Edgar Filing: NEUBERGER BERMAN CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC

As filed with the Securities and Exchange Commission on January 7, 2008

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: 811-21167

NEUBERGER BERMAN CALIFORNIA 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

(Address of Principal Executive Offices – Zip Code)

Registrant's telephone number, including area code: (212) 476-8800

Peter E. Sundman, Chief Executive Officer

c/o Neuberger Berman Management Inc.

Neuberger Berman California Intermediate Municipal Fund Inc.

605 Third Avenue, 2nd Floor

New York, New York 10158-0180

Arthur C. Delibert, Esq.

Kirkpatrick & Lockhart Preston Gates Ellis LLP

1601 K Street, N.W.

Washington, D.C. 20006-1600

(Names and Addresses of agents for service)

Date of fiscal year end: October 31, 2007

Date of reporting period: October 31, 2007

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 unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Shareholders

Neuberger Berman
Intermediate Municipal Closed-End Funds

Neuberger Berman California Intermediate Municipal Fund Inc. (Ticker Symbol: NBW)

Neuberger Berman Intermediate Municipal Fund Inc. (Ticker Symbol: NBH)

Neuberger Berman New York Intermediate Municipal Fund Inc. (Ticker Symbol: NBO)

Annual Report

October 31, 2007

Contents

THE FUND

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.					20

FINANCIAL STATEMENTS					25

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

Distribution Reinvestment Plan					39

Directory					41

Directors and Officers					42

Proxy Voting Policies and Procedures					50

Quarterly Portfolio Schedule					50

Change in Portfolio Manager					50

Notice to Shareholders					50

Board Consideration of the Management and Sub-Advisory Agreements					50

"Neuberger Berman" and the Neuberger Berman logo are service marks of Neuberger Berman, LLC. "Neuberger Management Inc." and the individual Fund names in this shareholder report are either service marks or registered service marks of Neuberger Berman Management Inc. ^_©2007 Neuberger Berman Management Inc. All rights reserved.

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 ended October 31, 2007. The report includes portfolio commentary, listings of the Funds' investments, and their audited financial statements for the reporting period.

Each Fund's investment objective is to provide a high level of current income exempt from regular federal income tax and, for each state-specific fund, a high level of 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,

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

Intermediate Municipal Closed-End Funds Portfolio Commentary

For the fiscal year ended October 31, 2007, on a net asset value (NAV) basis, all three of the Neuberger Berman Intermediate Municipal Closed-End Funds delivered a positive total return, outperforming the Lipper Closed-End Intermediate Municipal Debt Funds Average but trailing the Lehman Brothers 10-Year Municipal Bond Index.

The Funds started the fiscal year well as seasonally strong demand and limited supply buoyed municipal securities through the end of calendar 2006 (two months into this 12-month reporting period). However, a surge in new issuance beginning in first quarter 2007 and extending through much of the balance of the fiscal year disrupted these favorable supply/demand dynamics. Although the market absorbed what we expect will be record municipal bond issuance in 2007, demand in part due to the subprime mortgage woes of hedge funds (traditionally big buyers of municipal securities) restrained prices.

Credit spreads (the yield differential between higher and lower rated bonds) expanded significantly in the second half of the fiscal year as suddenly risk-averse investors opted for higher quality issues. Although theoretically it might be tempting to take advantage of the higher yields of lower rated issues, we believed that with all the economic and market uncertainties, our shareholders were better served by maintaining the Funds' high average credit ratings.

The Federal Reserve's interest rate cuts (totaling 75 basis points for the Fed Funds rate) in the fiscal year's second half produced a steeper yield curve — and a bigger yield advantage for longer maturity securities. However, the tax consequences of selling appreciated securities, along with our belief that Federal Reserve easing could be short-lived, made us reluctant to extend the portfolios' weighted average maturities or durations. Also, we believe that if the Fed does continue to ease interest rates, securities in the one- to seven-year maturity spectrum (where our portfolios are concentrated) will benefit more than longer maturity debt.

Over the course of the fiscal year, all three of the Funds maintained a large allocation and revenue bonds (primarily backed by a wide array of revenue streams) while limiting exposure to general obligation bonds (GOs) due to our belief that declining home prices along with a softer labor market could have a negative impact on the tax revenues that support GOs' principal and interest payments. Finally, many of the revenue bonds owned by the Funds have legal covenants that provide additional protection for bondholders.

Looking ahead, the Federal Reserve is faced with a dilemma. If the credit crunch seriously undermines the health of our financial system and the economy appears headed for recession, the Fed could have to come to the rescue with additional rate cuts. However, rising commodities prices, most notably oil, but also gold, agricultural products and industrial materials, could fan the flames of inflation, which is already above the Fed's target rate. More rate cuts by the Fed could also put additional pressure on the already stumbling dollar. We think the Fed will remain neutral as long as possible, hoping the financial system and credit markets will survive the subprime mortgage mess and that inflation moderates as the economy slows. With the Fed stuck between the proverbial rock and hard place, we will likely maintain the portfolios' current weighted average maturities and durations, until something good or bad happens to signal a change in monetary policy.

In closing, today municipal securities appear to us attractively priced relative to Treasuries. With intermediate maturity municipal bonds yields on average about 82-84% of the 10-year Treasury bond yield, municipal bonds provide a significant yield advantage for investors in the 35% income tax bracket.

California Intermediate Municipal Fund Inc.⁵

For the 12 months ended October 31, 2007, on a net asset value (NAV) basis, the California Intermediate Municipal Fund generated a positive return but trailed the Lehman Brothers 10-Year Municipal Bond Index.

CALIFORNIA INTERMEDIATE
MUNICIPAL FUND INC.
RATING DIVERSIFICATION

(% by Ratings)
AAA					53.7%
AA					2.7
A					18.1
BBB					17.5
BB					1.3
B					1.0
CCC					0.9
CC					0.0
C					0.0
D					0.0
Not Rated					4.8
Short Term					0.0

As of October 31, 2007, the portfolio was comprised of 89.4% revenue bonds, 10.3% general obligation bonds, and 0.3% cash and cash equivalents. Bonds subject to the Alternative Minimum Tax (AMT) equaled 14.0% of assets. At the close of the reporting period, the Fund's duration was 4.5 years and the portfolio's leverage position was 37.3% of assets.

Intermediate Municipal Fund Inc.⁵

For the 12 months ended October 31, 2007, on a net asset value (NAV) basis the Intermediate Municipal Fund generated a positive return but trailed the Lehman Brothers 10-Year Municipal Bond Index.

As of October 31, 2007, the portfolio was comprised of 79.1% revenue bonds, 15.7% general obligation bonds, 3.8% pre-refunded/escrowed bonds, and 1.4% cash and cash equivalents. Bonds subject to the Alternative Minimum Tax (AMT) equaled 13.5% of assets. At the close of the reporting period, the Fund's duration was 4.6 years and the portfolio's leverage position was 37.3% of assets.

New York Intermediate Municipal Fund Inc.⁵

For the 12 months ended October 31, 2007, on a net asset value (NAV) basis, the New York Intermediate Municipal Fund generated a positive return but trailed the Lehman Brothers 10-Year Municipal Bond Index.

As of October 31, 2007, the portfolio was comprised of 93.2% revenue bonds, 4.5% general obligation bonds, and 2.3% cash and cash equivalents. Bonds subject to the Alternative Minimum Tax (AMT) equaled 20.8% of assets. At the close of the reporting period, the Fund's duration was 4.2 years and the portfolio's leverage position was 37.6% of assets.

Sincerely,

James L. Iselin
Portfolio Manager

INTERMEDIATE MUNICIPAL FUND INC.
RATING DIVERSIFICATION

(% by Ratings)
AAA					51.4%
AA					7.8
A					12.9
BBB					15.2
BB					2.9
B					1.1
CCC					1.3
CC					0.0
C					0.0
D					0.0
Not Rated					7.2
Short Term					0.2

NEW YORK INTERMEDIATE
MUNICIPAL FUND INC.
RATING DIVERSIFICATION

(% by Ratings)
AAA					26.3%
AA					29.9
A					10.7
BBB					15.1
BB					11.1
B					1.8
CCC					1.0
CC					0.0
C					0.0
D					0.0
Not Rated					3.9
Short Term					0.2

1 YEAR TOTAL RETURN

	California Intermediate Municipal Fund AMEX Ticker Symbol NBW			Intermediate Municipal Fund AMEX Ticker Symbol NBH			New York Intermediate Municipal Fund AMEX Ticker Symbol NBO
NAV^1,3,4		2.16	%		2.48	%		2.50	%
Market Price^2,3,4		(6.29	%)		(5.03	%)		(6.58	%)

5 YEAR TOTAL RETURN

	California Intermediate Municipal Fund AMEX Ticker Symbol NBW			Intermediate Municipal Fund AMEX Ticker Symbol NBH			New York Intermediate Municipal Fund AMEX Ticker Symbol NBO
NAV^1,3,4		5.87	%		6.04	%		5.65	%
Market Price^2,3,4		2.60	%		2.47	%		2.63	%

AVERAGE ANNUAL TOTAL RETURN (LIFE OF FUND AS OF OCTOBER 31, 2007)

	California Intermediate Municipal Fund AMEX Ticker Symbol NBW			Intermediate Municipal Fund AMEX Ticker Symbol NBH			New York Intermediate Municipal Fund AMEX Ticker Symbol NBO
NAV^1,3,4		5.72	%		5.87	%		5.52	%
Market Price^2,3,4		2.54	%		2.41	%		2.57	%
Inception Date	09/24/2002			09/24/2002			09/24/2002

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 Fund are subject to change. Investment return will fluctuate. Past performance is no guarantee of future results.

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 each Fund may be a tax preference item for purposes of 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 Unaudited performance data current to the most recent month-end are available at www.nb.com.

Glossary of Indices

Lehman Brothers 10-Year Municipal Bond Index:				The Lehman Brothers 10-Year Municipal Bond Index is the 10-year (8-12) component of the Lehman Brothers Municipal Bond Index, 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. Remarketed issues, taxable municipal bonds, bonds with floating rates, and derivatives, are excluded from the benchmark.

Lipper Closed-End Intermediate Municipal Debt Funds Average:				The average of all closed-end mutual funds tracked by Lipper that invest in municipal debt issues with dollar-weighted average maturities of five to ten years.

Please note that the 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. Data about the performance of each index 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 indices.

Schedule of Investments California Intermediate Municipal Fund Inc.

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

Arizona (0.8%)

$ 750

Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17

788

^{^^}

California (136.7%)

580

Abag Fin. Au. Cert. of Participation Rev. (Channing House), Ser. 1999, 4.90%, due 2/15/09

BBB

583

^ß

3,050

Abag Fin. Au. Cert. of Participation Rev. (Episcopal Homes Foundation), Ser. 1998, 5.13%, due 7/1/18

BBB+

3,064

^ßØØ

1,000

Abag Fin. Au. Rev. (San Diego Hosp. Assoc.), Ser. 2003 C, 5.13%, due 3/1/18

Baa1

A-

1,022

^ß

1,250

Alameda Co. Cert. of Participation Ref. Rev., Ser. 2001 A, (MBIA Insured), 5.38%, due 12/1/17

Aaa

1,342

1,285

Bay Area Governments Assoc. BART SFO Extension Rev. (Arpt. Premium Fare), Ser. 2002 A, (AMBAC Insured), 5.00%, due 8/1/21

Aaa

AAA

1,337

1,000

Burbank Pub. Svc. Dept. Elec. Rev., Ser. 1998, (FSA Insured), 5.13%, due 6/1/16

Aaa

AAA

1,019

450

California Co. Tobacco Securitization Agcy. Tobacco Settlement Asset-Backed Rev., Ser. 2002, 4.75%, due 6/1/19

Baa3

450

1,750

California Ed. Fac. Au. Ref. Rev. (Stanford Univ.), Ser. 2001 R, 5.00%, due 11/1/21

Aaa

AAA

1,815

^ß

2,000

California HFA Home Mtge. Rev., Ser. 2006 E, (FGIC Insured), 4.88%, due 2/1/17

Aaa

AAA

2,043

2,000

California Hlth. Fac. Fin. Au. Rev. (Catholic Healthcare West), Ser. 2004 I, 4.95%, due 7/1/26 Putable 7/1/2014

2,098

^ß

2,000

California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.), Ser. 2005, 5.00%, due 11/15/21

2,045

^ß

1,000

California Hlth. Fac. Fin. Au. Rev. (Kaiser Permanente), Ser. 1998 B, 5.00%, due 10/1/20

AAA

1,024

^ß

500

California Muni. Fin. Au. Ed. Rev. (American Heritage Ed. Foundation Proj.), Ser. 2006 A, 5.00%, due 6/1/16

BBB-

500

^ß

4,000

California Poll. Ctrl. Fin. Au. Ref. PCR (Pacific Gas & Elec. Co.), Ser. 1996 A, (MBIA Insured), 5.35%, due 12/1/16

Aaa

AAA

4,210

^ß

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

Baa2

BBB+

1,564

^ß

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

2,960

^ß

4,500

California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.75%, due 5/1/17 Pre-Refunded 5/1/12

Aaa

A-

4,964

1,000

California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.38%, due 5/1/22 Pre-Refunded 5/1/12

Aaa

A-

1,088

2,250

California St. G.O., Ser. 2002, 5.00%, due 10/1/17

A+

2,347

1,000

California St. Pub. Works Board Lease (Dept. of Gen. Svc.) Rev. (Cap. East End Complex), Ser. 2002 A, (AMBAC Insured), 5.25%, due 12/1/16

Aaa

AAA

1,074

1,095

California St. Pub. Works Board Lease Rev. (California Comm. Colleges), Ser. 2004 B, 5.50%, due 6/1/20

1,175

3,000

California St. Pub. Works Board Lease Rev. (Regents of the Univ. of California, UCLA Replacement Hosp.), Ser. 2002 A, (FSA Insured), 5.38%, due 10/1/13

Aaa

AAA

3,246

1,000

California St. Univ. Fresno Assoc., Inc. Rev. (Auxiliary Organization Event Ctr.), Ser. 2002, 5.00%, due 7/1/12

Baa3

1,063

2,000

California Statewide CDA Cert. of Participation Rev. (Children's Hosp. Los Angeles), Ser. 1999, 5.13%, due 8/15/19

