BLACKROCK MUNICIPAL TARGET TERM TRUST INC, N-30D, 1999-03-03

BLACKROCK MUNICIPAL TARGET TERM TRUST INC
N-30D, 1999-03-03

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The BlackRock
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Municipal Target
Term Trust Inc.
===============================
Annual Report
December 31, 1998

[GRAPHIC OMITTED]
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------

January 31, 1999

Dear Shareholders:

Over the past twelve months, U.S. Treasury securities have experienced a
strong rally, as investors sought a safe haven from global market turmoil and
the Federal Reserve continued to cut interest rates. Other segments of the fixed
income market have lagged behind Treasuries, but still produced generally
positive returns since our last report. We anticipate that the Federal Reserve
will remain prepared to combat any signs of a credit crunch through interest
rate cuts, and given the unstable economic situation in Brazil, the Fed likely
will retain an easing bias.

Despite previous worries of a second half slowdown in 1998, the U.S.
economy continues to expand rapidly, supported by strong consumer spending. This
momentum, however, may not continue as briskly into the new year, based on
weaker corporate profits and a loosening of the labor markets. Already, major
corporations have warned of slower profit growth and announced major layoffs.

This report contains detailed market and portfolio strategy by your
Trust's managers in addition to the Trust's audited financial statements and a
detailed list of the portfolio's holdings. We thank you for your continued
investment in the Trust and look forward to serving your investment needs in the
future.

Sincerely,

/s/ Laurence D. Fink /s/ Ralph L. Schlosstein

Laurence D. Fink Ralph L. Schlosstein
Chairman President

1
<PAGE>

January 31, 1999

Dear Shareholder:

We are pleased to present the annual report for The BlackRock Municipal
Target Term Trust Inc. ("the Trust") for the year ended December 31, 1998. We
would like to take this opportunity to review the Trust's stock price and net
asset value (NAV) performance, summarize developments in the fixed income
markets and discuss recent portfolio management activity.

The Trust is a diversified, actively managed closed-end bond fund whose
shares are traded on the New York Stock Exchange under the symbol "BMN". The
Trust's investment objective is to manage a portfolio of municipal debt
securities that will return $10 per share (an amount equal to the Trust's
initial public offering price) to investors on or about December 31, 2006, while
providing high current income exempt from regular federal income tax. The Trust
seeks to achieve this objective by investing in high credit quality ("AAA" or
insured to "AAA") tax-exempt general obligation and revenue bonds issued by
city, county and state municipalities throughout the United States.

The table below summarizes the changes in the Trust's stock price and net
asset value over the past year:

----------------------------------------------------
12/31/98 12/31/97 Change High Low
- --------------------------------------------------------------------------------
Stock Price $11.375 $11.00 3.41% $11.75 $10.3125
- --------------------------------------------------------------------------------
Net Asset Value (NAV) $11.21 $11.22 (0.09%) $11.35 $11.05
- --------------------------------------------------------------------------------

The Fixed Income Markets

The first half of the Trust's fiscal year saw Treasury yields decline
towards historic lows. These lows were the result of budget surplus projections
as well as the Federal Reserve's decision to move from a tightening bias to a
neutral interest rate policy. The positive economic momentum throughout the
first half of the fiscal year was strengthened by unseasonably warm weather that
led to increased consumer spending and job gains, which softened the negative
impact on trade from the Asian financial crisis.

The second half of the trust's fiscal year witnessed virtually
unparalleled market turbulence. Although consumers continued their spending
domestically, demand for U.S. goods abroad faltered, as the strong dollar and
overseas weakness, especially in Asia, drove prices for U.S. goods higher
relative to foreign goods.

Toward year-end, U.S. GDP growth rebounded; however, the instability in
global financial markets began to rattle investor confidence. The devaluation of
the Russian ruble and the fear of a possible devaluation of the Brazilian
currency caused a flight-to-quality to U.S. Treasuries. Corporate yield spreads
across all credits to Treasuries widened dramatically as a result of the
sell-off. This dramatic shift of investor sentiment culminated in the near
collapse of a prominent hedge fund.

The Treasury market rally pushed Treasury yields to historic levels below
the 5% barrier. In response to the financial fragility in the third quarter of
1998, the Fed eased interest rates on September 29, 1998 by 25bps and again on
October 15, in an unusual between-meetings move. On November 17, the Fed eased
interest rates again by 25bps.

2
<PAGE>

These rate cuts seem to have had their desired effect on the US
economy--which finished the year with a 3.5% growth rate. Growth in 1999,
however, may decrease significantly and further easing of interest rates by the
Federal Reserve is possible as the Western economies will need to provide
support for the global economy. With economic growth and labor markets expected
to soften during the first half of 1999, we expect inflation to remain under
control.

Rapidly declining Treasury yields and significant supply of new municipal
issues were responsible for the underperformance of municipals versus treasuries
in 1998. However, on a historical basis, municipals remain attractive,
particularly those with longer maturities. Also, retail investors, who have been
focused on the equity markets have begun to migrate back to the municipal
market. These factors may enable municipals to outperform Treasuries in the
coming year.

The Trust's Portfolio and Investment Strategy

The Trust's portfolio is actively managed to diversify exposure across
various sectors, issuers, revenue sources and types of bonds. BlackRock's
investment strategy emphasizes a relative value approach, which allows the Trust
to capitalize upon changing market conditions by rotating municipal sectors,
credits and coupons. Portfolio trading activity was very low during 1998, as a
majority of the bonds in the portfolio are trading at prices which, if sold,
would result in a taxable capital gain. Additionally, as these bonds were
purchased in higher interest rate environments. If they were sold, the Trust
would be forced to reinvest the proceeds in lower yielding securities. These
factors led us to decide that the most prudent investment strategy for 1998 was
to maintain the current portfolio structure.

The Trust employs leverage to enhance its income by borrowing at
short-term municipal rates and investing the proceeds in longer maturity issues
that have higher yields. The degree to which the Trust can benefit from its use
of leverage may affect its ability to pay high monthly income. The Trust has
experienced favorable short-term municipal rates over the past year, providing
for profitable leverage.

The following chart compares the Trust's current and December 31, 1997
asset composition:

- --------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
- --------------------------------------------------------------------------------
Sector December 31, 1998 December 31, 1997
- --------------------------------------------------------------------------------
City, County and State 22% 21%
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Hospital 15% 15%
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Transportation 14% 14%
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Tax Revenue 14% 14%
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Water & Sewer 11% 11%
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Utility/Power 8% 8%
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Lease Revenue 8% 8%
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Education 5% 5%
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Other 3% 4%
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3
<PAGE>

We appreciate your continued confidence and look forward to managing The
BlackRock Municipal Target Term Trust Inc. in the coming years to realize its
investment objectives. Please feel free to contact the mutual fund specialists
at BlackRock's marketing center at (800) 227-7BFM (7236) if you have any
questions that weren't answered in this report. Additionally, you can reach us
via e-mail at [email protected].

Sincerely,

/s/ Robert S. Kapito /s/ Kevin Klingert

Robert S. Kapito Kevin Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Financial Management, Inc. BlackRock Financial Management, Inc.

