As filed with the Securities and Exchange Commission on January 9, 2006

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM N-CSR

                        CERTIFIED SHAREHOLDER REPORT OF
                   REGISTERED MANAGEMENT INVESTMENT COMPANIES

                 Investment Company Act file number: 811-21168

               NEUBERGER BERMAN INTERMEDIATE MUNICIPAL FUND INC.
               -------------------------------------------------
             (Exact Name of the Registrant as Specified in Charter)
                      c/o Neuberger Berman Management Inc.
                          605 Third Avenue, 2nd Floor
                         New York, New York 10158-0180

       Registrant's Telephone Number, including area code: (212) 476-8800

                   Peter E. Sundman, Chief Executive Officer
               Neuberger Berman Intermediate Municipal Fund Inc.
                          605 Third Avenue, 2nd Floor
                         New York, New York 10158-0180

                            Arthur C. Delibert, Esq.
                  Kirkpatrick & Lockhart Nicholson Graham LLP
                   1800 Massachusetts Avenue, N.W. 2nd Floor
                           Washington, DC 20036-1800
                  (Names and addresses of agents for service)

Date of fiscal year end: October 31, 2005

Date of reporting period: October 31, 2005

Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the  transmission to stockholders of
any report that is required to be transmitted to  stockholders  under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.

A registrant  is required to disclose the  information  specified by Form N-CSR,
and the  Commission  will make this  information  public.  A  registrant  is not
required to respond to the  collection  of  information  contained in Form N-CSR
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burden to Secretary,  Securities and Exchange Commission,  450 Fifth Street, NW,
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under the clearance requirements of 44 U.S.C. ss. 3507.



ITEM 1. REPORTS TO SHAREHOLDERS

[NEUBERGER BERMAN LOGO]
A LEHMAN BROTHERS COMPANY

ANNUAL REPORT
OCTOBER 31, 2005

NEUBERGER BERMAN

INTERMEDIATE
MUNICIPAL
CLOSED-END FUNDS

CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.

INTERMEDIATE MUNICIPAL FUND INC.

NEW YORK INTERMEDIATE MUNICIPAL FUND INC.



                                               NEUBERGER BERMAN OCTOBER 31, 2005

CONTENTS

THE FUNDS


                                                       
CHAIRMAN'S LETTER                                          1

PORTFOLIO COMMENTARY
California Intermediate Municipal Fund Inc.                2
Intermediate Municipal Fund Inc.                           3
New York Intermediate Municipal Fund Inc.                  3

SCHEDULE OF INVESTMENTS
California Intermediate Municipal Fund Inc.                7
Intermediate Municipal Fund Inc.                          12
New York Intermediate Municipal Fund Inc.                 19

FINANCIAL STATEMENTS                                      24

FINANCIAL HIGHLIGHTS/
PER SHARE DATA
California Intermediate Municipal Fund Inc.               34
Intermediate Municipal Fund Inc.                          35
New York Intermediate Municipal Fund Inc.                 36

REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM                         38

DIVIDEND REINVESTMENT PLAN                                39

DIRECTORY                                                 41

DIRECTORS AND OFFICERS                                    42

PROXY VOTING POLICIES AND PROCEDURES                      51

QUARTERLY PORTFOLIO SCHEDULE                              51

NOTICE TO SHAREHOLDERS                                    52

BOARD CONSIDERATION OF THE MANAGEMENT
AND SUB-ADVISORY AGREEMENTS                               53



CHAIRMAN'S LETTER

DEAR SHAREHOLDER,

I am pleased to present to you this annual report for the Neuberger Berman
Intermediate Municipal Closed-End Funds, for the fiscal year ending October 31,
2005. The report includes portfolio commentary, a listing of the Funds'
investments, and their audited financial statements for the reporting period.

Each Fund's investment objective is to provide current income exempt from
regular federal income tax and, for each state-specific fund, current income
exempt from that state's personal income taxes (and in the case of the New York
Fund, New York City personal income tax).

We invest in intermediate-term municipal bonds because our experience and
research indicate strongly that this maturity range has historically offered the
best risk/reward profile on the yield curve, providing much of the return of
longer-term bonds--with less volatility and risk.

We believe that our conservative investment philosophy and disciplined
investment process will benefit you with superior tax exempt current income over
the long term.

Thank you for your confidence in Neuberger Berman. We will continue to do our
best to earn it.

Sincerely,

/s/ Peter Sundman

PETER SUNDMAN
CHAIRMAN OF THE BOARD
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
INTERMEDIATE MUNICIPAL FUND INC.
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.


"Neuberger Berman" and the Neuberger Berman logo are service marks of Neuberger
Berman, LLC. "Neuberger Berman Management Inc." and the individual fund names in
this shareholder report are either service marks or registered service marks of
Neuberger Berman Management Inc. (C)2005 Neuberger Berman Management Inc. All
rights reserved.

                                        1


INTERMEDIATE MUNICIPAL CLOSED-END FUNDS PORTFOLIO COMMENTARIES

We are pleased to report that, on a Net Asset Value (NAV) basis, all three of
Neuberger Berman's Intermediate Municipal Closed-End Funds delivered positive
returns and materially outperformed the Lehman Brothers 10-Year Municipal Bond
Index for the fiscal year ending October 31, 2005.

Municipal bonds performed in line with the broad fixed income market during this
12-month reporting period, with prices remaining relatively stable from November
2004 through January 2005, declining in February and March, rallying in April,
and then retreating again in September and October. The market's ups and downs
were largely the result of mixed signals on the strength of the economy and the
outlook for inflation. Eight Federal Reserve rate hikes totaling 2.00% over the
course of the fiscal year (with a ninth on November 1, the day after fiscal year
end) kept a ceiling on intermediate-term bond prices.

An increase in state and local tax revenues resulting from the robust economy
has strengthened municipal balance sheets. While credit quality has improved, a
new credit issue emerged this year. The problems facing General Motors and
United Airlines due to large under-funded pensions have focused investor
attention on the financial soundness of municipal issuers' pension plans. This,
in turn, has become a more important element in our credit analysis.

Looking ahead, we continue to focus on economic data relating to inflation and
its likely impact on Fed policy. Although third quarter 2005 GDP growth has been
revised upward to 4.3%, we are seeing early signs that economic growth is
starting to moderate. In the second week of November, leading homebuilder Toll
Brothers warned investors about slowing sales--an indication that the vibrant
new housing market may be losing momentum. Existing home inventories have also
been rising in many areas of the country. Despite still strong consumer
spending, softening home prices could prove a blow to consumer confidence. Also,
as the weather cools, high home heating costs may put more pressure on household
budgets, which could dampen holiday sales. If more evidence emerges that the
housing bubble is deflating and if Christmas proves less than jolly for
retailers, the Fed may begin to worry about overplaying its hand and consider
easing its foot off the monetary brakes sooner rather than later.

We are likely to maintain the portfolios' conservative posture until we see
convincing evidence that the economy is decelerating and that the Fed is closer
to declaring victory over inflation, at which point we may become somewhat more
aggressive. All told, however, we believe that municipal bond investors should
be encouraged by how well municipal securities have held up during a prolonged
period of Fed tightening and by the fact that yields are now significantly more
generous than in recent years.

CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.

For the fiscal year ending October 31, 2005, on a net asset value (NAV) basis,
the California Intermediate Municipal Fund returned 2.96% compared to the Lehman
10-Year Municipal Bond Index's 1.21% gain.

                                        2


As of October 31, 2005, the portfolio was composed of 88.5% revenue bonds, 10.3%
general obligation bonds, and 1.2% in other assets and short term investments.
Bonds subject to the Alternative Minimum Tax (AMT) equaled 13.75% of assets. At
the close of the reporting period, the Fund's duration was 5.6 years and the
portfolio's leverage position was 37.2% of assets.

INTERMEDIATE MUNICIPAL FUND INC.

For the fiscal year ending October 31, 2005, on a net asset value (NAV) basis,
the Intermediate Municipal Fund returned 2.93% compared to the Lehman 10-Year
Municipal Bond Index's 1.21% gain.

As of October 31, 2005, the portfolio was composed of 74.2% revenue bonds, 18.3%
general obligation bonds, 5.5% pre-refunded/escrow bonds, and 2.0% in other
assets and short term investments. Bonds subject to the Alternative Minimum Tax
(AMT) equaled 12.96% of assets. At the close of the reporting period, the Fund's
duration was 5.5 years and the portfolio's leverage position was 37.1% of
assets.

NEW YORK INTERMEDIATE MUNICIPAL FUND INC.

For the fiscal year ending October 31, 2005, on a net asset value (NAV) basis,
the New York Intermediate Municipal Fund returned 2.87% compared to the Lehman
10-Year Municipal Bond Index's 1.21% gain.

As of October 31, 2005, the portfolio was composed of 93.4% revenue bonds, 4.7%
general obligation bonds, and 1.9% in other assets and short term investments.
Bonds subject to the Alternative Minimum Tax (AMT) equaled 18.93% of assets. At
the close of the reporting period, the Fund's duration was 5.5 years and the
portfolio's leverage position was 37.4% of assets.

Sincerely,

                                /s/ Ted Giuliano

                                /s/ Thomas Brophy

                                 /s/ Lori Canell

                           TED GIULIANO, THOMAS BROPHY
                                 AND LORI CANELL
                              PORTFOLIO CO-MANAGERS

                                        3


INTERMEDIATE MUNICIPAL CLOSED-END FUNDS



               CALIFORNIA INTERMEDIATE              INTERMEDIA    NEW YORK INTERMEDIATE
                        MUNICIPAL FUND          MUNICIPAL FUND           MUNICIPAL FUND
                AMEX TICKER SYMBOL NBW  AMEX TICKER SYMBOL NBH   AMEX TICKER SYMBOL NBO
                                                                    
1 YEAR TOTAL RETURN

NAV (1),(4)                       2.96%                   2.93%                    2.87%
MARKET PRICE (2),(4)              7.82%                   5.32%                    7.68%

AVERAGE ANNUAL TOTAL RETURN (Life of Fund as of October 31, 2005)

NAV (1),(4)                       6.32%                   6.55%                    6.03%
MARKET PRICE (2),(4)              2.58%                   2.48%                    2.26%
                            09/24/2002              09/24/2002               09/24/2002


CALIFORNIA INTERMEDIATE MUNICIPAL FUND
RATING DIVERSIFICATION
(% BY RATINGS)


                                       
AAA                                       53.7%
AA                                         3.2
A                                         16.1
BBB                                       23.2
BB                                         2.8
B                                          0.3
CCC                                        0.0
CC                                         0.0
C                                          0.0
D                                          0.0
Not Rated                                  0.0
Short Term                                 0.7


INTERMEDIATE MUNICIPAL FUND
RATING DIVERSIFICATION
(% BY RATINGS)



                                       
AAA                                       56.6%
AA                                         7.9
A                                         11.6
BBB                                       18.8
BB                                         3.7
B                                          0.8
CCC                                        0.0
CC                                         0.0
C                                          0.0
D                                          0.0
Not Rated                                  0.0
Short Term                                 0.6


NEW YORK INTERMEDIATE MUNICIPAL FUND
RATING DIVERSIFICATION
(% BY RATINGS)


                                       
AAA                                       26.0%
AA                                        31.4
A                                         15.4
BBB                                       14.9
BB                                        11.3
B                                          0.4
CCC                                        0.0
CC                                         0.0
C                                          0.0
D                                          0.0
Not Rated                                  0.0
Short Term                                 0.6


Closed-end funds, unlike open-end funds, are not continually offered. There is
an initial public offering and once issued, common shares of closed-end funds
are sold in the open market through a stock exchange.

The composition, industries and holdings of the Funds are subject to change.
Investment return will fluctuate. Past performance is no guarantee of future
results.

                                        4


ENDNOTES

        (1)  Returns based on Net Asset Value ("NAV") of the Funds.

        (2)  Returns based on market price of Fund shares on the American Stock
             Exchange.

        (3)  A portion of the income from the Funds may be subject to the
             Federal alternative minimum tax for certain investors.

        (4)  Neuberger Berman Management Inc. has contractually agreed to waive
             a portion of the management fees that it is entitled to receive
             from each Fund. Each undertaking lasts until October 31, 2011.
             Please see the notes to the financial statements for specific
             information regarding the rate of the management fees waived by
             Neuberger Berman Management Inc. Absent such a waiver, the
             performance of each Fund would be lower.

                                        5


GLOSSARY OF INDICES


                                             
         NEW YORK MUNICIPAL DEBT FUND AVERAGE:  An equally weighted average of those closed-end
                                                funds that limit their assets to those securities
                                                that are exempt from taxation in New York (double
                                                tax-exempt) or a city in New York (triple
                                                tax-exempt).

         CALIFORNIA MUNICIPAL DEBT FUND INDEX:  An equally weighted index, adjusted for income
                                                dividends and capital gain distributions, of
                                                typically the largest 30 closed-end funds that
                                                invest at least 65% of assets in municipal debt
                                                issues that are exempt from taxation in California.

       CALIFORNIA MUNICIPAL DEBT FUND AVERAGE:  An equally weighted average of those closed-end
                                                funds that invest at least 65% of assets in
                                                municipal debt issues that are exempt from taxation
                                                in California.

  GENERAL LEVERAGED MUNICIPAL DEBT FUND INDEX:  An equally weighted index, adjusted for income
                                                dividends and capital gain distributions, of
                                                typically the largest 30 closed-end funds that
                                                invest 65% or more of their assets in municipal debt
                                                issues rated in the top four credit ratings. These
                                                funds can be leveraged via use of debt, preferred
                                                equity, and/or reverse repurchase agreements.

GENERAL LEVERAGED MUNICIPAL DEBT FUND AVERAGE:  An equally weighted average of those closed-end
                                                funds that invest 65% or more of their assets in
                                                municipal debt issues rated in the top four credit
                                                ratings. These funds can be leveraged via use of
                                                debt, preferred equity, and/or reverse repurchase
                                                agreements.

          LEHMAN 10-YEAR MUNICIPAL BOND INDEX:  The index is the 10-year (8-12) component which is a
                                                rules-based, market-value-weighted index engineered
                                                for the long-term tax-exempt bond market. To be
                                                included in the index, bonds must have a minimum
                                                credit rating of Baa. They must have an outstanding
                                                par value of at least $5 million and be issued as
                                                part of a transaction of at least $50 million. The
                                                bonds must have a dated-date after December 31, 1990
                                                and must be at least one year from their maturity
                                                date. Remarked issues, taxable municipal bonds,
                                                bonds with floating rates, and derivatives, are
                                                excluded from the benchmark.


Please note that indices do not take into account any fees and expenses or any
tax consequences of investing in the individual securities that they track and
that investors cannot invest directly in any index or average. Data about the
performance of each index or average are prepared or obtained by Neuberger
Berman Management Inc. and include reinvestment of all dividends and capital
gain distributions. Each Fund may invest in securities not included in its
respective index.

                                        6


SCHEDULE OF INVESTMENTS  CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.



PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@           VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P     (000'S OMITTED)
                                                                                                      
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (82.2%)

AMERICAN CAPITAL ACCESS
$          1,000   Puerto Rico Ind., Tourist, Ed., Med., & Env. Ctrl. Fac. Rev.
                   (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
                   5.25%, due 8/1/15                                                                       A      $         1,039++

AMERICAN MUNICIPAL BOND ASSURANCE CORP.
           1,285   Bay Area (CA) Governments Assoc. BART SFO Extension Rev.
                   (Arpt. Premium Fare), Ser. 2002 A, 5.00%, due 8/1/21                                   AAA               1,337
           1,000   California St. Pub. Works Board Lease (Dept. of Gen. Svc.)
                   Rev. (Cap. East End Complex), Ser. 2002 A, 5.25%, due 12/1/16                          AAA               1,074
           1,000   Fresno (CA) Unified Sch. Dist. Ref. G.O., Ser. 2002 A,
                   6.00%, due 2/1/17                                                                      AAA               1,164
           1,905   Long Beach (CA) Bond Fin. Au. Tax Allocation Rev.
                   (Downtown, North Long Beach, Poly High, & West Beach Redev.
                   Proj.), Ser. 2002 A, 5.38%, due 8/1/17                                                 AAA               2,051
             500   Long Beach (CA) Fin. Au. Rev., Ser. 1992, 6.00%, due 11/1/17                           AAA                 579
           1,045   Marin Co. (CA) Muni. Wtr. Dist. Wtr. Ref. Rev., Ser. 2002,
                   5.00%, due 7/1/17                                                                      AAA               1,099
           1,445   Oceanside (CA) Cert. of Participation Ref. Rev., Ser. 2003 A,
                   5.25%, due 4/1/14                                                                      AAA               1,572
           2,600   Sacramento (CA) Muni. Util. Dist. Elec. Rev., Ser. 1997 K,
                   5.70%, due 7/1/17                                                                      AAA               2,980
           2,000   San Francisco (CA) St. Bldg. Au. Lease Rev. (San Francisco
                   Civic Ctr. Complex), Ser. 1996 A, 5.25%, due 12/1/16                                   AAA               2,088
           2,500   San Jose (CA) Fin. Au. Lease Rev. (Civic Ctr. Proj.), Ser. 2002 B,
                   5.25%, due 6/1/17                                                                      AAA               2,663
           1,000   San Jose (CA) Multi-Family Hsg. Rev. (Fallen Leaves Apts. Proj.),
                   Ser. 2002 J-1, 4.95%, due 12/1/22                                           Aaa        AAA               1,018++

FINANCIAL GUARANTY INSURANCE CO.
           2,550   Contra Costa (CA) Comm. College Dist. G.O., Ser. 2002,
                   5.25%, due 8/1/17                                                                      AAA               2,727
           1,000   Kings Canyon (CA) Joint Unified Sch. Dist. G.O., Ser. 2002,
                   5.38%, due 8/1/17                                                           Aaa        AAA               1,083
           5,000   Los Angeles (CA) Dept. of Arpts. Rev. (Los Angeles Int'l. Arpt.),
                   Ser. 2002 A, 5.25%, due 5/15/18                                             Aaa        AAA               5,306
           1,090   Moreland (CA) Sch. Dist. Ref. G.O., Ser. 2002, 5.13%,
                   due 9/1/17                                                                             AAA               1,158
             535   Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of Participation
                   Rev., Ser. 2002, 5.00%, due 1/1/16                                                     AAA                 565
             565   Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of Participation
                   Rev., Ser. 2002, 5.00%, due 1/1/17                                                     AAA                 594
           1,045   Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/15                                     AAA               1,108
           1,210   Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/18                                     AAA               1,267
           1,290   Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev. (Central
                   Dist. Redev. Proj.), Ser. 2003, 5.50%, due 9/1/17                                      AAA               1,415
             575   Port of Oakland (CA) Rev., Ser. 2002 M, 5.25%, due 11/1/17                             AAA                 620
           2,655   Riverside Co. (CA) Eastern Muni. Wtr. Dist. Cert. of Participation
                   Wtr. & Swr. Rev., Ser. 2001 A, 5.00%, due 7/1/19                            Aaa        AAA               2,765
           2,000   San Diego (CA) Unified Sch. Dist. G.O., Ser. 2002 D, 5.25%,
                   due 7/1/21                                                                  Aaa        AAA               2,177
           1,500   San Francisco (CA) City & Co. Int'l. Arpt. Second Ser. Rev.,
                   5.25%, due 5/1/16                                                                      AAA               1,577


See Notes to Schedule of Investments

                                        7




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@           VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P     (000'S OMITTED)
                                                                                                      
FINANCIAL SECURITY ASSURANCE INC.
$          1,000   Burbank (CA) Pub. Svc. Dept. Elec. Rev., Ser. 1998, 5.13%,
                   due 6/1/16                                                                             AAA     $         1,053
           3,000   California St. Pub. Works Board Lease Rev. (Regents of the
                   Univ. of California, UCLA Replacement Hosp.), Ser. 2002 A,
                   5.38%, due 10/1/13                                                                     AAA               3,281
           1,275   Los Angeles Co. (CA) Long Beach Unified Sch. Dist. G.O.,
                   Ser. 2002 D, 5.00%, due 8/1/17                                                         AAA               1,345
             500   Marin Co. (CA) Dixie Elementary Sch. Dist. G.O., Ser. 2000 A,
                   5.38%, due 8/1/17                                                                      AAA                 541
           3,000   Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, 5.25%,
                   due 8/1/17                                                                             AAA               3,236
           1,000   Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, 5.25%,
                   due 8/1/21                                                                  Aaa        AAA               1,074
           5,000   San Francisco (CA) City & Co. Redev. Agcy. Lease Ref. Rev.
                   (George R. Moscone Convention Ctr.), Ser. 2002, 5.00%,
                   due 7/1/17                                                                  Aaa        AAA               5,262
           1,000   San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B, 5.00%, due 3/1/11                          AAA               1,057
           1,615   San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B, 5.00%, due 3/1/12                          AAA               1,709
           1,620   Santa Clara Co. (CA) Fremont Union High Sch. Dist. G.O.,
                   Ser.2002 C, 5.00%, due 9/1/20                                               Aaa        AAA               1,759