Baa1

BBB+

2,017

^ß

See Notes to Schedule of Investments 7

PRINCIPAL AMOUNT		SECURITY^@	RATING^§		VALUE^†
(000's omitted)			Moody's	S&P	(000's omitted)
	$ 1,765	California Statewide CDA Cert. of Participation Rev. (The Internext Group), Ser. 1999, 5.38%, due 4/1/17		BBB	$	1,797	^ß
	1,000	California Statewide CDA Hlth. Fac. Rev. (Adventist Hlth.), Ser. 2005 A, 5.00%, due 3/1/20		A		1,026	^ß
	5,000	California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.), Ser. 2003 A, 6.00%, due 10/1/16		A+		5,401	^ß
	500	California Statewide CDA Rev., (Valley Care Hlth. Sys.), Ser. 2007 A, 4.80%, due 7/15/17				492	^{ß^^}
	1,500	California Statewide CDA Rev., (California Baptist Univ.), Ser. 2007 A, 5.30%, due 11/1/18				1,502	^{ß^^}
	1,000	California Statewide CDA Rev. (Daughters of Charity Hlth.), Ser. 2005 G, 5.00%, due 7/1/22		BBB+		1,001	^ß
	3,000	California Statewide CDA Rev. (Kaiser Permanente), Ser. 2002 E, 4.70%, due 11/1/36 Putable 6/1/09		A+		3,036	^ß
	1,000	Central Joint Pwr. Hlth. Fin. Au. Cert. of Participation Rev. (Comm. Hosp. of Central California Proj.), Ser. 2000, 5.50%, due 2/1/14	Baa2	AAA		1,056	^ß
	1,020	Cerritos Pub. Fin. Au. Sub. Tax Allocation Rev. (Cerritos Redev. Proj.), Ser. 2002 B, 4.40%, due 11/1/16		BBB		1,015
	2,550	Contra Costa Comm. College Dist. G.O., Ser. 2002, (FGIC Insured), 5.25%, due 8/1/17	Aaa	AAA		2,731
	820	Folsom Pub. Fin. Au. Spec. Tax Rev., Ser. 2007 B, 4.40%, due 9/1/12				818	^{^^}
	250	Folsom Pub. Fin. Au. Spec. Tax Rev., Ser. 2007 B, 4.40%, due 9/1/13				247	^{^^}
	1,000	Fresno Unified Sch. Dist. Ref. G.O., Ser. 2002 A, (MBIA Insured), 6.00%, due 2/1/17	Aaa	AAA		1,157
	2,835	Glendale Redev. Agcy. Tax Allocation Rev. (Central Glendale Redev. Proj.), Ser. 2002, (MBIA Insured), 5.00%, due 12/1/16	Aaa	AAA		3,038
	2,480	Glendale Redev. Agcy. Tax Allocation Rev. (Central Glendale Redev. Proj.), Ser. 2002, (MBIA Insured), 5.25%, due 12/1/17	Aaa	AAA		2,676
	1,000	Kings Canyon Joint Unified Sch. Dist. G.O., Ser. 2002, (FGIC Insured), 5.38%, due 8/1/17	Aaa	AAA		1,068
	1,245	Long Beach Bond Fin. Au. Tax Allocation Rev. (Downtown, North Long Beach, Poly High, & West Beach Redev. Proj.), Ser. 2002 A, (AMBAC Insured), 5.38%, due 8/1/17	Aaa	AAA		1,349
	660	Long Beach Bond Fin. Au. Tax Allocation Rev. (North Long Beach Proj.), Ser. 2002 A, (AMBAC Insured), 5.38%, due 8/1/17	Aaa	AAA		712
	500	Long Beach Fin. Au. Rev., Ser. 1992, (AMBAC Insured), 6.00%, due 11/1/17	Aaa	AAA		570
	1,275	Los Angeles Co. Long Beach Unified Sch. Dist. G.O., Ser. 2002 D, (FSA Insured), 5.00%, due 8/1/17	Aaa			1,332
	5,000	Los Angeles Dept. of Arpts. Rev. (Los Angeles Int'l Arpt.), Ser. 2002 A, (FGIC Insured), 5.25%, due 5/15/18	Aaa	AAA		5,310
	500	Marin Co. Dixie Elementary Sch. Dist. G.O., Ser. 2000 A, (FSA Insured), 5.38%, due 8/1/17	Aaa	AAA		527
	1,045	Marin Co. Muni. Wtr. Dist. Wtr. Ref. Rev., Ser. 2002, (AMBAC Insured), 5.00%, due 7/1/17	Aaa	AAA		1,102
	1,090	Moreland Sch. Dist. Ref. G.O., Ser. 2002, (FGIC Insured), 5.13%, due 9/1/17	Aaa	AAA		1,152
	535	Nevada & Placer Cos. Irrigation Dist. Cert. of Participation Rev., Ser. 2002, (FGIC Insured), 5.00%, due 1/1/16	Aaa	AAA		566
	565	Nevada & Placer Cos. Irrigation Dist. Cert. of Participation Rev., Ser. 2002, (FGIC Insured), 5.00%, due 1/1/17	Aaa	AAA		595
	500	Northstar Comm. Svcs. Dist. Spl. Tax (Comm. Facs. Dist. No. 1), Ser. 2006, 4.70%, due 9/1/18				488	^{^^}
	500	Northstar Comm. Svcs. Dist. Spl. Tax (Comm. Facs. Dist. No. 1), Ser. 2006, 4.75%, due 9/1/19				483	^{^^}
	1,045	Oakland G.O., Ser. 2002 A, (FGIC Insured), 5.00%, due 1/15/15	Aaa	AAA		1,104
	1,210	Oakland G.O., Ser. 2002 A, (FGIC Insured), 5.00%, due 1/15/18	Aaa	AAA		1,266
	605	Oakland Redev. Agcy. Rev. (Coliseum Area Redev. Proj.), Ser. 2003, 5.00%, due 9/1/16		A		648
	635	Oakland Redev. Agcy. Rev. (Coliseum Area Redev. Proj.), Ser. 2003, 5.00%, due 9/1/17		A		680
	1,290	Oakland Redev. Agcy. Sub. Tax Allocation Rev. (Central Dist. Redev. Proj.), Ser. 2003, (FGIC Insured), 5.50%, due 9/1/17	Aaa	AAA		1,404

See Notes to Schedule of Investments 8

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

$ 1,445

Oceanside Cert. of Participation Ref. Rev., Ser. 2003 A, (AMBAC Insured), 5.25%, due 4/1/14

Aaa

AAA

1,558

3,890

Port of Oakland Ref. Rev., Ser. 2002 N, (MBIA Insured), 5.00%, due 11/1/13

Aaa

AAA

4,106

2,655

Riverside Co. Eastern Muni. Wtr. Dist. Cert. of Participation Wtr. & Swr. Rev., Ser. 2001 A, (FGIC Insured), 5.00%, due 7/1/19

Aaa

AAA

2,755

440

Roseville Stone Point Comm. Fac. District Number 1 Special Tax Rev., Ser. 2003, 5.70%, due 9/1/17

448

^{^^}

2,600

Sacramento Muni. Util. Dist. Elec. Rev., Ser. 1997 K, (AMBAC Insured), 5.70%, due 7/1/17

Aaa

AAA

2,971

830

San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003 B, 4.80%, due 9/1/15

Baa2

842

820

San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003 B, 4.90%, due 9/1/16

Baa2

832

2,000

San Diego Unified Sch. Dist. G.O., Ser. 2002 D, (FGIC Insured), 5.25%, due 7/1/21

Aaa

AAA

2,153

3,000

San Francisco Bay Area Toll Au. Toll Bridge Rev., Ser. 2001 D, 5.00%, due 4/1/17

Aa3

3,154

1,500

San Francisco City & Co. Int'l Arpt. Rev., Ser. 1999 23 A,(FGIC Insured), 5.25%, due 5/1/16

Aaa

AAA

1,543

5,000

San Francisco City & Co. Redev. Agcy. Lease Ref. Rev. (George R. Moscone Convention Ctr.), Ser. 2003, (FSA Insured), 5.00%, due 7/1/17

Aaa

AAA

5,253

1,000

San Jose Arpt. Ref. Rev., Ser. 2003 B, (FSA Insured), 5.00%, due 3/1/11

Aaa

AAA

1,040

1,615

San Jose Arpt. Ref. Rev., Ser. 2003 B, (FSA Insured), 5.00%, due 3/1/12

Aaa

AAA

1,694

2,500

San Jose Fin. Au. Lease Rev. (Civic Ctr. Proj.), Ser. 2002 B, (AMBAC Insured), 5.25%, due 6/1/17

Aaa

AAA

2,666

925

San Jose Multi-Family Hsg. Rev. (Fallen Leaves Apts. Proj.), Ser. 2002 J-1, (AMBAC Insured), 4.95%, due 12/1/22

Aaa

AAA

918

^ß

1,620

Santa Clara Co. Fremont Union High Sch. Dist. G.O., Ser. 2002 C, (FSA Insured), 5.00%, due 9/1/20

Aaa

AAA

1,731

1,000

Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev., Ser. 2003, 6.13%, due 3/1/13

1,012

^{^^}

525

Sierra View Local Hlth. Care Dist. Rev., Ser. 2007, 4.40%, due 7/1/13

531

^{^^}

505

Sierra View Local Hlth. Care Dist. Rev., Ser. 2007, 4.50%, due 7/1/14

512

^{^^}

3,905

Solano Co. Cert. of Participation Rev., Ser. 2002, (MBIA Insured), 5.25%, due 11/1/17

Aaa

AAA

4,226

920

South Gate Pub. Fin. Au. Tax Allocation Rev. (South Gate Redev. Proj. Number 1), Ser. 2002, (XLCA Insured), 5.00%, due 9/1/16

Aaa

AAA

983

400

Southern California Pub. Pwr. Au. Rev. (Natural Gas Proj. Number 1), Series 2007 A, 5.00%, due 11/1/18

Aa3

AA-

415

1,300

Tulare Local Hlth. Care Dist., Ser. 2007, 5.00%, due 11/1/20

1,291

^{^^Ø}

600

Univ. of California Regents Cert. of Participation Rev. (San Diego Campus & Sacramento Proj.), Ser. 2002 A, 5.25%, due 1/1/18

Aa1

630

1,000

Univ. of California Regents Rev. (Multi. Purp. Proj.), Ser. 2000 K, (MBIA Insured), 5.00%, due 9/1/12

Aaa

AAA

1,024

135,687

Florida (0.8%)

750

Miami Beach Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09

Ba1

BB+

779

^ß

Georgia (1.0%)

1,000

De Kalb Co. Dev. Au. Ref. PCR (General Motors Corp. Proj.), Ser. 2002, 6.00%, due 3/15/21

Caa1

B-

1,001

^ß

Guam (0.7%)

700

Guam Gov't. Waterworks Au. Wtr. & Wastewater Sys. Rev., Ser. 2005, 5.50%, due 7/1/16

Ba2

735

See Notes to Schedule of Investments 9

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

Louisiana (2.8%)

$ 1,500

Morehouse Parish Ref. PCR (Int'l Paper Co. Proj.), Ser. 2001 A, 5.25%, due 11/15/13

Baa3

BBB

1,560

^ß

1,250

Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30

Baa3

BBB

1,242

2,802

New York (1.1%)

500

New York City IDA Liberty Rev. (7 World Trade Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15

522

^{^^}

500

New York City IDA Spec. Fac. Rev. (American Airlines, Inc. J.F.K. Int'l Arpt. Proj.), Ser. 2005, 7.50%, due 8/1/16

550

^ß

1,072

North Carolina (1.5%)

1,405

North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev., Ser. 2003 A, 5.50%, due 1/1/14

BBB+

1,498

Ohio (0.5%)

500

Coshocton Co. Env. Imp. Ref. Rev. (Smurfit-Stone Container Enterprises, Inc. Proj.), Ser. 2005, 5.13%, due 8/1/13

CCC+

495

^ñß

Pennsylvania (1.1%)

1,000

Cumberland Co. 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

1,036

^ß

Puerto Rico (6.6%)

1,265

Puerto Rico Children's Trust Tobacco Settlement Asset-Backed Rev., Ser. 2002, 5.38%, due 5/15/33

Baa3

BBB

1,268

1,000

Puerto Rico Ind., Tourist, Ed., Med. & Env. Ctrl. Fac. Rev. (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A, (ACA Insured), 5.25%, due 8/1/15

1,035

^ß

3,000

Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, (FSA Insured), 5.25%, due 8/1/17

Aaa

AAA

3,188

1,000

Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A,(FSA Insured), 5.25%, due 8/1/21

Aaa

AAA

1,055

6,546

Texas (3.2%)

900

Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13

Caa1

CCC

922

^ß

750

Brazos River Au. Ref. Rev. (Reliant Energy, Inc. Proj.), Ser. 1999 B,7.75%, due 12/1/18

Ba1

BBB-

781

^ß

1,000

Brazos 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

A-

1,008

^ß

500

Dallas-Fort Worth Int'l Arpt. Fac. Imp. Corp. Rev., Ser. 2004 A-1, 6.15%, due 1/1/16

Ba2

500

^ß

3,211

See Notes to Schedule of Investments 10

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

Virgin Islands (2.0%)

$ 250

Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22

Baa3

BBB

263

750

Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22

769

^{^^}

1,000

Virgin Islands Wtr. & Pwr. Au. Elec. Sys. Ref. Rev., Ser. 1998, 5.30%, due 7/1/18

997

^±

2,029

Total Investments (158.8%) (Cost $154,541)

157,679

^##

Cash, receivables and other assets, less liabilities (0.6%)

604

Liquidation Value of Auction Market Preferred Shares [(59.4%)]

(59,000

)

Total Net Assets Applicable to Common Shareholders (100.0%)

99,283

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)

Alabama (1.9%)

$ 1,195

Alabama Wtr. Poll. Ctrl. Au., Ser. 1996 B (AMBAC Insured), 5.50%, due 8/15/16

Aaa

AAA

1,202

4,210

DCH Hlth. Care Au. Hlth. Care Fac. Rev., Ser. 2002, 5.25%, due 6/1/14

A+

4,441

5,643

Arizona (2.3%)

1,465

Arizona Energy Management Svcs. (Main) LLC Energy Conservation Rev. (Arizona St. Univ. Proj.-Main Campus), Ser. 2002, (MBIA Insured),5.25%, due 7/1/17

Aaa

AAA

1,543

1,255

Salt Verde Fin. Corp. Sr. Gas Rev., Ser. 2007, 5.25%, due 12/1/20

Aa1

1,324

1,750

Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17

1,838

^{^^}

2,325

Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2006, 5.05%, due 7/15/18

2,302

^{^^}

7,007

California (8.0%)

3,500

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

Baa2

BBB+

3,650

^ß

2,000

California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Waste Management, Inc. Proj.), Ser. 2005 C, 5.13%, due 11/1/23

BBB

1,973

^ß

2,500

California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.75%, due 5/1/17 Pre-Refunded 5/1/12

Aaa

A-

2,758

3,460

California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.38%, due 5/1/22 Pre-Refunded 5/1/12

Aaa

A-

3,763

1,500

California St. Pub. Works Board Lease Rev., Ser. 2002 A, (AMBAC Insured), 5.25%, due 12/1/17

Aaa

AAA

1,604

1,240

California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.), Ser. 2003 A, 6.00%, due 10/1/16

A+

1,339

^ß

1,270

California Statewide CDA Rev. (California Baptist Univ.), Ser. 2007 A, 5.30%, due 11/1/18

1,272

^{ß^^}

3,000

Golden St. Tobacco Securitization Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2003 A-1, 6.25%, due 6/1/33

Aaa

AAA

3,290

2,080

Oakland Redev. Agcy. Sub. Tax Allocation Rev. (Central Dist. Redev. Proj.), Ser. 2003, (FGIC Insured), 5.50%, due 9/1/18

Aaa

AAA

2,259

740

San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003 B, 5.00%, due 9/1/17

Baa2

751

1,500

Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev., Ser. 2006, 4.88%, due 3/1/16

1,509

^{^^}

24,168

Colorado (5.3%)

4,220

Colorado Springs Util. Sys. Sub. Lien Ref. Rev., Ser. 2002 A, (AMBAC Insured),5.38%, due 11/15/18

Aaa

AAA

4,524

4,000

Denver City & Co. Arpt. Sys. Ref. Rev., Ser. 2002 E, (FGIC Insured), 5.25%, due 11/15/14

Aaa

AAA

4,228

2,000

Denver City & Co. Arpt. Sys. Rev., Ser. 1991 D, (XLCA Insured), 7.75%, due 11/15/13

AAA

2,213

4,610

Thornton Cert. of Participation, Ser. 2002, (AMBAC Insured), 5.38%, due 12/1/16 Pre-Refunded 12/1/12

Aaa

AAA

4,999

15,964

Connecticut (0.8%)

2,400

Mashantucket Western Pequot Tribe Spec. Rev., Sub. Ser. 1997 B, 5.70%, due 9/1/12

Baa3

2,448

^ñ

See Notes to Schedule of Investments 12

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

District of Columbia (1.6%)

