,000 3,324,900
Harris County Hospital District, Mortgage Revenue, Refunding
7.50%, 2/15/2003 (Insured; AMBAC)........................................... 7,000,000 7,720,160
Houston, Hotel Occupancy Tax Revenue:
7%, 7/1/2003 (Insured; FGIC, Prerefunded 7/1/2001) (a)...................... 4,400,000 4,776,420
7%, 7/1/2004 (Insured; FGIC, Prerefunded 7/1/2001) (a)...................... 1,525,000 1,655,464
Refunding 6%, 7/1/2005 (Insured; FSA)........................................ 5,750,000 6,290,155
Keller Independent School District, Refunding Zero Coupon, 8/15/2011........... 4,600,000 2,420,428
North Central Health Facility Development Corp., Revenue (Baylor Healthcare System):
7.74%, 5/15/2008 (f)........................................................ 11,750,000 12,865,075
7.74%, 5/15/2008 (Prerefunded 5/15/2002) (a,f).............................. 1,250,000 1,392,425
</TABLE>
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ------------
<S> <C> <C>
Texas (continued)
North Texas Higher Education Authority, Student Loan Revenue:
7%, Series B, 4/1/2002 (Insured; AMBAC)..................................... $ 4,250,000 $ 4,510,355
7%, Series E, 4/1/2002 (Insured; AMBAC)..................................... 4,250,000 4,510,355
Port Corpus Christi Authority, Nueces County General Revenue, Refunding
(Union Pacific):
5.125%, 11/1/2009........................................................... 2,250,000 2,241,338
5.35%, 11/1/2010............................................................ 5,000,000 5,039,500
Port Houston Authority, Harris County, Refunding
Zero Coupon, 10/1/2006...................................................... 3,625,000 2,476,818
Rio Grande Consolidated Independent School District, Public Facilities LR
6.40%, 7/15/2003............................................................ 4,000,000 4,117,280
Rio Grande Valley Health Facilities Development Corp., HR, Refunding
(Valley Baptist Medical Center) 6.25%, 8/1/2006 (Insured; MBIA)............. 5,100,000 5,569,404
South Texas Higher Education Authority, Student Loan Revenue, Refunding
5.30%, 12/1/2003............................................................ 3,400,000 3,524,610
Tarrant County Health Facilities Development Corp., Health Systems Revenue:
(Harris Methodist Health Systems) 6%, 9/1/2010.............................. 7,725,000 8,443,425
(Refunding--Health Resources Systems) 5.75%, 2/15/2014 (Insured; MBIA)....... 5,000,000 5,455,750
Texas State College, Student Loan:
6%, 8/1/2005................................................................ 2,130,000 2,333,415
6%, 8/1/2006................................................................ 2,500,000 2,755,675
Texas Water Resources Financing Authority, Revenue 7.30%, 8/15/1998............ 2,405,000 2,420,200
Utah--2.6%
Carbon County, SWDR:
(Refunding - Sunnyside Cogeneration Project) 9%, 7/1/2006 (d)............... 9,750,000 5,851,950
(Sunnyside Cogeneration Association) 7.50%, 7/1/2007 (d).................... 7,000,000 4,201,400
Intermountain Power Agency, Power Supply Revenue, Special Obligation
6.50%, 7/1/2010 (Insured; MBIA)............................................. 5,200,000 6,110,728
Utah, Associated Municipal Power System Revenue, Refunding
(Hunter Project) 5.50%, 7/1/2012 (Insured, AMBAC)........................... 8,000,000 8,003,440
Utah Board of Regents, Student Loan Revenue:
6.25%, 11/1/2003 (Insured; AMBAC)........................................... 3,000,000 3,242,490
6.35%, 11/1/2004 (Insured; AMBAC) .......................................... 3,000,000 3,251,310
6.45%, 11/1/2005 (Insured; AMBAC)........................................... 3,000,000 3,261,180
Virginia--1.6%
Big Stone Gap Redevelopment and Housing Authority, Correctional Facility LR
(Wallens Ridge Development Project) 6%, 9/1/2007............................ 4,000,000 4,441,320
Fairfax County Economic Development Authority, Educational Facilities Revenue
(George Mason University Educational Foundation):
6.50%, 11/15/2002........................................................ 2,000,000 2,082,120
6.95%, 11/15/2002........................................................ 5,360,000 5,685,298
</TABLE>
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- --------------
<S> <C> <C>
Virginia (continued)
Virginia Housing Development Authority, Commonwealth Mortgage:
6.05%, 1/1/2004............................................................. $ 4,400,000 $ 4,601,696
6.15%, 1/1/2005............................................................. 4,400,000 4,622,156
