As filed with the Securities and Exchange Commission on January 7, 2005

                                 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: 811-21169

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

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

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

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

Date of fiscal year end: October 31, 2004

Date of reporting period: October 31, 2004

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

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



ITEM 1. REPORTS TO SHAREHOLDERS



[NEUBERGER BERMAN LOGO]
A LEHMAN BROTHERS COMPANY

ANNUAL REPORT
OCTOBER 31, 2004

NEUBERGER BERMAN
INTERMEDIATE
MUNICIPAL
CLOSED-END FUNDS

CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.

INTERMEDIATE MUNICIPAL FUND INC.

NEW YORK INTERMEDIATE MUNICIPAL FUND INC.



                                               NEUBERGER BERMAN OCTOBER 31, 2004

CONTENTS


                                                               
THE FUNDS

CHAIRMAN'S LETTER                                                  1

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

SCHEDULE OF INVESTMENTS
California Intermediate Municipal Fund Inc.                        9
Intermediate Municipal Fund Inc.                                  14
New York Intermediate Municipal Fund Inc.                         21

FINANCIAL STATEMENTS                                              26

FINANCIAL HIGHLIGHTS/
PER SHARE DATA
California Intermediate Municipal Fund Inc.                       36
Intermediate Municipal Fund Inc.                                  37
New York Intermediate Municipal Fund Inc.                         38

REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM                                 40

DIVIDEND REINVESTMENT PLAN                                        41

DIRECTORY                                                         43

DIRECTORS AND OFFICERS                                            44

PROXY VOTING POLICIES AND PROCEDURES                              51


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 period ending October 31, 2004.
The report includes portfolio commentary, a listing of the Funds' investments
and their audited financial statements for the reporting period.

Each Fund's investment objective is to provide current income exempt from
regular federal income tax and, for each state-specific Fund, current income
exempt from that state's income taxes.

We invest in intermediate-term municipal bonds (maturities between three and
eight years) 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 keep earning it.

Sincerely,

/s/ Peter Sundman

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

"Neuberger Berman" and the Neuberger Berman logo are service marks of Neuberger
Berman, LLC. "Neuberger Berman Management Inc." and the individual fund names in
this shareholder report are either service marks or registered service marks of
Neuberger Berman Management Inc.(C)2004 Neuberger Berman Management Inc. All
rights reserved.

                                        1


INTERMEDIATE MUNICIPAL CLOSED-END FUNDS Portfolio Commentaries

     We are pleased to report that on a Net Asset Value (NAV) basis, all three
     of Neuberger Berman's Intermediate Municipal Closed-End Funds delivered
     positive returns and materially outperformed the Lehman Brothers 10 Year
     Municipal Bond Index benchmark in fiscal 2004.

     In fiscal 2004, two difficult months (April and May) for municipal
     securities -- and bonds in general -- were sandwiched between two
     five-month periods of stable returns. This reflected investors' changing
     perspective on the economy. From November 2003 until March 2004, investors
     questioned the strength and sustainability of the economic recovery. In
     early April, the release of a strong March jobs report convinced investors
     the recovery was for real, and bond prices started to fall. An impressive
     April jobs report released at the beginning of May kept the pressure on
     bond prices through the end of the month. Then in June, the tide turned.
     Rapidly rising oil prices caused the economy to hit what Federal Reserve
     Chairman Greenspan characterized as a "soft patch." In addition, concern
     that terrorists would target the Olympics or U.S. targets during the
     presidential campaign caused a flight to quality. Bonds continued to rally
     through the end of the reporting period, with the yield on an AAA-rated
     10-year general obligation municipal bond falling from 4.06% at the end of
     May to 3.46% on October 29.

     Looking ahead, we believe that the outlook for municipal bonds is
     favorable, but we remain cautious. Increased tax revenue resulting from the
     recovering economy has improved state and local government balance sheets.
     However, this is being offset to varying degrees by the reduction in
     federal subsidies to municipalities, prompted by the growing federal budget
     deficit. Consequently, analysis of municipal securities' credit quality
     remains critical. Also, President Bush's election victory is likely to
     increase speculation about the potential for a flat tax and/or national
     sales tax replacing the graduated income tax. If this "chatter" gets loud
     enough, it could have a negative impact on the municipal securities market.
     However, despite the Republicans' new dominance at the federal level, we
     think it will once again prove difficult to build the substantial support
     required to approve a major tax overhaul. Consequently, we believe that any
     pressure on municipal securities prices due to discussion of tax reform
     will represent a good buying opportunity.

