<PAGE>
Dear Fellow Shareholders:
Performance Review: During the first quarter of 1999, yields on long term
U.S. Government bonds rose over one-half percent as investors became concerned
that strong domestic economic growth could spark inflation. Since utility
securities are sensitive to interest rate changes, valuations were reduced
somewhat. For the first quarter of 1999, your Fund had a total return (market
price change plus income and assuming reinvestment of dividends) of -2.6%.
This compares favorably with the Standard and Poor's Utility Index which had a
total return of -9.4% For the two years ending March 31, 1999 the total return
for your Fund was 41.9% versus 33.6% for the Standard and Poor's Utility
Index.
The income portion of return came in the form of 3 monthly 6.5 cent per
share dividends. The Fund has as its objective current income and is dedicated
to the continuity of dividends. The 6.5 cent per month dividend, without
compounding, would be 78 cents annualized or a 7.26% common stock dividend
yield based on the March 31, 1999 closing market price of $10.75. That yield
compares favorably with the quarter end 3.87% yield of the S&P Utility Index.
Annual Shareholder Meeting: The annual meeting was held April 28, 1999 in
Chicago, Illinois. Nathan Partain, the Fund's Chief Investment Officer, gave
his insights regarding the current environment for utilities and the
investment outlook. His comments from the annual meeting follow:
"I would like to take a few moments to talk about the strategic
positioning that is currently underway within the electric, gas and
telephone service utility industries. The utility landscape continues to
change to a more competitive environment, and for many companies the
strategic question revolves around what type of company they want to be in
this new utility world.
In the electric industry, fundamentals remain strong and the cash flow
being generated is the strongest it has been in decades. Companies are
trying to decide what their core businesses will be in the future. For
example, many companies are trying to decide whether to be in the
generation business or to exit this business and become only a transmission
and distribution company. Additionally, companies are trying to decide
whether to return a portion of the strong cash flow to shareholders through
stock repurchase programs or redeploy this cash flow into new non-regulated
ventures. Your investment management team for the most part prefers the
former strategy.
The divestiture of generating assets will require investors to look at
and analyze the electric industry differently. Once upon a time, it was
quite simple to analyze the value of generating assets. One could derive
this value by looking at the revenues, income and cash flow earned from
regulated rates. The regulated rates were derived from the historical costs
of those assets.
Today, the value of generating assets will depend on things like the
hourly electric supply and demand, the incremental cost of electric
production, and the volatility and duration in power pricing. Assessing
value requires more information, different information and new assumptions
about plant operations and market conditions that are more difficult to
forecast. It's a lot like doing the old high school geometry and finding
the appropriate shaded area under the curves.
Another option being pursued by electric and gas companies is a
convergence/consolidation strategy. We expect continued merger and
acquisition activity as companies jockey for competitive position. The
current convergence events are between gas and electric companies, and the
consolidation events are among electric companies. The strategy behind the
gas and electric company combination is to try to put together a "one-stop-
shopping" energy provider. Within the Fund, we own Duke Energy, Reliant
Energy, Nipsco Industries and CMS Energy, all of which have had major gas
acquisitions over the last several years. We
<PAGE>
believe that these transactions have enhanced the gas companies products
and markets while improving the earnings prospects for the combined
companies.
We also are seeing electric to electric combinations. The strategy behind
this type of combination is expansion of customer base in order to spread
fixed costs. To date, we have been less than enamored with these types of
transactions due to the length of time it takes to get regulatory approval
and the propensity of the regulators to siphon off the synergy savings
associated with these combinations to customers and not shareholders.
Within the telephone industry we also see the convergence of local, long
distance and wireless services. Currently Bell Atlantic and GTE, and SBC
Communications and Ameritech are trying to complete merger combinations.
Our two largest equity holdings within the Fund are SBC and Bell Atlantic.
There has been much recent press about the Federal Communications
Commission's concerns with respect to the SBC/Ameritech and Bell
Atlantic/GTE combinations. As a result, investors are anxious about the
conditions that the FCC may impose on the companies to get the mergers
approved and a potential delay in the approvals. We believe that most of
this is political noise and that the mergers will be approved without
significantly onerous conditions.
The Fund continues to focus its domestic telecommunications holdings in
the regional Bell operating companies. We believe that owning the last mile
to the customer is the most attractive asset to own in the telecom
industry. This point was validated somewhat by the high price AT&T paid for
TCI, the nation's largest cable provider, in order to get access to the
customers at the end of that last mile.