Washington--2.8%
Clark County, Public Utility District, Electric Revenue, Refunding
6.30%, 1/1/2004 (Insured; FGIC)............................................. 3,160,000 3,381,832
King County 5.20%, 12/1/2003................................................... 2,525,000 2,655,568
Washington Health Care Facilities Authority, Revenue:
(Childrens Hospital and Medical Center) 6.125%, 10/1/2007 (Insured; FGIC) .. 4,000,000 4,310,240
(Refunding-Sisters of Providence) 5.40%, 10/1/2010 (Insured; AMBAC)......... 3,000,000 3,145,500
Washington Housing Finance Commission, SFMR
6.85%, 7/1/2011 (Insured; FNMA, GNMA)....................................... 3,325,000 3,559,113
Washington, Public Power Supply Systems Revenue, Refunding:
(Nuclear Project Number 1) 6.60%, 7/1/2004.................................. 2,500,000 2,706,125
(Nuclear Project Number 1) 7.25%, 7/1/2006 (Insured; FSA)................... 6,000,000 7,084,860
(Nuclear Project Number 1) 6%, 7/1/2007 (Insured; AMBAC).................... 9,720,000 10,751,486
Wisconsin--1.9%
Carlton, PCR, Refunding (Wisconsin Public Service Corp.) 6.125%, 10/1/2005..... 5,000,000 5,411,500
Wisconsin Health and Educational Facilities Authority, Revenue:
(Aurora Medical Group, Inc.) 6%, 11/15/2011 (Insured; FSA).................. 3,500,000 3,981,950
(Luther Hospital Project) 6.125%, 11/15/2006................................ 3,500,000 3,759,105
Refunding:
(Aurora Health Care, Inc.):
5%, 8/15/2009 (Insured; MBIA)......................................... 4,335,000 4,450,831
5%, 8/15/2010 (Insured; MBIA)......................................... 3,955,000 4,039,914
(Wheaton Franciscan Services, Inc.) 6.50%, 8/15/2007 (Insured; MBIA)..... 3,000,000 3,260,381
--------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $1,243,706,417).................... $1,318,626,052
==============
Short-Term Municipal Investments--.6%
- -------------------------------------------------------------------------------
California--.2%
California Economic Development Authority, Revenue , VRDN
(Independent System Project) 2.50% (LOC; Bank America National Trust &
Savings Association) (e,g).................................................. $ 2,500,000 $ 2,500,000
Georgia--.4%
Burke County Development Authority, PCR, VRDN (Plant Vogtle Power Company) 2.85% (g) 6,000,000 6,000,000
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $8,500,000)....................... $ 8,500,000
==============
TOTAL INVESTMENTS--100.0% (cost $1,252,206,417)................................. $1,327,126,052
==============
</TABLE>
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Summary of Abbreviations
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation LOR Limited Obligation Revenue
EDR Economic Development Revenue LR Lease Revenue
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FNMA Federal National Mortgage Association Insurance Corporation
FSA Financial Security Assurance MFHR Multi-Family Housing Revenue
GNMA Government National Mortgage Association PCR Pollution Control Revenue
HR Hospital Revenue RRR Resources Recovery Revenue
IDC Industrial Development Corporation SFMR Single Family Mortgage Revenue
IDR Industrual Development Revenue SWDR Solid Waste Disposal Revenue
VRDN Variable Rate Demand Notes
</TABLE>
Summary of Combined Ratings (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fitch (h) or Moody's or Standard & Poor's Percentage of Value
- ------ ------- ---------------- -----------------
<S> <C> <C> <C>
AAA Aaa AAA 45.3%
AA Aa AA 15.1
A A A 16.0
BBB Baa BBB 11.9
BB Ba BB 1.8
F1+, F-1 MIG1, VMIG1 & P1 SP1, A1 .6
Not Rated (i) Not Rated (i) Not Rated (i) 9.3
-------
100.0%
-------
-------
<FN>
Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(a) Bonds which are prerefunded are collateralized by U.S. Government securities
which are held in escrow and are used to pay principal and interest on the
municipal issue and to retire the bonds in full at the earliest refunding
date.
(b) Purchased on a delayed-delivery basis.
(c) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally to qualified institutional buyers. At May 31, 1998,
these securities amounted to $9,186,234 or .7% of the net assets.
(d) Non-income producing security; interest payments in default.
(e) Secured by letters of credit.
(f) Inverse floater security--the interest rate is subject to change
periodically.
(g) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(h) Fitch currently provides creditworthiness information for a limited
number of investments.