MUNICIPAL BOND INVESTORS ASSURANCE CORP.
           1,250   Alameda Co. (CA) Cert. of Participation Ref. Rev., Ser. 2001 A,
                   5.38%, due 12/1/17                                                                     AAA               1,355
           4,000   California Poll. Ctrl. Fin. Au. Ref. PCR (Pacific Gas & Elec. Co.),
                   Ser. 1996 A, 5.35%, due 12/1/16                                                        AAA               4,276++
           2,835   Glendale (CA) Redev. Agcy. Tax Allocation Rev. (Central Glendale
                   Redev. Proj.), Ser. 2002, 5.00%, due 12/1/16                                           AAA               3,013
           2,480   Glendale (CA) Redev. Agcy. Tax Allocation Rev. (Central Glendale
                   Redev. Proj.), Ser. 2002, 5.25%, due 12/1/17                                           AAA               2,663
           3,890   Port of Oakland (CA) Ref. Rev., Ser. 2002 N, 5.00%,
                   due 11/1/13                                                                            AAA               4,084
           3,905   Solano Co. (CA) Cert. of Participation Rev., Ser. 2002, 5.25%,
                   due 11/1/17                                                                            AAA               4,173
           1,000   Univ. of California Regents Rev. (Multi. Purp. Proj.), Ser. 2000 K,
                   5.00%, due 9/1/12                                                                      AAA               1,057
                                                                                                                  ---------------
                                                                                                                           81,964
                                                                                                                  ---------------

TAX-EXEMPT SECURITIES--OTHER (75.1%)
             780   Abag (CA) Fin. Au. Cert. of Participation Rev. (Channing House),
                   Ser. 1999, 4.90%, due 2/15/09                                                          BBB+                803++
           3,050   Abag (CA) Fin. Au. Cert. of Participation Rev. (Episcopal Homes
                   Foundation), Ser. 1998, 5.13%, due 7/1/18                                              BBB+              3,112++
           1,000   Abag (CA) Fin. Au. Rev. (San Diego Hosp. Assoc.), Ser. 2003 C,
                   5.13%, due 3/1/18                                                          Baa1        BBB+              1,025++
             900   Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
                   Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13                              Baa2        BBB               1,003++
             750   Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
                   Ser. 1999 B, 7.75%, due 12/1/18                                                        BBB-                826++
           1,000   Brazos (TX) River Harbor Navigation Dist. of Brazoria Co.
                   Env. Fac. Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4,
                   5.20%, due 5/15/33                                                          A3          A-               1,029++
             640   California Co. (CA) Tobacco Securitization Agcy. Tobacco
                   Settlement Asset-Backed Rev., Ser. 2002, 4.75%, due 6/1/19                 Baa3        BBB                 647
           1,750   California Ed. Fac. Au. Ref. Rev. (Stanford Univ.), Ser. 2001 R,
                   5.00%, due 11/1/21                                                         Aaa         AAA               1,828++


                                        8




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@           VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P     (000'S OMITTED)
                                                                                                      
$          2,000   California Hlth. Fac. Fin. Au. Rev. (Catholic Healthcare West),
                   Ser. 2004 I, 4.95%, due 7/1/26                                             Baa1         A-     $         2,058++
           2,000   California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.),
                   Ser. 1999 A, 6.13%, due 12/1/19                                             A3                           2,231++
           2,000   California Hlth. Fac. Fin. Au. Ref. Rev. (Cedars-Sinai Med. Ctr.),
                   Ser. 2005, 5.00%, due 11/15/21                                              A3                           2,056++
           1,000   California Hlth. Fac. Fin. Au. Rev. (Kaiser Permanente),
                   Ser. 1998 B, 5.00%, due 10/1/20                                                        AAA               1,045++
           1,500   California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
                   (Republic Svc., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23
                   Putable 12/1/17                                                            Baa3        BBB               1,568++
           1,000   California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
                   (Waste Management, Inc. Proj.), Ser. 2002 C, 4.85%,
                   due 12/1/27 Putable 11/30/07                                                           BBB               1,019++
           3,000   California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Waste
                   Management, Inc. Proj.), Ser. 2005 C, 5.13%, due 11/1/23                               BBB               3,000++
           1,000   California Statewide CDA Hlth. Fac. Rev. (Adventist Hlth.),
                   Ser. 2005 A, 5.00%, due 3/1/20                                               A          A                1,033++
           4,500   California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
                   5.75%, due 5/1/17                                                           A2         BBB+              4,938
           1,000   California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
                   5.38%, due 5/1/22                                                           A2         BBB+              1,068
           2,250   California St. G.O., Ser. 2002, 5.00%, due 10/1/17                          A3          A                2,349
           1,095   California St. Pub. Works Board Lease Rev. (California Comm.
                   Colleges), Ser. 2004 B, 5.50%, due 6/1/20                                  Baa1        BBB-              1,169
           1,000   California St. Univ., Fresno Assoc., Inc. Rev. (Auxiliary Organization
                   Event Ctr.), Ser. 2002, 5.00%, due 7/1/12                                  Baa3        BBB-              1,078
           2,000   California Statewide CDA Cert. of Participation Rev.
                   (Children's Hosp. Los Angeles), Ser. 1999, 5.13%,
                   due 8/15/19                                                                 A3           A               2,070++
           2,000   California Statewide CDA Cert. of Participation Rev. (The
                   Internext Group), Ser. 1999, 5.38%, due 4/1/17                                         BBB-              2,039++
           5,000   California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.),
                   Ser. 2003 A, 6.00%, due 10/1/16                                             A3           A               5,498++
             500   California Statewide CDA Rev. (East Valley Tourist Dev. Au.),
                   Ser. 2003 A, 9.25%, due 10/1/20                                                         BB                 545
           3,000   California Statewide CDA Rev. (Kaiser Permanente), Ser. 2002 E,
                   4.70%, due 11/1/36 Putable 6/1/09                                           A3                           3,089++
           1,000   Central (CA) Joint Pwr. Hlth. Fin. Au. Cert. of Participation Rev.,
                   (Comm. Hosp. of Central California Proj.), Ser. 2000, 5.50%,
                   due 2/1/14                                                                 Baa2        BBB-              1,036++
           1,020   Cerritos (CA) Pub. Fin. Au. Sub. Tax Allocation Rev.
                   (Cerritos Redev. Proj.), Ser. 2002 B, 4.40%, due 11/1/16                               BBB                 992
             500   Coshocton Co. (OH) Env. Imp. Ref. Rev. (Smurfit-Stone
                   Container Enterprises, Inc. Proj.), Ser. 2005, 5.13%,
                   due 8/1/13                                                                               B                 481++
           1,000   Cumberland Co. (PA) West Shore Area Au. Hosp. Rev. (Holy Spirit
                   Hosp. of the Sisters of Christian Charity Proj.), Ser. 2001,
                   6.00%, due 1/1/18                                                                      BBB+              1,069++
             500   Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
                   Ser. 2004 A-1, 6.15%, due 1/1/16                                            Ba2                            506++
           1,000   De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp. Proj.),
                   Ser. 2002, 6.00%, due 3/15/21                                              Baa3        BBB-                912++
           1,210   Elk Grove (CA) Spec. Tax Rev. (East Franklin Comm. Fac.
                   Dist. Number 1), Ser. 2002 A, 5.38%, due 8/1/17                                         BB+              1,301


See Notes to Schedule of Investments

                                        9




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@           VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P     (000'S OMITTED)
                                                                                                      
$          1,270   Los Angeles (CA) Dept. of Wtr. & Pwr. Sys. Rev., Ser. 2001 A,
                   Sub. Ser. A-3, 5.38%, due 7/1/20                                            Aa3        AA-     $         1,289
             750   Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
                   Med. Ctr. Florida Proj.), Ser. 2004, 6.25%, due 11/15/09                   Baa2        BB+                 801++
           1,500   Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
                   Ser. 2001 A, 5.25%, due 11/15/13                                           Baa2        BBB               1,563++
             500   New York City (NY) Ind. Dev. Agcy. Liberty Rev. (7 World Trade
                   Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15                                     BB                  532
           1,405   North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev.,
                   Ser. 2003 A, 5.50%, due 1/1/14                                              A3         BBB+              1,508
             605   Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
                   Ser. 2003, 5.00%, due 9/1/16                                                           A-                  624
             635   Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
                   Ser. 2003, 5.00%, due 9/1/17                                                           A-                  650
           1,330   Puerto Rico Children's Trust Tobacco Settlement Asset-Backed
                   Rev., Ser. 2002, 5.38%, due 5/15/33                                        Baa3        BBB               1,367
             440   Roseville (CA) Stone Point Comm. Fac. District No. 1 Special
                   Tax Rev., Ser. 2003, 5.70%, due 9/1/17                                                 BB+                 454
             830   San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
                   Redev. Proj.), Ser. 2003 B, 4.80%, due 9/1/15                              Baa2        A-                  845
             820   San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
                   Redev. Proj.), Ser. 2003 B, 4.90%, due 9/1/16                              Baa2        A-                  833
           3,000   San Francisco (CA) Bay Area Toll Au. Toll Bridge Rev., Ser. 2001 D,
                   5.00%, due 4/1/17                                                           Aa3        AA                3,121
           1,000   Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise Rev.,
                   Ser. 2003, 6.13%, due 3/1/13                                                           BBB               1,007
           1,000   South Gate (CA) Pub. Fin. Au. Tax Allocation Rev. (South Gate
                   Redev. Proj. No. 1), Ser. 2002, 5.00%, due 9/1/16                                      AAA               1,059
           1,250   Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
                   Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30                         Baa3        BBB               1,293
             600   Univ. of California Regents Cert. of Participation Rev. (San Diego
                   Campus & Sacramento Proj.), Ser. 2002 A, 5.25%, due 1/1/18                  Aa2                            634
             750   Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
                   6.15%, due 7/15/17                                                                     BB-                 798
             250   Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA
                   Refinery), Ser. 2003, 6.13%, due 7/1/22                                    Baa3        BBB-                269
             750   Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching
                   Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22                                      BBB                 768
           1,000   Virgin Islands Wtr. & Pwr. Au. Elec. Sys. Ref. Rev., Ser. 1998,
                   5.30%, due 7/1/18                                                                      BBB               1,000
                                                                                                                  ---------------
                                                                                                                           74,838
                                                                                                                  ---------------
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY LETTERS OF CREDIT (1.0%)^
BANK OF AMERICA
              44   Irvine (CA) Ltd. Oblig. Imp. (Assessment Dist. No 93-14),
                   Ser. 2000, 2.65%, VRDN due 11/1/05                                         VMIG1       A1+                  44

BANK OF NOVA SCOTIA
             500   California Hsg. Fin. Agcy. Home Mtg. Rev., Ser. 2002 M, 2.71%,
                   VRDN due 11/1/05                                                           VMIG1       A-1+                500


                                       10




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@           VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P     (000'S OMITTED)
                                                                                                      
LLOYDS TSB BANK PLC
$            500   California Hsg. Fin. Agcy. Home Mtge. Rev., Ser. 2001 R,
                   2.71%, VRDN due 11/1/05                                                    VMIG1      A-1+     $           500
                                                                                                                  ---------------
                                                                                                                            1,044
                                                                                                                  ---------------

                   TOTAL INVESTMENTS (158.3%) (COST $154,775)                                                             157,846##

                   Cash, receivables and other assets, less liabilities (0.9%)                                                851
                   Liquidation Value of Auction Market Preferred Shares [(59.2%)]                                         (59,000)
                                                                                                                  ---------------
                   TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%)                                    $        99,697
                                                                                                                  ---------------


See Notes to Schedule of Investments

                                       11


SCHEDULE OF INVESTMENTS INTERMEDIATE MUNICIPAL FUND INC.



PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@           VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P     (000'S OMITTED)
                                                                                                      
TAX-EXEMPT SECURITIES--PRE-REFUNDED BACKED BY U.S. GOVERNMENT SECURITIES (5.2%)
$          2,225   Massachusetts St. Wtr. Poll. Abatement Trust Pre-Refunded
                   Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16 P/R 8/1/11                  Aaa        AAA     $         2,400
           5,100   Prince George's Co. (MD) Pre-Refunded Cons. Pub. Imp. G.O.,
                   Ser. 2001, 5.25%, due 12/1/16 P/R 12/1/11                                   Aaa        AAA               5,588
              20   San Antonio (TX) Pre-Refunded Cert. of Obligation G.O., Ser.
                   2002, 5.00%, due 2/1/14 P/R 2/1/12                                          Aa2        AA+                  21
           7,205   Wisconsin St. G.O., Ser. 2002 C, 5.25%, due 5/1/17
                   P/R 5/1/12                                                                  Aaa        AAA               7,801
                                                                                                                  ---------------
                                                                                                                           15,810
                                                                                                                  ---------------

TAX-EXEMPT SECURITIES--ESCROWED IN U.S. GOVERNMENT SECURITIES (0.6%)
           1,670   Illinois Metro. Pier & Exposition Au. Dedicated St. Tax Ref.
                   Rev., Ser. 1998 A, 5.50%, due 6/15/17                                                  AAA               1,888
                                                                                                                  ---------------

TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (68.4%)
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
           1,500   California St. Pub. Works Board Lease Rev., Ser. 2002 A,
                   5.25%, due 12/1/17                                                                     AAA               1,604
           5,000   Chicago (IL) G.O., Ser. 1995 A-2, 6.25%, due 1/1/13                         Aaa        AAA               5,744
           6,120   Chicago (IL) G.O., Ser. 2002 A, 5.38%, due 1/1/17                           Aaa        AAA               6,721
           4,220   Colorado Springs (CO) Util. Sys. Sub. Lien Ref. Rev.,
                   Ser. 2002 A, 5.38%, due 11/15/18                                                       AAA               4,557
           4,100   Fargo (ND) Hlth. Sys. Rev. (Meritcare Obligated Group),
                   Ser. 2002 A, 5.63%, due 6/1/17                                                         AAA               4,459++
           1,065   Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
                   5.25%, due 7/1/18                                                                      AAA               1,128
           1,125   Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
                   5.25%, due 7/1/19                                                                      AAA               1,189
           3,000   Massachusetts Port Au. Spec. Fac. Rev. (Delta Air Lines,
                   Inc. Proj.), Ser. 2001 A, 5.50%, due 1/1/19                                            AAA               3,099++
           1,700   New Hampshire Hlth. & Ed. Fac. Au. Rev. (Univ. Sys. of
                   New Hampshire), Ser. 1992, 5.38%, due 7/1/17                                           AAA               1,835
           7,000   Palm Beach Co. (FL) Sch. Board Cert. of Participation,
                   Ser. 2001 B, 5.38%, due 8/1/17                                                         AAA               7,571
           4,610   Thornton (CO) Cert. of Participation, Ser. 2002,
                   5.38%, due 12/1/16                                                          Aaa        AAA               4,986

FINANCIAL GUARANTY INSURANCE CO.
           4,000   Denver (CO) City & Co. Arpt. Sys. Ref. Rev., Ser. 2002 E,
                   5.25%, due 11/15/14                                                         Aaa        AAA               4,206
           3,075   Detroit (MI) Sch. Dist. Sch. Bldg. & Site Imp. G.O.,
                   Ser. 2002 A, 5.50%, due 5/1/15                                                         AAA               3,411
           3,235   Houston (TX) Arpt. Sys. Sub. Lien Ref. Rev., Ser. 2001 A,
                   5.50%, due 7/1/16                                                                      AAA               3,448
           4,355   Las Vegas (NV) Valley Wtr. Dist. Ref. & Wtr. Imp. G.O.,
                   Ser. 2003 A, 5.25%, due 6/1/16                                              Aaa        AAA               4,679
           4,935   Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (New England
                   Med. Ctr. Hosp.), Ser. 2002 H, 5.38%, due 5/15/16                                      AAA               5,337++
           2,140   Mt. Pleasant Town (SC) Waterworks & Swr. Sys. Ref. & Imp.
                   Rev., Ser. 2002, 5.25%, due 12/1/17                                                    AAA               2,310
           2,080   Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev. (Central
                   Dist. Redev. Proj.), Ser. 2003, 5.50%, due 9/1/18                                      AAA               2,274
           8,140   Orange Co. (FL) Sales Tax Ref. Rev., Ser. 2002 A,
                   5.13%, due 1/1/18                                                           Aaa        AAA               8,684
           2,000   Philadelphia (PA) Arpt. Ref. Rev. (Philadelphia Arpt. Sys.),
                   Ser. 1998 A, 5.38%, due 6/15/14                                                        AAA               2,105


                                       12




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@           VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P     (000'S OMITTED)
                                                                                                      
$          6,250   Port of Seattle (WA) Sub. Lien Rev., Ser. 2002 B, 5.50%,
                   due 9/1/16                                                                             AAA     $         6,663
              400  Prince George's Co. (MD) Unrefunded Balance Cons. Pub.
                   Imp. G.O., Ser. 2001, 5.25%, due 12/1/16                                    Aaa        AAA                 433
            1,000  Sarasota Co. (FL) Util. Sys. Ref. Rev., Ser. 2002 C,
                   5.25%, due 10/1/20                                                          Aaa        AAA               1,069
            2,500  Tacoma (WA) Wtr. Sys. Rev., Ser. 2001, 5.13%, due 12/1/19                              AAA               2,624

FINANCIAL SECURITY ASSURANCE INC.
           3,495   Bi State (MO-IL) Dev. Agcy. Metro. Dist. Rev. (Metrolink
                   Cross Co. Extension Proj.), Ser. 2002 B, 5.25%, due 10/1/16                 Aaa        AAA               3,791
           1,100   Charleston Co. (SC) Sch. Dist. G.O., Ser. 2001,
                   5.00%, due 2/1/18                                                           Aa1                          1,161
           3,600   Corpus Christi (TX) Tax & Muni. Hotel Occupancy Tax G.O.,
                   Ser. 2002, 5.50%, due 9/1/17                                                           AAA               3,924
           1,935   Dallas-Fort Worth (TX) Int'l. Arpt. Imp. Rev., Ser. 2004 B,
                   5.50%, due 11/1/18                                                          Aaa        AAA               2,074
           8,800   Energy Northwest (WA) Elec. Ref. Rev. (Proj. No. 3),
                   Ser. 2001 A, 5.50%, due 7/1/17                                              Aaa        AAA               9,523
           7,000   Harris Co. (TX) Toll Road Sr. Lien Ref. Rev., Ser. 2002,
                   5.38%, due 8/15/16                                                                     AAA               7,597
           2,580   Indianapolis (IN) Local Pub. Imp. Rev. (Indianapolis Arpt.
                   Au. Proj.), Ser. 2003 A, 5.63%, due 1/1/17                                             AAA               2,777
           2,000   Kane, Cooke, & DuPage Cos. (IL) Elgin Sch. Dist.
                   Number U-46 G.O., Ser. 1998, 5.35%, due 1/1/15                              Aaa                          2,154
           5,000   King & Snohomish Cos. (WA) Northshore Sch. Dist.
                   Number 417 G.O., Ser. 2002, 5.50%, due 12/1/17                              Aaa        AAA               5,524
           4,260   King Co. (WA) Pub. Trans. Sales Tax Ref. G.O., Ser. 2002,
                   5.38%, due 12/1/14                                                          Aaa        AAA               4,629
           3,015   Knox Co. (TN) Hlth., Ed., & Hsg. Fac. Board Hosp. Ref. & Imp.
                   Rev., Ser. 2002 A, 5.50%, due 1/1/18                                        Aaa        AAA               3,230++
           1,725   Maine Muni. Bond Bank Rev., Ser. 1998 C,
                   5.35%, due 11/1/18                                                                     AAA               1,844
           5,000   New Jersey Bldg. Au. St. Bldg. Ref. Rev., Ser. 2002 B,
                   5.25%, due 12/15/15                                                                    AAA               5,384
           4,665   South Carolina St. Pub. Svc. Au. Rev., Ser. 2002 B,
                   5.38%, due 1/1/18                                                           Aaa        AAA               5,009
           4,200   Tarrant (TX) Reg. Wtr. Dist. Wtr. Ref. & Imp. Rev., Ser. 2002,
                   5.38%, due 3/1/16                                                           Aaa        AAA               4,555
           5,395   Truckee Meadows (NV) Wtr. Au. Wtr. Rev., Ser. 2001 A,
                   5.50%, due 7/1/15                                                                      AAA               5,812
           1,370   Wisconsin Hlth. & Ed. Fac. Au. Rev. (Aurora Med. Group, Inc.
                   Proj.), Ser. 1996, 6.00%, due 11/15/11                                      Aaa        AAA               1,529++

MUNICIPAL BOND INVESTORS ASSURANCE CORP.
           1,465   Arizona Energy Management Svcs. (Main) LLC Energy
                   Conservation Rev. (Arizona St. Univ. Proj.-Main Campus),
                   Ser. 2002, 5.25%, due 7/1/17                                                           AAA               1,572
           3,000   CDP-King Co. III (WA) Lease Rev. (King Street Ctr. Proj.),
                   Ser. 1997, 5.13%, due 6/1/17                                                Aaa        AAA               3,094
           5,335   Clark Co. (NV) Passenger Fac. Charge Ref. Rev.
                   (Las Vegas-McCarran Int'l. Arpt. Proj.), Ser. 2002 A,
                   5.25%, due 7/1/10                                                                      AAA               5,630
           4,575   Henry Co. (GA) Wtr. & Swr. Au. Wtr. & Swr. Ref. Rev.,
                   Ser. 2002 A, 5.13%, due 2/1/17                                              Aaa        AAA               4,922
           4,955   Houston (TX) Pub. Imp. Ref. G.O., Ser. 2002,
                   5.25%, due 3/1/17                                                                      AAA               5,289