We have also invested in equity real estate investment trusts (REITs) due
to their attractive values, earnings fundamentals, and dividend yield. As
of March 31, 1999, equity REITs yielded 7.96%. Based on historically low
payout ratios as a percentage of earnings, we find the dividend yields to
be high, secure, and compelling. The underlying health of the real estate
market is on firm ground, supporting higher rents that drive the increases
in earnings and dividends that equity REITs are providing.
Although our REITs in 1998 did not match their superior performances of
1996 and 1997, the income from these investments did aid the Fund in
meeting its primary objective to our shareholders. What is particularly
interesting about REITs is that in March, it appeared that some
nontraditional REIT investors started to find value in this sector. This
was driven by well-publicized stories such as an investment by Warren
Buffett in a retail REIT and a few management led leveraged buy-outs,
supporting our view that the values in equity REITs and their yields are
quite attractive.
Globalization continues to be a key strategy within the utility industry.
Companies are seeking new markets for growth and synergies from business
combinations. Whether the trend is domestic utility companies going
overseas or foreign utilities making investments within the United States,
we believe that globalization will continue to be a major strategic
initiative within this industry.
Your Fund management team recognized this trend several years ago and has
slowly and prudently increased our foreign exposure. At the end of 1998,
roughly 11.6% of the equity portfolio was invested in foreign utility
equities. The level of investment was down compared to the end of 1997
because we took the opportunity in mid-1998 to recognize several long-term
gains in our foreign holdings and brought the gains back to the United
States to invest in domestic utilities.
Your Fund remains a cautious international investor. We do not have any
investments in third world developing nations, Eastern Europe or Asia. Our
investments continue to be primarily concentrated in Western Europe,
Australia and New Zealand. Our international holdings continue to have
comparable yields to our U.S. domestic holdings but have better earnings
and dividend growth prospects.
2
<PAGE>
In closing, I want to reiterate that your Fund management team recognizes
that the utility industry landscape is changing. We view these changes in a
positive light and look for new investment opportunities for your Fund.
However, your Fund investment management team remains confident that the
landscape is not changing so fast that it will not be able to meet the
primary objectives of the Fund which are current income and growth in
current income."
* * *
Other business at the annual meeting included tabulating the shareholder
vote for nominees to four board of directors seats. Three directors were
elected to serve until the annual meeting of shareholders in 2002: Wallace B.
Behnke, Gordon B. Davidson, and Claire V. Hansen. A fourth director, Calvin J.
Pedersen, was elected to serve until the annual meeting of shareholders in
2000 (to complete the unexpired term of the late Robert J. Day). Additionally,
the shareholders ratified the selection of Arthur Andersen LLP as independent
public accountants for the Fund.
Board of Directors Meeting: A regular meeting of the Board of Directors was
held following the annual meeting. At that meeting, the Board declared the
following monthly dividends:
<TABLE>
<CAPTION>
Dividends Per Share Record Date Payable Date
------------------- ----------- ------------
<S> <C> <C>
6.5 cents 5/28/99 6/10/99
6.5 cent 6/30/99 7/12/99
6.5 cent 7/30/99 8/10/99
</TABLE>
Automatic Dividend Reinvestment Plan and Direct Deposit Service--The Fund
has a dividend reinvestment plan available to all registered shareholders.
Those shareholders whose shares are held for them by a brokerage house or
nominee in "street-name" may not participate in the Fund's automatic dividend
reinvestment plan. For those shareholders in "street-name" desiring automatic
dividend reinvestment, we suggest you contact your broker or other nominee.
As an added service, the Fund offers direct deposit service through
electronic funds transfer to all registered shareholders currently receiving a
monthly dividend check. This service is offered through The Bank of New York.
For more information and/or an authorization form on automatic dividend
reinvestment or direct deposit, please contact The Bank of New York.
Visit us on the Web--You can obtain the most recent shareholder financial
report and dividend information at our web site http://www.duffutility.com.
We appreciate your interest in Duff & Phelps Utilities Income Inc., and we
will continue to do our best to be of service to you.