     INTERMEDIATE MUNICIPAL FUND INC.
     (AMEX: NBH)

     For the six months ending October 31, 2004, on a net asset value (NAV)
     basis, the Intermediate Municipal Fund returned 8.53% compared to the
     Lehman 10 Year Municipal Bond Index's 5.38% return. For the past 12 months,
     on an NAV basis the Fund returned 10.91% versus the benchmark's 6.35%.

     As of October 31, 2004, the portfolio was composed of 73.6% revenue bonds,
     24.1% general obligation bonds, 0.5% prerefunded/escrowed bonds and 1.8%
     cash and cash equivalents. Bonds subject to the Alternative Minimum Tax
     (AMT) equaled 13.6% of assets. At the close of the reporting period, the
     Fund's duration was 6.1 years and the portfolio's leverage position was
     36.4% of assets.

     CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
     (AMEX: NBW)

     For the six months ending October 31, 2004, on a net asset value (NAV)
     basis, the California Intermediate Municipal Fund returned 8.98% compared
     to the Lehman 10 Year Municipal Bond Index's 5.38% return. For the past 12
     months, on

     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.

                                        2

                                               NEUBERGER BERMAN OCTOBER 31, 2004

     an NAV basis, the Fund returned 10.97% versus the benchmark's 6.35%.

     As of October 31, 2004, the portfolio was composed of 87.1% revenue bonds,
     10.9% general obligation bonds, and 2.0% cash and cash equivalents. Bonds
     subject to the Alternative Minimum Tax (AMT) equaled 13.0% of assets. At
     the close of the reporting period, the Fund's duration was 6.0 years and
     the portfolio's leverage position was 36.6% of assets.

     Shortly after the close of first-half fiscal 2004, California successfully
     issued $7.9 billion in Economic Recovery Bonds. The issue was
     over-subscribed at prices reflecting investor confidence that California
     will effectively address its structural budget deficit.

     NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
     (AMEX: NBO)

     For the six months ending October 31, 2004, on a net asset value (NAV)
     basis, the New York Intermediate Municipal Fund returned 7.71% compared to
     the Lehman 10 Year Municipal Bond Index's 5.38% return. For the past 12
     months, on an NAV basis, the Fund returned 9.67% versus the benchmark's
     6.35%.

     As of October 31, 2004, the portfolio was composed of 93.7% revenue bonds,
     4.8% general obligation bonds, and 1.5% cash and cash equivalents. Bonds
     subject to the Alternative Minimum Tax (AMT) equaled 18.6% of assets. At
     the close of the reporting period, the Fund's duration was 6.0 years and
     the portfolio's leverage position was 36.7% of assets.

     Sincerely,

                                /s/ Ted Giuliano
                                /s/ Thomas Brophy
                                 /s/ Lori Canell
                         TED GIULIANO, THOMAS BROPHY AND
                                   LORI CANELL
                              PORTFOLIO CO-MANAGERS

                                        3




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

NAV (1)                            10.91%                        10.97%                      9.67%
MARKET PRICE (2)                    8.94%                         9.63%                      6.39%

AVERAGE ANNUAL TOTAL RETURN (Life of Fund as of October 31, 2004)

NAV (1)                             8.31%                         7.96%                      7.56%
MARKET PRICE (2)                    1.16%                         0.18%                     (0.22%)
INCEPTION DATE                09/24/2002                    09/24/2002                 09/24/2002


CALIFORNIA INTERMEDIATE MUNICIPAL FUND
RATING DIVERSIFICATION
(% BY RATINGS)


                                 
AAA                                 56.5%
AA                                   3.3
A                                   12.9
BBB                                 24.2
BB                                   2.4
B                                    0.0
CCC                                  0.0
CC                                   0.0
C                                    0.0
D                                    0.0
Not Rated                            0.0
Short Term                           0.7


INTERMEDIATE MUNICIPAL FUND
RATING DIVERSIFICATION
(% BY RATINGS)