$ 4,495

Dist. of Columbia (Washington, D.C.) Ref. G.O., Ser. 2002 C, (XLCA Insured), 5.25%, due 6/1/13

Aaa

AAA

4,774

Florida (7.8%)

2,560

Fiddlers Creek Comm. Dev. Dist. Number 2 Spec. Assessment Rev., Ser. 2003 A, 6.00%, due 5/1/16

2,528

^{^^}

1,750

Miami Beach Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09

Ba1

BB+

1,818

^ß

8,140

Orange Co. Sales Tax Ref. Rev., Ser. 2002 A, (FGIC Insured), 5.13%, due 1/1/18

Aaa

AAA

8,559

2,085

Palm Beach Co. Hlth. Fac. Au. Hosp. Ref. Rev. (BRCH Corp. Oblig. Group), Ser. 2001, 5.00%, due 12/1/12

2,160

^ß

7,000

Palm Beach Co. Sch. Board Cert. of Participation, Ser. 2001 B, (AMBAC Insured), 5.38%, due 8/1/17

Aaa

AAA

7,459

1,000

Sarasota Co. Util. Sys. Ref. Rev., Ser. 2002 C, (FGIC Insured), 5.25%, due 10/1/20

Aaa

AAA

1,059

23,583

Georgia (2.6%)

4,575

Henry Co. Wtr. & Swr. Au. Wtr. & Swr. Ref. Rev., Ser. 2002 A, (MBIA Insured), 5.13%, due 2/1/17

Aaa

AAA

4,917

2,710

Newnan Hosp. Au. Rev. Anticipation Cert. (Newnan Hosp., Inc. Proj.), Ser. 2002, (MBIA Insured), 5.50%, due 1/1/18

Aaa

2,903

^ß

7,820

Illinois (11.8%)

3,000

Bartlett Tax Increment Ref. Rev. (Quarry Redev. Proj.), Ser. 2007, 5.35%, due 1/1/17

Baa3

3,037

5,940

Chicago G.O., Ser. 2002 A, (AMBAC Insured), 5.38%, due 1/1/17 Pre-Refunded 7/1/12

Aaa

AAA

6,404

180

Chicago G.O., Ser. 2002 A, (AMBAC Insured), 5.38%, due 1/1/17

Aaa

AAA

192

1,500

Chicago Metro. Wtr. Reclamation Dist. Cap. Imp. G.O., Ser. 2002 C, 5.38%, due 12/1/16 Pre-Refunded 12/1/12

Aaa

1,627

^ØØ

5,130

Illinois Ed. Fac. Au. Rev. (Field Museum of Natural History), Ser. 2002, 4.30%, due 11/1/36 Putable 11/1/13

5,187

^ß

4,000

Illinois Fin. Au. Rev. (Clare Oaks Proj.), Ser. 2006 A, 5.75%, due 11/15/16

4,092

^{ß^^}

5,000

Illinois G.O., Ser. 2002, (MBIA Insured), 5.25%, due 10/1/14

Aaa

AAA

5,345

3,000

Illinois Hlth. Fac. Au. Rev. (Loyola Univ. Hlth. Sys.), Ser. 1997 A, (MBIA Insured), 6.00%, due 7/1/14

Aaa

AAA

3,398

^ß

1,670

Illinois Metro. Pier & Exposition Au. Dedicated St. Tax Ref. Rev., Ser. 1998 A, (FGIC Insured), 5.50%, due 6/15/17

Aaa

AAA

1,882

2,000

Kane, Cooke, & DuPage Cos. Elgin Sch. Dist. Number U-46 G.O., Ser. 1998, (FSA Insured), 5.35%, due 1/1/15

Aaa

2,114

2,250

Southwestern Illinois Local Gov't. Dev. Au. Rev., (Collinsville Ltd.), Ser. 2007, 5.00%, due 3/1/25

2,196

^{^^}

35,474

Indiana (9.6%)

1,995

Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2001 A, 5.38%, due 2/1/17 Pre-Refunded 2/1/13

AAA

2,179

760

Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2001 B, 5.25%, due 2/1/18 Pre-Refunded 2/1/13

AAA

819

8,005

Indiana Bond Bank Rev. (Unrefunded Bal. Revolving Fund Prog.), Ser. 2001 A, 5.38%, due 2/1/17

AAA

8,640

2,800

Indiana Bond Bank Rev. (Unrefunded Bal. Revolving Fund Prog.), Ser. 2002 B, 5.25%, due 2/1/18

AAA

2,972

See Notes to Schedule of Investments 13

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

$ 4,000

Indiana Hlth. & Ed. Fac. Fin. Au. Hosp. Ref. Rev. (Clarian Hlth. Oblig. Group), Ser. 2006 B, 5.00%, due 2/15/21

A+

4,095

^ß

1,000

Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev., Ser. 2002 B, (MBIA Insured), 5.25%, due 1/1/18

Aaa

AAA

1,059

2,050

Indiana St. Hlth. Fac. Fin. Au. Rev. (Hlth. Sys. Sisters of St. Francis), Ser. 2001, 5.35%, due 11/1/15

Aa3

2,169

^ß

1,065

Indiana St. Recreational Dev. Comm. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 7/1/18

Aaa

AAA

1,120

1,125

Indiana St. Recreational Dev. Comm. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 7/1/19

Aaa

AAA

1,180

2,580

Indianapolis Local Pub. Imp. Rev. (Indianapolis Arpt. Au. Proj.), Ser. 2003 A, (FSA Insured), 5.63%, due 1/1/17

Aaa

AAA

2,753

2,000

Jasper Hosp. Au. Hosp. Fac. Ref. Rev. (Mem. Hosp. & Hlth. Care Ctr. Proj.), Ser. 2002, (Radian Insured), 5.50%, due 11/1/17

2,091

^ß

29,077

Iowa (2.7%)

1,000

Coralville Urban Renewal Rev., Tax Increment, Ser. 2007 C, 5.00%, due 6/1/15

Baa1

1,029

3,000

Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.30%, due 6/1/25 Pre-Refunded 6/1/11

AAA

3,169

3,000

Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed Rev., Ser. 2005 C, 5.38%, due 6/1/38

Baa3

BBB

2,758

1,005

Kirkwood Comm. College Iowa New Jobs Training Cert. (Merged Area X), Ser. 2007 1B, 5.00%, due 6/1/17

Aa3

AA-

1,048

^Ø

8,004

Louisiana (1.2%)

2,500

Morehouse Parish Ref. PCR (Int'l Paper Co. Proj.), Ser. 2001 A, 5.25%, due 11/15/13

Baa3

BBB

2,599

^ß

1,000

Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30

Baa3

BBB

994

3,593

Maryland (0.5%)

1,000

Maryland St. Hlth. & Higher Ed. Fac. Au. Rev. (Union Hosp. of Cecil Co.), Ser. 2002, 5.50%, due 7/1/14

1,051

^ß

400

Prince George's Co. Unrefunded Balance Cons. Pub. Imp. G.O., Ser. 2001, (FGIC Insured), 5.25%, due 12/1/16 Pre-Refunded 12/1/11

Aaa

AAA

430

1,481

Massachusetts (8.7%)

3,000

Massachusetts Port Au. Spec. Fac. Rev. (Delta Air Lines, Inc. Proj.), Ser. 2001 A, (AMBAC Insured), 5.50%, due 1/1/19

Aaa

AAA

3,119

^ß

1,850

Massachusetts St. G.O., Ser. 2002 E, (MBIA Insured), 5.38%, due 1/1/18 Pre-Refunded 1/1/13

Aaa

AAA

2,001

^ØØ

2,450

Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Caritas Christi Oblig. Group), Ser. 1999 A, 5.70%, due 7/1/15

Baa3

BBB

2,499

^ß

2,810

Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Milford-Whitinsville Reg. Hosp.), Ser. 1998 C, 5.75%, due 7/15/13

Baa3

BBB-

2,883

^ß

4,935

Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (New England Med. Ctr. Hosp.), Ser. 2002 H, (FGIC Insured), 5.38%, due 5/15/16

Aaa

AAA

5,311

^ß

5,030

Massachusetts St. Wtr. Poll. Abatement Trust Rev. (MWRA Prog.), Ser. 2002 A, 5.25%, due 8/1/19

Aaa

AAA

5,341

2,000

Massachusetts St. Wtr. Poll. Abatement Trust Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16 Pre-Refunded 8/1/11

Aaa

AAA

2,121

2,775

Massachusetts St. Wtr. Poll. Abatement Trust Unrefunded Balance Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16

Aaa

AAA

2,916

26,191

See Notes to Schedule of Investments 14

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

Michigan (5.5%)

$ 3,075

Detroit Sch. Dist. Sch. Bldg. & Site Imp. G.O., Ser. 2002 A, (FGIC Insured), 5.50%, due 5/1/15 Pre-Refunded 5/1/13

Aaa

AAA

3,364

1,070

Ingham & Clinton Cos. East Lansing Bldg. Au. Ref. G.O., Ser. 1999, 5.25%, due 10/1/16

AA+

1,099

1,375

Macomb Co. New Haven Comm. Sch. Bldg. & Site G.O., Ser. 2002, 5.25%, due 5/1/17 Pre-Refunded 11/1/12

Aa3

AA-

1,482

1,500

Michigan St. Bldg. Au. Rev. (Fac. Prog.), Ser. 2001 II, 5.50%, due 10/15/18 Pre-Refunded 10/15/11

A+

1,609

1,830

Michigan St. Hsg. Dev. Au. Single-Family Mtge. Rev., Ser. 2001 A, (MBIA Insured), 5.30%, due 12/1/16

Aaa

AAA

1,871

3,850

Royal Oak Hosp. Fin. Au. Hosp. Ref. Rev. (William Beaumont Hosp.), Ser. 1996, 6.25%, due 1/1/12

Aa3

AA-

4,175

^ß

2,000

Summit Academy North Pub. Sch. Academy Ref. Rev., Ser. 2005, 5.25%, due 11/1/20

BB+

1,915

975

Summit Academy Pub. Sch. Academy Ref. Rev., Ser. 2005, 6.00%, due 11/1/15

BB+

1,007

16,522

Minnesota (2.3%)

2,000

Freeborn Co. Hsg. & Redev. Au. Lease Rev. (Criminal Justice Ctr. Proj.), Ser. 2002, 5.38%, due 2/1/17

Baa1

2,089

2,000

Maple Grove Hlth. Care Sys. Rev. (Maple Grove Hosp. Corp.), Ser. 2007, 5.00%, due 5/1/17

2,080

^ß

2,540

St. Paul Port Au. Lease Rev. (Office Bldg. at Cedar Street), Ser. 2002, 5.00%, due 12/1/17

Aa2

AA+

2,653

6,822

Missouri (3.9%)

3,495

Bi State Dev. Agcy. Metro. Dist. Rev. (Metrolink Cross Co. Extension Proj.), Ser. 2002 B, (FSA Insured), 5.25%, due 10/1/16

Aaa

AAA

3,749

2,000

Boone Co. Hosp. Ref. Rev. (Boone Hosp. Ctr.), Ser. 2002, 5.05%, due 8/1/20

2,045

^ß

2,425

Branson Dev. Fin. Board Infrastructure Fac. Board Rev., Ser. 2003 A, 5.00%, due 12/1/17

Baa1

BBB+

2,452

750

Branson Ind. Dev. Au. Ltd. Oblig. Tax Increment Rev. (Branson Landing-Retail Proj.), Ser. 2005, 5.25%, due 6/1/21

726

^{^^}

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

2,165

570

Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev., Ser. 2001 II, (FHA Insured), 5.25%, due 12/1/16

588

110

Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev., Ser. 2001 III, (FHA Insured), 5.05%, due 12/1/15

114

11,839

Nebraska (0.6%)

1,725

Central Plains Energy Proj. Rev. (Nebraska Gas Proj. Number 1), Ser. 2007 A, 5.00%, due 12/1/14

Aa3

AA-

1,785

Nevada (4.2%)

5,335

Clark Co. Passenger Fac. Charge Ref. Rev. (Las Vegas-McCarran Int'l Arpt. Proj.), Ser. 2002 A, (MBIA Insured), 5.25%, due 7/1/10

Aaa

AAA

5,537

4,355

Las Vegas Valley Wtr. Dist. Ref. & Wtr. Imp. G.O., Ser. 2003 A, (FGIC Insured), 5.25%, due 6/1/16

Aaa

AAA

4,644

2,295

Truckee Meadows Wtr. Au. Wtr. Rev., Ser. 2001 A, (FSA Insured), 5.50%, due 7/1/15

Aaa

AAA

2,437

12,618

See Notes to Schedule of Investments 15

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

New Hampshire (1.8%)

$ 3,310

New Hampshire Hlth. Ed. Fac. Au. Rev. (Univ. Sys. of New Hampshire), Ser. 2001, (AMBAC Insured), 5.38%, due 7/1/17 Pre-Refunded 7/1/11

Aaa

AAA

3,551

1,700

New Hampshire Hlth. Ed. Fac. Au. Rev. (Univ. Sys. of New Hampshire), Ser. 2001, (AMBAC Insured), 5.38%, due 7/1/17

Aaa

AAA

1,809

5,360

New Jersey (6.3%)

5,000

New Jersey Bldg. Au. St. Bldg. Ref. Rev., Ser. 2002 B, (FSA Insured), 5.25%, due 12/15/15

Aaa

AAA

5,348

1,500

New Jersey Econ. Dev. Au. Cigarette Tax Rev., Ser. 2004, 5.63%, due 6/15/19

Baa2

BBB

1,531

700

New Jersey Econ. Dev. Au. Retirement Comm. Rev. Ref. (Seabrook Vlg., Inc. Fac.), Ser. 2006, 5.25%, due 11/15/26

675

^{ß^^}

6,900

New Jersey Ed. Fac. Au. Rev. (Stevens Institute of Technology), Ser. 2002 C, 5.25%, due 7/1/17 Pre-Refunded 7/1/13

Baa2

BBB+

7,452

^ß

4,000

New Jersey Hlth. Care Fac. Fin. Au. Rev. (Somerset Med. Ctr. Issue), Ser. 2003, 5.50%, due 7/1/18

Ba1

4,048

^ß

19,054

New York (5.3%)

990

Lyons Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004, 5.50%, due 9/1/14

1,062

3,250

New York City G.O., Ser. 2002 C, 5.50%, due 8/1/15

Aa3

3,515

2,580

New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002 A, (ACA Insured), 5.50%, due 6/1/14

2,691

^ß

750

New York City IDA Civic Fac. Rev. (Vaughn College of Aeronautics and Technology), Ser. 2006 A, 5.00%, due 12/1/21

BB+

711

^ß

2,750

New York City IDA Liberty Rev. (7 World Trade Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15

2,874

^{^^}

1,750

New York City IDA Spec. Fac. Rev. (American Airlines, Inc. J.F.K. Int'l Arpt. Proj.), Ser. 2005, 7.50%, due 8/1/16

1,925

^ß

1,250

New York Liberty Dev. Corp. Rev. (Nat'l Sports Museum Proj.), Ser. 2006 A, 6.13%, due 2/15/19

1,278

^{^^}

1,700

New York St. Dorm. Au. Personal Income Tax Rev., Ser. 2003 A, 5.38%, due 3/15/20 Pre-Refunded 3/15/13

Aa3

AAA

1,850

15,906

North Dakota (1.5%)

4,100

Fargo Hlth. Sys. Rev. (Meritcare Obligated Group), Ser. 2002 A, (AMBAC Insured), 5.63%, due 6/1/17

Aaa

AAA

4,401

^ß

Ohio (2.7%)

1,000

Coshocton Co. Env. Imp. Ref. Rev. (Smurfit-Stone Container Enterprises, Inc. Proj.), Ser. 2005, 5.13%, due 8/1/13