/s/ Claire V. Hansen /s/ Calvin J. Pedersen
Claire V. Hansen, CFA Calvin J. Pedersen, CFA
Chairman Director, President and Chief
Executive Officer
3
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS
(UNAUDITED)
March 31, 1999
COMMON STOCKS--74.4%
<TABLE>
<CAPTION>
Market
Value
Shares Company (Note 1)
------ ------- --------------
<C> <S> <C>
[_] ELECTRIC--35.8%
1,318,600 BEC Energy......................................... $ 48,458,550
1,017,900 Carolina Power & Light Co.......................... 38,489,344
1,352,700 CMS Energy Corp.................................... 54,192,544
450,000 Consolidated Edison Inc............................ 20,390,625
1,265,000 DQE Incorporated................................... 48,544,375
1,000,000 Duke Energy Corp................................... 54,625,000
2,058,400 Edison International............................... 45,799,400
400,000 Electricidade DePortugal ADR....................... 15,825,000
1,593,400 Endesa S.A......................................... 39,635,825
1,005,000 Entergy Corp....................................... 27,637,500
2,000,000 FirstEnergy Corp................................... 55,875,000
1,200,100 FPL Group Inc...................................... 63,905,325
686,500 National Power PLC ADR............................. 21,710,562
1,122,800 New Century Energies Inc........................... 38,245,375
2,256,600 NIPSCO Industries Inc.............................. 60,928,200
1,000,000 Pacificorp......................................... 17,250,000
1,120,000 Pinnacle West Capital Corp......................... 40,740,000
302,000 Powergen PLC ADR................................... 13,703,250
1,500,000 Reliant Energy Inc................................. 39,093,750
300,000 RWE AG ADR......................................... 13,278,930
350,000 Scottish & Southern Energy (United Kingdom)........ 3,177,966
50,000 Scottish & Southern Energy ADR..................... 4,540,245
500,000 Scottish Power PLC ADR............................. 17,593,750
2,000,000 Unicom Corp........................................ 73,125,000
--------------
856,765,516
[_] GAS--11.8%
926,000 AGL Resources...................................... 16,262,875
225,000 CMS Energy Corp. Class G........................... 4,696,875
725,600 Columbia Energy Group.............................. 37,912,600
1,494,800 EL Paso Energy Corp................................ 48,861,275
600,000 Enron Corp......................................... 38,550,000
798,450 KN Energy.......................................... 15,919,097
</TABLE>
The accompanying note is an integral part of this financial statement.
4
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 1999
<TABLE>
<CAPTION>
Market
Value
Shares Company (Note 1)
------ ------- --------------
<C> <S> <C>
400,000 National Fuel Gas Co............................... $ 15,700,000
444,700 NICOR Inc.......................................... 15,981,406
1,950,000 Utilicorp United Inc............................... 44,362,500
1,100,000 Williams Companies Inc............................. 43,450,000
--------------
281,696,628
[_] TELECOMUNICATION--18.9%
600,000 Alltell Corp....................................... 37,425,000
1,619,000 Bell Atlantic Corp................................. 83,682,062
1,130,000 BellSouth Corp..................................... 45,270,625
664,500 Cable and Wireless ADS............................. 24,544,969
151,500 Cincinnati Bell Inc................................ 3,399,281
500,000 Royal PTT Nederland ADR............................ 19,843,750
1,837,230 SBC Communications Inc............................. 86,579,464
450,000 Tele-Danmark A/S ADR............................... 22,050,000
556,250 Telecom Corp. of New Zealand Interim ADR........... 21,693,750
142,100 Telestra Corp. ADR................................. 14,991,550
1,200,000 U.S. West Inc...................................... 66,075,000
540,000 Vivendi ADR........................................ 26,572,104
--------------
452,127,555
[_] NON-UTILITY--7.9%
125,000 Alexandria Real Estate Equities Inc................ 3,304,687
250,000 Apartment Investment & Management Co............... 9,062,500
200,000 Avalon Bay Communities Inc......................... 6,325,000
409,000 Boston Properties Inc.............................. 12,934,625
100,000 Bradley Real Estate Inc............................ 1,812,500
253,800 CBL & Associates Properties Inc.................... 5,900,850
350,000 Centerpoint Properties Corporation................. 10,937,500
120,000 Chelsea GCA Realty Inc............................. 3,345,000
150,000 Colonial Properties Trust.......................... 3,825,000
250,000 Cornerstone Properties Inc......................... 3,656,250
50,000 Crescent Operating Inc............................. 181,250
430,000 Crescent Real Estate Equities Inc.................. 9,245,000
400,000 Developers Diversified Realty Corp................. 5,725,000
300,000 Equity Residential Properties Trust................ 12,375,000
200,000 Essex Property Trust Inc........................... 5,225,000
</TABLE>
The accompanying note is an integral part of this financial statement.