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The BlackRock Municipal Target Term Trust Inc.
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BMN
- --------------------------------------------------------------------------------
Initial Offering Date: September 27, 1991
- --------------------------------------------------------------------------------
Closing Stock Price as of 12/31/98: $11.375
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Net Asset Value as of 12/31/98: $11.21
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 12/31/98 ($11.375)1: 5.41%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Common Share2: $ 0.05125
- --------------------------------------------------------------------------------
Current Annualized Distribution per Common Share2: $ 0.615
- --------------------------------------------------------------------------------

(1) Yield on Closing Stock Price is calculated by dividing the current
annualized distribution per share by the closing stock price per share.
(2) Distribution is not constant and is subject to change.

4
<PAGE>

- --------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
Portfolio of Investments December 31, 1998
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Option
Principal Call
Rating* Amount Provisions++ Value
(Unaudited) (000) Description (Unaudited) (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
LONG-TERM INVESTMENTS--141.3%
Alabama--1.0%
Hoover Brd. of Ed. Spl. Tax. Wts., G.O., AMBAC,
AAA $ 1,700 6.50%, 2/01/01+............................................................ N/A $ 1,827,228
AAA 1,815 6.60%, 2/01/01+............................................................ N/A 1,954,410
AAA 1,025 6.625%, 2/01/01+........................................................... N/A 1,104,243
------------
4,885,881
------------
Alaska--2.9%
AAA 7,500 Anchorage Elec. Util. Rev., 7.125%, 6/01/06, MBIA............................... 6/99 at 102 7,745,550
AAA 9,000 No. Slope Boro., Ser. B, Zero Coupon, 6/30/04, FSA.............................. No Opt. Call 7,196,940
------------
14,942,490
------------
Arizona--1.1%
Tucson Bus. Dev. Fin. Corp. Lease Rev., FGIC,
AAA 1,515 6.25%, 7/01/02+............................................................ N/A 1,664,303
AAA 3,495 6.25%, 7/01/06............................................................. 7/02 at 102 3,815,387
------------
5,479,690
------------
California--5.0%
AAA 6,000 California St., G.O., 6.30%, 9/01/06, AMBAC..................................... No Opt. Call 6,885,660
AAA 1,910 California St. Pub. Wrks. Rev., Ser. A, 6.20%, 12/01/02, AMBAC+................. N/A 2,118,763
AAA 4,000 Glendale Hosp. Rev., Adventist Hlth. Ctr., Ser. A, 6.50%, 3/01/07, MBIA......... 3/01 at 102 4,299,080
Los Angeles Wst. Wtr. Sys. Rev., MBIA,
AAA 5,570 5.625%, 6/01/07............................................................ 6/03 at 102 6,042,057
AAA 3,320 Ser. D, 6.60%, 12/01/00+................................................... N/A 3,582,712
AAA 3,500 San Joaquin Hills Tran. Agcy., Toll Rd. Rev., Ser. A, Zero Coupon,
1/15/07, MBIA.............................................................. No Opt. Call 2,506,875
------------
25,435,147
------------
Colorado--1.9%
Denver City & Cnty. Wtr. Brd. Rev., C.O.P., FGIC,
AAA 2,025 6.50%, 11/15/01+........................................................... N/A 2,198,441
AAA 1,385 6.50%, 11/15/05............................................................ 11/01 at 101 1,490,703
AAA 1,110 6.60%, 11/15/01+........................................................... N/A 1,208,058
AAA 765 6.60%, 11/15/06............................................................ 11/01 at 101 824,356
AAA 2,295 6.625%, 11/15/01+.......................................................... N/A 2,499,301
AAA 1,570 6.625%, 11/15/07........................................................... 11/01 at 101 1,690,655
------------
9,911,514
------------
District of Columbia--1.8%
District of Columbia, G.O., Ser B, 5.90%, 6/1/06, MBIA
AAA 1,060 5.90%, 6/1/04+ ............................................................ N/A 1,171,332
AAA 7,190 5.90%, 6/1/06 ............................................................. 6/04 at 102 7,851,624
------------
9,022,956
------------
Florida--12.1%
Florida St. Div. Bd. Fin. Dept. Gen. Svcs. Rev. (Dept. Nat. Res. & Pres.),
AAA 7,000 6.45%, 7/01/01+, MBIA...................................................... N/A 7,534,380
AAA 6,975 6.75%, 7/01/01+, AMBAC..................................................... N/A 7,620,676
AAA 2,190 Florida St. Sunshine Skyway Rev., 6.60%, 7/01/07, MBIA.......................... 7/01 at 101 2,362,222
Greater Orlando Aviation Auth., Arpt. Fac. Rev., Ser. B, FGIC,
AAA 4,760 6.55%, 10/01/06............................................................ 10/02 at 102 5,311,969
AAA 5,070 6.55%, 10/01/07............................................................ 10/02 at 102 5,639,107
AAA 3,155 Gulf Breeze Local Gov't. Ln. Pkg. Rev., 7.70%, 12/01/15, FGIC................... 12/99 at 102 3,277,319
AAA 2,650 Jacksonville Hlth. Fac. Auth. Rev., Mem. Med. Ctr., Ser. A, 6.625%,
5/01/01+, MBIA............................................................. N/A 2,875,462
AAA 7,500 Jacksonville Hosp. Rev., Univ. Med. Ctr. Inc. Proj., 6.50%, 2/01/07, CONNIE LEE. 2/02 at 102 8,169,075
AAA 2,000 No. Broward Hosp. Rev., 6.50%, 1/01/02+, MBIA................................... N/A 2,192,780
</TABLE>

See Notes to Financial Statements.