CCC+

989

^ñß

3,000

Moraine Solid Waste Disp. Rev. (General Motors Corp. Proj.), Ser. 1994, 6.75%, due 7/1/14

Caa1

B-

3,147

^ß

3,760

Ohio Air Quality Dev. Au. Env. Imp. Ref. Rev. (USX Corp. Proj.), Ser. 1995, 5.00%, due 11/1/15 Putable 11/1/11

Baa1

BBB+

3,893

^ß

8,029

Pennsylvania (5.7%)

1,765

Cumberland Co. 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

1,826

^ß

565

Delaware River Joint Toll Bridge Comm. Sys. Rev., Ser. 2003, 5.25%, due 7/1/18 Pre-Refunded 7/1/13

A-

612

435

Delaware River Joint Toll Bridge Comm. Sys. Rev., Ser. 2003, 5.25%, due 7/1/18

A-

459

See Notes to Schedule of Investments 16

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

$ 2,000

Lehigh Co. Gen. Purp. Au. Rev. (KidsPeace Oblig. Group), Ser. 1998, 6.00%, due 11/1/23

Ba3

2,005

^ß

5,000

Montgomery Co. Higher Ed. & Hlth. Au. Hosp. Rev. (Abington Mem. Hosp. Proj.), Ser. 2002 A, 5.00%, due 6/1/19

5,102

^ß

1,000

Pennsylvania Econ. Dev. Fin. Au. Res. Rec. Ref. Rev. (Colver Proj.), Ser. 2005 G, 5.13%, due 12/1/15

999

^{^^}

2,000

Philadelphia Arpt. Ref. Rev. (Philadelphia Arpt. Sys.), Ser. 1998 A, (FGIC Insured), 5.38%, due 6/15/14

Aaa

AAA

2,057

1,480

Sayre Hlth. Care Fac. Au. Rev., (Guthrie Hlth. Proj.), Ser. 2002 A, 5.75%, due 12/1/21 Pre-Refunded 12/1/11

1,612

^ß

520

Sayre Hlth. Care Fac. Au. Rev. Unrefunded Bal., (Guthrie Hlth. Proj.), Ser. 2002 A, 5.75%, due 12/1/21

548

^ß

2,000

Westmoreland Co. IDA Gtd. Rev. (National Waste & Energy Corp., Valley Landfill Expansion Proj.), Ser. 1993, 5.10%, due 5/1/18 Putable 5/1/09

BBB

2,018

^ß

17,238

South Carolina (5.5%)

1,100

Charleston Co. Sch. Dist. G.O., Ser. 2001, (FSA Insured), 5.00%, due 2/1/18

Aaa

AAA

1,142

2,140

Mt. Pleasant Town Waterworks & Swr. Sys. Ref. & Imp. Rev., Ser. 2002, (FGIC Insured), 5.25%, due 12/1/17

Aaa

AAA

2,283

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+

2,530

^ß

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+

2,106

^ß

4,665

South Carolina St. Pub. Svc. Au. Rev., Ser. 2002 B, (FSA Insured), 5.38%, due 1/1/18

Aaa

AAA

4,952

3,500

Union Co. IDR (Federal Paper Board Co., Inc. Proj.), Ser. 1989, 4.55%, due 11/1/09

Baa3

BBB

3,495

^ß

16,508

Tennessee (2.1%)

1,655

Knox Co. Hlth. Ed. & Hsg. Fac. Board Hosp. Fac. Rev., Ser. 2002 A, (FSA Insured), 5.50%, due 1/1/18 Pre-Refunded 1/1/13

Aaa

AAA

1,802

^ß

1,360

Knox Co. Hlth. Ed. & Hsg. Fac. Board Hosp. Fac. Rev. Unrefunded Bal., Ser. 2002 A, (FSA Insured), 5.50%, due 1/1/18

Aaa

AAA

1,458

^ß

3,085

Memphis-Shelby Co. Arpt. Au. Spec. Fac. Ref. Rev. (Federal Express Corp.), Ser. 2002, 5.05%, due 9/1/12

Baa2

BBB

3,184

^ß

6,444

Texas (21.9%)

4,145

Anson Ed. Fac. Corp. Std. Hsg. Rev. (Univ. of Texas at Dallas-Waterview Park Proj.), Ser. 2002, (ACA Insured), 5.00%, due 1/1/23

4,088

^ß

965

Austin Convention Enterprises, Inc. Convention Ctr. Hotel First Tier Rev., Ser. 2001 A, 6.38%, due 1/1/16 Pre-Refunded 1/1/11

Aaa

BBB-

1,024

3,300

Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13

Caa1

CCC

3,382

^ß

1,000

Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 D, 5.40%, due 10/1/29 Putable 10/1/14

Caa1

CCC

966

^ß

1,000

Brazos River Au. Ref. Rev. (Reliant Energy, Inc. Proj.), Ser. 1999 B, 7.75%, due 12/1/18

Ba1

BBB-

1,042

^ß

3,600

Corpus Christi Tax & Muni. Hotel Occupancy Tax G.O., Ser. 2002, (FSA Insured), 5.50%, due 9/1/17

Aaa

AAA

3,869

155

Dallas Fort Worth Reg. Arpt. Rev. (Muni. Sec. Trust Receipts), Ser. 1997, (MBIA Insured), 3.63%, due 11/1/07

155

^µa

2,100

Dallas-Fort Worth Int'l Arpt. Fac. Imp. Corp. Rev., Ser. 2004 A-1, 6.15%, due 1/1/16

Ba2

2,101

^ß

1,935

Dallas-Fort Worth Int'l Arpt. Imp. Rev., Ser. 2004 B, (FSA Insured), 5.50%, due 11/1/18

Aaa

AAA

2,069

1,750

Ector Co. Hosp. Dist. Hosp. Rev., Ser. 2002 A, 5.63%, due 4/15/16

A-

1,786

1,745

Ector Co. Hosp. Dist. Hosp. Rev., Ser. 2002 A, 5.63%, due 4/15/17

A-

1,779

See Notes to Schedule of Investments 17

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

$ 700

Gulf Coast Ind. Dev. Au. Env. Fac. Rev., (CITGO Petroleum Corp. Proj.), Ser. 2002, (LOC: Royal Bank of Scotland), 3.64%, due 11/1/07

Aaa

700

^µß

4,790

Harris Co. Toll Road Sr. Lien Rev., Ser. 2002, (FSA Insured), 5.38%, due 8/15/16 Pre-Refunded 8/15/12

Aaa

AAA

5,173

2,210

Harris Co. Toll Road Sr. Lien Rev., Unrefunded Bal., Ser. 2002, (FSA Insured), 5.38%, due 8/15/16

Aaa

AAA

2,361

610

HFDC Central Texas, Inc. Retirement Fac. Rev., Ser. 2006 A, 5.25%, due 11/1/15

605

^{ß^^}

3,235

Houston Arpt. Sys. Sub. Lien. Ref. Rev., Ser. 2001 A, (FGIC Insured), 5.50%, due 7/1/16

Aaa

AAA

3,407

4,955

Houston Pub. Imp. Ref. G.O., Ser. 2002, (MBIA Insured), 5.25%, due 3/1/17

Aaa

AAA

5,235

2,000

Lubbock Hlth. Fac. Dev. Corp. Rev. (St. Joseph Hlth. Sys.), Ser. 1998, 5.25%, due 7/1/16

Aa3

AA-

2,035

^ß

4,780

North Central Hlth. Fac. Dev. Corp. Hosp. Ref. Rev. (Baylor Hlth. Care Sys. Proj.), Ser. 1998, 5.10%, due 5/15/13

Aa3

AA-

4,902

^ß

950

Northwest Texas Independent Sch. Dist. Sch. Bldg., Ser. 2002, (PSF Insured), 5.50%, due 8/15/17 Pre-refunded 2/15/13

Aaa

1,036

Northwest Texas Independent Sch. Dist. Unrefunded Bal. Sch. Bldg., Ser. 2002, (PSF Insured), 5.50%, due 8/15/17

Aaa

200

Port of Port Arthur Navigation Dist. Rev. (Fina Oil & Chemical Co. Proj.), Ser. 1998, 3.64%, due 11/1/07, Putable 11/13/07

Aa1

200

^µß

San Antonio Cert. of Obligation G.O., Ser. 2002,5.00%, due 2/1/14 Pre-Refunded 2/1/12

Aa2

AA+

6,795

San Antonio Independent Sch. Dist. Unlimited Tax G.O., Ser. 2001 B, (PSF Insured), 5.38%, due 8/15/17

Aaa

AAA

7,163

1,240

San Antonio Unrefunded Balance Cert. of Obligation G.O., Ser. 2002, 5.00%, due 2/1/14

Aa2

AA+

1,300

500

San Leanna Ed. Fac. Corp. Higher Ed. Ref. Rev., (St. Edwards Univ. Proj.), Ser. 2007, 5.00%, due 6/1/19

Baa2

BBB+

506

^ß

910

Southmost Regl. Wtr. Auth. Tex. Wtr. Supply Contract Rev., Ser. 2002, (MBIA Insured), 5.50%, due 9/1/19 Pre-Refunded 9/1/12

Aaa

988

1,000

Southmost Regl. Wtr. Auth. Tex. Wtr. Supply Contract Rev. Unrefunded Bal., Ser. 2002, (MBIA Insured), 5.50%, due 9/1/19

Aaa

1,071

4,200

Tarrant Reg. Wtr. Dist. Wtr. Ref. & Imp. Rev., Ser. 2002, (FSA Insured), 5.38%, due 3/1/16

Aaa

AAA

4,514

365

Texas Std. Hsg. Corp. Std. Hsg. Rev. (Midwestern St. Univ. Proj.), Ser. 2002, 5.50%, due 9/1/12

Baa3

373

1,000

Trinity River Au. Imp. & Ref. Rev. (Tarrant Co. Wtr. Proj.), Ser. 2003, (MBIA Insured), 5.50%, due 2/1/16 Pre-Refunded 2/1/13

Aaa

AAA

1,090

1,085

Tyler Hlth. Fac. Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg. Hlth. Care Ctr. Proj.), Ser. 2003, 5.25%, due 7/1/13

Baa1

1,137

66,132

Virgin Islands (0.9%)

1,000

Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22

Baa3

BBB

1,052

1,500

Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2004, 5.88%, due 7/1/22

Baa3

BBB

1,562

^ß

2,614

Virginia (1.5%)

1,000

Hopewell Ind. Dev. Au. Env. Imp. Ref. Rev. (Smurfit-Stone Container Enterprise, Inc. Proj.), Ser. 2005, 5.25%, due 6/1/15

CCC+

992

^ñß

2,620

Peninsula Ports Au. Res. Care Fac. Ref. Rev. (VA Baptist Homes), Ser. 2006 C, 5.25%, due 12/1/21

2,622

^{ß^^}

1,000

Virginia Beach Dev. Au. Residential Care Fac. Mtge. Ref. Rev. (Westminster-Canterbury of Hampton Roads, Inc.), Ser. 2005, 5.00%, due 11/1/22

975

^{ß^^}

4,589

See Notes to Schedule of Investments 18

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

Washington (12.5%)

$ 1,000

Clark Co. Vancouver Sch. Dist. Number 37 G.O., Ser. 1998, 5.13%, due 12/1/12

Aa3

1,065

8,800

Energy Northwest Elec. Ref. Rev. (Proj. Number 3), Ser. 2001 A, (FSA Insured), 5.50%, due 7/1/17

Aaa

AAA

9,416

5,000

King & Snohomish Cos. Northshore Sch. Dist. Number 417 G.O., Ser. 2002, (FSA Insured), 5.50%, due 12/1/17 Pre-Refunded 6/1/12

Aaa

AAA

5,406

4,260

King Co. Pub. Trans. Sales Tax Ref. G.O., Ser. 2002, (FSA Insured), 5.38%, due 12/1/14

Aaa

AAA

4,583

6,250

Port of Seattle Sub. Lien Rev., Ser. 2002 B, (FGIC Insured), 5.50%, due 9/1/16

Aaa

AAA

6,635

1,000

Skagit Co. Pub. Hosp. Dist. Number 1 Ref. Rev., Ser. 2007, 5.63%, due 12/1/25

Baa2

1,035

1,000

Skagit Co. Pub. Hosp. Dist. Ref. Rev., Ser. 2003, 6.00%, due 12/1/23

Baa2

1,047

1,625

Skagit Co. Pub. Hosp. Dist. Ref. Rev., Ser. 2003, 6.00%, due 12/1/18

Baa2

1,728

2,500

Tacoma Wtr. Sys. Rev., Ser. 2001, (FGIC Insured), 5.13%, due 12/1/19

Aaa

AAA

2,602

3,125

Washington St. Hlth. Care Fac. Au. Rev. (Yakima Valley Mem. Hosp. Assoc.), Ser. 2002, (ACA Insured), 5.00%, due 12/1/17

3,163

^ß

1,000

Washington St. Var. Purp. G.O., Ser. 1999 A, 4.75%, due 7/1/17

Aa1

1,005

37,685

Wisconsin (5.5%)

1,400

Badger Tobacco Asset Securitization Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2002, 6.13%, due 6/1/27

Baa3

BBB

1,446

1,900

Univ. of Wisconsin Hosp. & Clinics Au. Hosp. Rev., Ser. 2002 B, 5.50%, due 4/1/12

A+

1,994

1,370

Wisconsin Hlth. & Ed. Fac. Au. Rev. (Aurora Med. Group, Inc. Proj.), Ser. 1996, (FSA Insured), 6.00%, due 11/15/11

Aaa

AAA

1,485

^ß

1,000

Wisconsin Hlth. & Ed. Fac. Au. Rev., (Franciscan Sisters Hlth. Care), Ser. 2007, 5.00%, due 9/1/14

Baa1

BBB+

1,025

^ß

7,205

Wisconsin St. G.O., Ser. 2002 C, (MBIA Insured), 5.25%, due 5/1/17 Pre-Refunded 5/1/12

Aaa

AAA

7,675

2,780

Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Kenosha Hosp. & Med. Ctr., Inc. Proj.), Ser. 1999, 5.50%, due 5/15/15

2,864

^ß

16,489

Wyoming (1.6%)

4,895

Wyoming Comm. Dev. Au. Hsg. Rev., Ser. 2006 6, 5.00%, due 12/1/21

Aa1

AA+

4,908

Other (1.6%)

2,000

MuniMae Subordinated Cumulative Perpetual Preferred Shares, Ser. C, 4.70%, due 6/30/49 Putable 9/30/09

Baa2

1,992

^ñ

3,000

Non-Profit Pfd. Fdg. Trust I, Ser. 2006 C, 4.72%, due 9/15/37

2,990

^ñ

4,982

Total Investments (157.7%) (Cost $466,028)

475,152

^##

Cash, receivables and other assets, less liabilities (1.8%)

5,559

Liquidation Value of Auction Market Preferred Shares [(59.5%)]

(179,400

)

Total Net Assets Applicable to Common Shareholders (100.0%)

301,311

See Notes to Schedule of Investments 19

Schedule of Investments New York Intermediate Municipal Fund Inc.