5
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 1999
<TABLE>
<CAPTION>
Market
Value
Shares Company (Note 1)
------ ------- --------------
<C> <S> <C>
478,100 First Industrial Realty Trust......................... $ 11,444,519
126,300 Gables Residential Trust.............................. 2,786,494
70,000 General Growth Properties, Inc........................ 2,270,625
100,000 Golf Trust of America Inc............................. 2,237,500
72,800 Great Lakes REIT Inc.................................. 1,055,600
330,000 Highwoods Properties Inc.............................. 7,775,625
200,000 HRPT Properties Trust................................. 2,700,000
200,000 Kimco Realty Corp..................................... 7,375,000
175,000 Macerich Co........................................... 3,970,312
145,000 Mack-Cali Realty Corp................................. 4,259,375
290,000 Nationwide Health Properties.......................... 5,510,000
3,819 Omega WorldWide Inc................................... 14,321
953 Patriot American Hospitality.......................... 4,884
525,100 Reckson Associates Realty Corp........................ 10,797,369
328,416 Reckson Service Industries Inc........................ 1,477,872
81,100 Spieker Properties Inc................................ 2,858,775
205,100 Tower Realty Trust Inc................................ 3,884,081
200,000 Urban Shopping Centers Inc............................ 5,737,500
22,250 Vornado Operating Inc................................. 133,500
370,000 Vornado Realty Trust.................................. 12,765,000
200,000 Weeks Corp............................................ 5,712,500
--------------
188,626,014
--------------
Total Common Stocks (Cost--$1,713,348,428)............ 1,779,215,713
--------------
CONVERTIBLE PREFERRED STOCKS--2.8%
[_] NON-UTILITY--0.0%
35 Patriot American Hospitality 15% Pfd Series B......... 823
8,700 Tanger Factory Outlet Centers Inc. Series A........... 178,622
--------------
179,445
[_] UTILITY--2.8%
500,000 NIPSCO Industries Inc. 7.75% 2/19/03.................. 25,250,000
789,100 Texas Utilities Co.................................... 42,068,894
--------------
67,318,894
--------------
Total Convertible Preferred Stocks (Cost--
$64,794,218).......................................... 67,498,339
--------------
</TABLE>
The accompanying note is an integral part of this financial statement.
6
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 1998
BONDS 24.8%
<TABLE>
<CAPTION>
Ratings
--------------------------
Standard Market
Duff & and Value
Par Value Company Phelps Moody's Poor's (Note 1)
--------- ------- --------- ------- -------- ----------
<C> <S> <C> <C> <C> <C>
[_] ELECTRIC--13.8%
$24,920,000 Alabama Power Co.
9%, due 12/01/24........... AA- A1 A+ 26,682,940
3,950,000 Comed Financing II
8 1/2%, due 1/15/27........ Not Rated Baa3 BB+ 4,278,992
14,500,000 Commonwealth Edison Co.
9 3/4%, due 2/15/20........ BBB Baa2 BBB 15,446,807
7,500,000 Commonwealth Edison Co.
9 7/8%, due 6/15/20........ BBB Baa2 BBB 8,869,665
8,850,000 Commonwealth Edison Co.
8 5/8%, due 2/01/22........ BBB Baa2 BBB 9,471,668
5,000,000 Commonwealth Edison Co.
8 3/8%, due 9/15/22........ BBB Baa2 BBB 5,251,575
10,000,000 Commonwealth Edison Co.
8 3/8%, due 2/15/23........ BBB Baa2 BBB 10,544,920
6,000,000 Dominion Resources Capital
Trust
7.83%, due 12/01/27........ Not Rated Baal BBB+ 5,969,850
8,000,000 Duquesne Light Co.
7.55%, due 6/15/25......... A- Baa1 BBB+ 7,899,640
5,000,000 Gulf States Utilities
8.94%, due 1/01/22......... Not Rated Baa3 BBB- 5,289,300
5,000,000 Illinois Power Co.
7 1/2%, due 7/15/25........ BBB+ Baal BBB 4,877,390
5,000,000 Louisiana Power & Light Co.
8 3/4%, due 3/01/26........ Not Rated Baa2 BBB 5,282,880
15,000,000 New York State Electric &
Gas Corp.
9 7/8, due 11/01/20........ Not Rated A3 BBB+ 16,426,515
4,000,000 New York State Electric &
Gas Corp.
