MUNICIPAL HIGH INCOME FUND INC.
(the "Fund")
Supplement to Prospectus dated
January 15, 1997
The following information supplements, and to the extent inconsistent
therewith, supersedes, the information in the Prospectus under
"Dividends and Distributions; Dividend Reinvestment Plan".
If 98% of the net asset value of the Common Stock at the time of
valuation exceeds the market price of Common Stock, or if the Fund
declares a dividend or capital gains distribution payable only in cash,
First Data will buy Common Stock in the open market, on the NYSE or
elsewhere, for the participants' accounts. If, following the
commencement of the purchases and before First Data has completed its
purchases, the market price exceeds 98% of net asset value of the Common
Stock, First Data will attempt to terminate purchases in the open market
and cause the Fund to issue the remaining dividend or distribution in
shares at 98% of net asset value per share. In this case, the number of
shares of Common Stock received by a Plan participant will be based on
the weighted average of prices paid for shares purchased in the open
market and the price at which the Fund issues the remaining shares.
June 6, 1997
FD 1302
