Managed High Yield Plus Fund Inc. Dividend Declaration, Fund Commentary, and Updated Price and Yield Information

NEW YORK--(BUSINESS WIRE)--Managed High Yield Plus Fund Inc. (the "Fund") (NYSE: HYF), a closed-end management investment company, today announced that the Fund’s Board of Directors has declared a dividend from net investment income of $0.0180 per share. The dividend is payable on September 30, 2009 to shareholders of record as of September 24, 2009. The ex-dividend date is September 22, 2009. Managed High Yield Plus Fund Inc. seeks high income and, secondarily, capital appreciation, primarily through investments in lower-rated, income producing debt and related equity securities.

Fund Commentary for the month of August 2009 from UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the Fund’s investment advisor:

The market for US dollar-denominated high yield securities continued to exhibit strength, returning 2.07% during the month, as measured by the Merrill Lynch US High Yield Cash Pay Constrained Index, the "Index." As of August 31st, the market, as measured by the Index, returned 39.97% year to date, with CCC-rated and distressed issues leading the way. The Index ended the month with a spread over Treasury securities of 891 basis points (i.e., 8.91%), which represented a tightening of 21 basis points (i.e., 0.21%) for the month. (Spread is the difference between the yield paid on US Treasury bonds and higher-risk securities.)

During the month of August, the insurance sector performed especially well, returning 18.7%, mostly due to AIG bonds, which rallied on the back of positive comments from its new CEO. Other credit-sensitive sectors like broadcasting, printing and publishing also performed well. However, the healthcare, telecommunications and electric utilities sectors lagged for the month.

In August, the Fund underperformed the Index, mainly due to an underweight to the more distressed segment of the market, as well as an overweight to the underperforming healthcare, telecommunications and electric utility sectors. In addition, the Fund’s use of leverage magnified the effects of these sectors’ underperformance, hurting returns.

Looking ahead, we expect many investors are likely to view the improving economy as an opportunity to add risk to their portfolios. Therefore, we believe it is likely that high yield spreads may continue to compress over the next 12 months.

Disclaimers Regarding Fund Commentary - The Fund Commentary is intended to assist shareholders in understanding how the Fund performed during the month noted. Views and opinions were current as of the date of this press release. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the Fund and UBS Global AM reserve the right to change views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund’s future investment intent.

Characteristics as of August 31, 2009:*

* Net asset value (NAV), market price and yields will fluctuate. NAV yield is calculated by multiplying the current month’s dividend by 12 and dividing by the month-end net asset value. Market yield is calculated by multiplying the current month’s dividend by 12 and dividing by the month-end market price.

UBS Global Asset Management
Closed-End Funds Desk, 888-793 8637