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

Arizona (0.6%)

$ 500

Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17

525

^{^^}

California (1.3%)

1,000

Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev., Ser. 2003, 6.13%, due 3/1/13

1,012

^{^^}

Florida (0.6%)

500

Miami Beach Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09

Ba1

BB+

519

^ß

Georgia (1.2%)

1,000

De Kalb Co. Dev. Au. Ref. PCR (General Motors Corp. Proj.), Ser. 2002, 6.00%, due 3/15/21

Caa1

B-

1,001

^ß

Guam (0.7%)

500

Guam Gov't. Waterworks Au. Wtr. & Wastewater Sys. Rev., Ser. 2005, 5.50%, due 7/1/16

Ba2

525

Louisiana (2.5%)

1,000

Morehouse Parish Ref. PCR (Int'l. Paper Co. Proj.), Ser. 2001 A, 5.25%, due 11/15/13

Baa3

BBB

1,040

^ß

1,000

Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30

Baa3

BBB

993

2,033

New York (142.2%)

3,000

Albany IDA Civic Fac. Rev. (Charitable Leadership Foundation Ctr. for Med. Science Proj.), Ser. 2002 A, 6.00%, due 7/1/19

Ba2

3,076

1,000

Buffalo & Fort Erie Pub. Bldg Au. Toll Bridge Sys. Rev., Ser. 2005, (LOC: Bank of Nova Scotia), 4.00%, due 7/1/10

A-1+

1,000

500

Cattaraugus Co. IDA (St. Bonaventure Univ. Proj.), Ser. 2006 A, 5.00%, due 5/1/23

BBB-

498

^ß

1,000

Dutchess Co. IDA Civic Fac. Ref. Rev. (Marist College Proj.), Ser. 2003 A, 5.15%, due 7/1/17

1,042

^ß

2,000

Dutchess Co. IDA Ind. Dev. Rev. (IBM Proj.), Ser. 1999, 5.45%, due 12/1/29 Putable 12/1/09

A+

2,070

^ß

500

Essex Co. IDA Solid Waste Disp. Rev. (Int'l Paper), Ser. 2005 A, 5.20%, due 12/1/23

Baa3

BBB

499

^ß

2,000

Long Island Pwr. Au. Elec. Sys. Gen. Rev., Ser. 1998 A, (FSA Insured), 5.50%, due 12/1/13

Aaa

AAA

2,209

1,135

Lyons Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004, 5.50%, due 9/1/14

1,218

2,000

Metro. Trans. Au. Ref. Rev., Ser. 2002 A, (AMBAC Insured), 5.50%, due 11/15/15

Aaa

AAA

2,165

1,000

Monroe Co. IDA Civic Fac. Rev. (Highland Hosp. Rochester), Ser. 2005, 5.00%, due 8/1/15

Baa1

BBB+

1,044

^ß

980

Monroe Co. IDA Std. Hsg. Rev. (Collegiate Hsg. Foundation—Rochester Institute of Technology Proj.), Ser. 1999 A, 5.25%, due 4/1/19

Baa3

983

^ß

1,000

Monroe Co. Newpower Corp. Pwr. Fac. Rev., Ser. 2003, 5.10%, due 1/1/16

BBB

1,028

1,000

Monroe Co. Pub. Imp. Ref. G.O., Ser. 1996, 6.00%, due 3/1/13

Baa2

BBB+

1,092

1,000

New York City G.O., Ser. 2002 A, 5.75%, due 8/1/16

Aa3

1,088

750

New York City G.O., Ser. 2002 C, 5.50%, due 8/1/15

Aa3

811

1,410

New York City Hlth. & Hosp. Corp. Rev., Ser. 2002 A, (FSA Insured), 5.50%, due 2/15/13

Aaa

AAA

1,513

^ß

See Notes to Schedule of Investments 20

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

$ 4,000

New York City Hsg. Dev. Corp. Multi-Family Hsg. Rev., Ser. 2002 E-2, 5.05%, due 11/1/23

Aa2

4,026

1,000

New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002 A, (ACA Insured), 5.50%, due 6/1/15

1,040

^ß

1,030

New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002 A, (ACA Insured), 5.50%, due 6/1/17

1,063

^ß

2,920

New York City IDA Civic Fac. Rev. (Packer Collegiate Institute Proj.), Ser. 2002, (AMBAC Insured), 5.00%, due 6/1/22

Aaa

AAA

3,027

^ß

750

New York City IDA Civic Fac. Rev. (Vaughn College of Aeronautics and Technology), Ser. 2006 A, 5.00%, due 12/1/21

BB+

711

^ß

1,000

New York City IDA IDR (Brooklyn Navy Yard Cogeneration Partners, L.P. Proj.), Ser. 1997, 6.20%, due 10/1/22

Ba1

BBB-

1,061

^ß

500

New York City IDA IDR (Harlem Auto Mall Proj.), Ser. 2004, 5.13%, due 12/30/23

Caa1

B-

454

^ß

750

New York City IDA Liberty Rev. (7 World Trade Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15

784

^{^^}

750

New York City IDA Spec. Fac. Rev. (American Airlines, Inc. J.F.K. Int'l Arpt. Proj.), Ser. 2005, 7.50%, due 8/1/16

825

^ß

2,000

New York City IDA Spec. Fac. Rev. (Term. One Group Assoc. Proj.), Ser. 2005, 5.50%, due 1/1/19

BBB+

2,128

^ß

960

New York City Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev., Ser. 1992 A, (AMBAC Insured), 5.88%, due 6/15/13

Aaa

AAA

1,073

4,000

New York City Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev., Ser. 2002 D, 5.25%, due 6/15/15

Aa2

AA+

4,253

3,000

New York City Trans. Fin. Au. Ref. Rev., Ser. 2002 B, 5.25%, due 2/1/29

Aa1

AAA

3,146

2,025

New York City Trans. Fin. Au. Ref. Rev., Ser. 2002 C, (AMBAC Insured), 5.25%, due 8/1/17

Aaa

AAA

2,156

230

New York G.O., Ser. 1998 J, 5.00%, due 8/1/11 Pre-Refunded 8/1/08

Aa3

235

770

New York G.O. Unrefunded Balance, Ser. 1998 J, 5.00%, due 8/1/11

Aa3

785

750

New York Liberty Dev. Corp. Rev. (Nat'l Sports Museum Proj.), Ser. 2006 A, 6.13%, due 2/15/19

767

^{^^}

2,000

New York St. Dorm. Au. Court Fac. Lease Rev. (New York City Issue), Ser. 2003 A, 5.50%, due 5/15/17 Pre-Refunded 5/15/13

AA-

2,192

1,500

New York St. Dorm. Au. Insured Rev. (Long Island Jewish Med. Ctr.), Ser. 1998, (MBIA Insured), 5.00%, due 7/1/18 Pre-Refunded 7/1/08

Aaa

AAA

1,531

^ß

1,675

New York St. Dorm. Au. Insured Rev. (Long Island Univ.), Ser. 2003 A, (Radian Insured), 5.25%, due 9/1/15

Aa3

1,743

^ß

1,600

New York St. Dorm. Au. Insured Rev. (The Culinary Institute of America), Ser. 1999, (MBIA Insured), 5.38%, due 7/1/15

Aaa

AAA

1,660

^ß

3,000

New York St. Dorm. Au. Ref. Rev. (North Gen. Hosp. Proj.), Ser. 2003, 5.75%, due 2/15/17

AA-

3,237

^ß

1,125

New York St. Dorm. Au. Rev. (City Univ. Sys. Proj.), Ser. 1995 A, 5.63%, due 7/1/16

AA-

1,257

1,010

New York St. Dorm. Au. Rev. (Columbia Univ. Proj.), Ser. 2001 A, 5.25%, due 7/1/16 Pre-Refunded 7/1/11

Aaa

AAA

1,082

^ß

2,985

New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.), Ser. 2001, 5.75%, due 7/1/14

Ba2

3,138

^ß

2,000

New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.), Ser. 2001, 5.75%, due 7/1/16

Ba2

2,092

^ß

2,000

New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth.), Ser. 2000 C, 5.50%, due 7/1/26

Baa1

BBB

2,015

^ß

1,980

New York St. Dorm. Au. Rev. (New York Med. College Proj.), Ser. 1998, (MBIA Insured), 5.00%, due 7/1/21

Aaa

AAA

2,014

^ß

525

New York St. Dorm. Au. Rev. (New York Methodist Hosp.), Ser. 2004, 5.25%, due 7/1/18

Baa2

538

^ß

500

New York St. Dorm. Au. Rev. (North Shore-Long Island Jewish Oblig. Group), Ser. 2003, 5.00%, due 5/1/18

514

^ß

2,855

New York St. Dorm. Au. Rev. (Rivington House Hlth. Care Fac.), Ser. 2002, (LOC: SONYMA), 5.25%, due 11/1/15

Aa1

3,011

^ß

2,410

New York St. Dorm. Au. Rev. (Rochester Institute of Technology Proj.), Ser. 2002 A, (AMBAC Insured), 5.25%, due 7/1/19

Aaa

2,547

^ß

3,000

New York St. Dorm. Au. Rev. (SS Joachim & Anne Residence Proj.), Ser. 2002, (LOC: Allied Irish Bank), 4.60%, due 7/1/16

Aa3

3,009

See Notes to Schedule of Investments 21

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

$ 1,000

New York St. Dorm. Au. Rev. Non. St. Supported Debt (NYU Hosp. Ctr.), Ser. 2006 A, 5.00%, due 7/1/20

Ba2

1,006

^ß

250

New York St. Dorm. Au. Rev. Secured Hosp. Ref. Rev. (Brookdale Hosp. Med. Ctr.), Ser. 1998 J, 5.20%, due 2/15/16

AA-

254

^ß

3,900

New York St. Dorm. Au. Rev. St. Personal Income Tax Rev., Ser. 2003 A, 5.38%, due 3/15/17 Pre-Refunded 3/15/13

Aa3

AAA

4,245

5,000

New York St. Energy Res. & Dev. Au. Fac. Rev. (Consolidated Edison Co. of New York, Inc. Proj.), Ser. 2001, 4.70%, due 6/1/36 Putable 10/1/12

A+

5,004

^ß

1,500

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

1,503

^ß

2,000

New York St. Mtge. Agcy. Homeowner Mtge. Rev., Ser. 1997-67, 5.70%, due 10/1/17

Aa1

2,030

200

New York St. Mtge. Agcy. Rev. (AMT Homeowner Mtge.), Ser. 2006, (LOC: Dexia Credit Locale de France), 3.55%, due 11/1/07

Aa1

200

^µ

2,000

New York St. Pwr. Au. Rev., Ser. 2002 A, 5.25%, due 11/15/16

Aa2

AA-

2,163

250

New York St. Urban Dev. Corp. Correctional & Youth Fac. Svc. Rev., Ser. 2002 C, 4.00%, due 1/1/20

AA-

253

1,325

New York St. Urban Dev. Corp. Proj. Ref. Rev. (Ctr. for Ind. Innovation), Ser. 1995, 6.25%, due 1/1/09

AA-

1,366

2,000

Niagara Co. IDA Civic Fac. Rev. (Niagara Univ. Proj.), Ser. 2001 A, (Radian Insured), 5.50%, due 11/1/16

2,102

^ß

2,500

Niagara Co. IDA Solid Waste Disp. Fac. Ref. Rev. (American Ref.-Fuel Co. of Niagara), Ser. 2001 C, 5.63%, due 11/15/24 Putable 11/15/14

Baa2

BB+

2,555

^ß

3,000

Port Authority of NY & NJ Rev., Ser. 2002, (AMBAC Insured), 5.50%, due 12/15/12

Aaa

AAA

3,245

3,000

Triborough Bridge & Tunnel Au. Gen Purp. Ref. Rev., Ser. 2002 B, 5.25%, due 11/15/18

Aa2

AA-

3,187

1,535

Ulster Co. Res. Rec. Agcy. Solid Waste Sys. Ref. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 3/1/16

Aaa

AAA

1,640

500

United Nations Dev. Corp. Sr. Lien. Ref. Rev., Ser. 2004 A, 5.25%, due 7/1/17

501

1,000

Westchester Co. IDA Continuing Care Retirement Comm. Rev. (Kendal on Hudson Proj.), Ser. 2003 B, 5.70%, due 1/1/34 Putable 1/1/10

1,021

^{ß^^}

1,000

Yonkers IDA Civic Fac. Rev. (Comm. Dev. Properties-Yonkers, Inc.), Ser. 2001 A, 6.25%, due 2/1/16 Pre-Refunded 2/1/11

Baa3

1,063

^ß

113,788

Ohio (0.6%)

500

Coshocton Co. Env. Imp. Ref. Rev. (Smurfit-Stone Container Enterprises, Inc. Proj.), Ser. 2005, 5.13%, due 8/1/13

CCC+

495

^ñß

Pennsylvania (2.1%)

1,590

Cumberland Co. 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

1,647

^ß

Puerto Rico (2.5%)

870

Puerto Rico Children's Trust Tobacco Settlement Asset-Backed Rev., Ser. 2002, 5.38%, due 5/15/33

Baa3

BBB

872

1,060

Puerto Rico Ind. Tourist Ed. Med. & Env. Ctrl. Fac. Rev. (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A, (ACA Insured), 5.25%, due 8/1/16

1,094

^ß

1,966

See Notes to Schedule of Investments 22

PRINCIPAL AMOUNT

SECURITY^@

RATING^§

VALUE^†

(000's omitted)

Moody's

S&P

(000's omitted)

Texas (2.5%)

$ 800

Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13

Caa1

CCC

820

^ß

750

Brazos River Au. Ref. Rev. (Reliant Energy, Inc. Proj.), Ser. 1999 B, 7.75%, due 12/1/18

Ba1

BBB-

782

^ß

400

Dallas-Fort Worth Int'l Arpt. Fac. Imp. Corp. Rev., Ser. 2004 A-1, 6.15%, due 1/1/16

Ba2

400

^ß

2,002

Virgin Islands (1.3%)

250

Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22

Baa3

BBB

263

750

Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22

769

^{^^}

1,032

Total Investments (158.1%) (Cost $125,001)

126,545

^##

Cash, receivables and other assets, less liabilities (2.2%)

1,737

Liquidation Value of Auction Market Preferred Shares [(60.3%)]

(48,250

)

Total Net Assets Applicable to Common Shareholders (100.0%)

80,032

See Notes to Schedule of Investments 23

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 each Fund's 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, 2007, selected Fund information on a U.S. federal income tax basis was as follows:

(000's omitted) Neuberger Berman	Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation
California	$	154,541	$	3,357	$	219	$	3,138
Intermediate		466,028		9,937		813		9,124
New York		125,001		2,005		461		1,544

@ 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 79%, 73%, and 65% 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.

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

ñ Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be liquid. At October 31, 2007, these securities amounted to approximately $495,000 or 0.5% of net assets applicable to common shareholders for California, approximately $9,411,000 or 3.1% of net assets applicable to common shareholders for Intermediate and approximately $495,000 or 0.6% of net assets applicable to common shareholders for New York.

^^ Not rated by a NRSRO.

Ø All or a portion of this security was purchased on a when-issued basis. At October 31, 2007, these securities amounted to $1,291,000 or 1.3% of net assets applicable to common shareholders for California and $1,048,000 or 0.3% of net assets applicable to common shareholders for Intermediate.

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

µ 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, 2007.

^§ Credit ratings are unaudited.

± Rated BBB by Fitch Investor Services, Inc.

a Security is subject to a guarantee provided by Societe Generale, backing 100% of the total principal.