5
<PAGE>

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Option
Principal Call
Rating* Amount Provisions++ Value
(Unaudited) (000) Description (Unaudited) (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
Florida (cont'd)
AAA $10,645 Orange Cnty., Tourist Dev. Tax Rev., Ser. A, 6.375%, 10/01/06, AMBAC............ 10/02 at 102 $11,795,299
AAA 2,570 Tampa Auth. Rev., St. Joseph Hlth. Ctr., 6.70%, 12/01/01+, MBIA................. N/A 2,833,965
AAA 1,600 Tampa Util. Tax & Spec. Rev., 6.80%, 10/01/06, AMBAC............................ 10/01 at 102 1,754,560
------------
61,366,814
------------
Georgia--0.4%
AAA 1,990 Burke Cnty. Dev. Auth. P.C.R., Oglethorpe Pwr. Corp., Ser. B, 6.45%,
1/01/05, MBIA.............................................................. 1/04 at 101 2,204,980
------------
Illinois--14.7%
AAA 4,930 Alton Hlth. Fac. Rev., Christian Hlth. Ctr., 7.00%, 2/15/01+, FGIC.............. N/A 5,350,184
Chicago Cent. Pub. Library, G.O., AMBAC,
AAA 1,800 Ser. A, 6.75%, 4/01/02+......................................................... N/A 1,993,158
AAA 1,600 Ser. C, 6.75%, 4/01/02+......................................................... N/A 1,771,696
AAA 5,555 Cook Cnty., Ser. A, 6.40%, 11/15/02+, MBIA...................................... N/A 6,168,827
AAA 1,775 Cook Cnty. Cmnty. Sch. Dist., G.O., Ser. A, 6.375%, 1/01/02+, FGIC.............. N/A 1,903,901
lllinois Hlth. Fac. Auth. Rev.,
AAA 3,300 Elmhurst Mem. Hosp., 6.60%, 1/01/07, FGIC.................................. 1/02 at 102 3,581,292
AAA 14,585 Sisters Svcs., Inc., Ser. C, 6.625%, 6/01/06, MBIA......................... 6/02 at 102 16,011,559
Illinois Regl. Trans. Auth. Rev., Ser. A, FGIC,
AAA 2,780 6.55%, 11/01/01+........................................................... N/A 3,041,820
AAA 6,125 6.625%, 11/01/01+.......................................................... N/A 6,714,041
AAA 8,725 Illinois St., G.O., 6.40%, 12/15/07, AMBAC...................................... 12/01 at 102 9,537,472
Illinois St. Sales Tax Rev., Ser. O,
AAA 5,900 Zero Coupon, 6/15/07....................................................... No Opt. Call 4,153,482
AAA 5,635 Zero Coupon, 6/15/08....................................................... No Opt. Call 3,739,499
AAA 2,065 6.50%, 6/15/01+............................................................ N/A 2,237,531
AAA 3,935 6.50%, 6/15/06............................................................. 6/02 at 101 4,252,200
AAA 2,000 6.60%, 6/15/01+............................................................ N/A 2,171,720
AAA 2,000 Will Cnty. Cmnty. Sch. Dist. Rev., 7.05%, 12/01/08, AMBAC....................... No Opt. Call 2,426,320
------------
75,054,702
------------
Indiana--2.8%
AAA 9,000 Indiana Univ. Rev., Student Fee, Zero Coupon, 8/01/06, AMBAC.................... No Opt. Call 6,520,500
AAA 2,270 Noblesville West Indpt. Sch. Bldg. Corp., G.O., 7.00%, 7/01/07, MBIA............ 1/01 at 102 2,438,025
AAA 5,000 Warsaw High Sch. Bldg. Corp., G.O., 6.90%, 7/01/05, MBIA........................ 7/00 at 102 5,302,950
------------
14,261,475
------------
Kentucky--3.1%
Danville Multi-City Lease Rev., Swr. & Drain Sys., MBIA,
AAA 2,015 6.60%, 3/01/02+............................................................ N/A 2,219,986
AAA 2,160 6.65%, 3/01/02+............................................................ N/A 2,382,912
AAA 3,750 Kentucky Dev. Fin. Auth. Rev., Sisters of Charity, 6.60%, 11/01/06, MBIA........ 11/01 at 102 4,072,238
AAA 6,410 Kentucky St. Ppty. & Bldgs. Auth. Rev., Proj. 53, 6.625%, 10/01/07, MBIA........ 10/01 at 102 6,970,490
------------
15,645,626
------------
Louisiana--6.9%
Jefferson Sales Tax Dist. Rev., FGIC,
AAA 6,505 Ser. A, 6.75%, 12/01/02+................................................... N/A 7,194,660
AAA 14,495 Ser. A, 6.75%, 12/01/06.................................................... 12/02 at 100 15,883,041
AAA 4,000 Ser. B, 6.75%, 12/01/02+................................................... N/A 4,416,440
AAA 3,500 Louisiana St., G.O., Ser. A, 6.50%, 5/01/07, AMBAC.............................. 5/02 at 102 3,853,640
AAA 5,250 New Orleans, G.O., Zero Coupon, 9/01/06, AMBAC.................................. No Opt. Call 3,784,515
------------
35,132,296
------------
</TABLE>

See Notes to Financial Statements.

6
<PAGE>

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Option
Principal Call
Rating* Amount Provisions++ Value
(Unaudited) (000) Description (Unaudited) (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
Massachusetts--5.0%
AAA $ 3,670 Mansfield, G.O., 6.65%, 1/15/02+, AMBAC......................................... N/A $ 4,042,798
Massachusetts Bay Trans. Auth. Rev., Gen. Tran. Sys., Ser. A,
AAA 20,015 6.625%, 3/01/01+, MBIA..................................................... N/A 21,627,809
------------
25,670,607
------------
Michigan--8.9%
Detroit Swr. Disp. Rev., FGIC,
AAA 1,655 6.60%, 7/01/01+............................................................ N/A 1,802,345
AAA 1,765 6.65%, 7/01/01+............................................................ N/A 1,924,221
AAA 1,880 6.70%, 7/01/01+............................................................ N/A 2,051,813
AAA 3,750 Grand Rapids Wtr. Sply. Rev., 6.625%, 1/01/08, FGIC............................. 1/01 at 102 3,996,525
Michigan Mun. Bond Auth.,
AAA 5,000 G.O., Ser. D, Zero Coupon, 5/15/06, MBIA................................... No Opt. Call 3,657,700
AAA 1,840 Local Gov't. Loan Prog., 6.35%, 11/01/06, AMBAC............................ 11/04 at 102 2,082,107
Michigan St. Bldg. Auth. Rev.,
AAA 11,590 Ser. I, 6.75%, 10/01/07, MBIA.............................................. 10/01 at 102 12,577,468
AAA 3,850 Ser. II, 6.75%, 10/01/07, AMBAC............................................ 10/01 at 102 4,232,882
AAA 11,940 Michigan St. Hosp. Fin. Auth. Rev., Sparrow Oblig. Grp.,
6.60%, 11/15/07, MBIA...................................................... 11/01 at 102 12,908,812
------------
45,233,873
------------
Nevada--5.2%
AAA 6,210 Clark Cnty. Flood Ctrl., G.O., 6.40%, 11/01/01+, AMBAC.......................... N/A 6,719,282
Clark Cnty. Sch. Dist., G.O., Ser. A, MBIA,
AAA 11,000 6.70%, 3/01/06............................................................. 3/01 at 101 11,693,000
AAA 1,500 6.75%, 3/01/07............................................................. 3/01 at 101 1,596,030
AAA 2,835 Nye Cnty. Sch. Dist., G.O., BIG, 7.25%, 5/01/99+................................ N/A 2,928,470
AAA 3,250 Reno Hosp. Auth. Rev., St. Mary Regl. Med. Ctr., 6.70%, 7/01/01+, MBIA.......... N/A 3,542,955
------------
26,479,737
------------
New Hampshire--0.5%
AAA 2,310 New Hampshire High. Ed. Auth. Rev., Elliot Hosp. of Manchester, 6.70%,
10/01/06, AMBAC............................................................ 10/02 at 102 2,500,714
------------
New Jersey--15.7%
AAA 10,500 Elizabeth, G.O., 6.60%, 8/01/06, MBIA........................................... 8/01 at 102 11,325,510
Howell Twp., G.O., FGIC,
AAA 7,715 6.70%, 1/01/06............................................................. 1/02 at 102 8,423,700
AAA 2,925 6.75%, 1/01/07............................................................. 1/02 at 102 3,206,473
New Jersey St. Hlth. Care Fac. Fin. Auth. Rev., Hackensack Med. Ctr., FGIC,
AAA 12,755 6.65%, 7/01/06............................................................. 7/01 at 102 13,905,628
AAA 3,735 6.70%, 7/01/07............................................................. 7/01 at 102 4,076,342
AAA 1,765 New Jersey St. Hwy. Auth. Rev., Garden St. Pkwy., 6.15%, 1/01/07, AMBAC......... 1/02 at 102 1,896,987
AAA 30,000 New Jersey St. Tpk. Auth. Rev., Ser. C, 6.40%, 1/01/07, AMBAC................... 1/01 at 101.5 31,806,900
No. Jersey Dist. Wtr. Sply. Cmnty. Rev., MBIA,
AAA 2,525 Wanaque No. Proj., Ser. B, 6.50%, 11/15/06................................. 11/01 at 102 2,738,842
AAA 1,065 Wanaque So. Proj., 6.50%, 7/01/06.......................................... No Opt. Call 1,197,774
AAA 1,250 Warren Cnty. Fin. Auth., P.C.R., 6.55%, 12/01/06, MBIA.......................... 12/02 at 102 1,364,087
------------
79,942,243
------------
New Mexico--0.8%
AAA 3,535 Gallup, P.C.R., 6.50%, 8/15/07, MBIA............................................ 8/02 at 102 3,862,765
------------
</TABLE>

See Notes to Financial Statements.