See Notes to Schedule of Investments

                                       13




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@          VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P    (000'S OMITTED)
                                                                                                      
$          5,000   Illinois G.O., First Ser. 2002, 5.25%, due 10/1/14                          Aaa                $       5,390
           3,000   Illinois Hlth. Fac. Au. Rev. (Loyola Univ. Hlth. Sys.), Ser. 1997 A,
                   6.00%, due 7/1/14                                                           Aaa        AAA             3,414++
           1,000   Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev., Ser. 2002 B,
                   5.25%, due 1/1/18                                                           Aaa        AAA             1,066
           1,850   Massachusetts St. G.O., Ser. 2002 E, 5.38%, due 1/1/18                                 AAA             2,018
           5,000   Michigan St. Hsg. Dev. Au. Single-Family Mtge. Rev., Ser. 2001 A,
                   5.30%, due 12/1/16                                                                     AAA             5,131
           2,710   Newnan (GA) Hosp. Au. Rev. Anticipation Certificate
                   (Newnan Hosp., Inc. Proj.), Ser. 2002, 5.50%, due 1/1/18                    Aaa                        2,955++
           1,910   Southmost (TX) Reg. Wtr. Au. Wtr. Supply Contract Rev.
                   (Desalination Plant Proj.), Ser. 2002, 5.50%, due 9/1/19                    Aaa                        2,072
           1,000   Trinity (TX) River Au. Imp. & Ref. Rev. (Tarrant Co. Wtr. Proj.),
                   Ser. 2003, 5.50%, due 2/1/16                                                           AAA             1,106
           3,000   Washington St. G.O., Ser. 1998 C, 6.00%, due 7/1/12                                    AAA             3,385
                                                                                                                  -------------
                                                                                                                        207,697
                                                                                                                  -------------
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (1.2%)
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
           3,310   New Hampshire Hlth. Ed. Fac. Au. Rev. (Univ. Sys. of
                   New Hampshire), Ser. 1992, 5.38%, due 7/1/17                                           AAA             3,641
                                                                                                                  -------------
TAX-EXEMPT SECURITIES--OTHER (81.1%)
           4,145   Anson (TX) Ed. Fac. Corp. Std. Hsg. Rev. (Univ. of Texas at
                   Dallas-Waterview Park Proj.), Ser. 2002, 5.00%, due 1/1/23                              A              4,145++
           1,000   Austin (TX) Convention Enterprises, Inc. Convention Ctr.
                   Hotel First Tier Rev., Ser. 2001 A, 6.38%, due 1/1/16                      Baa3        BBB-            1,055
           1,555   Badger (WI) Tobacco Asset Securitization Corp. Tobacco
                   Settlement Asset-Backed Rev., Ser. 2002, 6.13%, due 6/1/27                 Baa3        BBB             1,641
           2,000   Boone Co. (MO) Hosp. Ref. Rev. (Boone Hosp. Ctr.),
                   Ser. 2002, 5.05%, due 8/1/20                                                A3                         2,053++
           2,425   Branson (MO) Dev. Fin. Board Infrastructure Fac. Board
                   Rev., Ser. 2003 A, 5.00%, due 12/1/17                                      Baa1                        2,455
             750   Branson (MO) Ind. Dev. Au. Ltd. Oblig. Tax Increment Rev.
                   (Branson Landing-Retail Proj.), Ser. 2005, 5.25%, due 6/1/21                                             752^^
           3,300   Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
                   Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13                              Baa2        BBB             3,678++
           1,000   Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
                   Ser. 2003 D, 5.40%, due 10/1/29 Putable 10/1/14                            Baa2        BBB             1,050++
           1,000   Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
                   Ser. 1999 B, 7.75%, due 12/1/18                                                        BBB-            1,101++
           4,000   Brazos (TX) River Harbor Navigation Dist. Env. Fac. Rev.
                   (Dow Chemical Co. Proj.), Ser. 2002 B-2, 4.75%,
                   due 5/15/33 Putable 5/15/07                                                 A3          A-             4,073++
           2,500   Broward Co. (FL) G.O., Ser. 2001 A, 5.25%, due 1/1/18                       Aa1                        2,676###
           2,000   California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Waste
                   Management, Inc. Proj.), Ser. 2005 C, 5.13%, due 11/1/23                                               2,000^^++#
           3,500   California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
                   (Republic Svc., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23                Baa2        BBB+            3,659++
           2,500   California St. Dept. of Wtr. Res. Pwr. Supply Rev.,
                   Ser. 2002 A, 5.75%, due 5/1/17                                              A2         BBB+            2,743
           3,460   California St. Dept. of Wtr. Res. Pwr. Supply Rev.,
                   Ser. 2002 A, 5.38%, due 5/1/22                                              A2         BBB+            3,697
           1,240   California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.)
                   Ser. 2003 A, 6.00%, due 10/1/16                                             A3           A             1,363++
           1,500   California Statewide CDA Rev. (East Valley Tourist Dev. Au.),
                   Ser. 2003 A, 9.25%, due 10/1/20                                                         BB             1,634


                                       14




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@           VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P     (000'S OMITTED)
                                                                                                      
$          1,500   Chicago (IL) Metro. Wtr. Reclamation Dist. Cap. Imp. G.O.,
                   Ser. 2002 C, 5.38%, due 12/1/16                                                        AAA     $         1,636
           1,000   Clark Co. (WA) Vancouver Sch. Dist. Number 37 G.O.,
                   Ser. 1998, 5.13%, due 12/1/12                                               Aa3                          1,072
           1,000   Coshocton Co. (OH) Env. Imp. Ref. Rev. (Smurfit-Stone
                   Container Enterprises, Inc. Proj.), Ser. 2005, 5.13%,
                   due 8/1/13                                                                              B                  962++
           1,765   Cumberland Co. (PA) West Shore Area Au. Hosp. Rev.,
                   (Holy Spirit Hosp. of the Sisters of Christian Charity Proj.),
                   Ser. 2001, 6.05%, due 1/1/19                                                           BBB+              1,887++
           2,100   Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp.
                   Rev., Ser. 2004 A-1, 6.15%, due 1/1/16                                      Ba2                          2,127++
           4,210   DCH Hlth. Care Au. (AL) Hlth. Care Fac. Rev., Ser. 2002,
                   5.25%, due 6/1/14                                                           A1         A+                4,491
           1,000   Delaware River (PA-NJ) Joint Toll Bridge Comm. Sys.
                   Rev., Ser. 2003, 5.25%, due 7/1/18                                          A2         A-                1,078
           1,000   Denton, Tarrant, & Wise Cos. (TX) Northwest Ind. Sch. Dist.
                   Unlimited Sch. Bldg. & Ref. G.O., Ser. 2002, 5.50%,
                   due 8/15/17                                                                            AAA               1,095
           2,000   Denver (CO) City & Co. Arpt. Sys. Rev., Ser. 1991 D,
                   7.75%, due 11/15/13                                                                    AAA               2,338
           4,495   Dist. of Columbia (Washington, D.C.) Ref. G.O., Ser. 2002 C,
                   5.25%, due 6/1/13                                                                      AAA               4,814
           1,750   Ector Co. (TX) Hosp. Dist. Hosp. Rev., Ser. 2002 A,
                   5.63%, due 4/15/16                                                          A3         BBB+              1,828
           1,745   Ector Co. (TX) Hosp. Dist. Hosp. Rev., Ser. 2002 A,
                   5.63%, due 4/15/17                                                          A3         BBB+              1,818
           3,000   Fiddlers Creek (FL) Comm. Dev. Dist. Number 2 Spec.
                   Assessment Rev., Ser. 2003 A, 6.00%, due 5/1/16                                        BB-               3,100
           2,000   Freeborn Co. (MN) Hsg. & Redev. Au. Lease Rev. (Criminal
                   Justice Ctr. Proj.), Ser. 2002, 5.38%, due 2/1/17                          Baa1                          2,096
           3,000   Golden St. (CA) Tobacco Securitization Corp. Tobacco
                   Settlement Asset-Backed Rev., Ser. 2003 A-1, 6.25%,
                   due 6/1/33                                                                 Baa3        BBB               3,290
           1,000   Hopewell (VA) Ind. Dev. Au. Env. Imp. Ref.
                   Rev. (Smurfit-Stone Container Enterprises, Inc. Proj.),
                   Ser. 2005, 5.25%, due 6/1/15                                                            B                  953++
           5,130   Illinois Ed. Fac. Au. Rev. (Field Museum of Natural History),
                   Ser. 2002, 4.30%, due 11/1/36                                               A2          A                5,123++
           3,560   Indiana Bond Bank Rev., Ser. 2002 B, 5.25%, due 2/1/18                     Baa2        A-                3,812
          10,000   Indiana Bond Bank Rev. (St. Revolving Fund Prog.),
                   Ser. 2001 A, 5.38%, due 2/1/17                                                         AAA              10,892
           2,050   Indiana St. Hlth. Fac. Fin. Au. Rev. (Hlth. Sys. Sisters of
                   St. Francis), Ser. 2001, 5.35%, due 11/1/15                                 Aa3         A                2,157++
           1,070   Ingham & Clinton Cos. (MI) East Lansing Bldg. Au. Ref. G.O.,
                   Ser. 1999, 5.25%, due 10/1/16                                                          AA                1,129
           3,000   Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed
                   Rev., Ser. 2001 B, 5.30%, due 6/1/25                                       Baa3        BBB               3,051
           2,000   Jasper (IN) Hosp. Au. Hosp. Fac. Ref. Rev. (Mem. Hosp. &
                   Hlth. Care Ctr. Proj.), Ser. 2002, 5.50%, due 11/1/17                                  AA                2,147++
           1,050   Kent Co. (MI) Forest Hills Pub. Sch. Unlimited G.O.,
                   Ser. 2000, 5.25%, due 5/1/19                                                Aa2                          1,130
           2,000   Lehigh Co. (PA) Gen. Purp. Au. Rev. (KidsPeace Oblig. Group),
                   Ser. 1998, 6.00%, due 11/1/23                                               B3                           1,874++
           2,000   Lubbock (TX) Hlth. Fac. Dev. Corp. Rev. (St. Joseph Hlth. Sys.),
                   Ser. 1998, 5.25%, due 7/1/16                                                Aa3        AA-               2,092++


See Notes to Schedule of Investments

                                       15




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@          VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P    (000'S OMITTED)
                                                                                                      
$          1,210   Lyons (NY) Comm. Hlth. Initiatives Corp. Fac. Rev.,
                   Ser. 2004, 5.50%, due 9/1/14                                                A2                 $         1,298
           1,375   Macomb Co. (MI) New Haven Comm. Sch. Bldg. & Site G.O.,
                   Ser. 2002, 5.25%, due 5/1/17                                                Aa1        AA+               1,481
           1,000   Maryland St. Hlth. & Higher Ed. Fac. Au. Rev. (Union Hosp.
                   of Cecil Co.), Ser. 2002, 5.50%, due 7/1/14                                 A3                           1,065++
           2,400   Mashantucket (CT) Western Pequot Tribe Spec. Rev., Sub.
                   Ser. 1997 B, 5.70%, due 9/1/12                                             Baa3                          2,521**
           2,450   Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Caritas Christi
                   Oblig. Group), Ser. 1999 A, 5.70%, due 7/1/15                              Baa3        BBB               2,516++
           2,810   Massachusetts St. Hlth. & Ed. Fac. Au.
                   Rev. (Milford-Whitinsville Reg. Hosp.), Ser. 1998 C,
                   5.75%, due 7/15/13                                                         Baa3        BBB-              2,876++
           5,030   Massachusetts St. Wtr. Poll. Abatement Trust Rev.
                   (MWRA Prog.), Ser. 2002 A, 5.25%, due 8/1/19                                Aaa        AAA               5,404
           2,775   Massachusetts St. Wtr. Poll. Abatement Trust Unrefunded
                   Balance Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16                     Aaa        AAA               2,982
           3,085   Memphis-Shelby Co. (TN) Arpt. Au. Spec. Fac. Ref.
                   Rev. (Federal Express Corp.), Ser. 2002, 5.05%, due 9/1/12                 Baa2        BBB               3,260++
           1,750   Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
                   Med. Ctr. Florida Proj.), Ser. 2004, 6.25%, due 11/15/09                    Ba2        BB+               1,868++
           1,500   Michigan St. Bldg. Au. Rev. (Fac. Prog.), Ser. 2001 II,
                   5.50%, due 10/15/18                                                         Aa3        AA-               1,650
           2,000   Missouri St. Env. Imp. & Energy Res. Au. Wtr. Poll. Ctrl. &
                   Drinking Wtr. Rev., Ser. 2002 B, 5.50%, due 7/1/16                                     AAA               2,193
             915   Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
                   Ser. 2001 II, 5.25%, due 12/1/16                                                       AA                  955
             470   Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
                   Ser. 2001 III, 5.05%, due 12/1/15                                                      AA                  488
           5,000   Montgomery Co. (PA) Higher Ed. & Hlth. Au. Hosp. Rev.
                   (Abington Mem. Hosp. Proj.), Ser. 2002 A, 5.00%, due 6/1/19                             A                5,075++
           3,000   Moraine (OH) Solid Waste Disp. Rev. (General Motors Corp.
                   Proj.), Ser. 1994, 6.75%, due 7/1/14                                       Baa3        BBB-              2,998++
           2,500   Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
                   Ser. 2001 A, 5.25%, due 11/15/13                                           Baa2        BBB               2,605++
           2,000   MuniMae Subordinated Cumulative Perpetual Preferred Shares,
                   4.70%, due 6/30/49 Putable 9/30/09                                         Baa2                          1,979**
           2,000   Nevada St. Cap. Imp. Ltd. G.O., Ser. 1998 B,
                   5.13%, due 4/15/17                                                          Aa2                          2,086
           1,500   New Jersey Econ. Dev. Au. Cigarette Tax Rev., Ser. 2004,
                   5.63%, due 6/15/19                                                         Baa2        BBB               1,565
           6,900   New Jersey Ed. Fac. Au. Rev. (Stevens Institute of Technology),
                   Ser. 2002 C, 5.25%, due 7/1/17                                             Baa2        BBB+              7,250++
           4,000   New Jersey Hlth. Care Fac. Fin. Au. Rev. (Somerset
                   Med. Ctr. Issue), Ser. 2003, 5.50%, due 7/1/18                             Baa3                          4,139++
           3,250   New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15                     A1          A                3,520
           2,580   New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
                   New York Proj.), Ser. 2002 A, 5.50%, due 6/1/14                                         A                2,706++
           2,750   New York City (NY) Ind. Dev. Agcy. Liberty Rev. (7 World
                   Trade Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15                               BB                2,926
           1,000   New York Convention Ctr. Operating Corp. Cert. of
                   Participation (Yale Bldg. Acquisition Proj.),
                   Ser. 2003, 5.25%, due 6/1/08                                                           BB+               1,010
           3,500   New York St. Dorm. Au. Personal Income Tax Rev.,
                   Ser. 2003 A, 5.38%, due 3/15/20                                                        AA                3,861


                                       16




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@          VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P    (000'S OMITTED)
                                                                                                      
$          1,300   New York St. Urban Dev. Corp. Ref. Rev. (Correctional Cap. Fac.),
                   Ser. 1998, 5.00%, due 1/1/14                                                A2         AA-     $        1,360
           4,780   North Central (TX) Hlth. Fac. Dev. Corp. Hosp. Ref.
                   Rev. (Baylor Hlth. Care Sys. Proj.), Ser. 1998,
                   5.10%, due 5/15/13                                                          Aa3        AA-              5,023++
           3,760   Ohio Air Quality Dev. Au. Env. Imp. Ref. Rev. (USX Corp.
                   Proj.), Ser. 1995, 5.00%, due 11/1/15                                      Baa1                         3,933++
           2,085   Palm Beach Co. (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (BRCH
                   Corp. Oblig. Group), Ser. 2001, 5.00%, due 12/1/12                                      A               2,180++
           1,000   Pennsylvania Econ. Dev. Fin. Au. Res. Rec. Ref. Rev. (Colver Proj.),
                   Ser. 2005 G, 5.13%, due 12/1/15                                                        BB+                986
           3,850   Royal Oak (MI) Hosp. Fin. Au. Hosp. Ref. Rev. (William
                   Beaumont Hosp.), Ser. 1996 I, 6.25%, due 1/1/12                             Aa3        AA-              4,348++
           6,795   San Antonio (TX) Ind. Sch. Dist. Unlimited Tax G.O.,
                   Ser. 2001 B, 5.38%, due 8/15/17                                             Aaa        AAA              7,298
           1,240   San Antonio (TX) Unrefunded Balance Cert. of Obligation
                   G.O., Ser. 2002, 5.00%, due 2/1/14                                          Aa2        AA+              1,306
             740   San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
                   Redev. Proj.), Ser. 2003 B, 5.00%, due 9/1/17                              Baa2        A-                 758
           2,000   Sayre (PA) Hlth. Care Fac. Au. Rev. (Guthrie Hlth. Proj.),
                   Ser. 2002 A, 5.75%, due 12/1/21                                                        A-               2,135++
           1,625   Skagit Co. (WA) Pub. Hosp. Dist. Ref. Rev., Ser. 2003,
                   6.00%, due 12/1/18                                                         Baa3                         1,664
           2,345   South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev.,
                   (Palmetto Hlth. Alliance), Ser. 2003 A, 6.00%, due 8/1/13                  Baa1        BBB              2,546++
           2,000   South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev.,
                   (Palmetto Hlth. Alliance), Ser. 2003 A, 6.13%, due 8/1/23                  Baa1        BBB              2,149++
             155   Spokane Co. (WA) Ltd. Tax G.O., Ser. 1998,
                   5.10%, due 12/1/17                                                          Aa3                           160
           2,540   St. Paul (MN) Port Au. Lease Rev. (Office Bldg. at Cedar
                   Street), Ser. 2002, 5.00%, due 12/1/17                                      Aa2        AA+              2,676
           2,000   Summit Academy (MI) North Pub. Sch. Academy Ref. Rev.,
                   Ser. 2005, 5.25%, due 11/1/20                                                          BB+              1,962
             465   Texas Std. Hsg. Corp. Std. Hsg. Rev. (Midwestern St. Univ.
                   Proj.), Ser. 2002, 5.50%, due 9/1/12                                       Baa3                           472
           1,000   Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
                   Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30                         Baa3        BBB              1,035
           1,085   Tyler (TX) Hlth. Fac. Dev. Corp. Hosp. Rev. (Mother Frances
                   Hosp. Reg. Hlth. Care Ctr. Proj.), Ser. 2003,
                   5.25%, due 7/1/13                                                          Baa1                         1,115
           3,500   Union Co. (SC) IDR (Federal Paper Board Co., Inc. Proj.),
                   Ser. 1989, 4.55%, due 11/1/09                                              Baa2        BBB              3,502++
           2,950   Univ. of Texas Board of Regents Fin. Sys. Rev., Ser. 1999 B,
                   5.38%, due 8/15/18                                                                     AAA              3,157
           1,900   Univ. of Wisconsin Hosp. & Clinics Au. Hosp. Rev., Ser. 2002
                   B, 5.50%, due 4/1/12                                                        A1                          2,032
           1,750   Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
                   6.15%, due 7/15/17                                                                     BB-              1,862
           1,000   Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA
                   Refinery), Ser. 2003, 6.13%, due 7/1/22                                    Baa3       BBB-              1,078
           1,500   Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA
                   Refinery), Ser. 2004, 5.88%, due 7/1/22                                    Baa3       BBB-              1,590++
           1,000   Virginia Beach (VA) Dev. Au. Residential Care Fac. Mtge. Ref.
                   Rev. (Westminster-Caterbury of Hampton Roads, Inc.), Ser. 2005,
                   5.00%, due 11/1/22                                                                                        989^^++
           3,125   Washington St. Hlth. Care Fac. Au. Rev. (Yakima Valley Mem.
                   Hosp. Assoc.), Ser. 2002, 5.00%, due 12/1/17                                            A               3,190++


See Notes to Schedule of Investments

                                       17




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@          VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P    (000'S OMITTED)
                                                                                                      
$          1,000   Washington St. Var. Purp. G.O., Ser. 1999 A,
                   4.75%, due 7/1/17                                                           Aa1        AA+     $         1,014
           2,000   Westmoreland Co. (PA) IDA Gtd. Rev. (National Waste &
                   Energy Corp., Valley Landfill Expansion Proj.), Ser. 1993,
                   5.10%, due 5/1/18                                                                      BBB               2,064++
           2,780   Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Kenosha Hosp. & Med.
                   Ctr., Inc. Proj.), Ser. 1999, 5.50%, due 5/15/15                                        A                2,924++
                                                                                                                  ---------------
                                                                                                                          246,552
                                                                                                                  ---------------

TAX-EXEMPT VARIABLE RATE DEMAND NOTES--OTHER (0.2%)^
             600   Gulf Coast (TX) Waste Disp. Au. Env. Fac. Rev. (BP Amoco
                   Chemical Co. Proj.), Ser. 2003, 2.79%, due 11/1/05                         VMIG1      A-1+                 600++
                                                                                                                  ---------------

                   TOTAL INVESTMENTS (156.7%) (COST $466,002)                                                             476,188##

                   Cash, receivables and other assets, less liabilities (2.3%)                                              7,076
                   Liquidation Value of Auction Market Preferred Shares [(59.0%)]                                        (179,400)
                                                                                                                  ---------------

                   TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%)                                    $       303,864
                                                                                                                  ---------------


                                       18


SCHEDULE OF INVESTMENTS NEW YORK INTERMEDIATE MUNICIPAL FUND INC.



PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@          VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P    (000'S OMITTED)
                                                                                                      
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (34.2%)
AMERICAN CAPITAL ACCESS
$          1,060   Puerto Rico Ind., Tourist, Ed., Med., & Env. Ctrl. Fac. Rev.
                   (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
                   5.25%, due 8/1/16                                                                       A      $         1,098++

AMERICAN MUNICIPAL BOND ASSURANCE CORP.
           2,000   Metro. Trans. Au. (NY) Ref. Rev., Ser. 2002 A,
                   5.50%, due 11/15/15                                                                    AAA               2,198
           2,920   New York City (NY) IDA Civic Fac. Rev. (Packer Collegiate
                   Institute Proj.), Ser. 2002, 5.00%, due 6/1/22                              Aaa        AAA               3,034++
             960   New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
                   Ser. 1992 A, 5.88%, due 6/15/13                                             Aaa                          1,093
           2,025   New York City (NY) Trans. Fin. Au. Ref. Rev., Ser. 2002 C,
                   5.25%, due 8/1/17                                                                      AAA               2,166
           2,410   New York St. Dorm. Au. Rev. (Rochester Institute of
                   Technology Proj.), Ser. 2002 A, 5.25%, due 7/1/19                           Aaa                          2,569++
           3,000   Port Authority of NY & NJ Rev., Ser. 2002,
                   5.50%, due 12/15/12                                                                    AAA               3,220
           1,535   Ulster Co. (NY) Res. Rec. Agcy. Solid Waste Sys. Ref. Rev.,
                   Ser. 2002, 5.25%, due 3/1/16                                                           AAA               1,652

FINANCIAL GUARANTY INSURANCE CO.
           2,505   Metro. Trans. Au. (NY) Dedicated Tax Fund Rev., Ser. 2001 A,
                   5.25%, due 11/15/14                                                                    AAA               2,696

FINANCIAL SECURITY ASSURANCE INC.
             500   Long Island (NY) Pwr. Au. Elec. Sys. Rev., Ser. 1998 A,
                   5.13%, due 12/1/16                                                          Aaa        AAA                 525
           1,410   New York City (NY) Hlth. & Hosp. Corp. Rev., Ser. 2002 A,
                   5.50%, due 2/15/13                                                                     AAA               1,536

MUNICIPAL BOND INVESTORS ASSURANCE CORP.
           2,000   New York St. Dorm. Au. Insured Rev. (Long Island Jewish Med.
                   Ctr.), Ser. 1998, 5.00%, due 7/1/18                                                    AAA               2,059++
           1,600   New York St. Dorm. Au. Insured Rev. (The Culinary Institute
                   of America), Ser. 1999, 5.38%, due 7/1/15                                              AAA               1,717++
           1,980   New York St. Dorm. Au. Rev. (New York Med. College Proj.),
                   Ser. 1998, 5.00%, due 7/1/21                                                Aaa        AAA               2,044++
                                                                                                                  ---------------
                                                                                                                           27,607
                                                                                                                  ---------------

TAX-EXEMPT SECURITIES--OTHER (122.6%)
           3,000   Albany (NY) IDA Civic Fac. Rev. (Charitable Leadership
                   Foundation Ctr. for Med. Science Proj.), Ser. 2002 A,
                   6.00%, due 7/1/19                                                          Baa3                          3,201
             800   Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
                   Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13                              Baa2        BBB-                892++
             750   Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
                   Ser. 1999 B, 7.75%, due 12/1/18                                                        BBB-                826++
           1,000   Brazos (TX) River Harbor Navigation Dist. of Brazoria Co.
                   Env. Fac. Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4,
                   5.20%, due 5/15/33 Putable 5/15/08                                          A3         A-                1,029++
             500   Coshocton Co. (OH) Env. Imp. Ref. Rev. (Smurfit-Stone
                   Container Enterprises, Inc. Proj.), Ser. 2005,
                   5.13%, due 8/1/13                                                                       B                  481++
           1,590   Cumberland Co. (PA) West Shore Area Au. Hosp. Rev. (Holy
                   Spirit Hosp. of the Sisters of Christian Charity Proj.),
                   Ser. 2001, 5.90%, due 1/1/17                                                           BBB+              1,694++


See Notes to Schedule of Investments

                                       19




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@          VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P    (000'S OMITTED)
                                                                                                      
$            400   Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
                   Ser. 2004 A-1, 6.15%, due 1/1/16                                            Ba2                $           405++
           1,000   De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp.
                   Proj.), Ser. 2002, 6.00%, due 3/15/21                                       Ba2        BB                  912++
           1,000   Dutchess Co. (NY) IDA Civic Fac. Ref. Rev. (Marist
                   College Proj.), Ser. 2003 A, 5.15%, due 7/1/17                             Baa1                          1,044++
           2,000   Dutchess Co. (NY) IDA Ind. Dev. Rev. (IBM Proj.),
                   Ser. 1999, 5.45%, due 12/1/29                                               A1         A+                2,121++
           2,000   Long Island Pwr. Au. (NY) Elec. Sys. Gen. Rev.,
                   Ser. 1998 A, 5.50%, due 12/1/13                                             Aaa        AAA               2,234
           1,385   Lyons (NY) Comm. Hlth. Initiatives Corp. Fac. Rev.,
                   Ser. 2004, 5.50%, due 9/1/14                                                A2                           1,486
             500   Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev.
                   (Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004,
                   6.25%, due 11/15/09                                                         Ba2        BB+                 534++
             980   Monroe Co. (NY) IDA Std. Hsg. Rev. (Collegiate Hsg.
                   Foundation - Rochester Institute of Technology Proj.),
                   Ser. 1999 A, 5.25%, due 4/1/19                                             Baa3                            986++
           1,000   Monroe Co. (NY) Newpower Corp. Pwr. Fac. Rev.,
                   Ser. 2003, 5.10%, due 1/1/16                                                           BBB               1,028
           1,000   Monroe (NY) Pub. Imp. Ref. G.O., Ser. 1996,
                   6.00%, due 3/1/13                                                          Baa1        BBB+              1,109
           1,000   Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
                   Ser. 2001 A, 5.25%, due 11/15/13                                           Baa2        BBB               1,042++
           1,000   New York City (NY) G.O., Ser. 1998 J, 5.00%, due 8/1/11                     A1          A                1,040
           1,000   New York City (NY) G.O., Ser. 2002 A, 5.75%, due 8/1/16                     A1          A                1,095
             750   New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15                     A1          A                  812
           4,000   New York City (NY) Hsg. Dev. Corp. Multi-Family Hsg. Rev.,
                   Ser. 2002 E-2, 5.05%, due 11/1/23                                           Aa2        AA                4,064
           1,000   New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
                   New York Proj.), Ser. 2002 A, 5.50%, due 6/1/15                                         A                1,043++
           1,030   New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
                   New York Proj.), Ser. 2002 A, 5.50%, due 6/1/17                                         A                1,070++
           1,000   New York City (NY) IDA Ind. Dev. Rev. (Brooklyn Navy Yard
                   Cogeneration Partners, L.P. Proj.), Ser. 1997,
                   6.20%, due 10/1/22                                                          Ba1        BBB-              1,046++
             500   New York City (NY) IDA Ind. Dev. Rev. (Harlem Auto Mall
                   Proj.), Ser. 2004, 5.13%, due 12/30/23                                      Ba2        BB                  403++
             750   New York City (NY) Ind. Dev. Agcy. Liberty Rev. (7 World
                   Trade Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15                               BB                  798
           4,000   New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
                   Ser. 2002 D, 5.25%, due 6/15/15                                             Aa2        AA                4,286
           3,000   New York City (NY) Trans. Fin. Au. Ref. Rev., Ser. 2002 B,
                   5.25%, due 2/1/29                                                           Aa1        AAA               3,206
             800   New York Convention Ctr. Operating Corp. Cert. of
                   Participation (Yale Bldg. Acquisition Proj.), Ser. 2003,
                   5.25%, due 6/1/08                                                           Aa1                            808
           2,000   New York St. Dorm. Au. Court Fac. Lease Rev. (New York City
                   Issue), Ser. 2003 A, 5.50%, due 5/15/17                                     A2          A                2,226
           1,675   New York St. Dorm. Au. Insured Rev. (Long Island Univ.),
                   Ser. 2003 A, 5.25%, due 9/1/15                                             Baa3        AA                1,754++
           3,000   New York St. Dorm. Au. Ref. Rev. (North Gen. Hosp. Proj.),
                   Ser. 2003, 5.75%, due 2/15/17                                                          AA-               3,331++
           1,125   New York St. Dorm. Au. Rev. (City Univ. Sys. Proj.), Ser. 1995 A,
                   5.63%, due 7/1/16                                                           A2         AA-               1,258


                                       20




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@          VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P    (000'S OMITTED)
                                                                                                      
$          1,010   New York St. Dorm. Au. Rev. (Columbia Univ. Proj.), Ser. 2001 A,
                   5.25%, due 7/1/16                                                           Aaa        AAA     $         1,096++
           2,985   New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group
                   Proj.), Ser. 2001, 5.75%, due 7/1/14                                        Ba2                          3,096++
           2,000   New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group
                   Proj.), Ser. 2001, 5.75%, due 7/1/16                                        Ba2                          2,061++
           2,000   New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth.),
                   Ser. 2000 C, 5.50%, due 7/1/26                                              Ba1        BB                2,025++
             525   New York St. Dorm. Au. Rev. (New York Methodist Hosp.),
                   Ser. 2004, 5.25%, due 7/1/18                                                A3                             554
             500   New York St. Dorm. Au. Rev. (North Shore-Long Island
                   Jewish Oblig. Group), Ser. 2003, 5.00%, due 5/1/18                          A3                             516++
           2,855   New York St. Dorm. Au. Rev. (Rivington House Hlth. Care
                   Fac.), Ser. 2002, 5.25%, due 11/1/15                                        Aa1                          3,039++
           3,000   New York St. Dorm. Au. Rev. (SS Joachim & Anne Residence
                   Proj.), Ser. 2002, 4.60%, due 7/1/16                                        Aa3                          2,997
             250   New York St. Dorm. Au. Secured Hosp. Ref. Rev. (Brookdale
                   Hosp. Med. Ctr.), Ser. 1998 J, 5.20%, due 2/15/16                           A2         AA-                 260++
           5,500   New York St. Dorm. Au. St. Personal Income Tax Rev., Ser. 2003 A,
                   5.38%, due 3/15/17                                                                     AA                6,067
             500   New York St. Dorm. Au. Third Gen. Resolution Rev. (St. Univ.
                   Ed. Fac. Issue Proj.), Ser. 2002 B, 5.25%, due 11/15/23                     A2         AA-                 534
           5,000   New York St. Energy Res. & Dev. Au. Fac. Rev. (Consolidated
                   Edison Co. of New York, Inc. Proj.), Ser. 2001 A,
                   4.70%, due 6/1/36                                                           A1         A+                5,045++
           1,000   New York St. Env. Fac. Corp. Solid Waste Disp. Rev.
                   (Waste Management, Inc. Proj.), Ser. 2004 A,
                   4.45%, due 7/1/17 Putable 7/1/09                                                       BBB               1,017
           2,000   New York St. Mtge. Agcy. Homeowner Mtge. Rev.,
                   Ser. 1997-67, 5.70%, due 10/1/17                                            Aa1                          2,061
           2,000   New York St. Pwr. Au. Rev., Ser. 2002 A,
                   5.25%, due 11/15/16                                                         Aa2        AA-               2,161
             500   New York St. Urban Dev. Corp. Correctional & Youth Fac. Svc.
                   Rev., Ser. 2002 C, 4.00%, due 1/1/20                                        A2         AA-                 502
           1,325   New York St. Urban Dev. Corp. Proj. Ref. Rev. (Ctr. for Ind.
                   Innovation), Ser. 1995, 6.25%, due 1/1/09                                   A2         AA-               1,431
           2,000   Niagara Co. (NY) IDA Civic Fac. Rev. (Niagara Univ. Proj.),
                   Ser. 2001 A, 5.50%, due 11/1/16                                                        AA                2,138++
           2,500   Niagara Co. (NY) IDA Solid Waste Disp. Fac. Ref. Rev.
                   (American Ref.-Fuel Co. of Niagara), Ser. 2001 C,
                   5.63%, due 11/15/24                                                        Baa3        BB+               2,600++
             915   Puerto Rico Children's Trust Tobacco Settlement Asset-
                   Backed Rev., Ser. 2002, 5.38%, due 5/15/33                                 Baa3        BBB                 940
           1,000   Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise Rev.,
                   Ser. 2003, 6.13%, due 3/1/13                                                           BBB               1,007
           1,000   Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
                   Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30                         Baa3        BBB               1,035
           3,000   Triborough Bridge & Tunnel Au. (NY) Gen. Purp. Ref. Rev.,
                   Ser. 2002 B, 5.25%, due 11/15/18                                            Aa2        AA-               3,215
             500   United Nations (NY) Dev. Corp. Sr. Lien Ref. Rev., Ser. 2004
                   A, 5.25%, due 7/1/17                                                        A3                             517
             500   Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
                   6.15%, due 7/15/17                                                                     BB-                 532
             250   Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA
                   Refinery), Ser. 2003, 6.13%, due 7/1/22                                    Baa3        BBB                 269


See Notes to Schedule of Investments

                                       21




PRINCIPAL AMOUNT                       SECURITY @                                                 RATING @@          VALUE +
(000'S OMITTED)                                                                              MOODY'S      S&P    (000'S OMITTED)
                                                                                                      
$            750   Virgin Islands Pub. Fin. Au. Rev. (Sub. Lien/Cap. Proj.),
                   Ser. 1998 E, 6.00%, due 10/1/22                                                        BBB     $           768
           1,000   Westchester Co. (NY) IDA Continuing Care Retirement
                   Comm. Rev. (Kendal on Hudson Proj.), Ser. 2003 B,
                   5.70%, due 1/1/34                                                                      BB                1,017++
           1,000   Yonkers (NY) IDA Civic Fac. Rev. (Comm. Dev. Properties -
                   Yonkers, Inc.), Ser. 2001 A, 6.25%, due 2/1/16                             Baa3       BBB-               1,109++
                                                                                                                  ---------------
                                                                                                                           98,873
                                                                                                                  ---------------

TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY LETTERS OF CREDIT (0.7%)^
BANK OF NEW YORK

             200   New York City (NY) G.O., Sub. Ser. 2004 H-4,
                   2.68%, VRDN due 11/1/05                                                    VMIG1      A-1+                 200

LANDESBANK HESSEN--THUERINGEN GIROZENTRALE
             300   Port Authority of NY & NJ Spec. Oblig. Rev. (Versatile
                   Structure Oblig.), Ser. 1996-4, 2.71%, VRDN due 11/1/05                    VMIG1      A-1+                 300

J.P. MORGAN CHASE
             100   New York City (NY) G.O., Sub. Ser. 1993 E-2,
                   2.75%, VRDN due 11/1/05                                                    VMIG1      A-1+                 100
                                                                                                                  ---------------
                                                                                                                              600
                                                                                                                  ---------------

TAX-EXEMPT VARIABLE RATE DEMAND NOTES--OTHER (0.3%)^
             200   New York St. Env. Fac. Corp. Sewage & Solid Waste Disp.
                   Rev. (General Elec. Co. Proj.), Ser. 1997 A,
                   2.71%, VRDN due 11/1/05                                                     P-1       A-1+                 200++
                                                                                                                  ---------------

                   TOTAL INVESTMENTS (157.8%) (COST $125,437)                                                             127,280##

                   Cash, receivables and other assets, less liabilities (2.0%)                                              1,622
                   Liquidation Value of Auction Market Preferred Shares [(59.8%)]                                         (48,250)
                                                                                                                  ---------------
                   TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%)                                    $        80,652
                                                                                                                  ---------------


                                       22


NOTES TO SCHEDULE OF INVESTMENTS

+    Investments in securities by Neuberger Berman California Intermediate
     Municipal Fund Inc. ("California"), Neuberger Berman Intermediate Municipal
     Fund Inc. ("Intermediate"), and Neuberger Berman New York Intermediate
     Municipal Fund Inc. ("New York") (individually a "Fund", and collectively,
     the "Funds") are valued daily by obtaining bid price quotations from
     independent pricing services on all securities available in each service's
     data base. For all other securities, bid prices are obtained from principal
     market makers in those securities or, if quotations are not readily
     available, by methods the Funds' Board of Directors has approved on the
     belief that they reflect fair value. Numerous factors may be considered
     when determining the fair value of a security, including available analyst,
     media or other reports, trading in futures or ADRs and whether the issuer
     of the security being fair valued has other securities outstanding.
     Short-term debt securities with less than 60 days until maturity may be
     valued at cost which, when combined with interest earned, approximates
     market value.

##   At October 31, 2005, selected Fund information on a U.S. Federal income tax
     basis was as follows:



                                                                    GROSS            GROSS               NET
(000'S OMITTED)                                                UNREALIZED       UNREALIZED        UNREALIZED
NEUBERGER BERMAN                                   COST      APPRECIATION     DEPRECIATION      APPRECIATION
                                                                                        
CALIFORNIA                                   $  154,775         $   3,296           $  225          $  3,071
INTERMEDIATE                                    466,002            11,161              975            10,186
NEW YORK                                        125,437             2,336              493             1,843


@    At time of investment, municipal securities purchased by the Funds are
     within the four highest rating categories (with respect to at least 80% of
     total assets) assigned by a nationally recognized statistical rating
     organization ("NRSRO") such as Moody's Investors Service, Inc., Standard &
     Poor's, or Fitch Investors Services, Inc. or, where not rated, are
     determined by the Funds' investment manager to be of comparable quality.
     Approximately 78%, 72%, and 57% of the municipal securities held by
     California, Intermediate, and New York, respectively, have credit
     enhancement features backing them, which the Funds may rely on, such as
     letters of credit, insurance, or guarantees. Without these credit
     enhancement features the securities may or may not meet the quality
     standards of the Funds. Pre-refunded bonds are supported by securities in
     escrow issued or guaranteed by the U.S. Government, its agencies, or
     instrumentalities. The amount escrowed is sufficient to pay the periodic
     interest due and the principal of these bonds. Putable bonds give the Funds
     the right to sell back the issue on the date specified.

++   Security is guaranteed by the corporate or non-profit obligor.

**   Restricted security subject to restrictions on resale under federal
     securities laws. These securities may be resold, normally to qualified
     institutional buyers under Rule 144A, and have been deemed by the adviser
     to be liquid. At October 31, 2005, these securities amounted to $4,500,000
     or 1.5% of net assets for Intermediate.

^^   Not rated by a NRSRO.

@@   Credit Ratings are unaudited.

#    All or a portion of this security was purchased on a when-issued basis. At
     October 31, 2005, these securities amounted to $2,000,000 or .66% of net
     assets for Intermediate.

###  All or a portion of this security is segregated as collateral for
     when-issued purchase commitments.

^    Floating rate securities are securities whose yields vary with a designated
     market index or market rate. These securities are shown at their current
     rates as of October 31, 2005.