8 7/8, due 11/01/21........ Not Rated A3 BBB+ 4,349,300
14,105,000 Pennsylvania Power & Light
Co.
9 1/4%, due 10/01/19....... Not Rated A3 A- 14,895,218
16,850,000 Pennsylvania Power & Light
Co.
9 3/8%, due 7/01/21........ Not Rated A3 A- 18,670,727
27,580,000 Potomac Electric Power Co.
9%, due 6/01/21............ A+ A1 A 29,960,319
</TABLE>
The accompanying note is an integral part of this financial statement.
7
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 1998
<TABLE>
<CAPTION>
Ratings
--------------------------
Standard Market
Duff & and Value
Par Value Company Phelps Moody's Poor's (Note 1)
--------- ------- --------- ------- -------- -----------
<C> <S> <C> <C> <C> <C>
10,000,000 Public Service Co. of
Colorado
8 3/4%, due 3/01/22..... Not Rated A3 A- 10,686,010
17,500,000 Puget Capital Trust
8.231%, due 6/01/27..... Not Rated Baa2 BBB- 18,121,180
3,000,000 Rochester Gas & Electric
Corp.
9 3/8%, due 4/01/21..... A- A3 A- 3,291,093
13,000,000 Southern Co. Capital
Trust
8.14%, due 2/15/27...... Not Rated A3 BBB+ 13,973,700
29,830,000 Texas Utilities Electric
Co.
9 3/4%, due 5/01/21..... A- A3 BBB+ 33,078,994
10,000,000 Texas Utilities Electric
Co.
8 3/4%, due 11/01/23.... A- A3 BBB+ 10,886,440
12,600,000 Union Electric Co.
8 3/4%, due 12/01/21.... Not Rated Aa3 AA- 13,814,111
12,000,000 UtiliCorp United Inc.
8%, due 3/01/23......... BBB Baa3 BBB 12,145,992
17,700,000 Virginia Electric & Power
Co.
8 1/4%, due 3/01/25..... A A2 A 19,173,578
-----------
329,338,804
[_] GAS--3.1%
2,125,000 ANR Pipeline Co.
9 5/8%, due 11/01/21.... Not Rated Baa2 BBB+ 2,599,168
8,875,000 Enron Corp.
9.65%, due 5/15/01...... BBB+ Baa2 BBB+ 9,511,462
5,000,000 KN Energy Inc.
7 1/4%, due 3/10/28..... Not Rated Baa2 BBB- 5,111,190
7,885,000 Pennzoil Co.
10 1/8%, due 11/15/09... BBB- Bal BBB 8,537,026
10,000,000 Phillips Petroleum Co.
9.18%, due 9/15/21...... Not Rated A3 A- 10,749,130
4,500,000 Sonat Inc.
9 1/2%, due 8/15/99..... Not Rated Baa1 BBB+ 4,563,014
</TABLE>
The accompanying note is an integral part of this financial statement.
8
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 1998
<TABLE>
<CAPTION>
Ratings
--------------------------
Standard Market
Duff & and Value
Par Value Company Phelps Moody's Poor's (Note 1)
--------- ------- --------- ------- -------- -----------
<C> <S> <C> <C> <C> <C>
5,000,000 Southern California Gas
Co.
8 3/4%, due 10/01/21..... AA- A1 AA- 5,405,550
6,488,000 Southern Union Co.
7.60%, due 2/01/24....... Not Rated Baa3 BBB+ 6,640,552
10,000,000 TE Products Pipeline Co.
7.51%, due 1/15/28....... Not Rated Baa2 BBB+ 9,933,060
9,000,000 Trans-Canada Pipeline
9 1/8%, due 4/20/06...... Not Rated A3 A- 10,049,940
-----------
73,100,092
[_] TELECOMMUNICATION--
7.6%
44,000,000 AT&T Corp.
8.35%, due 1/15/25....... AA- A1 AA- 48,189,988
35,428,000 GTE Corp
9 3/8%, due 12/01/00..... A- Baa1 A 37,513,080
6,000,000 GTE Corp.
10 1/4%, due 11/01/20.... A- Baa1 A 6,675,090
10,000,000 GTE California Inc.
8.07%, due 4/15/24....... AA A2 AA- 10,768,300
6,625,000 GTE Corp.