Statements of Assets and Liabilities

Neuberger Berman Intermediate Municipal Closed-End Funds
(000's omitted except per share amounts)

	California Intermediate Municipal Fund			Intermediate Municipal Fund			New York Intermediate Municipal Fund
	October 31, 2007			October 31, 2007			October 31, 2007
Assets
Investments in securities, at market value* (Note A)—see Schedule of Investments:	$	157,679		$	475,152		$	126,545
Cash		—			230			92
Interest receivable		2,487			8,092			2,103
Receivable for securities sold		—			111			5
Prepaid expenses and other assets		2			8			3
Total Assets		160,168			483,593			128,748
Liabilities
Due to custodian		7			—			—
Distributions payable—preferred shares		92			276			55
Distributions payable—common shares		362			1,123			298
Payable for securities purchased		1,300			1,246			—
Payable to administrator (Note B)		41			123			33
Accrued expenses and other payables		83			114			80
Total Liabilities		1,885			2,882			466
Auction Market Preferred Shares Series A & B at liquidation value
3,000, 8,000 and 3,000 shares authorized; and 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	$	99,283		$	301,311		$	80,032
Net Assets applicable to Common Shareholders consist of:
Paid-in capital—common shares	$	96,455		$	293,853		$	79,175
Distributions in excess of net investment income		(80	)		(642	)		(149	)
Accumulated net realized gains (losses) on investments		(230	)		(1,024	)		(538	)
Net unrealized appreciation (depreciation) in value of investments		3,138			9,124			1,544
Net Assets applicable to Common Shareholders at value	$	99,283		$	301,311		$	80,032
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)		6,799			20,705			5,582
Net Asset Value Per Common Share Outstanding	$	14.60		$	14.55		$	14.34
*Cost of Investments:	$	154,541		$	466,028		$	125,001

See Notes to Financial Statements 25

Statements of Operations

Neuberger Berman Intermediate Municipal Closed-End Funds
(000's omitted)

	CALIFORNIA INTERMEDIATE MUNICIPAL FUND			INTERMEDIATE MUNICIPAL FUND			NEW YORK INTERMEDIATE MUNICIPAL FUND
	For the Year Ended October 31, 2007			For the Year Ended October 31, 2007			For the Year Ended October 31, 2007
Investment Income:
Income (Note A):
Interest income	$	7,313		$	22,584		$	6,113
Expenses:
Investment management fees (Notes A & B)		398			1,208			323
Administration fees (Note B)		477			1,450			387
Stock transfer agent fees		41			42			41
Auction agent fees (Note B)		150			455			122
Audit fees		52			52			52
Basic maintenance expense (Note B)		25			25			25
Custodian fees (Note B)		82			147			69
Insurance expense		6			17			5
Legal fees		27			58			25
Shareholder reports		32			85			30
Stock exchange listing fees		2			6			2
Directors' fees and expenses		24			24			24
Miscellaneous		28			28			27
Total expenses		1,344			3,597			1,132
Investment management fees waived (Note B)		(398	)		(1,208	)		(323	)
Expenses reduced by custodian fee expense offsetarrangement (Note B)		(3	)		(6	)		(3	)
Total net expenses		943			2,383			806
Net investment income (loss)		6,370			20,201			5,307
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		69			(127	)		11
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		(2,451	)		(6,974	)		(1,858	)
Net gain (loss) on investments		(2,382	)		(7,101	)		(1,847	)
Distributions to Preferred Shareholders		(2,028	)		(6,687	)		(1,673	)
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations	$	1,960		$	6,413		$	1,787

See Notes to Financial Statements 26

Statements of Changes in Net Assets

Neuberger Berman Intermediate Municipal Closed-End Funds
(000's omitted)

	CALIFORNIA INTERMEDIATE MUNICIPAL FUND						INTERMEDIATE MUNICIPAL FUND
	Year Ended October 31, 2007			Year Ended October 31, 2006			Year Ended October 31, 2007			Year Ended October 31, 2006
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
From Operations:
Net investment income (loss)	$	6,370		$	6,368		$	20,201		$	20,112
Net realized gain (loss) on investments		69			49			(127	)		247
Change in net unrealized appreciation (depreciation) of investments		(2,451	)		2,518			(6,974	)		5,912
Distributions to Preferred Shareholders From (Note A):
Net investment income		(2,028	)		(1,867	)		(6,687	)		(5,952	)
Net increase (decrease) in net assets applicable to common shareholders resulting from operations		1,960			7,068			6,413			20,319
Distributions to Common Shareholders From (Note A):
Net investment income		(4,668	)		(4,882	)		(13,783	)		(15,502	)
From Capital Share Transactions:
Proceeds from reinvestment of dividends		108			—			—			—
Total net proceeds from capital share transactions		108			—			—			—
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders		(2,600	)		2,186			(7,370	)		4,817
Net Assets Applicable to Common Shareholders:
Beginning of year		101,883			99,697			308,681			303,864
End of year	$	99,283		$	101,883		$	301,311		$	308,681
Undistributed net investment income (loss) at end of year	$	—		$	246		$	—		$	—
Distributions in excess of net investment income at end of year	$	(80	)	$	—		$	(642	)	$	(373	)

See Notes to Financial Statements 27

	NEW YORK INTERMEDIATE MUNICIPAL FUND
	Year Ended October 31, 2007			Year Ended October 31, 2006
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
From Operations:
Net investment income (loss)	$	5,307		$	5,325
Net realized gain (loss) on investments		11			47
Change in net unrealized appreciation (depreciation) of investments		(1,858	)		1,559
Distributions to Preferred Shareholders From (Note A):
Net investment income		(1,673	)		(1,533	)
Net increase (decrease) in net assets applicable to common shareholders resulting from operations		1,787			5,398
Distributions to Common Shareholders From (Note A):
Net investment income		(3,750	)		(4,167	)
From Capital Share Transactions:
Proceeds from reinvestment of dividends		56			56
Total net proceeds from capital share transactions		56			56
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders		(1,907	)		1,287
Net Assets Applicable to Common Shareholders:
Beginning of year		81,939			80,652
End of year	$	80,032		$	81,939
Undistributed net investment income (loss) at end of year	$	—		$	—
Distributions in excess of net investment income at end of year	$	(149	)	$	(33	)

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 mo re 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 trade date for financial reporting purposes. 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, 2007, there were no permanent differences resulting from different book and tax accounting reclassified at fiscal year-end.

The tax character of distributions paid during the years ended October 31, 2007 and October 31, 2006 were as follows:

	Distributions Paid From:
	Tax-Exempt Income				Ordinary Income				Total
	2007		2006		2007		2006		2007		2006
California	$	6,689,147	$	6,741,577	$	6,563	$	6,567	$	6,695,710	$	6,748,144
Intermediate		20,429,346		21,418,996		40,416		35,155		20,469,762		21,454,151
New York		5,418,857		5,696,502		4,701		4,389		5,423,558		5,700,891

As of October 31, 2007, the components of distributable earnings (accumulated losses) on a U.S federal income tax basis were as follows:

Undistributed	Undistributed Tax-Exempt Income		Undistributed Ordinary Income		Unrealized Long-Term Gain		Loss Appreciation (Depreciation)		Carryforwards and Deferrals			Total
California	$	375,119	$	—	$	—	$	3,138,120	$	(230,084	)	$	3,283,155
Intermediate		757,071		—		—		9,123,612		(1,023,927	)		8,856,756
New York		204,007		—		—		1,544,142		(538,034	)		1,210,115

The differences 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, 2007, 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:
	2011		2012		2013		2014		2015
California	$	—	$	225,607	$	4,477	$	—	$	—
Intermediate		509,968		328,363		58,816		—		126,780
New York		362,560		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 quarterly and pay monthly distributions. Distributions from net realized capital gains, if any, are normally distributed in December. 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, 2007, each Fund declared three monthly distributions to common shareholders payable December 17, 2007, January 15, 2008 and February 15, 2008 to shareholders of record on November 30, 2007, December 31, 2007 and January 31, 2008, with ex-dates of November 28, 2007, December 27, 2007 and January 29, 2008, as follows:

	Distribution per share
California	$	0.053294
Intermediate		0.054217
New York		0.053430

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. For the year ended October 31, 2007, distribution rates ranged from:

	Distribution Rate
California		2.75	% – 4.00%
Intermediate		3.30	% – 4.05%
New York		3.00	% – 3.80%

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. For the year ended October 31, 2007, distribution rates ranged from:

	Distribution Rate
California		3.34	% – 3.76%
Intermediate		3.50	% – 4.35%
New York		3.25	% – 4.00%

The Funds declared distributions to AMPS shareholders for the period November 1, 2007 to November 30, 2007 for each series of the AMPS as follows:

	Series A Shares		Series B Shares
California	$	78,163	$	72,186
Intermediate		271,668		275,249
New York		57,926		68,570

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 shares as a single class, except that the AMPS will vote separately as a class on certain matters, as required by law or a Fund's 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 fails 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. California and New York normally invest substantially all of their assets in municipal bonds of issuers located in the state of California and the state of New York, respectively. The value of each of these Funds' securities are 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.

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 October 31,		% of Average Daily Managed Assets
	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, 2007, such waived fees amounted to $397,777, $1,208,416, and $322,751 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, 2007, the impact of this arrangement was a reduction of expenses of $2,684, $6,245, and $2,568 for California, Intermediate, and New York, respectively.

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.

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 each 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 reflected in the Statements of Operations under the caption "Basic maintenance expense."

Note C—Securities Transactions:

For the year ended October 31, 2007, there were purchase and sale transactions (excluding short-term securities) as follows:

(000's omitted)	Purchases		Sales
California	$	6,806	$	4,483
Intermediate		20,109		18,381
New York		2,254		1,473

Note D—Capital:

At October 31, 2007, the common shares outstanding and the common shares of each Fund owned by Neuberger were as follows:

	Common Shares Outstanding		Common Shares Owned by Neuberger
California		6,799,354		6,981
Intermediate		20,705,124		6,981
New York		5,582,218		6,981

Transactions in common shares for the years ended October 31, 2007 and October 31, 2006, were as follows:

	Reinvestment of Dividends and Distributions				Net Increase in Common Shares Outstanding
	2007		2006		2007		2006
California		7,373		—		7,373		—
Intermediate		—		—		—		—
New York		3,816		3,852		3,816		3,852

Note E—Recent Accounting Pronouncements:

On July 13, 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. FIN 48 requires that a "more-likely-than-not" threshold be met before the benefit of a tax position may be recognized in the financial statements and prescribes how such benefit should be measured. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. The Securities and Exchange Commission has permitted investment companies to delay implementation of FIN 48. Each fund will have until April 30, 2008 to implement FIN 48. At this time, Management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In September 2006, FASB issued FASB Statement No. 157, "Fair Value Measurement" ("SFAS 157"), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Management believes the adoption of SFAS 157 will not have a material impact on the Funds' financial positions or results of operations.

Financial Highlights

California Intermediate Municipal Fund

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

	Year Ended October 31,
	2007			2006			2005			2004			2003
Common Share Net Asset Value, Beginning of Year	$	15.00		$	14.68		$	15.06		$	14.36		$	14.31
Income From Investment Operations Applicable to Common Shareholders:
Net Investment Income (Loss)^¢		.94			.94			.91			.91			.85
Net Gains or Losses on Securities (both realized and unrealized)		(.35	)		.37			(.40	)		.67			.14
Common Share Equivalent of Distributions to Preferred Shareholders From:
Net Investment Income^¢		(.30	)		(.27	)		(.14	)		(.13	)		(.08	)
Total From Investment Operations Applicable to Common Shareholders		.29			1.04			.37			1.45			.91
Less Distributions to Common Shareholders From:
Net Investment Income		(.69	)		(.72	)		(.75	)		(.75	)		(.75	)
Less Capital Charges From:
Issuance of Preferred Shares		—			—			—			—			(.11	)
Total Capital Charges		—			—			—			—			(.11	)
Common Share Net Asset Value, End of Year	$	14.60		$	15.00		$	14.68		$	15.06		$	14.36
Common Share Market Value, End of Year	$	13.08		$	14.65		$	13.75		$	13.47		$	13.00
Total Return, Common Share Net Asset Value^†		+2.16	%		+7.51	%		+2.96	%		+10.97	%		+6.02	%
Total Return, Common Share Market Value^†		–6.29	%		+12.10	%		+7.82	%		+9.63	%		–8.44	%
Ratios/Supplemental Data^††
Net Assets Applicable to Common Shareholders, End of Year (in millions)	$	99.3		$	101.9		$	99.7		$	102.3		$	97.5
Preferred Shares, at Liquidation Value ($25,000 per share liquidation preference) (in millions)	$	59.0		$	59.0		$	59.0		$	59.0		$	59.0
Ratio of Gross Expenses to Average Net Assets Applicable to Common Shareholders^#		.94	%		.93	%		.96	%		.96	%		.88	%
Ratio of Net Expenses to Average Net AssetsApplicable to Common Shareholders^‡		.94	%		.93	%		.96	%		.96	%		.88	%
Ratio of Net Investment Income (Loss) Excluding Preferred Share Distributions to Average Net Assets Applicable to Common Shareholders		6.36	%		6.36	%		6.08	%		6.24	%		5.88	%
Ratio of Preferred Share Distributions to Average Net Assets Applicable to Common Shareholders		2.02	%		1.86	%		.91	%		.86	%		.56	%
Ratio of Net Investment Income (Loss) Including Preferred Share Distributions to Average Net Assets Applicable to Common Shareholders		4.34	%		4.50	%		5.17	%		5.38	%		5.32	%
Portfolio Turnover Rate		3	%		3	%		3	%		3	%		9	%
Asset Coverage Per Preferred Share, End of Year^@	$	67,108		$	68,208		$	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 year and other performance information derived from the Financial Statements.

	Year Ended October 31,
	2007			2006			2005			2004			2003
Common Share Net Asset Value, Beginning of Year	$	14.91		$	14.68		$	15.11		$	14.44		$	14.30
Income From Investment Operations Applicable to Common Shareholders:
Net Investment Income (Loss)^¢		.98			.97			.95			.94			.88
Net Gains or Losses on Securities (both realized and unrealized)		(.35	)		.30			(.43	)		.65			.25
Common Share Equivalent of Distributions to Preferred Shareholders From:
Net Investment Income^¢		(.32	)		(.29	)		(.15	)		(.12	)		(.09	)
Total From Investment Operations Applicable to Common Shareholders		.31			.98			.37			1.47			1.04
Less Distributions to Common Shareholders From:
Net Investment Income		(.67	)		(.75	)		(.80	)		(.80	)		(.80	)
Less Capital Charges From:
Issuance of Preferred Shares		—			—			—			—			(.10	)
Total Capital Charges		—			—			—			—			(.10	)
Common Share Net Asset Value, End of Year	$	14.55		$	14.91		$	14.68		$	15.11		$	14.44
Common Share Market Value, End of Year	$	12.86		$	14.22		$	13.62		$	13.70		$	13.33
Total Return, Common Share Net Asset Value^†		+2.48	%		+7.22	%		+2.93	%		+10.91	%		+6.88	%
Total Return, Common Share Market Value^†		–5.03	%		+10.22	%		+5.32	%		+8.94	%		–5.94	%
Ratios/Supplemental Data^††
Net Assets Applicable to Common Shareholders, End of Year (in millions)	$	301.3		$	308.7		$	303.9		$	312.8		$	299.1
Preferred Shares, at Liquidation Value ($25,000 per share liquidation preference) (in millions)	$	179.4		$	179.4		$	179.4		$	179.4		$	179.4
Ratio of Gross Expenses to Average Net Assets Applicable to Common Shareholders^#		.79	%		.78	%		.80	%		.82	%		.74	%
Ratio of Net Expenses to Average Net Assets Applicable to Common Shareholders^‡		.78	%		.78	%		.80	%		.82	%		.74	%
Ratio of Net Investment Income (Loss) Excluding Preferred Share Distributions to Average Net Assets Applicable to Common Shareholders		6.65	%		6.61	%		6.33	%		6.40	%		6.08	%
Ratio of Preferred Share Distributions to Average Net Assets Applicable to Common Shareholders		2.20	%		1.95	%		1.02	%		.85	%		.59	%
Ratio of Net Investment Income (Loss) Including Preferred Share Distributions to Average Net Assets Applicable to Common Shareholders		4.45	%		4.66	%		5.31	%		5.55	%		5.49	%
Portfolio Turnover Rate		4	%		6	%		2	%		3	%		10	%
Asset Coverage Per Preferred Share, End of Year^@	$	67,027		$	68,048		$	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 year and other performance information derived from the Financial Statements.