                                 
AAA                                 57.7%
AA                                   7.9
A                                   14.8
BBB                                 16.4
BB                                   2.7
B                                    0.0
CCC                                  0.0
CC                                   0.0
C                                    0.0
D                                    0.0
Not Rated                            0.0
Short Term                           0.5


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


                                 
AAA                                 23.8%
AA                                  35.5
A                                   19.7
BBB                                 19.3
BB                                   1.6
B                                    0.0
CCC                                  0.0
CC                                   0.0
C                                    0.0
D                                    0.0
Not Rated                            0.0
Short Term                           0.1


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

                                        4


                                                         NEUBERGER BERMAN [DATE]

ENDNOTES

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

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

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

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

                                        5


GLOSSARY OF INDICES

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

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

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

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

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

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

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

                                        6


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                                        7


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                                        8


                                               NEUBERGER BERMAN OCTOBER 31, 2004

SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc.



     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (85.0%)
     AMERICAN CAPITAL ACCESS
     $    1,000   Puerto Rico Ind., Tourist, Ed., Med., & Env. Ctrl. Fac. Rev.
                  (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
                  5.25%, due 8/1/15                                                                  A         $    1,065++

     AMERICAN MUNICIPAL BOND ASSURANCE CORP.
          1,285   Bay Area (CA) Governments Assoc. Bart SFO Extension Rev.
                  (Arpt. Premium Fare), Ser. 2002 A, 5.00%, due 8/1/21                              AAA             1,360
          1,000   California St. Pub. Works Board Lease (Dept. of Gen. Svc.)
                  Rev. (Cap. East End Complex), Ser. 2002 A,
                  5.25%, due 12/1/16                                                                AAA             1,107
          1,000   Fresno (CA) Unified Sch. Dist. Ref. G.O., Ser. 2002 A,
                  6.00%, due 2/1/17                                                                 AAA             1,217
          1,905   Long Beach (CA) Bond Fin. Au. Tax Allocation Rev.,
                  (Downtown, North Long Beach, Poly High, & West Beach Redev.
                  Proj.), Ser. 2002 A, 5.38%, due 8/1/17                                            AAA             2,136
            500   Long Beach (CA) Fin. Au. Rev., Ser. 1992, 6.00%, due 11/1/17                      AAA               599
          1,045   Marin Co. (CA) Muni. Wtr. Dist. Wtr. Ref. Rev., Ser. 2002,
                  5.00%, due 7/1/17                                                                 AAA             1,131
          1,445   Oceanside (CA) Cert. of Participation Ref. Rev., Ser. 2003 A,
                  5.25%, due 4/1/14                                                                 AAA             1,619
          2,600   Sacramento (CA) Muni. Util. Dist. Elec. Rev., Ser. 1997 K,
                  5.70%, due 7/1/17                                                                 AAA             3,085
            500   Salinas Valley (CA) Solid Waste Au. Rev., Ser. 2002,
                  5.00%, due 8/1/06                                                                 AAA               525
          2,000   San Francisco (CA) St. Bldg. Au. Lease Rev. (San Francisco
                  Civic Ctr. Complex), Ser. 1996 A, 5.25%, due 12/1/16                              AAA             2,162
          2,500   San Jose (CA) Fin. Au. Lease Rev. (Civic Ctr. Proj.), Ser. 2002 B,
                  5.25%, due 6/1/17                                                                 AAA             2,775
          1,000   San Jose (CA) Multi-Family Hsg. Rev. (Fallen Leaves Apts. Proj.),
                  Ser. 2002 J-1, 4.95%, due 12/1/22                                       Aaa       AAA             1,030