7
<PAGE>

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Option
Principal Call
Rating* Amount Provisions++ Value
(Unaudited) (000) Description (Unaudited) (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
New York--14.1%
New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev., Ser. A, FGIC,
AAA $11,100 6.15%, 6/15/07............................................................. 6/02 at 101.5 $ 12,001,431
AAA 1,090 6.75%, 6/15/01+............................................................ N/A 1,178,203
AAA 1,070 6.75%, 6/15/06............................................................. 6/01 at 101 1,149,811
AAA 1,340 7.00%, 6/15/01+............................................................ N/A 1,456,178
AAA 1,320 7.00%, 6/15/07............................................................. 6/01 at 101 1,424,465
New York City, G.O.,
AAA 13,000 Ser. A, 7.00%, 8/01/07,FSA................................................. 8/06 at 101.5 15,577,640
AAA 10,000 Ser. E, 6.125%, 8/01/06, MBIA.............................................. No Opt. Call 11,251,900
AAA 4,500 New York St. Environ. Fac. Corp., P.C.R., Ser. D, 6.40%, 5/15/06................ 11/04 at 102 5,147,460
AAA 9,830 New York St. Hsg. Fin. Agcy. Rev., Hsg. Proj. Mtge., Ser. A, 5.50%,
11/01/06, FSA................................................................... 5/06 at 102 10,547,295
AAA 5,250 New York St. Urb. Dev. Corp. Rev., 5.625%, 1/01/07, AMBAC....................... 1/03 at 102 5,639,025
AAA 6,000 Triborough Brdg. & Tunl. Auth. Rev., Ser. B, 6.70%, 1/01/08, FGIC............... 1/01 at 102 6,424,380
------------
71,797,788
------------
North Carolina--1.3%
AAA 6,000 North Carolina Eastern Mun. Pwr. Agcy. Sys. Rev., Ser. B, 6.00%, 1/01/06,
CAPMAC..................................................................... No Opt. Call 6,652,020
------------
North Dakota--0.4%
AAA 2,035 Grand Forks Hlth. Care Fac. Rev., United Hosp. Oblig. Grp., 6.50%,
12/01/06, MBIA............................................................. 12/01 at 102 2,193,567
------------
Pennsylvania--10.2%
AAA 6,200 Beaver Cnty. Hosp. Auth., 6.625%, 7/01/06, AMBAC................................ 7/02 at 102 6,886,340
AAA 1,500 Coatesville Sch. Dist., G.O., 6.60%, 3/01/01+, AMBAC............................ N/A 1,592,295
AAA 10,000 Harrisburg Auth. Lease Rev., 6.625%, 6/01/01+, FSA.............................. N/A 10,769,700
AAA 7,450 Pennsylvania St. G.O., Ser. A, 6.50%, 11/01/01+, FGIC........................... N/A 8,114,391
AAA 1,445 Pennsylvania St. Higher Ed. Rev., 6.75%, 7/01/01+, MBIA......................... N/A 1,578,764
AAA 4,500 Pennsylvania St. Tpk. Auth. Rev., Ser. O, 5.80%, 12/01/07, FGIC................. 12/02 at 102 4,838,085
Philadelphia Mun. Auth., Justice Lease Rev.,
AAA 1,550 Ser. A, 7.00%, 11/15/04, MBIA.............................................. 11/01 at 102 1,708,208
AAA 2,370 Ser. B, 7.10%, 11/15/01+, FGIC............................................. N/A 2,632,620
Pittsburgh & Allegheny Cntys. Rev., AMBAC,
AAA 1,015 Ser. A, 6.50%, 7/15/06..................................................... 7/01 at 100 1,076,103
AAA 900 Ser. B, 6.50%, 7/15/06..................................................... 7/01 at 100 954,180
AAA 3,000 Schuylkill Cnty. Redev. Auth., Common Lease Rev., Ser. A, 7.00%, 6/01/07, FGIC.. 6/02 at 101 3,257,190
AAA 7,800 Westmoreland Cnty., G.O., 6.70%, 8/01/01+, AMBAC................................ N/A 8,378,214
------------
51,786,090
------------
Rhode Island--2.4%
AAA 11,220 Conv. Ctr. Auth. Rev., Ser. A, 6.60%, 5/15/01+, MBIA............................ N/A 12,166,856
------------
South Carolina--2.0%
AAA 4,390 Piedmont Mun. Pwr. Agy. Elec. Rev., 6.85%, 1/01/07, FGIC........................ 1/01 at 102 4,703,358
AAA 5,100 Rock Hill Util. Sys. Rev., 6.50%, 1/01/07, FGIC................................. 1/01 at 102 5,430,327
------------
10,133,685
------------
Tennessee--0.5%
AAA 2,350 Met. Nashville, Arpt. Rev., Ser. C, 6.625%, 7/01/07, FGIC....................... 7/01 at 102 2,533,699
------------
Texas--15.3%
AAA 2,000 Austin Util. Sys. Rev., 6.875%, 5/15/01+, AMBAC................................. N/A 2,181,100
AAA 8,500 Cypress-Fairbanks Indpt. Sch. Dist., G.O., Zero Coupon, 8/01/06, AMBAC.......... No Opt. Call 6,190,295
AAA 5,800 El Paso Cnty. Tax Rev., Ser. B, 6.40%, 2/15/07, MBIA............................ 2/02 at 100 6,178,334
Ft. Bend Cnty., Perm. Imprvt., FGIC,
AAA 1,650 G.O., 6.60%, 9/01/02+...................................................... N/A 1,809,027
AAA 1,725 Tax Rev., 6.60%, 9/01/02+.................................................. N/A 1,891,256
</TABLE>

See Notes to Financial Statements.

8
<PAGE>

- ----------
* Rating: Using the higher of Standard & Poor's, Moody's or Fitch's rating.
+ This bond is prerefunded. See glossary for definition.
++ Option call provisions: date (month/year) and prices of the earliest
option call or redemption. There may be other call provisions at varying
prices at later dates.

- --------------------------------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED IN THE PORTFOLIO DESCRIPTIONS:

AMBAC -- American Municipal Bond Assurance Corporation
BIG -- Bond Investors Guaranty Insurance Company
CAPMAC -- Capital Markets Assurance Company
CONNIE LEE -- College Construction Loan Insurance Association
C.O.P. -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
G.O. -- General Obligation Bond
MBIA -- Municipal Bond Insurance Association
P.C.R. -- Pollution Control Revenue
- --------------------------------------------------------------------------------

See Notes to Financial Statements.