	Year Ended October 31,
	2007			2006			2005			2004			2003
Common Share Net Asset Value, Beginning of Year	$	14.69		$	14.47		$	14.90		$	14.40		$	14.32
Income From Investment Operations Applicable to Common Shareholders:
Net Investment Income (Loss)^¢		.95			.96			.93			.93			.86
Net Gains or Losses on Securities (both realized and unrealized)		(.33	)		.29			(.44	)		.48			.19
Common Share Equivalent of Distributions to Preferred Shareholders From:
Net Investment Income^¢		(.30	)		(.28	)		(.14	)		(.13	)		(.08	)
Total From Investment Operations Applicable to Common Shareholders		.32			.97			.35			1.28			.97
Less Distributions to Common Shareholders From:
Net Investment Income		(.67	)		(.75	)		(.78	)		(.78	)		(.78	)
Less Capital Charges From:
Issuance of Preferred Shares		—			—			—			—			(.11	)
Total Capital Charges		—			—			—			—			(.11	)
Common Share Net Asset Value, End of Year	$	14.34		$	14.69		$	14.47		$	14.90		$	14.40
Common Share Market Value, End of Year	$	12.99		$	14.60		$	13.54		$	13.32		$	13.27
Total Return, Common Share Net Asset Value^†		+2.50	%		+7.05	%		+2.87	%		+9.67	%		+6.36	%
Total Return, Common Share Market Value^†		–6.58	%		+13.70	%		+7.68	%		+6.39	%		–6.43	%
Ratios/Supplemental Data^††
Net Assets Applicable to Common Shareholders, End of Year (in millions)	$	80.0		$	81.9		$	80.7		$	83.1		$	80.3
Preferred Shares, at Liquidation Value ($25,000 per share liquidation preference) (in millions)	$	48.3		$	48.3		$	48.3		$	48.3		$	48.3
Ratio of Gross Expenses to Average Net Assets Applicable to Common Shareholders^#		1.00	%		.98	%		1.02	%		1.00	%		.92	%
Ratio of Net Expenses to Average Net Assets Applicable to Common Shareholders^‡		1.00	%		.98	%		1.01	%		.99	%		.92	%
Ratio of Net Investment Income (Loss) Excluding Preferred Share Distributions to AverageNet Assets Applicable to Common Shareholders		6.56	%		6.60	%		6.30	%		6.37	%		6.02	%
Ratio of Preferred Share Distributions to Average Net Assets Applicable to Common Shareholders		2.07	%		1.90	%		.92	%		.86	%		.57	%
Ratio of Net Investment Income (Loss) Including Preferred Share Distributions to Average Net Assets Applicable to Common Shareholders		4.49	%		4.70	%		5.38	%		5.51	%		5.45	%
Portfolio Turnover Rate		1	%		5	%		2	%		5	%		11	%
Asset Coverage Per Preferred Share, End of Year^@	$	66,496		$	67,488		$	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 distribution reinvestment plan. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. Investment returns may fluctuate and shares when sold may be worth more or less than original cost. For each Fund, total return would have been lower if Management had not waived a portion of the investment management fee.

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

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

	Year Ended October 31,
	2007			2006			2005			2004			2003
California		1.34	%		1.32	%		1.36	%		1.35	%		1.26	%
Intermediate		1.18	%		1.17	%		1.20	%		1.22	%		1.13	%
New York		1.40	%		1.38	%		1.41	%		1.39	%		1.31	%

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

†† Expense ratios do not include the effect of distributions 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 each fiscal period.

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, 2007, 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 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 audits 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, 2007, 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, 2007, 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.

Boston, Massachusetts
December 14, 2007

Distribution 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 Distribution 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 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 or distribution 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 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 n et 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.

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.

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

The Bank of New York
101 Barclay Street, 11-E
New York, NY 10286

Legal Counsel

Kirkpatrick & Lockhart Preston Gates Ellis LLP
1601 K Street, NW
Washington, DC 20006

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116

Directors and Officers

The following tables set forth information concerning the directors ("Directors") and officers ("Officers") of Neuberger Berman California Intermediate Municipal Fund Inc., Neuberger Berman Intermediate Municipal Fund Inc., Neuberger Berman New York Intermediate Municipal Fund Inc. (individually a "Fund" and, collectively, the "Funds"). All persons named as directors and officers also serve in similar capacities for other funds administered or managed by Neuberger Berman Management Inc. ("Management") and Neuberger Berman, LLC ("Neuberger"). Each Fund's Statement of Additional Information includes additional information about Directors as of the time of each Fund's most recent public offering and is available upon request, without charge, by calling (877) 461-1899.

Information About the Board of Directors

Name, Age, Address⁽¹⁾ and
Position⁽²⁾ with Each Fund

Length of
Time Served

Principal Occupation(s)⁽³⁾

Number of
Portfolios in
Fund Complex
Overseen by
Director⁽⁴⁾

Other Directorships Held
Outside Fund Complex by
Director

CLASS I

Independent Directors

Faith Colish (72)
Director

Since 2002

Counsel, Carter Ledyard & Milburn LLP (law firm) since October 2002; formerly, Attorney-at-Law and President, Faith Colish, A Professional Corporation, 1980 to 2002.

Formerly, Director (1997 to 2003) and Advisory Director (2003 to 2006), ABA Retirement Funds (formerly, American Bar Retirement Association) (not-for-profit membership corporation).

Michael M. Knetter (47)
Director

Since 2007

Dean, School of Business, University of Wisconsin — Madison; formerly, Professor of International Economics and Associate Dean, Amos Tuck School of Business — Dartmouth College, 1998 to 2002.

Trustee, Northwestern Mutual Series Fund, Inc., since February 2007; Director, Wausau Paper, since 2005; Director, Great Wolf Resorts, since 2004.

Cornelius T. Ryan (76)
Director

Since 2002

Founding General Partner, Oxford Partners and Oxford Bioscience Partners (venture capital investing) and President, Oxford Venture Corporation since 1981.

None.

Peter P. Trapp (63)
Director

Since 2002

Retired; formerly, Regional Manager for Mid-Southern Region, Ford Motor Credit Company, September 1997 to 2007; formerly, President, Ford Life Insurance Company, April 1995 to August 1997.

None.

Name, Age, Address⁽¹⁾ and
Position⁽²⁾ with Each Fund

Length of
Time Served

Principal Occupation(s)⁽³⁾

Number of
Portfolios in
Fund Complex
Overseen by
Director⁽⁴⁾

Other Directorships Held
Outside Fund Complex by
Director

Director who is an "Interested Person"

Peter E. Sundman* (48)
Chief Executive Officer, Director and Chairman of the Board

Since 2002

Executive Vice President, Neuberger Berman Inc. (holding company) since 1999; Head of Neuberger Berman Inc.'s Mutual Funds Business (since 1999) and Institutional Business (1999 to October 2005); responsible for Managed Accounts Business and intermediary distribution since October 1999; President and Director, Management since 1999; Managing Director, Neuberger since 2005; formerly, Executive Vice President, Neuberger, 1999 to December 2005; formerly, Principal, Neuberger, 1997 to 1999; formerly, Senior Vice President, Management, 1996 to 1999.

Director and Vice President, Neuberger & Berman Agency, Inc. since 2000; formerly, Director, Neuberger Berman Inc. (holding company), October 1999 to March 2003; Trustee, Frost Valley YMCA; Trustee, College of Wooster.

CLASS II

Independent Directors*

John Cannon (77)
Director

Since 2002

Consultant; formerly, Chairman, CDC Investment Advisers (registered investment adviser), 1993 to January 1999; formerly, President and Chief Executive Officer, AMA Investment Advisors, an affiliate of the American Medical Association.

Independent Trustee or Director of three series of Oppenheimer Funds: Oppenheimer Limited Term New York Municipal Fund, Rochester Fund Municipals, and Oppenheimer Convertible Securities Fund since 1992.

C. Anne Harvey (70)
Director

Since 2002

President, C.A. Harvey Associates since October 2001; formerly, Director, AARP, 1978 to December 2001.

Formerly, President, Board of Associates to The National Rehabilitation Hospital's Board of Directors, 2001 to 2002; formerly, Member, Individual Investors Advisory Committee to the New York Stock Exchange Board of Directors, 1998 to June 2002.

Name, Age, Address⁽¹⁾ and
Position⁽²⁾ with Each Fund

Length of
Time Served

Principal Occupation(s)⁽³⁾

Number of
Portfolios in
Fund Complex
Overseen by
Director⁽⁴⁾

Other Directorships Held
Outside Fund Complex by
Director

George W. Morriss (60)
Director

Since 2007

Formerly, Executive Vice President and Chief Financial Officer, People's Bank (a financial services company), 1991 to 2001.

Manager, Old Mutual 2100 fund complex (consisting of six funds), since October 2006 for four funds and since February 2007 for two funds.

Tom D. Seip (57)
Director

Director Since 2002; Lead Independent Director Since 2006

General Partner, Seip Investments LP (a private investment partnership); formerly, President and CEO, Westaff, Inc. (temporary staffing), May 2001 to January 2002; formerly, Senior Executive at the Charles Schwab Corporation, 1983 to 1998, including Chief Executive Officer, Charles Schwab Investment Management, Inc. and Trustee, Schwab Family of Funds and Schwab Investments, 1997 to 1998, and Executive Vice President-Retail Brokerage, Charles Schwab & Co., Inc., 1994 to 1997.

Director, H&R Block, Inc. (financial services company) since May 2001; Chairman, Compensation Committee, H&R Block, Inc. since 2006; Director, America One Foundation since 1998; formerly, Chairman, Governance and Nominating Committee, H&R Block, Inc., 2004 to 2006; formerly, Director, Forward Management, Inc. (asset management company), 1999 to 2006; formerly, Director, E-Bay Zoological Society, 1999 to 2003; formerly, Director, General Magic (voice recognition software), 2001 to 2002; formerly, Director, E-Finance Corporation (credit decisioning services), 1999 to 2003; formerly, Director, Save-Daily.com (micro investing services), 1999 to 2003.

Name, Age, Address⁽¹⁾ and
Position⁽²⁾ with Each Fund

Length of
Time Served

Principal Occupation(s)⁽³⁾

Number of
Portfolios in
Fund Complex
Overseen by
Director⁽⁴⁾

Other Directorships Held
Outside Fund Complex by
Director

Director who is an "Interested Person"

Jack L. Rivkin* (67)
President and Director

Since 2002

Executive Vice President and Chief Investment Officer, Neuberger Berman Inc. (holding company) since 2002 and 2003, respectively; Managing Director and Chief Investment Officer, Neuberger, since December 2005 and 2003, respectively; formerly, Executive Vice President, Neuberger, December 2002 to 2005; Director and Chairman, Management since December 2002; formerly, Executive Vice President, Citigroup Investments, Inc., September 1995 to February 2002; formerly, Executive Vice President, Citigroup Inc., September 1995 to February 2002.

Director, Dale Carnegie and Associates, Inc. (private company) since 1998; Director, Solbright, Inc. (private company) since 1998.

CLASS III

Independent Directors

Martha C. Goss (58)

Since 2007

President, Woodhill Enterprises Inc./Chase Hollow Associates LLC (personal investment vehicle), since 2006; Chief Operating and Financial Officer, Hopewell Holdings LLC/ Amwell Holdings, LLC (a holding company for a healthcare reinsurance company start-up), since 2003; formerly, Consultant, Resources Connection (temporary staffing), 2002 to 2006.

Director, Ocwen Financial Corporation (mortgage servicing), since 2005; Director, American Water (water utility), since 2003; Director, Channel Reinsurance (financial guaranty reinsurance), since 2006; Advisory Board Member, Attensity (software developer), since 2005; Director, Allianz Life of New York (insurance), since 2005; Director, Financial Women's Association of New York (not for profit association), since 2003; Trustee Emerita, Brown University, since 1998.

Name, Age, Address⁽¹⁾ and
Position⁽²⁾ with Each Fund

Length of
Time Served

Principal Occupation(s)⁽³⁾

Number of
Portfolios in
Fund Complex
Overseen by
Director⁽⁴⁾

Other Directorships Held
Outside Fund Complex by
Director

Robert A. Kavesh (80)
Director

Since 2002

Marcus Nadler Professor Emeritus of Finance and Economics, New York University Stern School of Business; formerly, Executive Secretary-Treasurer, American Finance Association, 1961 to 1979.

Formerly, Director, The Caring Community (not-for-profit), 1997 to 2006; formerly, Director, DEL Laboratories, Inc. (cosmetics and pharmaceuticals), 1978 to 2004; formerly, Director, Apple Bank for Savings, 1979 to 1990; formerly, Director, Western Pacific Industries, Inc., 1972 to 1986 (public company).

Howard A. Mileaf (70)
Director

Since 2002

Retired; formerly, Vice President and General Counsel, WHX Corporation (holding company), 1993 to 2001.

Director, Webfinancial Corporation (holding company) since December 2002; formerly, Director WHX Corporation (holding company), January 2002 to June 2005; formerly, Director, State Theatre of New Jersey (not-for-profit theater), 2000 to 2005.

Edward I. O'Brien (79)
Director

Since 2002

Formerly, Member, Investment Policy Committee, Edward Jones, 1993 to 2001; President, Securities Industry Association ("SIA") (securities industry's representative in government relations and regulatory matters at the federal and state levels), 1974 to 1992; Adviser to SIA, November 1992 to November 1993.

Director, Legg Mason, Inc. (financial services holding company) since 1993; formerly, Director, Boston Financial Group (real estate and tax shelters), 1993 to 1999.

William E. Rulon (75)
Director

Since 2002

Retired; formerly, Senior Vice President, Foodmaker, Inc. (operator and franchiser of restaurants) until January 1997.

Formerly, Director, Pro-Kids Golf and Learning Academy (teach golf and computer usage to "at risk" children), 1998 to 2006; formerly, Director, Prandium, Inc. (restaurants), March 2001 to July 2002.

Name, Age, Address⁽¹⁾ and
Position⁽²⁾ with Each Fund

Length of
Time Served

Principal Occupation(s)⁽³⁾

Number of
Portfolios in
Fund Complex
Overseen by
Director⁽⁴⁾

Other Directorships Held
Outside Fund Complex by
Director

Candace L. Straight (60)
Director

Since 2002

Private investor and consultant specializing in the insurance industry; formerly, Advisory Director, Securitas Capital LLC (a global private equity investment firm dedicated to making investments in the insurance sector), 1998 to December 2003.

Director, Montpelier Re (reinsurance company) since 2006; Director, National Atlantic Holdings Corporation (property and casualty insurance company) since 2004; Director, The Proformance Insurance Company (property and casualty insurance company) since March 2004; formerly, Director, Providence Washington Insurance Company (property and casualty insurance company), December 1998 to March 2006; formerly, Director, Summit Global Partners (insurance brokerage firm), 2000 to 2005.

(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 2009, 2010, and 2008, respectively, and at each third annual meeting of stockholders thereafter.

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

(4) 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 Neuberger.

Information about the Officers of the Fund

Name, Age, and Address⁽¹⁾	Position and Length of Time Served	Principal Occupation(s)⁽²⁾
Andrew B. Allard (46)	Anti-Money Laundering Compliance Officer since 2002	Senior Vice President, Neuberger since 2006; Deputy General Counsel, Neuberger since 2004; formerly, Vice President, Neuberger, 2000 to 2005; formerly, Associate General Counsel, Neuberger, 1999 to 2004; Anti-Money Laundering Compliance Officer, sixteen registered investment companies for which Management acts as investment manager and administrator (six since 2002, three since 2003, four since 2004, one since 2005 and two since 2006).

Michael J. Bradler (37)	Assistant Treasurer since 2005	Vice President, Neuberger since 2006; Employee, Management since 1997; Assistant Treasurer, sixteen registered investment companies for which Management acts as investment manager and administrator (fourteen since 2005 and two since 2006).

