MERRILL LYNCH UTILITY INCOME FUND, INC.
Supplement Dated March 31, 2000
to Prospectus Dated December 8, 1999
On March 31, 2000, the Board of Directors of Merrill Lynch Utility Income
Fund, Inc. (the "Fund") approved, subject to shareholder and regulatory
approvals, a reorganization pursuant to which the assets and liabilities of
the Fund will be acquired by Merrill Lynch Global Utility Fund, Inc. ("Global
Utility Fund") in exchange for newly issued shares of Global Utility Fund.
Shareholders of the Fund will receive shares of Global Utility Fund with the
same value, and of the same class, as the shares of the Fund held immediately
prior to the reorganization. While the Fund's investment objective is to seek
high current income through investment of at least 65% of its total assets in
equity and debt securities issued by companies that management of the Fund
believes are primarily engaged in the ownership or operation of facilities
used to generate, transmit or distribute electricity, telecommunications, gas
or water ("Utility Companies"), the investment objective of Global Utility
Fund is to seek both capital appreciation and current income through
investment of at least 65% of its total assets in equity and debt securities
issued by domestic and foreign Utility Companies. Global Utility Fund does
not focus on high-dividend utility stocks. The Fund will deregister as an
investment company and dissolve under state law after the reorganization takes
place. A special shareholders meeting will be called to consider these
matters. Before this meeting, shareholders will receive additional
information about these matters and a proxy asking for their votes.
Code # 16855-1299 ALL