9
<PAGE>

- --------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
Statement of Assets and Liabilities
December 31, 1998
- --------------------------------------------------------------------------------

Assets
Investments, at value (cost
$656,068,696) (Note 1) ................................. $ 719,304,965
Interest receivable ...................................... 11,504,776
Receivable for investments sold .......................... 4,941,900
-------------
735,751,641
-------------
Liabilities
Due to custodian ......................................... 1,202,530
Investment advisory fee payable (Note 2) ................. 226,182
Dividends payable--preferred stock ....................... 102,986
Administration fee payable (Note 2) ...................... 45,236
Other accrued expenses ................................... 323,904
-------------
1,900,838
-------------
Net Investment Assets .................................... $ 733,850,803
=============
Net investment assets were comprised of:
Common stock:
Par value (Note 4) ................................... $ 454,106
Paid-in capital in excess of par ..................... 421,119,385
Preferred stock (Note 4) ............................... 225,000,000
-------------
646,573,491

Undistributed net investment income .................... 24,063,235
Accumulated net realized loss .......................... (22,192)
Net unrealized appreciation ............................ 63,236,269
-------------
Net investment assets, December 31, 1998 ............... $ 733,850,803
=============
Net assets applicable to common
shareholders ......................................... $ 508,850,803
=============
Net asset value per common share:
($508,850,803 / 45,410,639 shares of
common stock issued and outstanding) ................... $11.21
======

- --------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
Statement of Operations
Year Ended December 31, 1998
- --------------------------------------------------------------------------------

Net Investment Income

Income
Interest and discount earned ........................... $ 42,823,648
------------

Expenses
Investment advisory .................................... 2,574,318
Auction agent .......................................... 564,500
Administration ......................................... 514,864
Custodian .............................................. 130,000
Directors .............................................. 84,000
Audit .................................................. 60,000
Transfer agent ......................................... 35,000
Reports to shareholders ................................ 25,000
Legal .................................................. 10,000
Miscellaneous .......................................... 70,419
------------
Total expenses ....................................... 4,068,101
------------
Net investment income .................................... 38,755,547
------------

Realized and Unrealized Loss On
Investments (Note 3)
Net realized loss on investments ...................... (22,192)
Net change in unrealized appreciation
on investments ....................................... (3,961,990)
------------
Net loss on investments ............................... (3,984,182)
------------

Net Increase in Net Investment
Assets Resulting from Operations ...................... $ 34,771,365
============

See Notes to Financial Statements.

10
<PAGE>

- --------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
Statements of Changes in Net Investment Assets
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------
1998 1997
------------- -------------
<S> <C> <C>
Increase (Decrease) in Net Investment Assets

Operations:
Net investment income .......................................... $ 38,755,547 $ 38,510,968
Net realized gain (loss) on investments ........................... (22,192) 181,766
Net change in unrealized appreciation (depreciation) on investments (3,961,990) 9,243,056
------------- -------------

Net increase in net investment assets resulting from operations .. 34,771,365 47,935,790
------------- -------------
Dividends and distributions:
To preferred shareholders from net investment income .............. (7,606,013) (8,041,758)
To preferred shareholders from capital gains ...................... -- (40,128)
To common shareholders from net investment income ................. (27,927,201) (27,785,620)
To common shareholders from capital gains ......................... -- (141,638)
------------- -------------
Total dividends and distributions ............................. (35,533,214) (36,009,144)
------------- -------------

Total increase (decrease) ................................... (761,849) 11,926,646
------------- -------------

Net Investment Assets

Beginning of year ................................................. 734,612,652 722,686,006
------------- -------------
End of year ....................................................... $ 733,850,803 $ 734,612,652
============= =============
</TABLE>

See Notes to Financial Statements.

11
<PAGE>

- --------------------------------------------------------------------------------
The BlackRock Municipal Target Term Trust Inc.
Financial Highlights
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ..................... $ 11.22 $ 10.96 $ 11.14 $ 9.98 $ 11.30
-------- -------- -------- -------- --------
Net investment income ................................ 0.85 0.85 0.84 0.87 0.83
Net realized and unrealized gain (loss) on investments (0.08) 0.20 (0.24) 1.14 (1.39)
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations ..... 0.77 1.05 0.60 2.01 (0.56)
-------- -------- -------- -------- --------
Dividends from net investment income to:
Preferred shareholders ............................... (0.17) (0.18) (0.17) (0.19) (0.14)
Common shareholders .................................. (0.61) (0.61) (0.61) (0.62) (0.62)
Distributions from capital gains to:
Preferred shareholders ............................... -- * * (0.01) --
Common shareholders .................................. -- * * (0.03) --
-------- -------- -------- -------- --------
Total dividends and distributions ...................... (0.78) (0.79) (0.78) (0.85) (0.76)
-------- -------- -------- -------- --------
Net asset value, end of year** ......................... $ 11.21 $ 11.22 $ 10.96 $ 11.14 $ 9.98
======== ======== ======== ======== ========
Market value, end of year** ............................ $ 11.38 $ 11.00 $ 10.25 $ 10.13 $ 8.88
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN+: .............................. 9.35% 13.69% 7.43% 21.67% (8.89%)
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS++:
Expenses ............................................... 0.80% 0.88% 0.91% 0.90% 0.94%
Net investment income before preferred stock dividends . 7.63% 7.70% 7.75% 8.06% 7.91%
Preferred stock dividends .............................. 1.50% 1.61% 1.59% 1.83% 1.38%
Net investment income available to common stockholders . 6.13% 6.09% 6.16% 6.23% 6.53%

SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) $508,037 $500,227 $494,667 $487,923 $475,529
Portfolio turnover rate ................................ 0% 8% 5% 9% 21%
Net assets of common shareholders, end of year
(in thousands) ....................................... $508,851 $509,613 $497,686 $506,060 $453,407
Asset coverage per share of preferred stock,
end of year# $ 81,550 $ 81,640 $ 80,298 $ 81,243 $150,783
Preferred stock outstanding (in thousands) ............. $225,000 $225,000 $225,000 $225,000 $225,000
</TABLE>

- ----------
* Actual amount paid for the year ended December 31, 1997 to preferred
shareholders was $0.0008 and to common shareholders was $0.0031 and for
the year ended December 31, 1996 to preferred shareholders was $.0007 and
to common shareholders was $.0024.
** Net asset value and market value are published in The Wall Street Journal
each Monday.
# A stock split occurred on July 24, 1995 (Note 4).
+ Total investment return is calculated assuming a purchase of common stock
at the current market price on the first day and a sale at the current
market price on the last day of each year reported. Dividends are assumed,
for purposes of this calculation to be reinvested at prices obtained under
the Trust's dividend reinvestment plan. This calculation does not reflect
brokerage commissions.
++ Ratios calculated on the basis of income and expenses applicable to both
the common and preferred shares, and preferred stock dividends, relative
to the average net assets of common shareholders.

The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data, for each of the years indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common stock.

12
<PAGE>

- --------------------------------------------------------------------------------
The BlackRock Municipal
Target Term Trust Inc.
Notes to Financial Statements
- --------------------------------------------------------------------------------

Note 1. Organization & Accounting Policies

The BlackRock Municipal Target Term Trust Inc. (the "Trust"), was organized in
Maryland on July 16, 1991 as a diversified, closed-end management investment
company. The Trust's investment objective is to manage a diversified portfolio
of high quality securities that will return $10 per share to investors on or
about December 31, 2006 while providing current income exempt from regular
federal income tax. The ability of issuers of debt securities held by the Trust
to meet their obligations may be affected by economic developments in a specific
state, industry or region. No assurance can be given that the Trust's investment
objective will be achieved.