(i) Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities May 31, 1998
<TABLE>
<CAPTION>
Cost Value
--------------- --------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $1,252,206,417 $1,327,126,052
Cash............................................. 116,840
Interest receivable.............................. 21,289,091
Receivable for investment securities sold........ 11,943,093
Receivable for shares of Common Stock subscribed. 21,550
Prepaid expenses................................. 415,094
--------------
1,360,911,720
--------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 761,259
Payable for investment securities purchased...... 13,319,272
Payable for shares of Common Stock redeemed...... 111,861
Accrued expenses................................. 194,054
--------------
14,386,446
--------------
NET ASSETS..................................................................... $1,346,525,274
==============
REPRESENTED BY: Paid-in capital.................................. $1,263,380,997
Accumulated undistributed investment income--net. 350,364
Accumulated net realized gain (loss) on investments 7,874,278
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4......................... 74,919,635
--------------
NET ASSETS..................................................................... $1,346,525,274
==============
SHARES OUTSTANDING
(300 million shares of $.01 par value Common Stock authorized)................. 95,259,031
NET ASSET VALUE, offering and redemption price per share--Note 3(d)............ $14.14
======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Operations Year Ended May 31, 1998
<TABLE>
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income............................ $ 77,461,841
EXPENSES: Management fee--Note 3(a).................. $ 8,145,895
Shareholder servicing costs--Note 3(b)..... 1,740,650
Custodian fees............................. 97,628
Registration fees.......................... 62,989
Prospectus and shareholders' reports....... 58,090
Directors' fees and expenses--Note 3(c).... 57,634
Professional fees.......................... 48,795
Loan commitment fees--Note 2............... 14,171
Miscellaneous.............................. 61,529
------------
Total Expenses........................... 10,287,381
Less--reduction in management fee due to
undertaking--Note 3(a)................... (179,937)
------------
Net Expenses............................. 10,107,444
------------
INVESTMENT INCOME--NET................................................... 67,354,397
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments.... $ 16,826,858
Net unrealized appreciation (depreciation) on
investments.............................. 22,880,755
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS.................... 39,707,613
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $107,062,010
============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
May 31, 1998 May 31, 1997
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income--net.............................................. $ 67,354,397 $ 73,193,732
Net realized gain (loss) on investments............................. 16,826,858 7,267,584
Net unrealized appreciation (depreciation) on investments........... 22,880,755 15,426,694
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations 107,062,010 95,888,010
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net.............................................. (67,194,371) (73,003,394)
Net realized gain on investments.................................... (11,741,273) (11,356,489)
-------------- --------------
Total Dividends............................................... (78,935,644) (84,359,883)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold....................................... 201,091,675 444,191,569
Dividends reinvested................................................ 58,183,925 62,367,051
Cost of shares redeemed............................................. (328,451,313) (597,852,386)
-------------- --------------
Increase (Decrease) in Net Assets from Capital Stock Transactions (69,175,713) (91,293,766)
-------------- --------------
Total Increase (Decrease) in Net Assets.................... (41,049,347) (79,765,639)
NET ASSETS:
Beginning of Period................................................. 1,387,574,621 1,467,340,260
-------------- --------------
End of Period....................................................... $1,346,525,274 $1,387,574,621
============== ==============
Undistributed investment income--net.................................... $ 350,364 $ 190,338
-------------- --------------
CAPITAL SHARE TRANSACTIONS: Shares Shares
-------------- --------------
Shares sold......................................................... 14,280,929 32,137,077
Shares issued for dividends reinvested.............................. 4,133,183 4,494,575
Shares redeemed..................................................... (23,346,665) (43,184,362)
-------------- --------------
Net Increase (Decrease) in Shares Outstanding................. (4,932,553) (6,552,710)
============== ==============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Year Ended May 31,
-------------------------------------------------
PER SHARE DATA: 1998 1997 1996 1995 1994
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $13.85 $13.75 $14.02 $13.84 $14.31
------ ------ ------ ------ ------
Investment Operations:
Investment income--net............................ .69 .71 .72 .75 .76
Net realized and unrealized gain (loss)
on investments................................. .41 .20 (.24) .24 (.31)
------ ------ ------ ------ ------
Total from Investment Operations.................. 1.10 .91 .48 .99 .45
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net............. (.69) (.70) (.72) (.75) (.76)
Dividends from net realized gain on investments... (.12) (.11) (.03) (.06) (.16)
------ ------ ------ ------ ------
Total Distributions............................... (.81) (.81) (.75) (.81) (.92)
------ ------ ------ ------ ------
Net asset value, end of period.................... $14.14 $13.85 $13.75 $14.02 $13.84
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN.............................. 8.04% 6.80% 3.44% 7.54% 3.13%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .74% .73% .71% .73% .70%
Ratio of net investment income to average
net assets..................................... 4.91% 5.10% 5.14% 5.52% 5.22%
Decrease reflected in above expense ratios
due to undertaking by manager.................. .01% -- -- -- --
Portfolio Turnover Rate........................... 40.27% 46.67% 48.70% 42.18% 36.27%
Net assets, end of period (000's Omitted)......... $1,346,525 $1,387,575 $1,467,340 $1,569,511 $1,724,126
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Intermediate Municipal Bond Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company. The Fund's investment objective is to provide the
maximum amount of current income exempt from Federal income tax as is consistent
with the preservation of capital. The Dreyfus Corporation ("Manager") serves as
the Fund's investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A. Premier Mutual Fund Services, Inc. is the distributor of the Fund's
shares which are sold to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued each business
day by an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service are
valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions.