See Notes to Financial Statements

                                       23


                            NEUBERGER BERMAN FOR THE YEAR ENDED OCTOBER 31, 2005

STATEMENTS OF ASSETS AND LIABILITIES



                                                                                       CALIFORNIA    INTERMEDIATE          NEW YORK
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS                             INTERMEDIATE       MUNICIPAL      INTERMEDIATE
(000'S OMITTED EXCEPT PER SHARE AMOUNTS)                                           MUNICIPAL FUND            FUND    MUNICIPAL FUND
                                                                                                            
ASSETS
     INVESTMENTS IN SECURITIES, AT MARKET VALUE* (NOTE A)--SEE
     SCHEDULE OF INVESTMENTS                                                       $      157,846    $    476,188    $      127,280
     Cash                                                                                      50              77                31
     Interest receivable                                                                    2,443           7,945             2,104
     Receivable for securities sold                                                         1,961           2,799                --
     Prepaid expenses and other assets                                                          4              13                 4
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS                                                                              162,304         487,022           129,419
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
     Dividends payable--preferred shares                                                       67             169                47
     Dividends payable--common shares                                                         424           1,372               362
     Payable for securities purchased                                                       3,000           2,000                --
     Payable to administrator (Note B)                                                         41             124                33
     Accrued expenses and other payables                                                       75              93                75
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES                                                                           3,607           3,758               517
-----------------------------------------------------------------------------------------------------------------------------------
AUCTION MARKET PREFERRED SHARES SERIES A & B AT LIQUIDATION VALUE
     3,000, 8,000 and 3,000 shares authorized; 2,360, 7,176 and 1,930 shares
     issued and outstanding for California, Intermediate and New York,
     respectively; $.0001 par value;
     $25,000 liquidation value per share (Note A)                                          59,000         179,400            48,250
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE                              $       99,697    $    303,864    $       80,652
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF:
     Paid-in capital--common shares                                                $       96,347    $    293,853    $       79,063
     Undistributed net investment income (loss)                                               627             969               342
     Accumulated net realized gains (losses) on investments                                  (348)         (1,144)             (596)
     Net unrealized appreciation (depreciation) in value of investments                     3,071          10,186             1,843
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE                              $       99,697    $    303,864    $       80,652
-----------------------------------------------------------------------------------------------------------------------------------
     COMMON SHARES OUTSTANDING ($.0001 par value; 999,997,000,
     999,992,000 and 999,997,000 shares authorized for
     California, Intermediate and New York, respectively)                                   6,792          20,705             5,575
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE OUTSTANDING                                       $        14.68    $      14.68    $        14.47
-----------------------------------------------------------------------------------------------------------------------------------
*COST OF INVESTMENTS:                                                              $      154,775    $    466,002    $      125,437
-----------------------------------------------------------------------------------------------------------------------------------


See Notes to Financial Statements

                                       24


                            NEUBERGER BERMAN FOR THE YEAR ENDED OCTOBER 31, 2005

STATEMENTS OF OPERATIONS



                                                                                       CALIFORNIA    INTERMEDIATE          NEW YORK
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS                             INTERMEDIATE       MUNICIPAL      INTERMEDIATE
(000'S OMITTED)                                                                    MUNICIPAL FUND            FUND    MUNICIPAL FUND
                                                                                                            
INVESTMENT INCOME

INCOME: (NOTE A)
Interest income                                                                    $        7,181    $     22,192    $        6,047
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management fee (Notes A & B)                                                       402           1,226               327
Administration fee (Note B)                                                                   483           1,471               393
Stock transfer agent fees                                                                      35              35                35
Auction agent fees (Note B)                                                                   150             455               122
Special rate period expense (Notes A & B)                                                      39             100                32
Audit fees                                                                                     50              51                50
Basic maintenance expense (Note B)                                                             25              25                25
Custodian fees (Note B)                                                                        78             141                67
Insurance expense                                                                               7              22                 6
Legal fees                                                                                     36              75                33
Shareholder reports                                                                            24              54                23
Stock exchange listing fees                                                                     2               7                 2
Directors' fees and expenses                                                                   26              27                26
Miscellaneous                                                                                  26              30                26
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses                                                                              1,383           3,719             1,167

Investment management fee waived (Note B)                                                    (402)         (1,226)             (327)
-----------------------------------------------------------------------------------------------------------------------------------
Expenses reduced by custodian fee expense offset arrangement (Note B)                          (1)             (1)               (1)
-----------------------------------------------------------------------------------------------------------------------------------
Total net expenses                                                                            980           2,492               839
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income                                                                       6,201          19,700             5,208
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE A)
Net realized gain (loss) on:
       Sales of investment securities of unaffiliated issuers                                  (4)            (59)              (19)
Change in net unrealized appreciation (depreciation) in value of:
       Unaffiliated investment securities                                                  (2,787)         (8,953)           (2,496)
       ----------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments                                                             (2,791)         (9,012)           (2,515)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
       Net investment income                                                                 (929)         (3,174)             (763)
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
  RESULTING FROM OPERATIONS                                                        $        2,481    $      7,514    $        1,930
-----------------------------------------------------------------------------------------------------------------------------------


See Notes to Financial Statements

                                       25


STATEMENTS OF CHANGES IN NET ASSETS



                                                               CALIFORNIA INTERMEDIATE MUNICIPAL FUND
                                                            --------------------------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS                    YEAR                    YEAR
(000'S OMITTED)                                                            ENDED                   ENDED
                                                                     OCTOBER 31,             OCTOBER 31,
                                                                            2005                    2004
                                                                              
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss)                                $              6,201    $              6,206
Net realized gain (loss) on investments                                       (4)                   (274)
Change in net unrealized appreciation
  (depreciation) of investments                                           (2,787)                  4,830

DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM (NOTE A):

Net investment income                                                       (929)                   (859)
Net increase (decrease) in net assets applicable
  to common shareholders resulting from operations                         2,481                   9,903

DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM (NOTE A):

Net investment income                                                     (5,094)                 (5,094)
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE
  TO COMMON SHAREHOLDERS                                                  (2,613)                  4,809
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of year                                                        102,310                  97,501
End of year                                                 $             99,697    $            102,310
Undistributed net investment income (loss) at
  end of year                                               $                627    $                449


                                       26




                                                                       INTERMEDIATE MUNICIPAL FUND
                                                            --------------------------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS                    YEAR                    YEAR
(000'S OMITTED)                                                            ENDED                   ENDED
                                                                     OCTOBER 31,             OCTOBER 31,
                                                                            2005                    2004
                                                                              
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss)                                $             19,700    $             19,565
Net realized gain (loss) on investments                                      (59)                   (328)
Change in net unrealized appreciation
  (depreciation) of investments                                           (8,953)                 13,555

DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM (NOTE A):

Net investment income                                                     (3,174)                 (2,590)
Net increase (decrease) in net assets applicable
  to common shareholders resulting from operations                         7,514                  30,202

DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM (NOTE A):

Net investment income                                                    (16,461)                (16,462)
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE
  TO COMMON SHAREHOLDERS                                                  (8,947)                 13,740
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of year                                                        312,811                 299,071
End of year                                                 $            303,864    $            312,811
Undistributed net investment income (loss) at
  end of year                                               $                969    $                904


                                                                NEW YORK INTERMEDIATE MUNICIPAL FUND
                                                            --------------------------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS                    YEAR                    YEAR
(000'S OMITTED)                                                            ENDED                   ENDED
                                                                     OCTOBER 31,             OCTOBER 31,
                                                                            2005                    2004
                                                                              
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss)                                $              5,208    $              5,196
Net realized gain (loss) on investments                                      (19)                   (157)
Change in net unrealized appreciation
  (depreciation) of investments                                           (2,496)                  2,797

DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM (NOTE A):

Net investment income                                                       (763)                   (704)
Net increase (decrease) in net assets applicable
  to common shareholders resulting from operations                         1,930                   7,132

DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM (NOTE A):

Net investment income                                                     (4,348)                 (4,348)
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE
  TO COMMON SHAREHOLDERS                                                  (2,418)                  2,784
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of year                                                         83,070                  80,286
End of year                                                 $             80,652    $             83,070
Undistributed net investment income (loss) at
  end of year                                               $                342    $                245


See Notes to Financial Statements

                                       27


NOTES TO FINANCIAL STATEMENTS INTERMEDIATE MUNICIPAL CLOSED-END FUNDS

       NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

    1  GENERAL: Neuberger Berman California Intermediate Municipal Fund Inc.
       ("California"), Neuberger Berman Intermediate Municipal Fund Inc.
       ("Intermediate"), and Neuberger Berman New York Intermediate Municipal
       Fund Inc. ("New York") (individually a "Fund" and, collectively, the
       "Funds") were organized as Maryland corporations on July 29, 2002.
       California and New York are registered as non-diversified, closed-end
       management investment companies and Intermediate is registered as a
       diversified, closed-end management investment company under the
       Investment Company Act of 1940, as amended. Each Fund's Board of
       Directors may classify or re-classify any unissued shares of capital
       stock into one or more classes of preferred stock without the approval of
       shareholders.

       The assets of each Fund belong only to that Fund, and the liabilities of
       each Fund are borne solely by that Fund and no other.

       The preparation of financial statements in accordance with U.S. generally
       accepted accounting principles requires Neuberger Berman Management Inc.
       ("Management") to make estimates and assumptions at the date of the
       financial statements. Actual results could differ from those estimates.

    2  PORTFOLIO VALUATION: Investment securities are valued as indicated in the
       notes following the Funds' Schedule of Investments.

    3  SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
       are recorded on a trade date basis. Interest income, including accretion
       of discount (adjusted for original issue discount, where applicable) and
       amortization of premium, where applicable, is recorded on the accrual
       basis. Realized gains and losses from securities transactions are
       recorded on the basis of identified cost and stated in the Statements of
       Operations.

    4  INCOME TAX INFORMATION: Each Fund is treated as a separate entity for
       U.S. Federal income tax purposes. It is the policy of each Fund to
       continue to qualify as a regulated investment company by complying with
       the requirements of Subchapter M of the Internal Revenue Code applicable
       to regulated investment companies and to distribute substantially all of
       its earnings to its shareholders. Therefore, no Federal income or excise
       tax provision is required.

       Income distributions and capital gain distributions are determined in
       accordance with income tax regulations, which may differ from U.S.
       generally accepted accounting principles. These differences are primarily
       due to differing treatments of income and gains on various investment
       securities held by each Fund, timing differences and differing
       characterization of distributions made by each Fund as a whole.

       As determined on October 31, 2005, there were no permanent differences
       resulting from different book and tax accounting reclassified at year
       end.

                                       28


       The tax character of distributions paid during the years ended October
       31, 2005 and October 31, 2004 was as follows:



                                                      DISTRIBUTIONS PAID FROM:
                                    TAX-EXEMPT INCOME                     ORDINARY INCOME                  TOTAL
                               2005              2004              2005              2004              2005              2004
                                                                                              
       CALIFORNIA     $   6,020,445     $   5,945,965     $       2,558     $       6,705     $   6,023,003     $   5,952,670
       INTERMEDIATE      19,596,581        19,015,689            37,644            35,236        19,634,225        19,050,925
       NEW YORK           5,108,368         5,050,381             2,708             2,299         5,111,076         5,052,680


       As of October 31, 2005, the components of distributable earnings
       (accumulated losses) on a U.S. Federal income tax basis were as follows:



                      UNDISTRIBUTED     UNDISTRIBUTED     UNDISTRIBUTED        UNREALIZED              LOSS
                         TAX-EXEMPT          ORDINARY         LONG-TERM      APPRECIATION     CARRYFORWARDS
                             INCOME            INCOME              GAIN    (DEPRECIATION)     AND DEFERRALS             TOTAL
                                                                                              
       CALIFORNIA     $   1,118,323     $          --     $          --     $   3,071,222     $    (347,798)    $   3,841,747
       INTERMEDIATE       2,510,716                --                --        10,184,508        (1,144,403)       11,550,821
       NEW YORK             752,100                --                --         1,843,607          (595,949)        1,999,758


       The difference between book basis and tax basis distributable earnings is
       attributable primarily to timing differences of distribution payments.

       To the extent each Fund's net realized capital gains, if any, can be
       offset by capital loss carryforwards, it is the policy of each Fund not
       to distribute such gains. As determined at October 31, 2005, the Funds
       had unused capital loss carryforwards available for Federal income tax
       purposes to offset net realized capital gains, if any, as follows:



                                                                              EXPIRING IN:      EXPIRING IN:     EXPIRING IN:
                                                                                      2011              2012             2013
                                                                                                            
       CALIFORNIA                                                                $  69,587        $  273,734         $  4,477
       INTERMEDIATE                                                                757,224           328,363           58,816
       NEW YORK                                                                    420,475           156,636           18,838


    5  DISTRIBUTIONS TO SHAREHOLDERS: Each Fund earns income, net of expenses,
       daily on its investments. It is the policy of each Fund to declare and
       pay distributions to common shareholders from net investment income on a
       monthly basis. Distributions from net realized capital gains, if any, are
       normally distributed in December. Income distributions and capital gain
       distributions to common shareholders are recorded on the ex-date.
       Distributions to preferred shareholders are accrued and determined as
       described in Note A-7.

       Subsequent to October 31, 2005, each Fund declared two monthly
       distributions to common shareholders payable December 15, 2005 and
       January 17, 2006, to shareholders of record on November 25, 2005 and
       December 27, 2005, respectively, with ex-dates of November 22, 2005 and
       December 22, 2005, respectively, as follows:



                                                                                                           DIVIDEND PER SHARE
                                                                                                                
       CALIFORNIA                                                                                                  $  0.06250
       INTERMEDIATE                                                                                                   0.06625
       NEW YORK                                                                                                       0.06500


                                       29


    6  EXPENSE ALLOCATION: Certain expenses are applicable to multiple funds.
       Expenses directly attributable to a Fund are charged to that Fund.
       Expenses borne by the complex of related investment companies, which
       includes open-end and closed-end investment companies for which
       Management serves as investment manager, that are not directly attributed
       to a Fund are allocated among the Funds and the other investment
       companies in the complex or series thereof on the basis of relative net
       assets, except where a more appropriate allocation of expenses to each
       investment company in the complex or series thereof can otherwise be made
       fairly.

    7  REDEEMABLE PREFERRED SHARES: On October 21, 2002, the Funds re-classified
       unissued shares of capital stock into several series of Auction Market
       Preferred Shares ("AMPS"), as follows:



                                                                                          SERIES A SHARES     SERIES B SHARES
                                                                                                                  
       CALIFORNIA                                                                                   1,500               1,500
       INTERMEDIATE                                                                                 4,000               4,000
       NEW YORK                                                                                     1,500               1,500


       On December 13, 2002, the Funds issued several series of AMPS, as
       follows:



                                                                                          SERIES A SHARES     SERIES B SHARES
                                                                                                                  
       CALIFORNIA                                                                                   1,180               1,180
       INTERMEDIATE                                                                                 3,588               3,588
       NEW YORK                                                                                       965                 965


       All shares of each series of AMPS have a liquidation preference of
       $25,000 per share plus any accumulated unpaid distributions, whether or
       not earned or declared by the Fund, but excluding interest thereon
       ("Liquidation Value"). Distributions to AMPS shareholders, which are
       cumulative, are accrued daily. It is the policy of each Fund to pay
       distributions every 7 days for each Fund's AMPS Series A and every 28
       days for each Fund's AMPS Series B, unless in a special rate period.

       In the absence of a special rate period, distribution rates are reset
       every 7 days for each Fund's AMPS Series A, based on the results of an
       auction. Each Fund has approved a special rate period for its AMPS Series
       A of 728 days for California and New York and 546 days for Intermediate.
       The effective dates and distribution rates for each Fund are as follows:



                                                                                              EFFECTIVE DATE    DIVIDEND RATE
                                                                                                               
       CALIFORNIA                                                                           October 23, 2003         1.70%(1)
       INTERMEDIATE                                                                         October 24, 2003         1.65%(2)
       NEW YORK                                                                             October 22, 2003         1.70%(3)


       (1) Special rate in effect through October 19, 2005. For the period
           October 20, 2005 through October 31, 2005 distribution rates ranged
           from 2.60% to 2.70%.

       (2) Special rate in effect through April 21, 2005. For the period April
           22, 2005 through October 31, 2005 distribution rates ranged from
           2.25% to 2.90%.

       (3) Special rate in effect through October 18, 2005. For the period
           October 19, 2005 through October 31, 2005 distribution rates ranged
           from 2.45% to 2.70%.

                                       30


       In the absence of a special rate period, distribution rates are reset
       every 28 days for each Fund's AMPS Series B, based on the results of an
       auction. Each Fund has approved a special rate period for its AMPS Series
       B of 546 days for California and Intermediate and 553 days for New York.
       The effective dates and distribution rates for each Fund are as follows:



                                                                                            EFFECTIVE DATE      DIVIDEND RATE
                                                                                                              
       CALIFORNIA                                                                           March 11, 2004          1.170%(1)
       INTERMEDIATE                                                                         March 15, 2004          1.185%(2)
       NEW YORK                                                                              March 9, 2004          1.198%(3)


       (1) Special rate in effect through September 8, 2005. For the period
           September 9, 2005 through October 31, 2005 distribution rates ranged
           from 2.50% to 2.68%.

       (2) Special rate in effect through September 12, 2005. For the period
           September 13, 2005 through October 31, 2005 distribution rates ranged
           from 2.65% to 2.85%.

       (3) Special rate in effect through September 12, 2005. For the period
           September 13, 2005 through October 31, 2005 distribution rates ranged
           from 1.70% to 2.70%.

       The Funds declared distributions to AMPS shareholders for the period
       November 1, 2005 to November 30, 2005, for each series of the AMPS as
       follows:



                                                                                           SERIES A SHARES    SERIES B SHARES
                                                                                                              
       CALIFORNIA                                                                                $  64,620          $  64,300
       INTERMEDIATE                                                                                197,607            203,919
       NEW YORK                                                                                     52,861             51,195


       The Funds may redeem shares of each series of AMPS, in whole or in part,
       on the second business day preceding any distribution payment date at
       Liquidation Value.

       The Funds are also subject to certain restrictions relating to the AMPS.
       Failure to comply with these restrictions could preclude the Funds from
       declaring any distributions to common shareholders or repurchasing common
       shares and/or could trigger the mandatory redemption of AMPS at
       Liquidation Value.

       The holders of AMPS are entitled to one vote per share and will vote with
       holders of common stock as a single class, except that the AMPS will vote
       separately as a class on certain matters, as required by law or the
       Funds' charter. The holders of a Fund's AMPS, voting as a separate class,
       are entitled at all times to elect two Directors of the Fund, and to
       elect a majority of the Directors of a Fund if the Fund failed to pay
       distributions on AMPS for two consecutive years.

    8  CONCENTRATION OF RISK: The ability of the issuers of the debt securities
       held by the Funds to meet their obligations may be affected by economic
       developments, including those particular to a specific industry or
       region. The investment policies of California and New York involve
       investing substantially all of their assets in municipal bonds of issuers
       located in the state of California and the state of New York,
       respectively. This policy makes those Funds more susceptible to adverse
       economic, political, regulatory or other factors affecting the issuers of
       such municipal bonds than a fund that does not limit its investments to
       such issuers.

                                       31


    9  INDEMNIFICATIONS: Like many other companies, the Funds' organizational
       documents provide that their officers and directors are indemnified
       against certain liabilities arising out of the performance of their
       duties to the Funds. In addition, both in some of their principal service
       contracts and in the normal course of their business, the Funds enter
       into contracts that provide indemnifications to other parties for certain
       types of losses or liabilities. Each Fund's maximum exposure under these
       arrangements is unknown as this could involve future claims against each
       Fund.

       NOTE B--MANAGEMENT FEES, ADMINISTRATION FEES, AND OTHER TRANSACTIONS WITH
       AFFILIATES:

       Each Fund retains Management as its investment manager under a Management
       Agreement. For such investment management services, each Fund pays
       Management a fee at the annual rate of 0.25% of its average daily Managed
       Assets. Managed Assets equal the total assets of the Fund, less
       liabilities other than the aggregate indebtedness entered into for
       purposes of leverage. For purposes of calculating Managed Assets, the
       Liquidation Value of any AMPS outstanding is not considered a liability.

       Management has contractually agreed to waive a portion of the management
       fees it is entitled to receive from each Fund at the following annual
       rates:



                  YEAR ENDED                   % OF AVERAGE
                  OCTOBER 31,              DAILY MANAGED ASSETS
         ---------------------------------------------------------------
                                               
                  2005 - 2007                     0.25%
                     2008                         0.20
                     2009                         0.15
                     2010                         0.10
                     2011                         0.05


       Management has not agreed to waive any portion of its fees beyond October
       31, 2011.

       For the year ended October 31, 2005, such waived fees amounted to
       $402,264, $1,226,157, and $327,198 for California, Intermediate, and New
       York, respectively.

       Each Fund retains Management as its administrator under an Administration
       Agreement. Each Fund pays Management an administration fee at the annual
       rate of 0.30% of its average daily Managed Assets under this agreement.
       Additionally, Management retains State Street Bank and Trust Company
       ("State Street") as its sub-administrator under a Sub-Administration
       Agreement. Management pays State Street a fee for all services received
       under the agreement.

       Management and Neuberger Berman, LLC ("Neuberger"), a member firm of the
       New York Stock Exchange and sub-adviser to each Fund, are wholly-owned
       subsidiaries of Lehman Brothers Holdings Inc., a publicly-owned holding
       company. Neuberger is retained by Management to furnish it with
       investment recommendations and research information without added cost to
       each Fund. Several individuals who are officers and/or Directors of each
       Fund are also employees of Neuberger and/or Management.

       Each Fund has an expense offset arrangement in connection with its
       custodian contract. For the year ended October 31, 2005, the impact of
       this arrangement was a reduction of expenses of $1,238, $1,142, and
       $1,205 for California, Intermediate, and New York, respectively.

                                       32


       In connection with the settlement of each AMPS auction, each Fund pays,
       through the auction agent, a service fee to each participating
       broker-dealer based upon the aggregate liquidation preference of the AMPS
       held by the broker-dealer's customers. For any auction preceding a rate
       period of less than one year, the service fee is paid at the annual rate
       of 1/4 of 1%; for any auction preceding a rate period of one year or
       more, the service fee is paid at a rate agreed to by each Fund and the
       broker-dealer.