The following is a summary of significant accounting policies followed by
the Trust.

Securities Valuation: Municipal securities (including commitments to purchase
such securities on a "when-issued" basis) are valued on the basis of prices
provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values. Any securities or other assets for which such current market
quotations are not readily available are valued at fair value as determined in
good faith under procedures established by and under the general supervision and
responsibility of the Trust's Board of Directors.

Short-term securities which mature in more than 60 days are valued at
current market quotations. Short-term securities which mature in 60 days or less
are valued at amortized cost, if their term to maturity from date of purchase is
60 days or less, or by amortizing their value on the 61st day prior to maturity,
if their original term to maturity from date of purchase exceeded 60 days.

Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust amortizes premium and accretes original issue
discount on securities purchased using the interest method.

Federal Income Taxes: It is the Trust's intention to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute sufficient net income to shareholders. For this
reason and because substantially all of the Trust's gross income consists of
tax-exempt interest, no federal income tax provision is required.

Dividends and Distributions: The Trust declares and pays dividends and
distributions to common shareholders monthly from net investment income, net
realized short-term capital gains and other sources, if necessary. Net long-term
capital gains, if any, in excess of loss carryforwards may be distributed
annually. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.

Estimates: The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

Reclassification of Capital Accounts: The Trust accounts for and reports
distributions to shareholders in accordance with the American Institute of
Certified Public Accountants' Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain and
Return of Capital Distributions by Investment Companies. The effect of applying
this statement was to increase undistributed net investment income and decrease
accumulated net realized gain by $3,044 compared to amounts previously reported.
Net investment income, net realized gains and net assets were not affected by
this change.

Note 2. Agreements

The Trust has an Investment Advisory Agreement with BlackRock Financial
Management, Inc. (the "Adviser") a wholly-owned corporate subsidiary of
BlackRock Advisors, Inc., which is an indirect majority-owned subsidiary of PNC
Bank, N.A., and an Administration Agreement with Prudential Investments Fund
Management LLC ("PIFM"), an indirect, wholly owned subsidiary of The Prudential
Insurance Company of America. The investment advisory fee paid to the Adviser is
computed weekly and payable monthly at an annual rate of 0.35% of the Trust's
average weekly net investment assets. The administration fee paid to PIFM is
also computed weekly and payable monthly at an annual rate of 0.07% of the
Trust's average weekly net investment assets.

13
<PAGE>

Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. PIFM pays occupancy and certain clerical
and accounting costs of the Trust. The Trust bears all other costs and expenses.

Note 3. Portfolio Securities

Purchases and sales of investment securities, other than short-term investments
for the year ended December 31, 1998 aggregated $3,868,803 and $1,840,773,
respectively.

The federal income tax basis of the Trust's investments at December 31,
1998 was substantially the same as the basis for financial reporting purposes
and, accordingly, gross and net unrealized appreciation for federal income tax
purposes was $63,236,269.

For federal income tax purposes, the Trust had a capital loss carry
forward at December 31, 1998 of approximately $22,200 which will expire in 2006.
Accordingly, no capital gains distribution is expected to be paid to
shareholders until net gains have been realized in excess of such amounts.

Note 4. Capital

There are 200 million shares of $.01 par value common stock authorized. Of the
45,410,639 common shares outstanding at December 31, 1998, the Adviser owned
10,639 shares. As of December 31, 1998, there were 9,000 preferred shares
outstanding as follows: Series W7-3,000, Series F7-3,000 and Series W28-3,000.

The Trust may classify or reclassify any unissued shares of common stock
into one or more series of preferred stock. On November 21, 1991 the Trust
reclassified 4,500 shares of common stock and issued 3 series of Auction Market
Preferred Stock ("Preferred Stock") as follows: Series W7--1,500 shares, Series
F7--1,500 shares and Series W28--1,500 shares. The Preferred Stock had a
liquidation value of $50,000 per share plus any accumulated but unpaid
dividends. On May 16, 1995 shareholders approved a proposal to split each share
of preferred stock into two shares and simultaneously reduce each share's
liquidation preference from $50,000 to $25,000 plus any accumulated but unpaid
dividends. The stock split occurred on July 24, 1995.

Dividends on Series W7 and Series F7 are cumulative at a rate which is
reset every 7 days based on the results of an auction. Dividends on Series W28
are also cumulative at a rate which is reset every 28 days based on the results
of an auction. Dividend rates ranged from 2.80% to 4.40% during the year ended
December 31, 1998.

The Trust may not declare dividends or make other distributions on shares
of common stock or purchase any such shares if, at the time of the declaration,
distribution, or purchase, asset coverage with respect to the outstanding
Preferred Stock would be less than 200%.

The Preferred Stock is redeemable at the option of the Trust, in whole or
in part, on any dividend payment date at $25,000 per share plus any accumulated
or unpaid dividends whether or not declared. The Preferred Stock is also subject
to mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared if certain requirements relating to the
composition of the assets and liabilities of the Trust as set forth in the
Articles of Incorporation are not satisfied.

The holders of Preferred Stock have voting rights equal to the holders of
common stock (one vote per share) and will vote together with holders of shares
of common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Trust's directors. In addition, the Investment
Company Act of 1940 requires that along with approval by shareholders that might
otherwise be required, the approval of the holders of a majority of any
outstanding preferred shares, voting separately as a class would be required to
(a) adopt any plan of reorganization that would adversely affect the Preferred
shares and (b) take any action requiring a vote of security holders, including,
among other things, changes in the Trust's subclassification as a closed-end
investment company or changes in its fundamental investment restrictions.

Note 5. Dividends

Subsequent to December 31, 1998, the Board of Directors of the Trust declared
dividends from undistributed earnings of $0.05125 per common share payable
January 29, 1999 to shareholders of record on January 15, 1999.

For the period January 1, 1999 to January 31, 1999 dividends and
distributions declared on preferred shares totalled $629,515 in aggregate for
the three outstanding preferred share series.

14
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------

The Shareholders and Board of Directors of
The BlackRock Municipal Target Term Trust Inc.:

We have audited the accompanying statement of assets and liabilities including
the portfolio of investments, of The BlackRock Municipal Target Term Trust Inc.,
as of December 31, 1998, and the related statements of operations, and of
changes in net assets for each of the two years in the period then ended and the
financial highlights for each of the five years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Trust'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. Our procedures included confirmation of securities owned at December
31, 1998 by correspondence with the custodian. 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, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The BlackRock
Municipal Target Term Trust Inc. as of December 31, 1998, the results of its
operations, the changes in its net investment assets and the financial
highlights for the respective stated periods in conformity with generally
accepted accounting principles.

/s/ Deloitte & Touche LLP

Deloitte & Touche LLP

New York, New York
February 12, 1999

15
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
TAX INFORMATION
- --------------------------------------------------------------------------------

We are required by the Internal Revenue Code to advise you within 60 days
of the Trust's fiscal year end as to the federally exempt interest dividends
received by you during such fiscal year. Accordingly, we are advising you that
during the year ended December 31, 1998 the Trust paid a total of $0.615 in
dividends per common share that were federally tax-exempt interest dividends.

For purposes of preparing your annual federal income tax return, you
should report the amounts as reflected on the appropriate Form 1099-DIV or
substitute 1099 DIV.