7.90%, due 2/01/27....... A- Baa1 A 7,039,308
11,995,000 Mountain States Telephone
9 1/2%, due 5/01/00...... Not Rated A2 A+ 12,474,752
13,750,000 New England Telephone &
Telegraph
9%, due 8/01/31.......... AA Aa2 AA 14,852,090
10,000,000 New York Telephone Co.
7 5/8%, due 2/01/23...... A A2 A+ 10,470,000
20,740,000 New York Telephone Co.
9 3/8%, due 7/15/31...... A A2 A+ 23,252,402
4,900,000 Southwestern Bell
Telephone
7.20%, due 10/15/26...... AA Aa3 AA 4,982,967
5,000,000 US West Communications
8 7/8%, due 6/01/31...... AA- A2 A+ 5,502,855
-----------
181,720,832
</TABLE>
The accompanying note is an integral part of this financial statement.
9
<PAGE>
DUFF & PHELPS UTILITIES INCOME INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 1998
<TABLE>
<CAPTION>
Ratings
-----------------------
Standard Market
Duff & and Value
Par Value Company Phelps Moody's Poor's (Note 1)
--------- ------- ------ ------- -------- --------------
<C> <S> <C> <C> <C> <C>
[_] NON-UTILITY--0.4%
8,000,000 Dayton Hudson Corp.
9 7/8%, due 7/01/20..... A- A3 A- 10,605,024
--------------
10,605,024
--------------
Total Bonds (Cost--$594,356,113).................. 594,764,752
--------------
U.S. TREASURY OBLIGATIONS--3.0%
66,000,000 U.S. Treasury Bonds
11 3/4%, due 2/15/01.... 73,837,500
--------------
Total U.S. Treasury Obligations (Cost--
$78,725,547)...................................... 73,837,500
--------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--0.0%
722,815 Federal National Mortgage Association
8%, due 5/01/05.................................. 751,304
--------------
Total U.S. Government Agency Obligations (Cost--
$746,984)......................................... 751,304
--------------
CASH AND OTHER ASSETS LESS LIABILITIES--(5.1%)............... (122,032,526)
--------------
NET ASSETS
(equivalent to $9.18 per share of common stock based on
206,370,767 shares of common stock outstanding, authorized
250,000,000 shares, $.001 par value per share and 5,000
shares remarketed preferred stock outstanding, authorized
100,000,000 shares, liquidation preference $100,000 per
share, $.001 par value per share)........................... $2,394,035,082
==============
</TABLE>
The percentage shown for each investment category is the total value of that
category as a percentage of the total net assets of the Fund.
The accompanying note is an integral part of this financial statement.
10
<PAGE>
Board of Directors
WALLACE B. BEHNKE
HARRY J. BRUCE
FRANKLIN A. COLE
GORDON B. DAVIDSON
CLAIRE V. HANSEN, CFA
FRANCIS E. JEFFRIES, CFA
NANCY LAMPTON
CALVIN J. PEDERSEN, CFA
BERYL W. SPRINKEL
Officers
CLAIRE V. HANSEN, CFA
Chairman
CALVIN J. PEDERSEN, CFA
President and Chief Executive Officer
NATHAN I. PARTAIN, CFA
Executive Vice President and
Chief Investment Officer
T. BROOKS BEITTEL, CFA
Senior Vice President, Secretary and Treasurer
MICHAEL SCHATT
Senior Vice President
JOSEPH C. CURRY, JR.
Vice President
DIANNA P. WENGLER
Assistant Secretary
Duff & Phelps
Utilities Income Inc.
Common stock listed on the New York Stock Exchange under the symbol DNP
55 East Monroe Street
Chicago, Illinois 60603
(800) 680-4367
(312) 368-5510
Investment Adviser
Duff & Phelps
Investment Management Co.
55 East Monroe Street
Chicago, Illinois 60603
Administrator
J.J.B. Hilliard, W.L. Lyons, Inc.
Hilliard Lyons Center
Louisville, Kentucky 40202
(502) 588-8400
Transfer Agent
Dividend Disbursing
Agent and Custodian
The Bank of New York
Shareholder Relations
Church Street Station
P.O. Box 11258
New York, New York 10286-1258
1-800-432-8224
Legal Counsel
Mayer, Brown & Platt
190 South LaSalle Street
Chicago, Illinois 60603
Independent Public Accountants
Arthur Andersen LLP
33 West Monroe Street
Chicago, Illinois 60603
11
<PAGE>
Duff & Phelps
Utilities Income Inc.
First Quarter
Report
March 31, 1999
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