(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Under the terms of the custodian
agreement, the Fund received net earnings credits of $17,077 during the period
ended May 31, 1998 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, if any,
it is the policy of the Fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Internal Revenue Code, and to
make distributions of income and net realized capital gain sufficient to relieve
it from substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended May
31, 1998, the Fund did not borrow under the Facility.
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee
is computed at the annual rate of .60 of 1% of the value of the Fund's average
daily net assets and is payable monthly. However, pursuant to the court approved
settlement of previously disclosed litigation, commencing October 15, 1988 the
Manager has agreed to make payments to the Fund for 10 years, ranging from $0 to
$1 million per year depending upon average daily net assets of the Fund. The
management fee for the period ended May 31, 1998 was reduced by $90,000 pursuant
to the settlement of litigation.
The Manager had undertaken from January 15, 1998 through May 31, 1998 to
reduce the management fee paid by the Fund, to the extent that the Fund's
aggregate annual expenses, exclusive of taxes, brokerage, interest on
borrowings, commitment fees and extraordinary expenses, exceeded an annual rate
of .75 of 1% of the value of the Fund's average daily net assets. The reduction
in management fee, pursuant to the undertaking, amounted to $179,937 during the
period ended May 31, 1998.
(b) Under the Shareholder Services Plan, the Fund reimburses Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, an amount not to exceed
an annual rate of .25 of 1% of the value of the Fund's average daily net assets
for certain allocated expenses of providing personal services and/or maintaining
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. During the period ended May
31, 1998, the Fund was charged $955,739 pursuant to the Shareholder Services
Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended May 31, 1998, the Fund was charged $501,131 pursuant to the transfer
agency agreement.
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
(d) A .10% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemptions through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to a
specified effective date and the redemption or exchange occurs fifteen days
following the date of issuance. During the period ended May 31, 1998, redemption
fees amounted to $41,826.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended May 31, 1998, amounted
to $539,835,580 and $584,461,437, respectively.
At May 31, 1998, accumulated net unrealized appreciation on investments was
$74,919,635, consisting of $82,969,360 gross unrealized appreciation and
$8,049,725 gross unrealized depreciation.
At May 31, 1998, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Report of Ernst & Young LLP, Independent Auditors
Shareholders and Board of Directors
Dreyfus Intermediate Municipal Bond Fund, Inc.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Intermediate Municipal Bond Fund, Inc., including the statement of
investments, as of May 31, 1998, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of May 31, 1998 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Dreyfus Intermediate Municipal Bond Fund, Inc. at May 31, 1998, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the indicated years, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
New York, New York
July 1, 1998
<PAGE>
Dreyfus Intermediate Municipal Bond Fund, Inc.
- -------------------------------------------------------------------------------
Important Tax Information (Unaudited)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended May 31, 1998:
--all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular Federal income tax) and
--the Fund hereby designates $.0796 per share as a long-term capital gain
distribution (of which 67.21% is subject to the 20% maximum Federal tax rate) of
the $.1204 per share paid on December 4, 1997.
As required by Federal tax law rules, shareholders will receive notification
of their portion of the Fund's taxable ordinary dividends (if any) and capital
gains distributions (if any) paid for the 1998 calendar year on Form 1099-DIV
which will be mailed by January 31, 1999.
<PAGE>
Dreyfus Intermediate Municipal
Bond Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 947AR985
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC. AND
THE LEHMAN BROTHERS 10-YEAR MUNICIPAL BOND INDEX
EXHIBIT A:
DREYFUS
LEHMAN BROTHERS INTERMEDIATE
PERIOD 10-YEAR MUNICIPAL MUNICIPAL
BOND INDEX * BOND FUND
5/31/88 10,000 10,000
5/31/89 10,982 10,848
5/31/90 11,790 11,557
5/31/91 13,015 12,631
5/31/92 14,225 13,826
5/31/93 15,978 15,330
5/31/94 16,525 15,810
5/31/95 18,010 17,003
5/31/96 18,862 17,588
5/31/97 20,403 18,784
5/31/98 22,296 20,295
*Source: Lehman Brothers