     FINANCIAL GUARANTY INSURANCE CO.
          2,550   Contra Costa (CA) Comm. College Dist. G.O., Ser. 2002,
                  5.25%, due 8/1/17                                                                 AAA             2,844
          1,000   Kings Canyon (CA) Joint Unified Sch. Dist. G.O., Ser. 2002,
                  5.38%, due 8/1/17                                                       Aaa       AAA             1,124
          5,000   Los Angeles (CA) Dept. of Arpts. Rev. (Los Angeles Int'l. Arpt.),
                  Ser. 2002 A, 5.25%, due 5/15/18                                         Aaa       AAA             5,516
          1,090   Moreland (CA) Sch. Dist. Ref. G.O., Ser. 2002,
                  5.13%, due 9/1/17                                                                 AAA             1,188
            535   Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of Participation
                  Rev., Ser. 2002, 5.00%, due 1/1/16                                                AAA               581
            565   Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of Participation
                  Rev., Ser. 2002, 5.00%, due 1/1/17                                                AAA               610
          1,045   Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/15                                AAA             1,137
          1,210   Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/18                                AAA             1,298
          1,290   Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev.
                  (Central Dist. Redev. Proj.), Ser. 2003, 5.50%, due 9/1/17                        AAA             1,450
            575   Port of Oakland (CA) Rev., Ser. 2002 M, 5.25%, due 11/1/17                        AAA               642
          2,655   Riverside Co. (CA) Eastern Muni. Wtr. Dist. Cert. of Participation
                  Wtr. & Swr. Rev., Ser. 2001 A, 5.00%, due 7/1/19                        Aaa       AAA             2,814
          2,000   San Diego (CA) Unified Sch. Dist. G.O., Ser. 2002 D,
                  5.25%, due 7/1/21                                                       Aaa       AAA             2,272
          1,500   San Francisco (CA) City & Co. Int'l. Arpt. Second Ser. Rev.,
                  5.25%, due 5/1/16                                                                 AAA             1,586


See Notes to Schedule of Investments

                                        9




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     FINANCIAL SECURITY ASSURANCE INC.
     $    1,000   Burbank (CA) Pub. Svc. Dept. Elec. Rev., Ser. 1998,
                  5.13%, due 6/1/16                                                                 AAA        $    1,087
          1,000   California St. Dept. of Wtr. Res. Wtr. Rev., Ser. 2001 W,
                  5.50%, due 12/1/13                                                      Aaa       AAA             1,161
          3,000   California St. Pub. Works Board Lease Rev. (Regents of the
                  Univ. of California, UCLA Replacement Hosp.), Ser. 2002 A,
                  5.38%, due 10/1/13                                                                AAA             3,393
          1,275   Los Angeles Co. (CA) Long Beach Unified Sch. Dist. G.O.,
                  Ser. 2002 D, 5.00%, due 8/1/17                                                    AAA             1,380
            500   Marin Co. (CA) Dixie Elementary Sch. Dist. G.O., Ser. 2000 A,
                  5.38%, due 8/1/17                                                                 AAA               556
          3,000   Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A,
                  5.25%, due 8/1/17                                                                 AAA             3,377
          1,000   Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A,
                  5.25%, due 8/1/21                                                       Aaa       AAA             1,109
          5,000   San Francisco (CA) City & Co. Redev. Agcy. Lease Ref. Rev.
                  (George R. Moscone Convention Ctr.), Ser. 2002,
                  5.00%, due 7/1/17                                                       Aaa       AAA             5,389
          1,000   San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B, 5.00%, due 3/1/11                     AAA             1,081
          1,615   San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B, 5.00%, due 3/1/12                     AAA             1,746
          1,620   Santa Clara Co. (CA) Fremont Union High Sch. Dist. G.O.,
                  Ser. 2002 C, 5.00%, due 9/1/20                                          Aaa       AAA             1,728

     MUNICIPAL BOND INVESTORS ASSURANCE CORP.
          1,250   Alameda Co. (CA) Cert. of Participation Ref. Rev., Ser. 2001 A,
                  5.38%, due 12/1/17                                                                AAA             1,405
          4,000   California Poll. Ctrl. Fin. Au. Ref. PCR (Pacific Gas & Elec. Co.),
                  Ser. 1996 A, 5.35%, due 12/1/16                                                   AAA             4,346++
          2,835   Glendale (CA) Redev. Agcy. Tax Allocation Rev. (Central Glendale
                  Redev. Proj.), Ser. 2002, 5.00%, due 12/1/16                                      AAA             3,107
          2,480   Glendale (CA) Redev. Agcy. Tax Allocation Rev. (Central Glendale
                  Redev. Proj.), Ser. 2002, 5.25%, due 12/1/17                                      AAA             2,756
          3,890   Port of Oakland (CA) Ref. Rev., Ser. 2002 N,
                  5.00%, due 11/1/13                                                                AAA             4,218
            750   Santa Clara Co. (CA) Saratoga Union Sch. Dist. Ref. G.O.,
                  Ser. 1999, 5.13%, due 9/1/11                                                      AAA               844
          3,905   Solano Co. (CA) Cert. of Participation Rev., Ser. 2002,
                  5.25%, due 11/1/17                                                                AAA             4,338
          1,000   Univ. of California Regents Rev. (Multi. Purp. Proj.), Ser. 2000 K,
                  5.00%, due 9/1/12                                                                 AAA             1,095
                                                                                                               ----------
                                                                                                                   86,989
                                                                                                               ----------