       Each Fund has paid Merrill Lynch a fee equal to 1/8 of 1% in connection
       with entering the special rate periods in return for which Merrill Lynch
       had agreed to pay dividends on the AMPS that, as a result of the auction,
       exceed a specified rate.

       In order to satisfy rating agencies' requirements, each Fund is required
       to provide each rating agency a report on a monthly basis verifying that
       each Fund is maintaining eligible assets having a discounted value equal
       to or greater than the Preferred Shares Basic Maintenance Amount, which
       is a minimum level set by each rating agency as one of the conditions to
       maintain the AAA/Aaa rating on the AMPS. "Discounted value" refers to the
       fact that the rating agencies require the Fund, in performing this
       calculation, to discount portfolio securities below their face value, at
       rates determined by the rating agencies. Each Fund pays a fee to State
       Street for the preparation of this report which is included in the "Basic
       Maintenance Expense" on the Statement of Operations.

       NOTE C--SECURITIES TRANSACTIONS:

       During the year ended October 31, 2005, there were purchase and sale
       transactions (excluding short-term securities) as follows:



       (000'S OMITTED)                                                                               PURCHASES          SALES
                                                                                                               
       CALIFORNIA                                                                                     $  7,130       $  5,105
       INTERMEDIATE                                                                                     11,480          8,061
       NEW YORK                                                                                          3,260          3,189


       NOTE D--CAPITAL:

       At October 31, 2005, the common shares outstanding and the common shares
       of each Fund owned by Neuberger were as follows:



                                                                                          COMMON SHARES         COMMON SHARES
                                                                                            OUTSTANDING    OWNED BY NEUBERGER
                                                                                                                 
       CALIFORNIA                                                                             6,791,981                 6,981
       INTERMEDIATE                                                                          20,705,124                 6,981
       NEW YORK                                                                               5,574,550                 6,981


       Transactions in common shares for the years ended October 31, 2005 and
       October 31, 2004, were as follows:



                                                                                     REINVESTMENT OF
                                                                                       DIVIDENDS AND   NET INCREASE IN COMMON
                                                                                       DISTRIBUTIONS       SHARES OUTSTANDING
                                                                                      2005      2004         2005        2004
                                                                                                               
       CALIFORNIA                                                                       --        --           --          --
       INTERMEDIATE                                                                     --        --           --          --
       NEW YORK                                                                         --        --           --          --


                                       33


FINANCIAL HIGHLIGHTS CALIFORNIA INTERMEDIATE MUNICIPAL FUND

The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.



                                                                                                                    PERIOD FROM
                                                                                                            SEPTEMBER 27, 2002^
                                                                            YEAR ENDED OCTOBER 31,               TO OCTOBER 31,
                                                                    ------------------------------------   --------------------
                                                                          2005         2004         2003                   2002
                                                                                               
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD                   $    15.06   $    14.36   $    14.31   $              14.32
                                                                    ----------   ----------   ----------   --------------------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON
  SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS)##                                             .91          .91          .85                    .02
NET GAINS OR LOSSES ON SECURITIES
  (BOTH REALIZED AND UNREALIZED)                                          (.40)         .67          .14                     --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED
  SHAREHOLDERS FROM:
  NET INVESTMENT INCOME                                                   (.14)        (.13)        (.08)                    --
                                                                    ----------   ----------   ----------   --------------------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS         .37         1.45          .91                    .02
                                                                    ----------   ----------   ----------   --------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
  NET INVESTMENT INCOME                                                   (.75)        (.75)        (.75)                    --
                                                                    ----------   ----------   ----------   --------------------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES                                                   --           --           --                   (.03)
ISSUANCE OF PREFERRED SHARES                                                --           --         (.11)                    --
                                                                    ----------   ----------   ----------   --------------------
TOTAL CAPITAL CHARGES                                                       --           --         (.11)                  (.03)
                                                                    ----------   ----------   ----------   --------------------
COMMON SHARE NET ASSET VALUE, END OF PERIOD                         $    14.68   $    15.06   $    14.36   $              14.31
                                                                    ----------   ----------   ----------   --------------------
COMMON SHARE MARKET VALUE, END OF PERIOD                            $    13.75   $    13.47   $    13.00   $              15.00
                                                                    ----------   ----------   ----------   --------------------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+                              +2.96%      +10.97%       +6.02%                 -0.10%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+                                 +7.82%       +9.63%       -8.44%                 +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD
  (IN MILLIONS)                                                     $     99.7   $    102.3   $     97.5   $               94.5
PREFERRED SHARES, AT LIQUIDATION VALUE ($25,000
  PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS)                   $     59.0   $     59.0   $     59.0   $                 --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS#                                                     .96%         .96%         .88%                   .84%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS@@                                                    .96%         .96%         .88%                   .83%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
  SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS                                                     6.08%        6.24%        5.88%                  1.10%*
RATIO OF PREFERRED SHARES DIVIDENDS TO AVERAGE
  NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS                             .91%         .86%         .56%                    --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
  SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS                                                     5.17%        5.38%        5.32%                  1.10%*
PORTFOLIO TURNOVER RATE                                                      3%           3%           9%                     0%**
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@         $   67,273   $   68,383   $   66,332   $                 --


See Notes to Financial Highlights

                                       34


FINANCIAL HIGHLIGHTS INTERMEDIATE MUNICIPAL FUND

The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.



                                                                                                                    PERIOD FROM
                                                                                                            SEPTEMBER 27, 2002^
                                                                           YEAR ENDED OCTOBER 31,                TO OCTOBER 31,
                                                                    ------------------------------------   --------------------
                                                                          2005         2004         2003                   2002
                                                                                               
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD                   $    15.11   $    14.44   $    14.30   $              14.32
                                                                    ----------   ----------   ----------   --------------------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS)##                                             .95          .94          .88                    .01
NET GAINS OR LOSSES ON SECURITIES
  (BOTH REALIZED AND UNREALIZED)                                          (.43)         .65          .25                     --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED
  SHAREHOLDERS FROM:
  NET INVESTMENT INCOME                                                   (.15)        (.12)        (.09)                    --
                                                                    ----------   ----------   ----------   --------------------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS         .37         1.47         1.04                    .01
                                                                    ----------   ----------   ----------   --------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
  NET INVESTMENT INCOME                                                   (.80)        (.80)        (.80)                    --
                                                                    ----------   ----------   ----------   --------------------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES                                                   --           --           --                   (.03)
ISSUANCE OF PREFERRED SHARES                                                --           --         (.10)                    --
                                                                    ----------   ----------   ----------   --------------------
TOTAL CAPITAL CHARGES                                                       --           --         (.10)                  (.03)
                                                                    ----------   ----------   ----------   --------------------
COMMON SHARE NET ASSET VALUE, END OF PERIOD                         $    14.68   $    15.11   $    14.44   $              14.30
                                                                    ----------   ----------   ----------   --------------------
COMMON SHARE MARKET VALUE, END OF PERIOD                            $    13.62   $    13.70   $    13.33   $              15.00
                                                                    ----------   ----------   ----------   --------------------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+                              +2.93%      +10.91%       +6.88%                 -0.17%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+                                 +5.32%       +8.94%       -5.94%                 +0.00%**

RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD
  (IN MILLIONS)                                                     $    303.9   $    312.8   $    299.1   $              293.3
PREFERRED SHARES, AT LIQUIDATION VALUE ($25,000
  PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS)                   $    179.4   $    179.4   $    179.4   $                 --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS#                                                     .80%         .82%         .74%                   .51%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS@@                                                    .80%         .82%         .74%                   .51%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
  SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS                                                     6.33%        6.40%        6.08%                  1.62%*
RATIO OF PREFERRED SHARES DIVIDENDS TO AVERAGE
  NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS                            1.02%         .85%         .59%                    --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
  SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS                                                     5.31%        5.55%        5.49%                  1.62%*
PORTFOLIO TURNOVER RATE                                                      2%           3%          10%                     0%**
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@         $   67,368   $   68,622   $   66,694   $                 --


See Notes to Financial Highlights

                                       35


FINANCIAL HIGHLIGHTS NEW YORK INTERMEDIATE MUNICIPAL FUND

The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.



                                                                                                                    PERIOD FROM
                                                                                                            SEPTEMBER 27, 2002^
                                                                           YEAR ENDED OCTOBER 31,                TO OCTOBER 31,
                                                                    ------------------------------------   --------------------
                                                                          2005         2004         2003                   2002
                                                                                               
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD                   $    14.90   $    14.40   $    14.32   $              14.32
                                                                    ----------   ----------   ----------   --------------------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO
  COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS)##                                             .93          .93          .86                    .03
NET GAINS OR LOSSES ON SECURITIES
  (BOTH REALIZED AND UNREALIZED)                                          (.44)         .48          .19                     --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED
  SHAREHOLDERS FROM:
  NET INVESTMENT INCOME                                                   (.14)        (.13)        (.08)                    --
                                                                    ----------   ----------   ----------   --------------------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS         .35         1.28          .97                    .03
                                                                    ----------   ----------   ----------   --------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
  NET INVESTMENT INCOME                                                   (.78)        (.78)        (.78)                    --
                                                                    ----------   ----------   ----------   --------------------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES                                                   --           --           --                   (.03)
ISSUANCE OF PREFERRED SHARES                                                --           --         (.11)                    --
                                                                    ----------   ----------   ----------   --------------------
TOTAL CAPITAL CHARGES                                                       --           --         (.11)                  (.03)
                                                                    ----------   ----------   ----------   --------------------
COMMON SHARE NET ASSET VALUE, END OF PERIOD                         $    14.47   $    14.90   $    14.40   $              14.32
                                                                    ----------   ----------   ----------   --------------------
COMMON SHARE MARKET VALUE, END OF PERIOD                            $    13.54   $    13.32   $    13.27   $              15.00
                                                                    ----------   ----------   ----------   --------------------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+                              +2.87%       +9.67%       +6.36%                 -0.03%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+                                 +7.68%       +6.39%       -6.43%                 +0.00%**

RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD
  (IN MILLIONS)                                                     $     80.7   $     83.1   $     80.3   $               76.7
PREFERRED SHARES, AT LIQUIDATION VALUE ($25,000
  PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS)                   $     48.3   $     48.3   $     48.3   $                 --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS#                                                    1.02%        1.00%         .92%                   .94%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS@@                                                   1.01%         .99%         .92%                   .93%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
  SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
  COMMON SHAREHOLDERS                                                     6.30%        6.37%        6.02%                  1.22%*
RATIO OF PREFERRED SHARES DIVIDENDS TO AVERAGE
  NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS                             .92%         .86%         .57%                    --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
  SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO COMMON
  SHAREHOLDERS                                                            5.38%        5.51%        5.45%                  1.22%*
PORTFOLIO TURNOVER RATE                                                      2%           5%          11%                     0%**
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@         $   66,813   $   68,073   $   66,617   $                 --


See Notes to Financial Highlights

                                       36


NOTES TO FINANCIAL HIGHLIGHTS INTERMEDIATE MUNICIPAL CLOSED-END FUNDS

+  Total return based on per share net asset value reflects the effects of
   changes in net asset value on the performance of each Fund during each fiscal
   period. Total return based on per share market value assumes the purchase of
   common shares at the market price on the first day and sales of common shares
   at the market price on the last day of the period indicated. Dividends and
   distributions, if any, are assumed to be reinvested at prices obtained under
   each Fund's dividend reinvestment plan. Results represent past performance
   and do not guarantee future results. Current returns may be lower or higher
   than the performance data quoted. For each Fund, total return would have been
   lower if Management had not waived the investment management fee. Performance
   data current to the most recent month-end are available at www.nb.com.

#  The Fund is required to calculate an expense ratio without taking into
   consideration any expense reductions related to expense offset arrangements.

@@ After waiver of investment management fee. Had Management not undertaken such
   action, the annualized ratios of net expenses to average daily net assets
   applicable to common shareholders would have been:



                                                                                                                    PERIOD FROM
                                                                              YEAR ENDED OCTOBER 31,            SEPTEMBER 27 TO
                                                                          2005         2004         2003       OCTOBER 31, 2002
                                                                                                               
CALIFORNIA                                                                1.36%        1.35%        1.26%                  1.08%
INTERMEDIATE                                                              1.20%        1.22%        1.13%                   .76%
NEW YORK                                                                  1.41%        1.39%        1.31%                  1.18%


^  The date investment operations commenced.

*  Annualized.

** Not annualized.

@  Calculated by subtracting the Fund's total liabilities (excluding accumulated
   unpaid dividends on AMPS) from the Fund's total assets and dividing by the
   number of AMPS outstanding.

++ Expense ratios do not include the effect of distribution payments to holders
   of AMPS. Income ratios include income earned on assets attributable to AMPS
   outstanding.

## Calculated based on the average number of shares outstanding during the
   fiscal period.

                                       37


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of
Neuberger Berman California Intermediate Municipal Fund Inc.
Neuberger Berman Intermediate Municipal Fund Inc.
Neuberger Berman New York Intermediate Municipal Fund Inc.

We have audited the accompanying statements of assets and liabilities of
Neuberger Berman California Intermediate Municipal Fund Inc., Neuberger Berman
Intermediate Municipal Fund Inc., and Neuberger Berman New York Intermediate
Municipal Fund Inc. (the "Funds"), including the schedules of investments, as of
October 31, 2005, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' 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 the standards of the Public Company
Accounting Oversight Board (United States). 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. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2005, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Neuberger Berman California Intermediate Municipal Fund Inc., Neuberger Berman
Intermediate Municipal Fund Inc., and Neuberger Berman New York Intermediate
Municipal Fund Inc., at October 31, 2005, the results of their operations for
the year then ended, the changes in their net assets for each of the two years
in the period then ended, and their financial highlights for each of the periods
indicated therein, in conformity with U.S. generally accepted accounting
principles.


                                    /s/ Ernest & Young LLP


Boston, Massachusetts
December 9, 2005

                                       38


DIVIDEND REINVESTMENT PLAN

The Bank of New York ("Plan Agent") will act as Plan Agent for shareholders who
have not elected in writing to receive dividends and distributions in cash (each
a "Participant"), will open an account for each Participant under the Dividend
Reinvestment Plan ("Plan") in the same name as their then current Shares are
registered, and will put the Plan into effect for each Participant as of the
first record date for a dividend or capital gains distribution.

Whenever the Fund declares a dividend or distribution with respect to the common
stock of the Fund ("Shares"), each Participant will receive such dividends and
distributions in additional Shares, including fractional Shares acquired by the
Plan Agent and credited to each Participant's account. If on the payment date
for a cash dividend or distribution, the net asset value is equal to or less
than the market price per Share plus estimated brokerage commissions, the Plan
Agent shall automatically receive such Shares, including fractions, for each
Participant's account. Except in the circumstances described in the next
paragraph, the number of additional Shares to be credited to each Participant's
account shall be determined by dividing the dollar amount of the dividend or
distribution payable on their Shares by the greater of the net asset value per
Share determined as of the date of purchase or 95% of the then current market
price per Share on the payment date.

Should the net asset value per Share exceed the market price per Share plus
estimated brokerage commissions on the payment date for a cash dividend or
distribution, the Plan Agent or a broker-dealer selected by the Plan Agent shall
endeavor, for a purchase period lasting until the last business day before the
next date on which the Shares trade on an "ex-dividend" basis, but in no event,
except as provided below, more than 30 days after the dividend payment date, to
apply the amount of such dividend or distribution on each Participant's Shares
(less their PRO RATA share of brokerage commissions incurred with respect to the
Plan Agent's open-market purchases in connection with the reinvestment of such
dividend or distribution) to purchase Shares on the open market for each
Participant's account. No such purchases may be made more than 30 days after the
payment date for such dividend except where temporary curtailment or suspension
of purchase is necessary to comply with applicable provisions of federal
securities laws. If, at the close of business on any day during the purchase
period the net asset value per Share equals or is less than the market price per
Share plus estimated brokerage commissions, the Plan Agent will not make any
further open-market purchases in connection with the reinvestment of such
dividend or distribution. If the Plan Agent is unable to invest the full
dividend or distribution amount through open-market purchases during the
purchase period, the Plan Agent shall request that, with respect to the
uninvested portion of such dividend or distribution amount, the Fund issue new
Shares at the close of business on the earlier of the last day of the purchase
period or the first day during the purchase period on which the net asset value
per Share equals or is less than the market price per Share, plus estimated
brokerage commissions, such Shares to be issued in accordance with the terms
specified in the third paragraph hereof. These newly issued Shares will be
valued at the then-current market price per Share at the time such Shares are to
be issued.

For purposes of making the dividend reinvestment purchase comparison under the
Plan, (a) the market price of the Shares on a particular date shall be the last
sales price on the New York Stock Exchange (or if the Shares are not listed on
the New York Stock Exchange, such other exchange on which the Shares are
principally traded) on that date, or, if there is no sale on such Exchange (or
if not so listed, in the over-the-counter market) on that date, then the mean
between the closing bid and asked quotations for such Shares on such Exchange on
such date and (b) the net asset value per Share on a particular date shall be
the net asset value per Share most recently calculated by or on behalf of the
Fund. All dividends, distributions and other payments (whether made in cash or
Shares) shall be made net of any applicable withholding tax.

Open-market purchases provided for above may be made on any securities exchange
where the Fund's Shares are traded, in the over-the-counter market or in
negotiated transactions and may be on such terms as to price, delivery and
otherwise as the Plan Agent shall determine. Each Participant's uninvested funds
held by the Plan Agent will not bear interest, and it is understood that, in any
event, the Plan Agent shall have no liability in connection with any inability
to purchase Shares within 30 days after the initial date of such purchase as
herein provided, or with the timing of any purchases effected. The Plan Agent
shall have no responsibility as to the value of the Shares acquired for each
Participant's account. For the purpose of cash investments, the Plan Agent may
commingle each Participant's funds with those of other shareholders of the Fund
for whom the Plan Agent similarly acts as agent, and the average price
(including brokerage commissions) of all Shares purchased by the Plan Agent as
Plan Agent shall be the price per Share allocable to each Participant in
connection therewith.

                                       39


The Plan Agent may hold each Participant's Shares acquired pursuant to the Plan
together with the Shares of other shareholders of the Fund acquired pursuant to
the Plan in noncertificated form in the Plan Agent's name or that of the Plan
Agent's nominee. The Plan Agent will forward to each Participant any proxy
solicitation material and will vote any Shares so held for each Participant only
in accordance with the instructions set forth on proxies returned by the
participant to the Fund.

The Plan Agent will confirm to each Participant each acquisition made for their
account as soon as practicable but not later than 60 days after the date
thereof. Although each Participant may from time to time have an undivided
fractional interest (computed to three decimal places) in a Share, no
certificates for a fractional Share will be issued. However, dividends and
distributions on fractional Shares will be credited to each Participant's
account. In the event of termination of a Participant's account under the Plan,
the Plan Agent will adjust for any such undivided fractional interest in cash at
the market value of the Shares at the time of termination, less the PRO RATA
expense of any sale required to make such an adjustment.

Any Share dividends or split Shares distributed by the Fund on Shares held by
the Plan Agent for Participants will be credited to their accounts. In the event
that the Fund makes available to its shareholders rights to purchase additional
Shares or other securities, the Shares held for each Participant under the Plan
will be added to other Shares held by the Participant in calculating the number
of rights to be issued to each Participant.

The Plan Agent's service fee for handling capital gains distributions or income
dividends will be paid by the Fund. Participants will be charged their PRO RATA
share of brokerage commissions on all open-market purchases.

Each Participant may terminate their account under the Plan by notifying the
Plan Agent in writing. Such termination will be effective immediately if the
Participant's notice is received by the Plan Agent not less than ten days prior
to any dividend or distribution record date, otherwise such termination will be
effective the first trading day after the payment date for such dividend or
distribution with respect to any subsequent dividend or distribution. The Plan
may be terminated by the Plan Agent or the Fund upon notice in writing mailed to
each Participant at least 30 days prior to any record date for the payment of
any dividend or distribution by the Fund.

These terms and conditions may be amended or supplemented by the Plan Agent or
the Fund at any time or times but, except when necessary or appropriate to
comply with applicable law or the rules or policies of the Securities and
Exchange Commission or any other regulatory authority, only by mailing to each
Participant appropriate written notice at least 30 days prior to the effective
date thereof. The amendment or supplement shall be deemed to be accepted by each
Participant unless, prior to the effective date thereof, the Plan Agent receives
written notice of the termination of their account under the Plan. Any such
amendment may include an appointment by the Plan Agent in its place and stead of
a successor Plan Agent under these terms and conditions, with full power and
authority to perform all or any of the acts to be performed by the Plan Agent
under these terms and conditions. Upon any such appointment of any Plan Agent
for the purpose of receiving dividends and distributions, the Fund will be
authorized to pay to such successor Plan Agent, for each Participant's account,
all dividends and distributions payable on Shares held in their name or under
the Plan for retention or application by such successor Plan Agent as provided
in these terms and conditions.

