SMITH BARNEY INTERMEDIATE MUNICIPAL FUND, INC.
SMITH BARNEY MUNICIPAL FUND, INC.
(the "Funds")
Supplement dated February 25, 1998 to
Prospectuses dated
April 30, 1997
The Funds may invest in zero coupon bonds.
A zero coupon bond pays no interest in cash to
its holder during its life, although interest is
accrued during that period. Its value to an
investor consists of the difference between its
face value at the time of maturity and the price
for which it was acquired, which is generally an
amount significantly less than its face value
(sometimes referred to as a "deep discount"
price). Because such securities usually trade
at a deep discount, they will be subject to
greater fluctuations of market value in response
to changing interest rates than debt obligations
of comparable maturities which make periodic
distributions of interest. On the other hand,
because there are no periodic interest payments
to be reinvested prior to maturity, zero coupon
securities eliminate the reinvestment risk and
lock in a rate of return to maturity.
FD 01413