     TAX-EXEMPT SECURITIES--OTHER (69.6%)
            780   Abag (CA) Fin. Au. Cert. of Participation Rev. (Channing House),
                  Ser. 1999, 4.90%, due 2/15/09                                                     BBB+              822++
          3,050   Abag (CA) Fin. Au. Cert. of Participation Rev. (Episcopal
                  Homes Foundation), Ser. 1998, 5.13%, due 7/1/18                                  BBB+             3,097++
          1,000   Abag (CA) Fin. Au. Rev. (San Diego Hosp. Assoc.), Ser. 2003 C,
                  5.13%, due 3/1/18                                                      Baa1      BBB+             1,023++
            900   Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
                  Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13                          Baa2       BBB             1,022
            750   Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
                  Ser. 1999 B, 7.75%, due 12/1/18                                         Ba1      BBB-               821++


                                       10




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     $    1,000   Brazos (TX) River
                  Harbor Navigation Dist. of Brazoria Co.
                  Env. Fac. Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4,
                  5.20%, due 5/15/33                                                      A3         A         $    1,066++
            765   California Co. (CA) Tobacco Securitization Agcy. Tobacco
                  Settlement Asset-Backed Rev., Ser. 2002, 4.75%, due 6/1/19             Baa3       BBB               769
          1,750   California Ed. Fac. Au. Ref. Rev. (Stanford Univ.), Ser. 2001 R,
                  5.00%, due 11/1/21                                                      Aaa       AAA             1,859++
          2,000   California Hlth. Fac. Fin. Au. Rev. (Catholic Healthcare West),
                  Ser. 2004 I, 4.95%, due 7/1/26                                         Baa1      BBB+             2,092++
          2,000   California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.),
                  Ser. 1999 A, 6.13%, due 12/1/19                                         A3                          2,200++
          1,000   California Hlth. Fac. Fin. Au. Rev. (Kaiser Permanente),
                  Ser. 1998 B, 5.00%, due 10/1/20                                                   AAA             1,078++
          1,500   California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
                  (Republic Svc., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23            Baa3       BBB             1,587++
          2,500   California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
                  (Waste Management, Inc. Proj.), Ser. 2002 B,
                  4.45%, due 7/1/27 Putable 7/1/05                                                  BBB             2,528++
          1,000   California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
                  (Waste Management, Inc. Proj.), Ser. 2002 C,
                  4.85%, due 12/1/27 Putable 12/1/17                                                BBB             1,045++
          4,500   California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
                  5.75%, due 5/1/17                                                       A3        BBB+            5,105
          1,000   California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
                  5.38%, due 5/1/22                                                       A3        BBB+            1,080
          2,250   California St. G.O., Ser. 2002, 5.00%, due 10/1/17                      A1         A+             2,417
          1,095   California St. Pub. Works Board Lease Rev. (California Comm.
                  Colleges), Ser. 2004 B, 5.50%, due 6/1/20                              Baa2       BBB-            1,216
          1,000   California St. Univ., Fresno Assoc., Inc. Rev. (Auxiliary
                  Organization Event Ctr.), Ser. 2002, 5.00%, due 7/1/12                 Baa3       BBB-            1,058
          2,000   California Statewide CDA Cert. of Participation Rev.
                  (Children's Hosp. Los Angeles), Ser. 1999,
                  5.13%, due 8/15/19                                                      A2        A+              2,077++
          2,000   California Statewide CDA Cert. of Participation Rev.
                  (The Internext Group), Ser. 1999, 5.38%, due 4/1/17                               BBB             2,037++
          5,000   California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.),
                  Ser. 2003 A, 6.00%, due 10/1/16                                         A3         A              5,559++
            500   California Statewide CDA Rev. (East Valley Tourist Dev. Au.),
                  Ser. 2003 A, 9.25%, due 10/1/20                                                   BB                549
          3,000   California Statewide CDA Rev. (Kaiser Permanente), Ser. 2002 E,
                  4.70%, due 11/1/36 Putable 6/1/09                                       A3                        3,197++
          1,000   Central (CA) Joint Pwr. Hlth. Fin. Au. Cert. of Participation Rev.,
                  (Comm. Hosp. of Central California Proj.), Ser. 2000,
                  5.50%, due 2/1/14                                                      Baa1       BBB+            1,053++
          1,020   Cerritos (CA) Pub. Fin. Au. Sub. Tax Allocation Rev.
                  (Cerritos Redev. Proj.), Ser. 2002 B, 4.40%, due 11/1/16                          BBB             1,008
          1,000   Cumberland Co. (PA) West Shore Area Au. Hosp. Rev.
                  (Holy Spirit Hosp. of the Sisters of Christian Charity Proj.),
                  Ser. 2001, 6.00%, due 1/1/18                                                     BBB+             1,069++
            500   Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
                  Ser. 2004 A-1, 6.15%, due 1/1/16                                       Baa3      BBB-               500++
          1,000   De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp. Proj.),
                  Ser. 2002, 6.00%, due 3/15/21                                           A3        BBB             1,077++
          1,210   Elk Grove (CA) Spec. Tax Rev. (East Franklin Comm. Fac.
                  Dist. Number 1), Ser. 2002 A, 5.38%, due 8/1/17                                   BB+             1,260