- --------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------

Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions of dividends and capital gains
reinvested by State Street Bank and Trust Company (the "Plan Agent") in Trust
shares pursuant to the Plan. Shareholders who do not participate in the Plan
will receive all distributions in cash paid by check in United States dollars
mailed directly to the shareholders of record (or if the shares are held in
street or other nominee name, then to the nominee) by the transfer agent, as
dividend disbursing agent.

The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange for the participants' accounts. The Trust will not issue any new
shares under the Plan.

Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment will be made for any fraction of a Trust share.

The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by the Trust. However, each participant will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal income tax that may be payable on
such dividends or distributions.

The Trust reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all shareholders of the Trust at least 90 days before the record date
for the dividend or distribution. The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days' written notice to all shareholders of the
Trust. All correspondence concerning the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The addresses are on the front of this report.

16
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

There have been no material changes in the Trust's investment objectives
or policies that have not been approved by the shareholders or to its charter or
by-laws or in the principal risk factors associated with investment in the
Trust. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trust's portfolio.

Year 2000 Readiness Disclosure. The Trust is currently in the process of
evaluating its information technology infrastructure for Year 2000 compliance.
Substantially all of the Trust's information systems are supplied by the
Adviser. The Adviser has advised the Trust that it is currently evaluating
whether such systems are year 2000 compliant and that it expects to incur costs
of up to approximately five hundred thousand dollars to complete such evaluation
and to make any modifications to its systems as may be necessary to achieve Year
2000 compliance. The Adviser has advised the Trust that it has fully tested its
systems for Year 2000 compliance. The Trust may be required to bear a portion of
such cost incurred by the Adviser in this regard. The Adviser has advised the
Trust that it does not anticipate any material disruption in the operations of
the Trust as a result of any failure by the Adviser to achieve Year 2000
compliance. There can be no assurance that the costs will not exceed the amount
referred to above or that the Trust will not experience a disruption in
operations.

The Adviser has advised the Trust that it is in the process of evaluating
the Year 2000 compliance of various suppliers of the Adviser and the Trust. The
Adviser has advised the Trust that it intends to communicate with such suppliers
to determine their Year 2000 compliance status and the extent to which the
Adviser or the Trust could be affected by any supplier's Year 2000 compliance
issues. To date, however, the Adviser has not received responses from all such
suppliers with respect to their Year 2000 compliance, and there can be no
assurance that the systems of such suppliers, who are beyond the Trust's
control, will be Year 2000 compliant. In the event that any of the Trust's
significant suppliers do not successfully and timely achieve Year 2000
compliance, the Trust's business or operations could be adversely affected. The
Adviser has advised the Trust that it is in the process of preparing a
contingency plan for Year 2000 compliance by its suppliers. There can be no
assurance that such contingency plan will be successful in preventing a
disruption of the Trust's operations.

The Trust is designating this disclosure as its Year 2000 readiness
disclosure for all purposes under the Year 2000 Information and Readiness
Disclosure Act and the foregoing information shall constitute a Year 2000
statement for purposes of that Act.

17
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------

The Trust's Investment Objective

The BlackRock Municipal Target Term Trust Inc.'s investment objective is to
provide current income exempt from regular federal income tax and to return $10
per share (the initial public offering price per share) to investors on or about
December 31, 2006.

Who Manages the Trust?

BlackRock Financial Management, Inc. ("BlackRock") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $132
billion on behalf of taxable and tax-exempt clients worldwide. Strategies
include fixed income, equity and cash and may incorporate both domestic and
international securities. Domestic fixed income strategies utilize the
government, mortgage, corporate and municipal bond sectors. BlackRock manages
twenty closed-end funds that are traded on either the New York or American stock
exchanges, and a $24 billion family of open-end equity and bond funds. Current
institutional clients number 425, domiciled in the United States and overseas.

What Can the Trust Invest In?

The Trust intends to invest substantially all of its assets in a diversified
portfolio of tax-exempt Municipal Obligations which are rated Aaa by Moody's or
AAA by S&P or are covered by insurance or a guaranty of the timely payment of
both principal and interest from an entity having a Aaa or AAA rating or are
determined by the Trust's adviser to be of comparable credit quality.

What is the Adviser's Investment Strategy?

The primary investment strategy for the Trust is to seek to closely match the
maturity of the assets of the portfolio with the future return of the initial
investment on or about December 31, 2006. Accordingly, the majority of the
Trust's assets are invested in securities which have maturities that are similar
to the maturity date of the Trust. Most municipal securities, however, have
optional redemption provisions (or "calls") which allow the issuer to redeem the
bonds on specified dates prior to their maturity. While call features are more
predictable than prepayments on mortgage-backed securities, they require
additional active, management considerations for the Trust. If a portion of the
Trust is invested in callable bonds, the yield to call date is analyzed instead
of the yield to the maturity of the bond, and should the security be called,
BlackRock will generally seek to reinvest the proceeds in additional assets with
maturities which are not significantly longer than the remaining term of the
Trust. In addition, in order to seek to earn back the underwriting discount and
upfront expenses and have the ability to return the full initial investment at
the end of the term, the Trust generally seeks to retain a small portion of the
income earned on its portfolio each year.

In addition to seeking the return of the initial offering price, the Adviser
also seeks to provide current income exempt from federal income tax to
investors. The portfolio managers will attempt to achieve this objective by
investing in securities that provide competitive tax-exempt income. In addition,
leverage will be used (in an amount up to 35% of the total assets) to enhance
the income of the portfolio. In order to maintain competitive yields as the
Trust approaches maturity and depending on market conditions, the Adviser will
attempt to purchase securities with call protection or maturities as close to
the Trust's maturity date as possible. Securities with call protection should
provide the portfolio with some degree of protection against reinvestment risk
during times of lower prevailing interest rates. Since the Trust's primary goal
is to return the initial offering price at maturity, any cash that the Trust
receives prior to its maturity date will be reinvested in securities with
maturities which coincide with the remaining term of the Trust. It is important
to note that the Trust will be managed so as to preserve the integrity of the
return of the initial offering price. If market conditions, such as high
interest rate volatility, force a choice between current income and risking the
return of the initial offering price, it is likely that the return of the
initial offering price will be emphasized.

18
<PAGE>

How Are the Trust's Shares Purchased and Sold? Does the Trust Pay Dividends
Regularly?

The Trust's shares are traded on the New York Stock Exchange which provides
investors with liquidity on a daily basis. Orders to buy or sell shares of the
Trust must be placed through a registered broker or financial advisor. The Trust
pays monthly dividends which are typically paid on the last business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the Trust through the Trust's transfer agent, State Street
Bank and Trust Company. Investors who wish to hold shares in a brokerage account
should check with their financial advisor to determine whether their brokerage
firm offers dividend reinvestment services.

Leverage Considerations in a Term Trust

Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the issuance of preferred
stock. Leverage permits the Trust to borrow money at short-term rates and
reinvest that money in longer-term assets which typically offer higher interest
rates. The difference between the cost of the borrowed funds and the income
earned on the proceeds that are invested in longer term assets is the benefit to
the Trust from leverage. In general, the portfolio is typically leveraged at
approximately 35% of total assets.

Leverage also increases the duration (or price volatility of the net assets) of
the Trust, which can improve the performance of the Trust in a declining rate
environment, but can cause net assets to decline faster than the market in a
rapidly rising rate environment. BlackRock's portfolio managers continuously
monitor and regularly review the Trust's use of leverage and the Trust may
reduce, or unwind, the amount of leverage employed should BlackRock consider
that reduction to be in the best interests of the shareholders.