The Plan Agent shall at all times act in good faith and agrees to use its best
efforts within reasonable limits to ensure the accuracy of all services
performed under this Agreement and to comply with applicable law, but assumes no
responsibility and shall not be liable for loss or damage due to errors unless
such error is caused by the Plan Agent's negligence, bad faith, or willful
misconduct or that of its employees.

These terms and conditions shall be governed by the laws of the State of
Maryland.

                                       40


DIRECTORY

     INVESTMENT MANAGER AND ADMINISTRATOR
     Neuberger Berman Management Inc.
     605 Third Avenue, 2nd Floor
     New York, NY 10158-0180
     877.461.1899 or 212.476.8800

     SUB-ADVISER
     Neuberger Berman, LLC
     605 Third Avenue
     New York, NY 10158-3698

     CUSTODIAN
     State Street Bank and Trust Company
     225 Franklin Street
     Boston, MA 02110

     STOCK TRANSFER AGENT
     Bank of New York
     101 Barclay Street, 11-E
     New York, NY 10286

     LEGAL COUNSEL
     Kirkpatrick & Lockhart Nicholson Graham LLP
     1800 Massachusetts Avenue, NW
     2nd Floor
     Washington, DC 20036

     INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
     Ernst & Young LLP
     200 Clarendon Street
     Boston, MA 02116

                                       41


DIRECTORS AND OFFICERS

The following tables set forth information concerning the directors and officers
of the Fund. All persons named as directors and officers also serve in similar
capacities for other funds administered or managed by Management and Neuberger.
The Statement of Additional Information for the Fund includes additional
information about Fund directors and is available upon request, without charge,
by calling (877) 461-1899.

INFORMATION ABOUT THE BOARD OF DIRECTORS



                                                                                     NUMBER OF
                                                                                   PORTFOLIOS IN
                                                                                   FUND COMPLEX
  NAME, AGE, ADDRESS(1) AND      LENGTH OF TIME                                     OVERSEEN BY    OTHER DIRECTORSHIPS HELD OUTSIDE
    POSITION(2) WITH FUND            SERVED         PRINCIPAL OCCUPATION(S)(4)      DIRECTOR(5)        FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
                                                                                      
                                                               CLASS I

INDEPENDENT FUND DIRECTORS

Faith Colish (70)               Since the         Counsel, Carter Ledyard &             45        Director, American Bar Retirement
Director                        inception of the  Milburn LLP (law firm) since                    Association (ABRA) since 1997
                                Fund(3)           October 2002; formerly,                         (not-for-profit membership
                                                  Attorney-at-Law and President,                  association).
                                                  Faith Colish, A Professional
                                                  Corporation, 1980 to 2002.

C. Anne Harvey (68)             Since the         Consultant, C.A. Harvey               45        President, Board of Associates to
Director                        inception of the  Associates since June 2001;                     The National Rehabilitation
                                Fund(3)           formerly, Director, AARP, 1978                  Hospital's Board of Directors
                                                  to December 2001.                               since 2002; formerly, Member,
                                                                                                  Individual Investors Advisory
                                                                                                  Committee to the New York Stock
                                                                                                  Exchange Board of Directors, 1998
                                                                                                  to June 2002; formerly, Member,
                                                                                                  American Savings Education
                                                                                                  Council's Policy Board (ASEC),
                                                                                                  1998 to 2000; formerly, Member,
                                                                                                  Executive Committee, Crime
                                                                                                  Prevention Coalition of America,
                                                                                                  1997 to 2000.

Cornelius T. Ryan (74)          Since the         Founding General Partner,             45        Director, Capital Cash Management
Director                        inception of the  Oxford Partners and Oxford                      Trust (money market fund),
                                Fund(3)           Bioscience Partners (venture                    Naragansett Insured Tax-Free
                                                  capital partnerships) and                       Income Fund, Rocky Mountain Equity
                                                  President, Oxford Venture                       Fund, Prime Cash Fund, several
                                                  Corporation.                                    private companies and QuadraMed
                                                                                                  Corporation (NASDAQ).


                                       42




                                                                                     NUMBER OF
                                                                                   PORTFOLIOS IN
                                                                                   FUND COMPLEX
  NAME, AGE, ADDRESS(1) AND      LENGTH OF TIME                                     OVERSEEN BY    OTHER DIRECTORSHIPS HELD OUTSIDE
    POSITION(2) WITH FUND            SERVED         PRINCIPAL OCCUPATION(S)(4)      DIRECTOR(5)        FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
                                                                                      
Peter P. Trapp (61)             Since the         Regional Manager for Atlanta          45        None.
Director                        inception of the  Region, Ford Motor Credit
                                Fund(3)           Company since August 1997;
                                                  formerly, President, Ford Life
                                                  Insurance Company, April 1995
                                                  to August 1997.

DIRECTOR WHO IS AN "INTERESTED PERSON"

Peter E. Sundman* (46)          Since the         Executive Vice President,             45        Director and Vice President,
Chief Executive Officer,        inception of the  Neuberger Berman Inc. (holding                  Neuberger & Berman Agency, Inc.
Director and Chairman of the    Fund(3)           company) since 1999; Head of                    since 2000; formerly, Director,
Board                                             Neuberger Berman Inc.'s Mutual                  Neuberger Berman Inc. (holding
                                                  Funds Business (since 1999)                     company) from October 1999 to
                                                  and Institutional Business                      March 2003; Trustee, Frost Valley
                                                  (from 1999 to October 2005);                    YMCA.
                                                  responsible for Managed
                                                  Accounts Business and
                                                  intermediary distribution
                                                  since October 2005; President
                                                  and Director, Management since
                                                  1999; Executive Vice
                                                  President, Neuberger since
                                                  1999; formerly, Principal,
                                                  Neuberger from 1997 to 1999;
                                                  formerly, Senior Vice
                                                  President, Management from
                                                  1996 to 1999.

                                                              CLASS II

INDEPENDENT FUND DIRECTORS

John Cannon (75)                Since the         Consultant. Formerly,                 45        Independent Trustee or Director of
Director                        inception of the  Chairman, CDC Investment                        three series of Oppenheimer Funds:
                                Fund(3)           Advisers (registered                            Limited Term New York Municipal
                                                  investment adviser), 1993 to                    Fund, Rochester Fund Municipals,
                                                  January 1999; formerly,                         and Oppenheimer Convertible
                                                  President and Chief Executive                   Securities Fund, since 1992.
                                                  Officer, AMA Investment
                                                  Advisors, an affiliate of the
                                                  American Medical Association.


                                       43




                                                                                     NUMBER OF
                                                                                   PORTFOLIOS IN
                                                                                   FUND COMPLEX
  NAME, AGE, ADDRESS(1) AND      LENGTH OF TIME                                     OVERSEEN BY    OTHER DIRECTORSHIPS HELD OUTSIDE
    POSITION(2) WITH FUND            SERVED         PRINCIPAL OCCUPATION(S)(4)      DIRECTOR(5)        FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
                                                                                      
Barry Hirsch (72)               Since the         Attorney-at-Law. Formerly,            45        None.
Director                        inception of      Senior Counsel, Loews
                                the Fund(3)       Corporation (diversified
                                                  financial corporation) May
                                                  2002 to April 2003; formerly,
                                                  Senior Vice President,
                                                  Secretary and General Counsel,
                                                  Loews Corporation.

Tom D. Seip (55)                Since the         General Partner, Seip                 45        Director, H&R Block, Inc.
Director                        inception of      Investments LP (a private                       (financial services company) since
                                the Fund(3)       investment partnership);                        May 2001; Director, Forward
                                                  formerly, President and CEO,                    Management, Inc. (asset
                                                  Westaff, Inc. (temporary                        management) since 2001; formerly,
                                                  staffing), May 2001 to January                  Director, General Magic (voice
                                                  2002; Senior Executive at the                   recognition software) 2001 to
                                                  Charles Schwab Corporation                      2002; formerly, Director,
                                                  from 1983 to 1999, including                    E-Finance Corporation (credit
                                                  Chief Executive Officer,                        decisioning services) 1999 to
                                                  Charles Schwab Investment                       2003; formerly, Director,
                                                  Management, Inc. and Trustee,                   Save-Daily.com (micro investing
                                                  Schwab Family of Funds and                      services) 1999 to 2003; Director,
                                                  Schwab Investments from 1997                    Offroad Capital Inc. (pre-public
                                                  to 1998; and Executive Vice                     internet commerce company).
                                                  President-Retail Brokerage,
                                                  Charles Schwab Investment
                                                  Management from 1994 to 1997.


                                       44




                                                                                     NUMBER OF
                                                                                   PORTFOLIOS IN
                                                                                   FUND COMPLEX
  NAME, AGE, ADDRESS(1) AND      LENGTH OF TIME                                     OVERSEEN BY    OTHER DIRECTORSHIPS HELD OUTSIDE
    POSITION(2) WITH FUND            SERVED         PRINCIPAL OCCUPATION(S)(4)      DIRECTOR(5)        FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
                                                                                      
DIRECTOR WHO IS AN "INTERESTED PERSON"

Jack L. Rivkin* (65)            Since 2002(3)     Executive Vice President and          45        Director, Dale Carnegie and
President and Director                            Chief Investment Officer,                       Associates, Inc. (private company)
                                                  Neuberger Berman Inc. (holding                  since 1998; Director, Emagin Corp.
                                                  company) since 2002 and 2003,                   (public company) since 1997;
                                                  respectively; Executive Vice                    Director, Solbright, Inc. (private
                                                  President and Chief Investment                  company) since 1998; Director,
                                                  Officer, Neuberger since                        Infogate, Inc. (private company)
                                                  December 2002 and 2003,                         since 1997; Director, Broadway
                                                  respectively; Director and                      Television Network (private
                                                  Chairman, Management since                      company) since 2000.
                                                  December 2002; formerly,
                                                  Executive Vice President,
                                                  Citigroup Investments, Inc.
                                                  from September 1995 to
                                                  February 2002; formerly,
                                                  Executive Vice President,
                                                  Citigroup Inc. from September
                                                  1995 to February 2002.

                                                              CLASS III

INDEPENDENT FUND DIRECTORS

Robert A. Kavesh (78)           Since the         Marcus Nadler Professor               45        Director, The Caring Community
Director                        inception of      Emeritus of Finance and                         (not-for-profit); formerly,
                                the Fund(3)       Economics, New York University                  Director, DEL Laboratories, Inc.
                                                  Stern School of Business;                       (cosmetics and pharmaceuticals),
                                                  formerly, Executive                             1978 to 2004; formerly, Director,
                                                  Secretary-Treasurer, American                   Apple Bank for Savings, 1979 to
                                                  Finance Association, 1961 to                    1990; formerly, Director, Western
                                                  1979.                                           Pacific Industries, Inc., 1972 to
                                                                                                  1986 (public company).


                                       45




                                                                                     NUMBER OF
                                                                                   PORTFOLIOS IN
                                                                                   FUND COMPLEX
  NAME, AGE, ADDRESS(1) AND      LENGTH OF TIME                                     OVERSEEN BY    OTHER DIRECTORSHIPS HELD OUTSIDE
    POSITION(2) WITH FUND            SERVED         PRINCIPAL OCCUPATION(S)(4)      DIRECTOR(5)        FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
                                                                                      
Howard A. Mileaf (68)           Since the         Retired. Formerly, Vice               45        Director, WHX Corporation (holding
Director                        inception of      President and Special Counsel,                  company) since August 2002;
                                the Fund(3)       WHX Corporation (holding                        Director, Webfinancial Corporation
                                                  company) 1993 to 2001.                          (holding company) since December
                                                                                                  2002; Director, State Theatre of
                                                                                                  New Jersey (not-for-profit
                                                                                                  theater) since 2000; formerly,
                                                                                                  Director, Kevlin Corporation
                                                                                                  (manufacturer of microwave and
                                                                                                  other products).

Edward I. O'Brien (77)          Since the         Formerly, Member, Investment          45        Director, Legg Mason, Inc.
Director                        inception of      Policy Committee, Edward                        (financial services holding
                                the Fund(3)       Jones, 1993 to 2001;                            company) since 1993; formerly,
                                                  President, Securities Industry                  Director, Boston Financial Group
                                                  Association ("SIA")                             (real estate and tax shelters)
                                                  (securities industry's                          1993 to 1999.
                                                  representative in government
                                                  relations and regulatory
                                                  matters at the federal and
                                                  state levels) 1974 to 1992;
                                                  Adviser to SIA, November 1992
                                                  to November 1993.

William E. Rulon (73)           Since the         Retired. Formerly, Senior Vice        45        Director, Pro-Kids Golf and
Director                        inception of      President, Foodmaker, Inc.                      Learning Academy (teach golf and
                                the Fund(3)       (operator and franchiser of                     computer usage to "at risk"
                                                  restaurants) until January                      children) since 1998; formerly,
                                                  1997.                                           Director, Prandium, Inc.
                                                                                                  (restaurants) from March 2001 to
                                                                                                  July 2002.

Candace L. Straight (58)        Since the         Private investor and                  45        Director, The Proformance
Director                        inception of      consultant specializing in the                  Insurance Company (personal lines
                                the Fund(3)       insurance industry; formerly,                   property and casualty insurance
                                                  Advisory Director, Securitas                    company) since March 2004;
                                                  Capital LLC (a global private                   Director, Providence Washington
                                                  equity investment firm                          (property and casualty insurance
                                                  dedicated to making                             company) since December 1998;
                                                  investments in the insurance                    Director, Summit Global Partners
                                                  sector) 1998 to December 2002.                  (insurance brokerage firm) since
                                                                                                  October 2000.


                                       46


(1)  The business address of each listed person is 605 Third Avenue, New York,
     New York 10158.

(2)  The Board of Directors shall at times be divided as equally as possible
     into three classes of Directors designated Class I, Class II, and Class
     III. The terms of office of Class I, Class II, and Class III Directors
     shall expire at the annual meeting of shareholders held in 2006, 2007, and
     2008, respectively, and at each third annual meeting of stockholders
     thereafter.

(3)  The Director has served since the Fund's inception except for Mr. Rivkin
     who has served as a Director since December 2002 for the Funds with an
     inception date of 2002. The inception date of Neuberger Berman Intermediate
     Municipal Fund Inc., Neuberger Berman California Intermediate Municipal
     Fund Inc., Neuberger Berman New York Intermediate Municipal Fund Inc., and
     Neuberger Berman Real Estate Income Fund Inc. is 2002. The inception date
     of Neuberger Berman Realty Income Fund Inc., Neuberger Berman Real Estate
     Securities Income Fund Inc. and Neuberger Berman Income Opportunity Fund
     Inc. is 2003. The inception date of Neuberger Berman Dividend Advantage
     Fund Inc. is 2004.

(4)  Except as otherwise indicated, each individual has held the positions shown
     for at least the last five years.

(5)  For funds organized in a master-feeder structure, we count the master fund
     and its associated feeder funds as a single portfolio.

*    Indicates a Director who is an "interested person" within the meaning of
     the 1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the Fund
     by virtue of the fact that they are officers and/or directors of Management
     and Executive Vice Presidents of Neuberger Berman.

                                       47


INFORMATION ABOUT THE OFFICERS OF THE FUND



                                          POSITION AND
  NAME, AGE, AND ADDRESS (1)          LENGTH OF TIME SERVED                           PRINCIPAL OCCUPATION(S) (2)
-----------------------------------------------------------------------------------------------------------------------------------
                                                               
Michael J. Bradler (35)          Assistant Treasurer since 2005      Employee, Management since 1997; Assistant Treasurer,
                                                                     fifteen registered investment companies for which Management
                                                                     acts as investment manager and administrator since 2005.

Claudia A. Brandon (49)          Secretary since the Fund's          Vice President-Mutual Fund Board Relations, Management since
                                 inception (3)                       2000 and Assistant Secretary since 2004; Vice President,
                                                                     Neuberger since 2002 and employee since 1999; Assistant
                                                                     Secretary, Management since 2004; formerly, Vice President,
                                                                     Management from 1986 to 1999; Secretary, fifteen registered
                                                                     investment companies for which Management acts as investment
                                                                     manager and administrator (three since 2000, four since
                                                                     2002, three since 2003, four since 2004 and one since 2005).

Robert Conti (49)                Vice President since the Fund's     Senior Vice President, Neuberger since 2003; formerly, Vice
                                 inception (3)                       President, Neuberger from 1999 to 2003; Senior Vice
                                                                     President, Management since 2000; formerly, Controller,
                                                                     Management until 1996; formerly, Treasurer, Management from
                                                                     1996 to 1999; Vice President, fifteen registered investment
                                                                     companies for which Management acts as investment manager
                                                                     and administrator (three since 2000, four since 2002, three
                                                                     since 2003, four since 2004 and one since 2005).

Brian J. Gaffney (52)            Vice President since the Fund's     Managing Director, Neuberger since 1999; Senior Vice
                                 inception (3)                       President, Management since 2000; formerly, Vice President,
                                                                     Management from 1997 to 1999; Vice President, fifteen
                                                                     registered investment companies for which Management acts as
                                                                     investment manager and administrator (three since 2000, four
                                                                     since 2002, three since 2003, four since 2004 and one since
                                                                     2005).


                                       48




                                          POSITION AND
  NAME, AGE, AND ADDRESS (1)          LENGTH OF TIME SERVED                           PRINCIPAL OCCUPATION(S) (2)
-----------------------------------------------------------------------------------------------------------------------------------
                                                               
Sheila R. James (40)             Assistant Secretary since the       Employee, Neuberger since 1999; formerly, Employee,
                                 Fund's inception (3)                Management from 1991 to 1999; Assistant Secretary, fifteen
                                                                     registered investment companies for which Management acts as
                                                                     investment manager and administrator (seven since 2002,
                                                                     three since 2003, four since 2004 and one since 2005).

Kevin Lyons (50)                 Assistant Secretary since 2003      Employee, Neuberger since 1999; formerly, Employee,
                                 (4)                                 Management from 1993 to 1999; Assistant Secretary, fifteen
                                                                     registered investment companies for which Management acts as
                                                                     investment manager and administrator (ten since 2003, four
                                                                     since 2004 and one since 2005).

John M. McGovern (35)            Treasurer and Principal             Vice President, Neuberger since January 2004; Employee,
                                 Financial and Accounting Officer    Management since 1993; Treasurer and Principal Financial and
                                 since 2005; prior thereto,          Accounting Officer, fifteen registered investment companies
                                 Assistant Treasurer since the       for which Management acts as investment manager and
                                 Fund's inception (3)                administrator (fifteen since 2005); formerly, Assistant
                                                                     Treasurer, fifteen registered investment companies for which
                                                                     Management acts as investment manager and administrator from
                                                                     2002 to 2005.

Frank Rosato (34)                Assistant Treasurer since 2005      Employee, Management since 1995; Assistant Treasurer,
                                                                     fifteen registered investment companies for which Management
                                                                     acts as investment manager and administrator since 2005.

Frederic B. Soule (59)           Vice President since the Fund's     Senior Vice President, Neuberger since 2003; formerly, Vice
                                 inception (3)                       President, Neuberger from 1999 to 2003; formerly, Vice
                                                                     President, Management from 1995 to 1999; Vice President,
                                                                     fifteen registered investment companies for which Management
                                                                     acts as investment manager and administrator (three since
                                                                     2000, four since 2002, three since 2003, four since 2004 and
                                                                     one since 2005).


                                       49




                                          POSITION AND
  NAME, AGE, AND ADDRESS (1)          LENGTH OF TIME SERVED                           PRINCIPAL OCCUPATION(S) (2)
-----------------------------------------------------------------------------------------------------------------------------------
                                                               
Chamaine Williams (34)           Chief Compliance Officer since      Vice President, Lehman Brothers Inc. since 2003; Chief
                                 2005                                Compliance Officer, fifteen registered investment companies
                                                                     for which Management acts as investment manager and
                                                                     administrator (fifteen since 2005); Chief Compliance
                                                                     Officer, Lehman Brothers Asset Management Inc. since 2003;
                                                                     Chief Compliance Officer, Lehman Brothers Alternative
                                                                     Investment Management LLC since 2003; formerly, Vice
                                                                     President, UBS Global Asset Management (US) Inc. (formerly,
                                                                     Mitchell Hutchins Asset Management, a wholly-owned
                                                                     subsidiary of PaineWebber Inc.) from 1997-2003.


----------
(1)  The business address of each listed person is 605 Third Avenue, New York,
     New York 10158.

(2)  Except as otherwise indicated, each individual has held the positions shown
     for at least the last five years.

(3)  The officer has served since the Fund's inception. The inception date of
     Neuberger Berman Intermediate Municipal Fund, Inc., Neuberger Berman
     California Intermediate Municipal Fund, Inc., Neuberger Berman New York
     Intermediate Municipal Fund, Inc., and Neuberger Berman Real Estate Income
     Fund is 2002. The inception date of Neuberger Berman Realty Income Fund,
     Inc., Neuberger Berman Real Estate Securities Income Fund, Inc. and
     Neuberger Berman Income Opportunity Fund, Inc. is 2003. The inception date
     of the Neuberger Berman Dividend Advantage Fund, Inc. is 2004.

(4)  For Neuberger Berman Dividend Advantage Fund, Inc., the officer has served
     since the Fund's inception in March 2004.