See Notes to Schedule of Investments

                                       11




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     $    1,270   Los Angeles (CA)
                  Dept. of Wtr. & Pwr. Sys. Rev., Ser. 2001 A,
                  Sub. Ser. A-3, 5.38%, due 7/1/20                                        Aa3                  $    1,324
            750   Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
                  Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09             Ba2       BB                772++
          1,500   Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
                  Ser. 2001 A, 5.25%, due 11/15/13                                       Baa2       BBB             1,617++
          1,405   North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev.,
                  Ser. 2003 A, 5.50%, due 1/1/14                                         Baa1      BBB+             1,556
            605   Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
                  Ser. 2003, 5.00%, due 9/1/16                                                      A-                636
            635   Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
                  Ser. 2003, 5.00%, due 9/1/17                                                      A-                665
          1,370   Puerto Rico Children's Trust Tobacco Settlement Asset-Backed
                  Rev., Ser. 2002, 5.38%, due 5/15/33                                    Baa3       BBB             1,252
            440   Roseville (CA) Stone Point Comm. Fac. District No. 1 Special
                  Tax Rev., Ser. 2003, 5.70%, due 9/1/17                                            BB+               453
            830   San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
                  Redev. Proj.), Ser. 2003 B, 4.80%, due 9/1/15                          Baa2       A-                856
            820   San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
                  Redev. Proj.), Ser. 2003 B, 4.90%, due 9/1/16                          Baa2       A-                847
          3,000   San Francisco (CA) Bay Area Toll Au. Toll Bridge Rev., Ser. 2001 D,
                  5.00%, due 4/1/17                                                       Aa3       AA              3,259
          1,000   Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise Rev.,
                  Ser. 2003, 6.13%, due 3/1/13                                                      BBB             1,004
          1,000   South Gate (CA) Pub. Fin. Au. Tax Allocation Rev. (South Gate
                  Redev. Proj. No. 1), Ser. 2002, 5.00%, due 9/1/16                                 AAA             1,088
          1,250   Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
                  Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30                     Baa3       BBB             1,115
            600   Univ. of California Regents Cert. of Participation Rev.
                  (San Diego Campus & Sacramento Proj.), Ser. 2002 A,
                  5.25%, due 1/1/18                                                       Aa2                         643
            750   Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
                  6.15%, due 7/15/17                                                                BB-               766
            250   Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA
                  Refinery Proj.), Ser. 2003, 6.13%, due 7/1/22                           Baa3     BBB-               268
            750   Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching
                  Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22                                 BBB               772
          1,000   Virgin Islands Wtr. & Pwr. Au. Elec. Sys. Ref. Rev., Ser. 1998,
                  5.30%, due 7/1/18                                                                 BBB             1,026
                                                                                                               ----------
                                                                                                                   71,190
                                                                                                               ----------

     TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY INSURANCE (0.2%)
     FINANCIAL SECURITY ASSURANCE INC.
            200   California Hsg. Fin. Agcy. Home Mtge. Rev., Ser. 2003 U,
                  1.76%, VRDN due 11/1/04                                                VMIG1     A-1+               200
                                                                                                               ----------

     TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY LETTERS OF CREDIT (0.9%)
     BANK OF AMERICA
            100   California St. Econ. Rec. Rev., Ser. 2004 C-5,
                  1.68%, VRDN due 11/1/04                                                VMIG1     A-1+               100
            280   Irvine (CA) Ltd. Oblig. Imp. (Assessment Dist. No 93-14),
                  Ser. 2000, 1.70%, VRDN due 11/1/04                                     VMIG1     A-1+               280
            300   Newport Beach (CA) Rev. (Hoag Mem. Hosp. Presbyterian),
                  Ser. 1992, 1.68%, VRDN due 11/1/04                                     VMIG1     A-1+               300++


                                       12




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     STATE STREET BANK
     $      200   Irvine Ranch (CA) Wtr. Dist. G.O., Ser. 1995,
                  1.70%, VRDN due 11/1/04                                                VMIG1     A-1+        $      200
                                                                                                               ----------
                                                                                                                      880
                                                                                                               ----------

                  TOTAL INVESTMENTS (155.7%) (COST $153,401)                                                      159,259##

                  Cash, receivables and other assets, less liabilities (2.0%)                                       2,051
                  Liquidation Value of Auction Market Preferred Shares [(57.7%)]                                  (59,000)
                                                                                                               ----------

                  TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%)                                  $  102,310
                                                                                                               ----------


See Notes to Schedule of Investments

                                       13


SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc.



     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     TAX-EXEMPT SECURITIES--PRE-REFUNDED BACKED BY U.S. GOVERNMENT SECURITIES (0.8%)
     $    2,225   Massachusetts St. Wtr. Poll. Abatement Trust Pre-Refunded
                  Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16                         Aaa       AAA        $    2,523
             20   San Antonio (TX) Pre-Refunded Cert. of Obligation G.O.,
                  Ser. 2002, 5.00%, due 2/1/14 P/R 2/1/12                                 Aa2       AA+                22
                                                                                                               ----------
                                                                                                                    2,545
                                                                                                               ----------

     TAX-EXEMPT SECURITIES--ESCROWED IN U.S. GOVERNMENT SECURITIES (0.6%)
          1,670   Illinois Metro. Pier & Exposition Au. Dedicated St. Tax Ref. Rev.,
                  Ser. 1998 A, 5.50%, due 6/15/17                                                   AAA             1,967
                                                                                                               ----------

     TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (74.7%)
     AMERICAN MUNICIPAL BOND ASSURANCE CORP.
          1,500   California St. Pub. Works Board Lease Rev., Ser. 2002 A,
                  5.25%, due 12/1/17                                                                AAA             1,653
          5,000   Chicago (IL) G.O., Ser. 1995 A-2, 6.25%, due 1/1/13                     Aaa       AAA             5,993
          6,120   Chicago (IL) G.O., Ser. 2002 A, 5.38%, due 1/1/17                       Aaa       AAA             6,856
          4,220   Colorado Springs (CO) Util. Sys. Sub. Lien Ref. Rev., Ser. 2002 A,
                  5.38%, due 11/15/18                                                               AAA             4,752
          4,100   Fargo (ND) Hlth. Sys. Rev. (Meritcare Obligated Group),
                  Ser. 2002 A, 5.63%, due 6/1/17                                                    AAA             4,543++
          1,065   Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
                  5.25%, due 7/1/18                                                                 AAA             1,170
          1,125   Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
                  5.25%, due 7/1/19                                                                 AAA             1,229
          3,000   Massachusetts Port Au. Spec. Fac. Rev. (Delta Air Lines,
                  Inc. Proj.), Ser. 2001 A, 5.50%, due 1/1/19                                       AAA             3,113++
          5,010   New Hampshire Hlth. & Ed. Fac. Au. Rev. (Univ. Sys. of New
                  Hampshire), Ser. 1992, 5.38%, due 7/1/17                                          AAA             5,610
          7,000   Palm Beach Co. (FL) Sch. Board Cert. of Participation,
                  Ser. 2001 B, 5.38%, due 8/1/17                                                    AAA             7,830
          4,610   Thornton (CO) Cert. of Participation, Ser. 2002,
                  5.38%, due 12/1/16                                                      Aaa       AAA             5,204