Special Considerations and Risk Factors Relevant to Term Trusts

The Trust is intended to be a long-term investment and is not a short-term
trading vehicle.

Return of Initial Investment. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved.

Dividend Considerations. The income and dividends paid by the Trust are likely
to decline to some extent over the term of the Trust due to the anticipated
shortening of the dollar-weighted average maturity of the Trust's assets.

Leverage. The Trust utilizes leverage through the issuance of preferred stock
which involves special risks. The Trust's net asset value and market value may
be more volatile due to its use of leverage.

Market Price of Shares. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange (NYSE symbol: BMN) and as such
are subject to supply and demand influences. As a result, shares may trade at a
discount or a premium to their net asset value.

Illiquid Securities. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects to do so to only a
limited extent. These securities involve special risks.

Antitakeover Provisions. Certain antitakeover provisions will make a change in
the Trust's business or management more difficult without the approval of the
Trust's Board of Directors and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.

Municipal Obligations. Municipal obligations include debt obligations issued by
states, cities, and local authorities, and possessions and certain territories
of the United States to obtain funds for various public purposes, including the
construction of public facilities, the refinancing of outstanding obligations
and the obtaining of funds for general operating expenses and for loans to other
public institutions and facilities. The value of municipal debt securities
generally varies inversely with changes in prevailing market interest rates.
Depending on the amount of call protection that the securities in the Trust
have, the Trust may be subject to certain reinvestment risks in environments of
declining interest rates.

Alternative Minimum Tax (AMT). The Trust may invest in securities subject to
alternative minimum tax.

19
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THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
GLOSSARY
- --------------------------------------------------------------------------------

Closed-End Fund: Investment vehicle which initially offers a fixed
number of shares and trades on a stock exchange.
The fund invests in a portfolio of securities in
accordance with its stated investment objectives
and policies.

Discount: When a fund's net asset value is greater than its
stock price the fund is said to be trading at a
discount.

Dividend: Income generated by securities in a portfolio and
distributed to shareholders after the deduction of
expenses. This Trust declares and pays dividends
to common shareholders on a monthly basis.

Dividend Reinvestment: Shareholders may have all dividends and
distributions of capital gains automatically
reinvested into additional shares of the Trust.

Market Price: Price per share of a security trading in the
secondary market. For a closed-end fund, this is
the price at which one share of the fund trades on
the stock exchange. If you were to buy or sell
shares, you would pay or receive the market price.

Net Asset Value (NAV): Net asset value is the total market value of all
securities and other assets held by the Trust,
plus income accrued on its investments, minus any
liabilities including accrued expenses, divided by
the total number of outstanding shares. It is the
underlying value of a single share on a given day.
Net asset value for the Trust is calculated weekly
and published in Barron's on Saturday and The New
York Times or The Wall Street Journal each Monday.

Premium: When a fund's stock price is greater than its net
asset value, the fund is said to be trading at a
premium.

Pre-refunded Bonds: These securities are collateralized by U.S.
Government securities which are held in escrow and
are used to pay principal and interest on the tax
exempt issue and retire the bond in full at the
date indicated, typically at a premium to par.

20
<PAGE>

- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Taxable Trusts
- --------------------------------------------------------------------------------------------------
Stock Maturity
Perpetual Trusts Symbol Date
------ --------
<S> <C> <C>
The BlackRock High Yield Trust Inc. BHY N/A
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A

Term Trusts

The BlackRock 1999 Term Trust Inc. BNN 12/99
The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BLK 06/01
The BlackRock Strategic Term Trust Inc. BGT 12/02
The BlackRock Investment Quality Term Trust Inc. BQT 12/04
The BlackRock Advantage Term Trust Inc. BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. BCT 12/09

Tax-Exempt Trusts
- --------------------------------------------------------------------------------------------------
Stock Maturity
Perpetual Trusts Symbol Date
------ --------
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A

Term Trusts

The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10
</TABLE>

If you would like further information
please call BlackRock at (800) 227-7BFM (7236)
or consult with your financial advisor.

21
<PAGE>

- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
AN OVERVIEW
- --------------------------------------------------------------------------------

BlackRock Financial Management, Inc. ("BlackRock") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $132
billion on behalf of taxable and tax-exempt clients worldwide. Strategies
include fixed income, equity and cash and may incorporate both domestic and
international securities. BlackRock manages twenty-one closed-end funds that are
traded on either the New York or American stock exchanges, and a $24 billion
family of open-end equity and bond funds. Current institutional clients number
425, domiciled in the United States and overseas.

BlackRock's fixed income product was introduced in 1988 by a team of
highly seasoned fixed income professionals. These professionals had extensive
experience creating, analyzing and trading a variety of fixed income
instruments, including the most complex structured securities. In fact, several
individuals at BlackRock were responsible for developing many of the major
innovations in the mortgage-backed and asset-backed securities markets,
including the creation of the first CMO, the floating rate CMO, the
senior/subordinated pass-through and the multi-class asset-backed security.

BlackRock is unique among asset management and advisory firms in the
emphasis it places on the development of proprietary analytical capabilities.
Over one quarter of the firm's professionals is dedicated to the design,
maintenance and use of these systems, which are not otherwise available to
investors. BlackRock's proprietary analytical tools are used for evaluating, and
designing fixed income investment strategies for client portfolios. Securities
purchased include mortgages, corporate bonds, municipal bonds and a variety of
hedging instruments.

BlackRock has developed investment products that respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. In fact, BlackRock introduced the first closed-end mortgage fund, the
first taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAA rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
Currently, BlackRock's closed-end funds have dividend reinvestment plans, which
are designed to provide ongoing demand for the stock in the secondary market.
BlackRock manages a wide range of investment vehicles, each having specific
investment objectives and policies.

In view of our continued desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
that you may have about your BlackRock funds and we thank you for the continued
trust that you place in our abilities.

If you would like further information
please do not hesitate to call BlackRock at (800) 227-7BFM

22
<PAGE>

- ---------
BlackRock
- ---------

Directors

Laurence D. Fink, Chairman
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein

Officers

Ralph L. Schlosstein, President
Keith T. Anderson, Vice President
Michael C. Huebsch, Vice President
Robert S. Kapito, Vice President
Kevin Klingert, Vice President
Richard M. Shea, Vice President/Tax
Henry Gabbay, Treasurer
James Kong, Assistant Treasurer
Karen H. Sabath, Secretary

Investment Adviser

BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM

Administrator

Prudential Investments Fund Management LLC
Gateway Center 3
100 Mulberry Street
Newark, NJ07102-4077

Custodian and Transfer Agent

State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM

Auction Agent

Bankers Trust Company
4 Albany Street
New York, NY 10006

Independent Auditors

Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434

Legal Counsel

Skadden, Arps, Slate, Meagher & Flom LLP
919 Third Avenue
New York, NY 10022

This report is for shareholder information. This is not a prospectus
intended for use in the purchase or sale of any securities.

The BlackRock Municipal Target Term Trust Inc.
c/o Prudential Investments Fund Management LLC
Gateway Center 3
100 Mulberry Street
Newark, NJ07102-4077

092476-10-5
092476-20-4
092476-30-3
092476-40-2
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