Claudia A. Brandon (51)	Secretary since 2002	Senior Vice President, Neuberger since 2007; Vice President-Mutual Fund Board Relations, Management since 2000 and Assistant Secretary since 2004; formerly, Vice President, Neuberger, 2002 to 2006 and Employee since 1999; Secretary, sixteen registered investment companies for which Management acts as investment manager and administrator (three since 1985, three since 2002, three since 2003, four since 2004, one since 2005 and two since 2006).

Robert Conti (51)	Vice President since 2002	Managing Director, Neuberger since 2007; formerly, Senior Vice President, Neuberger, 2003 to 2006; formerly, Vice President, Neuberger, 1999 to 2003; Senior Vice President, Management since 2000; Vice President, sixteen registered investment companies for which Management acts as investment manager and administrator (three since 2000, three since 2002, three since 2003, four since 2004, one since 2005 and two since 2006).

Brian J. Gaffney (54)	Vice President since 2002	Managing Director, Neuberger since 1999; Senior Vice President, Management since 2000; Vice President, sixteen registered investment companies for which Management acts as investment manager and administrator (three since 2000, three since 2002, three since 2003, four since 2004, one since 2005 and two since 2006).

Maxine L. Gerson (56)	Chief Legal Officer since 2005 (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002)	Senior Vice President, Neuberger since 2002; Deputy General Counsel and Assistant Secretary, Neuberger since 2001; Senior Vice President, Management since 2006; Secretary and General Counsel, Management since 2004; Chief Legal Officer (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002), sixteen registered investment companies for which Management acts as investment manager and administrator (fourteen since 2005 and two since 2006).

Sheila R. James (42)	Assistant Secretary since 2002	Assistant Vice President, Neuberger since 2007 and Employee since 1999; Assistant Secretary, sixteen registered investment companies for which Management acts as investment manager and administrator (six since 2002, three since 2003, four since 2004, one since 2005 and two since 2006).

Name, Age, and Address⁽¹⁾	Position and Length of Time Served	Principal Occupation(s)⁽²⁾
Kevin Lyons (52)	Assistant Secretary since 2003	Employee, Neuberger since 1999; Assistant Secretary, sixteen registered investment companies for which Management acts as investment manager and administrator (nine since 2003, four since 2004, one since 2005 and two since 2006).

John M. McGovern (37)	Treasurer and Principal Financial and Accounting Officer since 2005; prior thereto, Assistant Treasurer since 2002	Senior Vice President, Neuberger since 2007; formerly, Vice President, Neuberger, 2004 to 2006; Employee, Management since 1993; Treasurer and Principal Financial and Accounting Officer, sixteen registered investment companies for which Management acts as investment manager and administrator (fourteen since 2005 and two since 2006); formerly, Assistant Treasurer, fourteen registered investment companies for which Management acts as investment manager and administrator, 2002 to 2005.

Frank Rosato (36)	Assistant Treasurer since 2005	Vice President, Neuberger since 2006; Employee, Management since 1995; Assistant Treasurer, sixteen registered investment companies for which Management acts as investment manager and administrator (fourteen since 2005 and two since 2006).

Frederic B. Soule (61)	Vice President since 2002	Senior Vice President, Neuberger since 2003; formerly, Vice President, Neuberger, 1999 to 2002; Vice President, sixteen registered investment companies for which Management acts as investment manager and administrator (three since 2000, three since 2002, three since 2003, four since 2004, one since 2005 and two since 2006).

Chamaine Williams (36)	Chief Compliance Officer since 2005	Senior Vice President, Neuberger since 2007; Chief Compliance Officer, Management since 2006; Senior Vice President, Lehman Brothers Inc. since 2007; formerly, Vice President, Lehman Brothers Inc., 2003 to 2006; Chief Compliance Officer, sixteen registered investment companies for which Management acts as investment manager and administrator (fifteen since 2005 and one since 2006); 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.), 1997 to 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.

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 Management's 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 1-800-877-9700 (toll-free).

Change in Portfolio Manager

In February 2007, James L. Iselin assumed portfolio management responsibility for the Funds. Mr. Iselin is a Vice President of Neuberger Berman Management Inc. and a Senior Vice President of Neuberger Berman, LLC. He has more than 14 years of industry experience in the area of municipal fixed income securities.

Notice to Shareholders (Unaudited)

In January 2008 you will receive information to be used in filing your 2007 tax returns, which will include a notice of the exact tax status of all distributions paid to you by each Fund during calendar 2007. 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, 2007, 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.	99.90	%
Intermediate Municipal Fund Inc.	99.80	%
New York Intermediate Municipal Fund Inc.	99.91	%

Board Consideration of the Management and Sub-Advisory Agreements

At a meeting held on September 27, 2007, 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. (individually a "Fund" and, collectively, the "Funds"), including the Directors who are not "interested persons" of each Fund or Neuberger Berman Management Inc. ("Management") ("Independent Fund Directors"), approved the continuance of the Funds' Management and Sub-Advisory Agreements ("Agreements").

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 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 provided and profits or losses historically realized by Management and its affiliates from their 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 any such 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, the overall fairness of the Agreements to each Fund and whether the Agreements were in the best interests of each Fund and its shareholders.

With respect to the nature, extent and quality of the services provided, the Board considered the performance of each Fund and the experience and staffing of the portfolio management and investment research personnel who perform 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. 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 Management, Neuberger, the Funds and by other clients of Management and Neuberger from such services. 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 performance in relation to the degree of risk undertaken by the portfolio managers. 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 each Fund.

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

The Boards reviewed a comparison of each Fund's management fee and overall expense ratio to a peer group of broadly comparable funds. With regard to the sub-advisory fee paid to Neuberger, the Boards noted that this fee "at cost." 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 advised or sub-advised by Management or its affiliates or separate accounts managed by Management or its affiliates with similar investment objectives, policies and strategies as the Funds. The Boards noted that there were no such comparable funds or separate accounts.

Each Board also evaluated any apparent or anticipated economies of scale in relation to the services Management provides to each Fund. The Boards considered that each Fund is a closed-end fund that is not continuously offering shares and that, without daily inflows and outflows of capital, there are limited opportunities for 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 benefits accruing to each Fund, each Board reviewed specific data as to Management's profit on each Fund for a recent period and the trend in profit or loss over time. The Boards also carefully examined Management's cost allocation methodology and in recent years had an independent consultant review the methodology. It also reviewed an analysis from an independent data service on profitability margins in the investment management industry. 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 that Management's level of profitability 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 interests 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; 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 nature and quality of services provided; and that the benefits accruing to Management and its affiliates by virtue of their relationship to the Funds were reasonable in comparison the benefits accruing to each Fund.

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.

H0649 12/07

Item 2. Code of Ethics

The Board of Directors (“Board”) of Neuberger Berman California 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”). For the period covered by this Form N-CSR, there were no amendments to the Code of Ethics and there were no waivers from the Code of Ethics granted to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

A copy of the Code of Ethics is incorporated by reference to the Registrant’s Form N-CSR, Investment Company Act file number 811-21167 (filed on July 10, 2006). 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 three audit committee financial experts serving on its audit committee. The Registrant’s audit committee financial experts are Martha Goss, Howard Mileaf and George Morriss. Ms. Goss, Mr. Mileaf and Mr. Morriss 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 were $33,500 and $35,600 for the fiscal years ended 2006 and 2007, 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 $6,250 and $6,250 for the fiscal years ended 2006 and 2007, 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 the fiscal years ended 2006 and 2007, 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 the fiscal years ended 2006 and 2007, respectively.

The aggregate fees billed to the Registrant for professional services rendered by E&Y for tax compliance, tax advice, and tax planning were $9,500 and $9,700 for the fiscal years ended 2006 and 2007, respectively. The nature of the services provided comprised 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 2006 and 2007, 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 professional services rendered by E&Y 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 the fiscal years ended 2006 and 2007, 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 2006 and 2007, 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 2006 and 2007, 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 each member 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 $15,750 and $15,950 for the fiscal years ended 2006 and 2007, 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 $475,000 and $425,000 for the fiscal years ended 2006 and 2007, respectively.

(h) The Audit Committee of the Board 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 a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (“Exchange Act"). Its members are Martha C. Goss, Howard A. Mileaf, George W. Morriss, Cornelius T. Ryan (Chairman), Tom D. Seip, and Peter P. Trapp.

Item 6. Schedule of Investments

The complete schedule of investments for the Fund 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 Management Inc. (“NB Management”) the responsibility to vote proxies related to the securities held in the Registrant’s portfolio. Under this authority, NB Management is required by the Board to vote proxies related to portfolio securities in the best interests of the Registrant and its stockholders. The Board permits NB Management to contract with a third party to obtain proxy voting and related services, including research of current issues.

NB Management has implemented written Proxy Voting Policies and Procedures (“Proxy Voting Policy”) that are designed to reasonably ensure that NB Management votes proxies prudently and in the best interest of its advisory clients for whom NB Management has voting authority, including the Registrant. The Proxy Voting Policy also describes how NB Management addresses any conflicts that may arise between its interests and those of its clients with respect to proxy voting.

NB Management’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, NB Management utilizes Glass, Lewis & Co. (“Glass Lewis”) to vote proxies in accordance with NB Management’s voting guidelines.

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

In the event that an investment professional at NB Management believes that it is in the best interests of a client or clients to vote proxies in a manner inconsistent with NB Management’s proxy voting guidelines or in a manner inconsistent with Glass Lewis recommendations, the Proxy Committee will review information submitted by the investment professional to determine that there is no material conflict of interest between NB Management 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 NB Management 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 Glass Lewis shall vote such proxy in accordance with the proxy voting guidelines or as Glass Lewis 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

(a)(1) The following Portfolio Manager has day-to-day management responsibility of the Registrant’s portfolio as of the date of the filing of this Form N-CSR.

James L. Iselin is a Vice President of Neuberger Berman Management Inc. and Senior Vice

President of Lehman Brothers Asset Management LLC. Mr. Iselin joined Lehman Brothers

Asset Management LLC in 2006. Previously, Mr. Iselin was a portfolio manager for another investment adviser working in the Municipal Fixed Income group since 1993.

(a)(2) The table below describes the other accounts for which the Portfolio Manager has day-to-day management responsibility as of October 31, 2007.


Type of Account	Number of Accounts Managed	Total Assets Managed ($ millions)	Number of Accounts Managed for which Advisory Fee is Performance-Based	Assets Managed for which Advisory Fee is Performance-Based ($ millions)

James L. Iselin

Registered Investment Companies*	3	637	-	-

Other Pooled Investment Vehicles	-	-	-	-

Other Accounts**	139	904	-	-

*Registered Investment Companies include: Mutual Funds.

**Other Accounts include: Institutional Separate Accounts, Sub-Advised, and Managed Accounts (WRAP).

Conflicts of Interest

Actual or apparent conflicts of interest may arise when a Portfolio Manager has day-to-day management responsibilities with respect to more than one fund or other account. The management of multiple funds and accounts (including proprietary accounts) may give rise to actual or potential conflicts of interest if the funds and accounts have different or similar objectives, benchmarks, time horizons, and fees, as the Portfolio Manager must allocate his time and investment ideas across multiple funds and accounts. The Portfolio Manager may execute transactions for another fund or account that may adversely impact the value of securities held by the Registrant, and which may include transactions that are directly contrary to the positions taken by the Registrant. For example, a Portfolio Manager may engage in short sales of securities for another account that are the same type of securities in which the Registrant also invests. In such a case, the Portfolio Manager could be seen as harming the performance of the Registrant for the benefit of the account engaging in short sales if the short sales cause the market value of the securities to fall. Additionally, if a Portfolio Manager identifies a limited investment opportunity that may be suitable for more than one fund or other account, Registrant may not be able to take full advantage of that opportunity. If one account were to buy or sell portfolio securities shortly before another account bought or sold the same securities, it could affect the price paid or received by the second account. Securities selected for funds or accounts other than the Registrant may outperform the securities selected for the Registrant. Finally, a conflict of interest may arise if NB Management and a Portfolio Manager have a financial incentive to favor one account over another, such as a performance-based management fee that applies to one account but not the Registrant or other accounts for which the Portfolio Manager is responsible.

NB Management, Neuberger Berman, LLC and the Registrant have adopted certain compliance procedures which are designed to address these types of conflicts. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.

(a)(3) Compensation (as of October 31, 2007)

A portion of the compensation paid to each Portfolio Manager for management of the mutual funds in the fund family is determined by comparisons to pre-determined peer groups and benchmarks, as opposed to a system dependent on a percent of management fees. The Portfolio Managers are paid a base salary that is not dependent on performance. Each Portfolio Manager also has a “target bonus,” which is set each year and can be increased or decreased prior to payment based in part on performance measured against the relevant peer group and benchmark. Performance is measured on a three-year rolling average in order to emphasize longer-term performance. There is also a subjective component to determining the bonus, which consists of the following factors: (i) the individual’s willingness to work with the marketing and sales groups; (ii) his or her effectiveness in building a franchise; an d (iii) client servicing. Senior management determines this component in appropriate cases. There are additional components that comprise the Portfolio Managers’ compensation packages, including: (i) whether the Portfolio Manager was a partner/principal of Neuberger Berman prior to Neuberger Berman Inc.’s initial public offering; (ii) for more recent hires, incentives that may have been negotiated at the time the Portfolio Manager joined the Neuberger Berman complex; and (iii) the total amount of assets for which the Portfolio Manager is responsible.

Certain Portfolio Managers may manage products other than mutual funds, such as high net worth separate accounts. For the management of these accounts, a Portfolio Manager will generally receive a percentage of pre-tax revenue determined on a monthly basis less third party payouts (e.g., a “finder’s fee” or “referral fee” paid to a third party). To determine the percentage of revenue a Portfolio Manager receives, the aggregate fees collected on the accounts for which the Portfolio Manager are responsible are compared to a predetermined benchmark of fees that is grown 4% per annum.

NB Management’s Portfolio Managers have always had a degree of independence that they would not get at other firms that have, for example, investment committees. NB Management believes that its Portfolio Managers are retained not only through compensation and opportunities for advancement, but also by a collegial and stable money management environment.

In addition, there are additional stock and option award programs available.

NB Management believes the measurement versus the peer groups on a three-year rolling average basis creates a meaningful disincentive to try and beat the peer group and benchmark in any given year by taking undue risks in portfolio management. The incentive is to be a solid performer over the longer-term, not necessarily to be a short-term winner in any given year.

(a)(4) Ownership of Securities

Set forth below is the dollar range of equity securities beneficially owned by the Portfolio Manager in the Registrant as of October 31, 2007.


Portfolio Manager	Dollar Range of Equity Securities Owned in the Registrant
James L. Iselin	A

A = None

E = $100,001-$500,000

B = $1-$10,000

F = $500,001-$1,000,000

C = $10,001 - $50,000

G = $1,000,001 or More

D =$50,001-$100,000

(b) Not applicable.

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 on Form N-CSR and Form N-Q 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 second fiscal quarter of the period covered by this report 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 incorporated by reference to the Registrant’s Form N-CSR, Investment Company Act file number 811-21167 (filed July 10, 2006).

(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 filed herewith.

(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 filed herewith.

The certifications provided pursuant to Rule 30a-2(b) of the Act and Section 906 of the Sarbanes-Oxley Act are not deemed “filed” for purposes of Section 18 of the 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 California Intermediate Municipal Fund Inc.

By: /s/ Peter E. Sundman

Peter E. Sundman

Chief Executive Officer

Date: January 3, 2008

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 3, 2008

By: /s/ John M. McGovern

John M. McGovern

Treasurer and Principal Financial

and Accounting Officer

Date: January 3, 2008