                                       50


PROXY VOTING POLICIES AND PROCEDURES

A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available, without charge,
by calling 1-800-877-9700 (toll-free) and on the website of the Securities and
Exchange Commission at www.sec.gov. Information regarding how the Funds voted
proxies relating to portfolio securities during the most recent 12-month period
ended June 30 is also available, without charge, by calling 1-800-877-9700
(toll-free), on the website of the Securities and Exchange Commission at
www.sec.gov, and on the Funds' website at www.nb.com.

QUARTERLY PORTFOLIO SCHEDULE

The Funds file a complete schedule of portfolio holdings for each Fund with the
Securities and Exchange Commission for the first and third quarters of each
fiscal year on Form N-Q. The Funds' Forms N-Q are available on the Securities
and Exchange Commission's website at www.sec.gov and may be reviewed and copied
at the Securities and Exchange Commission's Public Reference Room in Washington,
DC. Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling (800) 877-9700 (toll-free).

                                       51


NOTICE TO SHAREHOLDERS

In January 2006 you will receive information to be used in filing your 2005 tax
returns, which will include a notice of the exact tax status of all dividends
paid to you by each Fund during calendar 2005. Please consult your own tax
advisor for details as to how this information should be reflected on your tax
returns.

For the fiscal year ended October 31, 2005, the percentages representing the
portion of distributions from net investment income, which are exempt from
federal income tax, other than alternative minimum tax are as follows:



NEUBERGER BERMAN
--------------------------------------------------------------------------------
                                                                     
California Intermediate Municipal Fund Inc.                             99.96%
Intermediate Municipal Fund Inc.                                        99.81%
New York Intermediate Municipal Fund Inc.                               99.95%


                                       52


BOARD CONSIDERATION OF THE MANAGEMENT AND SUB-ADVISORY AGREEMENTS

At a meeting held on September 21, 2005, the Boards of Directors (collectively
the "Boards," each a "Board") of Neuberger Berman California Intermediate
Municipal Fund Inc., Neuberger Berman Intermediate Municipal Fund Inc. and
Neuberger Berman New York Intermediate Municipal Fund Inc. (each a "Fund"),
including the Directors who are not "interested persons" of each Fund
("Independent Fund Directors"), approved continuance of the Management and
Sub-Advisory Agreements ("Agreements") for each Fund.

In evaluating the Agreements, the Boards, including the Independent Fund
Directors, reviewed materials furnished by Management and Neuberger Berman, LLC
("Neuberger") in response to questions submitted by counsel to the Independent
Fund Directors, and met with senior representatives of Management and Neuberger
regarding their personnel and operations. The Independent Fund Directors were
advised by counsel that is experienced in Investment Company Act of 1940 matters
and that is independent of Management and Neuberger. The Independent Fund
Directors received a memorandum from independent counsel discussing the legal
standards for their consideration of the proposed continuance of the Agreements.
They met with such counsel separately from representatives of Management to
discuss the annual contract review. The annual contract review extends over two
regular meetings of the Boards to ensure that Management and Neuberger have time
to respond to any questions the Independent Fund Directors may have on their
initial review of the report and that the Independent Fund Directors have time
to consider those responses. In addition, during this process, the Boards held a
separate meeting devoted to reviewing and discussing Fund performance.

Each Board considered the following factors, among others, in connection with
its approval of the continuance of the Agreements: (1) the nature, extent, and
quality of the services to be provided by Management and Neuberger; (2) the
performance of each Fund compared to relevant market indices and a peer group of
investment companies; (3) the costs of the services to be provided and profits
historically realized by Management and its affiliates from the relationship
with the Funds; (4) the extent to which economies of scale might be realized as
each Fund grows; and (5) whether fee levels reflect those potential economies of
scale for the benefit of investors in each Fund. In their deliberations, the
members of each Board did not identify any particular information that was
all-important or controlling, and each Director may have attributed different
weights to the various factors.

Each Board evaluated the terms of the Agreements and whether the Agreements were
in the best interests of each Fund and its shareholders. Each Board considered,
with respect to each Fund, the nature, extent and quality of the services
provided under the Agreements and the overall fairness of the Agreements to the
Funds. The Boards requested and evaluated a report from Management and Neuberger
that addressed specific factors designed to inform the Boards' consideration of
these and other issues. The Boards also retained an independent consultant to
provide additional data.

With respect to the nature, extent and quality of the services provided, each
Board considered the performance of each Fund and the degree of risk undertaken
by the portfolio manager(s). The Boards considered the experience and staffing
of portfolio management and the investment research personnel of Management and
Neuberger dedicated to performing services for the Funds. The Boards noted that
Management also provides certain administrative services, including fund
accounting and compliance oversight. The Boards also considered Management's and
Neuberger's policies and practices regarding brokerage and allocation of
portfolio transactions for the Funds. In addition, the Boards noted the positive
compliance history of Management and Neuberger, as each firm has been free of
significant compliance problems.

With respect to the performance of each Fund, each Board considered the
performance of each Fund on both a market return and net asset value basis
relative to its benchmark and a peer group of investment companies pursuing
broadly similar strategies. Each Board also considered the performance in
relation to the degree of risk undertaken by the portfolio manager(s). In the
case of those Funds that had underperformed their peer group and/or relevant
market indices, each Board discussed each Fund's performance with Management and
discussed steps that Management had taken, or intended to take, to improve each
Fund's performance. The Boards also considered Management's resources and
responsiveness with respect to the Funds that experienced lagging performance.

With respect to the overall fairness of the Agreements, the Boards considered
the fee structure of the Agreements as compared to a peer group of comparable
funds and any fall-out benefits likely to accrue to Management or Neuberger or
their affiliates. The Boards also considered the profitability of Management and
its affiliates from their association with the Funds.

                                       53


The Boards received a detailed report from an independent consultant that
compares each Fund's management fee and overall expense ratio to a peer group of
comparable funds. Each Board considered the range and average of the management
fees and expense ratios of the peer group. With regard to the sub-advisory fee
paid to Neuberger, the Boards noted that this fee is reflective of an "at cost"
basis and there is no profit to Neuberger with regard to these fees. Each Board
considered each Fund's overall expenses in relation to the overall expenses of
the peer group median. In addition, each Board considered the contractual waiver
of a portion of the management fee undertaken by Management for each Fund.

The Boards considered whether there were other funds that were sub-advised by
Management or its affiliates or separate accounts managed by Management with
similar investment objectives, policies and strategies as the Funds. The Boards
noted that there were no comparable sub-advised funds or separate accounts.

Each Board also evaluated any actual or anticipated economies of scale in
relation to the services Management provides to each Fund. The Boards considered
that each Fund was a closed-end fund that is not continuously offering shares
and that, without daily inflows and outflows of capital, there were not at this
time significant economies of scale to be realized by Management in managing
each Fund's assets.

In concluding that the benefits accruing to Management and its affiliates by
virtue of their relationship to the Funds were reasonable in comparison with the
costs of providing the investment advisory services and the benefits accruing to
each Fund, each Board reviewed specific data as to Management's profit or loss
on each Fund for a recent period and the trend in profit or loss since each
Fund's inception. The Boards also carefully examined Management's cost
allocation methodology and had an independent expert review the methodology. It
also reviewed an analysis from an independent data service on investment
management profitability margins. The Boards also reviewed whether Management
and Neuberger used brokers to execute Fund transactions that provide research
and other services to Management and Neuberger, and the types of benefits
potentially derived by the Funds and by other clients of Management and
Neuberger from such services. The Boards recognized that Management should be
entitled to earn a reasonable level of profits for services it provides to the
Funds and, based on its review, concluded it was satisfied that Management's
level of profitability from its relationship with the Funds was not excessive.

CONCLUSIONS

In approving the Agreements, each Board concluded that the terms of each
Agreement are fair and reasonable and that approval of the Agreements is in the
best interest of each Fund and its shareholders. In reaching this determination,
each Board considered that Management and Neuberger could be expected to provide
a high level of service to each Fund; in the case of underperforming Funds, that
it retained confidence in Management's and Neuberger's capabilities to manage
the Funds; that each Fund's fee structure appeared to each Board to be
reasonable given the quality of services expected to be provided; and that the
benefits accruing to Management and its affiliates by virtue of their
relationship to the Funds were reasonable in comparison with the costs of
providing the investment advisory services and the benefits accruing to each
Fund.

                                       54


[NEUBERGER BERMAN LOGO]
A LEHMAN BROTHERS COMPANY

NEUBERGER BERMAN MANAGEMENT INC.
605 Third Avenue, 2nd Floor
New York, NY 10158-0180
INTERNAL SALES & SERVICES
877.461.1899

www.nb.com

Statistics and projections in this report are derived from sources deemed to be
reliable but cannot be regarded as a representation of future results of the
Funds. This report is prepared for the general information of shareholders and
is not an offer of shares of the Funds.

[RECYCLED SYMBOL] CO435 12/05



ITEM 2. CODE OF ETHICS

The Board of Neuberger Berman  Intermediate  Municipal Fund Inc.  ("Registrant")
adopted a code of ethics that applies to the  Registrant's  principal  executive
officer,   principal   financial  officer,   principal   accounting  officer  or
controller,  or persons performing similar functions ("Code of Ethics").  A copy
of the Code of Ethics is filed as Exhibit  12(a)(1) to this Form N-CSR. The Code
of  Ethics  is  also  available,   without  charge,  by  calling  1-800-877-9700
(toll-free).

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The Board has determined that the Registrant has two audit  committee  financial
experts  serving  on its  audit  committee.  The  Registrant's  audit  committee
financial experts are John Cannon and Mr. Mileaf.  Mr. Cannon and Mr. Mileaf are
independent directors as defined by Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Ernst & Young, LLP ("E&Y") serves as independent  registered  public  accounting
firm to the Registrant.

(a) Audit Fees
    ----------

The  aggregate  fees billed for  professional  services  rendered by E&Y for the
audit of the annual financial  statements or services that are normally provided
by E&Y in connection  with statutory and regulatory  filings or engagements  for
those fiscal years were $31,250 and $31,250 for 2004 and 2005, respectively.

(b) Audit-Related Fees
    ------------------

The aggregate fees billed to the  Registrant for assurance and related  services
by E&Y  that are  reasonably  related  to the  performance  of the  audit of the
Registrant's  financial statements and are not reported above in AUDIT FEES were
$5,000 and $6,000 for 2004 and 2005,  respectively.  The nature of the  services
provided involved agreed upon procedures  relating to the Preferred Shares.  The
Audit  Committee  approved 0% and 0% of these services  provided by E&Y for 2004
and  2005,   respectively,   pursuant   to  the   waiver   provisions   of  Rule
2-01(c)(7)(i)(C) of Regulation S-X.

The  fees  billed  to other  entities  in the  investment  company  complex  for
assurance  and  related  services  by E&Y that  are  reasonably  related  to the
performance  of the audit  that the Audit  Committee  was  required  to  approve
because  the  engagement  related  directly  to  the  operations  and  financial
reporting of the Registrant were $0 and $0 for 2004 and 2005, respectively.

(c) Tax Fees
    --------

The aggregate fees billed to the Registrant for professional  services  rendered
by E&Y for  tax  compliance,  tax  advice,  and tax  planning  were  $8,700  and
$8,700 for the fiscal years ended 2004 and 2005, respectively.  The nature of



the services  provided were tax compliance,  tax advice,  and tax planning.  The
Audit  Committee  approved 0% and 0% of these  services  provided by E&Y for the
fiscal  years  ended  2004  and  2005,  respectively,  pursuant  to  the  waiver
provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.

The fees billed to other  entities  in the  investment  company  complex for tax
compliance,  tax advice,  and tax planning that the Audit Committee was required
to approve  because  the  engagement  related  directly  to the  operations  and
financial  reporting  of the  Registrant  were  $0 and $0  for  2004  and  2005,
respectively.

(d) All Other Fees
    --------------

The aggregate fees billed to the  Registrant for products and services  provided
by E&Y, other than services reported in AUDIT FEES,  AUDIT-RELATED FEES, and TAX
FEES were $0 and $0 for the fiscal years ended 2004 and 2005, respectively.

The fees billed to other entities in the investment company complex for products
and  services  provided  by E&Y,  other than  services  reported  in AUDIT FEES,
AUDIT-RELATED  FEES,  and TAX FEES  that the Audit  Committee  was  required  to
approve because the engagement  related directly to the operations and financial
reporting of the  Registrant  were $0 and $0 for the fiscal years ended 2004 and
2005, respectively.

(e) Audit Committee's Pre-approval Policies and Procedures
    ------------------------------------------------------

(1)  The  Audit  Committee's   pre-approval  policies  and  procedures  for  the
Registrant  to  engage an  accountant  to render  audit and  non-audit  services
delegate to the Chair of the Committee the power to pre-approve services between
meetings of the Committee.

(2) None of the  services  described  in  paragraphs  (b) through (d) above were
approved by the Audit Committee pursuant to paragraph  (c)(7)(i)(C) of Rule 2-01
of Regulation S-X.

(f) Hours Attributed to Other Persons
    ---------------------------------

Not applicable.

(g) Non-Audit Fees
    --------------

Non-audit  fees  billed by E&Y for  services  rendered  to the  Registrant  were
$13,700 and $14,700 for the fiscal years ended 2004 and 2005, respectively.



Non-audit  fees  billed  by  E&Y  for  services  rendered  to  the  Registrant's
investment  adviser and any entity  controlling,  controlled by, or under common
control with the adviser that provides  ongoing  services to the Registrant were
$256,050 and $160,650 for 2004 and 2005, respectively.

(h) The  Audit  Committee  of the  Board of  Directors  considered  whether  the
provision of non-audit services rendered to the Registrant's  investment adviser
and any entity  controlling,  controlled  by, or under  common  control with the
adviser  that  provides  ongoing  services  to  the  Registrant  that  were  not
pre-approved  by the Audit  Committee  because  the  engagement  did not  relate
directly  to  the  operations  and  financial  reporting  of the  Registrant  is
compatible with maintaining E&Y's independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

The Board has  established an Audit Committee to oversee  particular  aspects of
the Registrant's  management.  The Audit Committee's purposes are (a) to oversee
the Funds' accounting and financial reporting processes,  their internal control
over financial  reporting and, as the Committee  deems  appropriate,  to inquire
into the  internal  control  over  financial  reporting  of certain  third-party
service  providers;  (b) to oversee  the  quality  and  integrity  of the Funds'
financial  statements and the independent audit thereof;  (c) to oversee, or, as
appropriate,  assist Board  oversight of, the Funds'  compliance  with legal and
regulatory  requirements  that  relate to the Funds'  accounting  and  financial
reporting, internal control over financial reporting and independent audits; (d)
to  approve  prior to  appointment  the  engagement  of the  Funds'  independent
registered public accounting firms and, in connection  therewith,  to review and
evaluate  the  qualifications,   independence  and  performance  of  the  Funds'
independent  registered public accounting firms; (e) to act as a liaison between
the Funds'  independent  registered  public accounting firms and the full Board;
and (f) to  prepare  an  audit  committee  report  as  required  by Item  306 of
Regulations S-K to be included in proxy  statements  relating to the election of
directors.  Its members are John  Cannon,  Howard A.  Mileaf,  Cornelius T. Ryan
(Chairman),  Tom D. Seip, and Peter P. Trapp.  All members are Independent  Fund
Trustees.

ITEM 6. SCHEDULE OF INVESTMENTS

The  complete  schedule  of  investments  for each  series is  disclosed  in the
Registrant's Annual Report, which is included as Item 1 of this Form N-CSR.

ITEM 7.  DISCLOSURE  OF PROXY VOTING  POLICIES  AND  PROCEDURES  FOR  CLOSED-END
MANAGEMENT INVESTMENT COMPANIES

The Board has  delegated  to  Neuberger  Berman,  LLC  ("Neuberger  Berman") the
responsibility  to vote  proxies  related to the  securities  held in the Fund's
portfolios.  Under this authority,  Neuberger Berman is required by the Board to
vote proxies  related to portfolio  securities in the best interests of the Fund
and its  stockholders.  The Board  permits  Neuberger  Berman to contract with a
third party to obtain proxy voting and related services,  including  research of
current issues.

Neuberger  Berman has  implemented  written Proxy Voting Policies and Procedures
("Proxy  Voting  Policy") that are designed to reasonably  ensure that Neuberger
Berman votes proxies  prudently and in the best interest of its advisory clients
for whom Neuberger  Berman has voting  authority,  including the Fund. The Proxy



Voting Policy also describes how Neuberger  Berman  addresses any conflicts that
may arise  between its  interests and those of its clients with respect to proxy
voting.

Neuberger  Berman's Proxy Committee is responsible for developing,  authorizing,
implementing  and updating the Proxy Voting Policy,  overseeing the proxy voting
process and engaging  and  overseeing  any  independent  third-party  vendors as
voting  delegate to review,  monitor and/or vote proxies.  In order to apply the
Proxy Voting  Policy noted above in a timely and  consistent  manner,  Neuberger
Berman utilizes Institutional  Shareholder Services Inc. ("ISS") to vote proxies
in accordance with Neuberger Berman's voting guidelines.

Neuberger Berman's guidelines adopt the voting recommendations of ISS. Neuberger
Berman retains final  authority and fiduciary  responsibility  for proxy voting.
Neuberger  Berman  believes that this process is reasonably  designed to address
material  conflicts of interest  that may arise between  Neuberger  Berman and a
client as to how proxies are voted.

In the event that an investment  professional at Neuberger  Berman believes that
it is in the best  interests  of a client or clients to vote proxies in a manner
inconsistent  with  Neuberger  Berman's  proxy voting  guidelines or in a manner
inconsistent  with  ISS   recommendations,   the  Proxy  Committee  will  review
information submitted by the investment  professional to determine that there is
no material  conflict of interest  between  Neuberger Berman and the client with
respect to the voting of the proxy in that manner.

If the Proxy  Committee  determines that the voting of a proxy as recommended by
the investment  professional  presents a material  conflict of interest  between
Neuberger  Berman and the client or  clients  with  respect to the voting of the
proxy, the Proxy Committee shall: (i) take no further action,  in which case ISS
shall vote such proxy in accordance  with the proxy voting  guidelines or as ISS
recommends;  (ii)  disclose  such  conflict  to the client or clients and obtain
written  direction  from the client as to how to vote the proxy;  (iii)  suggest
that the client or clients  engage  another  party to determine  how to vote the
proxy; or (iv) engage another  independent  third party to determine how to vote
the proxy.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable to the Registrant.

ITEM 9.  PURCHASES OF EQUITY  SECURITIES  BY  CLOSED-END  MANAGEMENT  INVESTMENT
COMPANY AND AFFILIATED PURCHASERS

No reportable purchases for the period covered by this report.

ITEM 10.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There were no changes to the  procedures  by which  shareholders  may  recommend
nominees to the Board.



ITEM 11. CONTROLS AND PROCEDURES

(a)      Based on an evaluation of the  disclosure  controls and  procedures (as
         defined in rule 30a-3(c) under the  Investment  Company Act of 1940, as
         amended  (the "Act")) as of a date within 90 days of the filing date of
         this document,  the Chief Executive Officer and Treasurer and Principal
         Financial and Accounting  Officer of the Registrant have concluded that
         such  disclosure  controls and procedures are  effectively  designed to
         ensure that  information  required to be disclosed by the Registrant is
         accumulated and  communicated to the  Registrant's  management to allow
         timely decisions regarding required disclosure.

(b)      There were no significant changes in the Registrant's internal controls
         over  financial  reporting (as defined in rule 30a-3(d)  under the Act)
         that occurred during the  Registrant's  last fiscal half-year that have
         materially affected, or are reasonably likely to materially affect, the
         Registrant's internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1)   A copy of the Code of Ethics is filed herewith.

(a)(2)   The certifications required by Rule 30a-2(a) of the Act and Section 302
         of the Sarbanes-Oxley Act of 2002  ("Sarbanes-Oxley  Act") are attached
         hereto.

(a)(3)   Not applicable to the Registrant.

(b)     The certifications  required by Rule 30a-2(b) of the Act and Section 906
        of the Sarbanes-Oxley Act are attached hereto.

The  certifications  provided pursuant to Section 906 of the  Sarbanes-Oxley Act
are not deemed "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934 ("Exchange Act"), or otherwise subject to the liability of that section.
Such  certifications will not be deemed to be incorporated by reference into any
filing  under the  Securities  Act of 1933 or the  Exchange  Act,  except to the
extent that the Registrant specifically incorporates them by reference.



SIGNATURES

Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

Neuberger Berman Intermediate Municipal Fund Inc.


By: /s/ Peter E. Sundman 
    ------------------------
       Peter E. Sundman
       Chief Executive Officer

Date:  January 9, 2006

Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment  Company  Act of  1940,  this  report  has been  signed  below by the
following  persons on behalf of the  Registrant and in the capacities and on the
dates indicated.



By: /s/ Peter E. Sundman
    ------------------------
       Peter E. Sundman
       Chief Executive Officer

Date:  January 9, 2006



By: /s/ John M. McGovern
    ------------------------
       John M. McGovern
       Treasurer and Principal Financial
       and Accounting Officer

Date:  January 9, 2006