     FINANCIAL GUARANTY INSURANCE CO.
          4,000   Denver (CO) City & Co. Arpt. Sys. Ref. Rev., Ser. 2002 E,
                  5.25%, due 11/15/14                                                     Aaa       AAA             4,355
          3,075   Detroit (MI) Sch. Dist. Sch. Bldg. & Site Imp. G.O., Ser. 2002 A,
                  5.50%, due 5/1/15                                                                 AAA             3,490
          3,235   Houston (TX) Arpt. Sys. Sub. Lien. Ref. Rev., Ser. 2001 A,
                  5.50%, due 7/1/16                                                                 AAA             3,548
          4,355   Las Vegas (NV) Valley Wtr. Dist. Ref. & Wtr. Imp. G.O., Ser. 2003 A,
                  5.25%, due 6/1/16                                                       Aaa       AAA             4,860
          4,935   Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (New England
                  Med. Ctr. Hosp.), Ser. 2002 H, 5.38%, due 5/15/16                                 AAA             5,492++
          2,140   Mt. Pleasant Town (SC) Waterworks & Swr. Sys. Ref. & Imp. Rev.,
                  Ser. 2002, 5.25%, due 12/1/17                                                     AAA             2,392
          2,080   Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev. (Central
                  Dist. Redev. Proj.), Ser. 2003, 5.50%, due 9/1/18                                 AAA             2,329
          8,140   Orange Co. (FL) Sales Tax Ref. Rev., Ser. 2002 A,
                  5.13%, due 1/1/18                                                       Aaa       AAA             8,879
          2,000   Philadelphia (PA) Arpt. Ref. Rev. (Philadelphia Arpt. Sys.),
                  Ser. 1998 A, 5.38%, due 6/15/14                                                   AAA             2,176
          6,250   Port of Seattle (WA) Sub Lien Rev., Ser. 2002 B,
                  5.50%, due 9/1/16                                                                 AAA             6,861


                                       14




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     $    5,500   Prince Georges Co.
                  (MD) Cons. Pub. Imp. G.O., Ser. 2001,
                  5.25%, due 12/1/16                                                      Aaa       AAA        $    6,110
          1,000   Sarasota Co. (FL) Util. Sys. Ref. Rev., Ser. 2002 C,
                  5.25%, due 10/1/20                                                      Aaa       AAA             1,099
          2,500   Tacoma (WA) Wtr. Sys. Rev., Ser. 2001, 5.13%, due 12/1/19                         AAA             2,733

     FINANCIAL SECURITY ASSURANCE INC.
          3,495   Bi State (MO-IL) Dev. Agcy. Metro. Dist. Rev. (Metrolink
                  Cross Co. Extension Proj.), Ser. 2002 B, 5.25%, due 10/1/16             Aaa       AAA             3,892
          1,100   Charleston Co. (SC) Sch. Dist. G.O., Ser. 2001,
                  5.00%, due 2/1/18                                                       Aa1                       1,182
          3,600   Corpus Christi (TX) Tax & Muni. Hotel Occupancy Tax G.O.,
                  Ser. 2002, 5.50%, due 9/1/17                                                      AAA             4,082
          1,935   Dallas-Fort Worth (TX) Int'l. Arpt. Imp. Rev., Ser. 2004 B,
                  5.50%, due 11/1/18                                                      Aaa       AAA             2,130
          8,800   Energy Northwest (WA) Elec. Ref. Rev. (Proj. No. 3), Ser. 2001 A,
                  5.50%, due 7/1/17                                                       Aaa       AAA             9,881
          7,000   Harris Co. (TX) Toll Road Sr. Lien Ref. Rev., Ser. 2002,
                  5.38%, due 8/15/16                                                                AAA             7,873
          2,580   Indianapolis (IN) Local Pub. Imp. Rev. (Indianapolis Arpt.
                  Au. Proj.), Ser. 2003 A, 5.63%, due 1/1/17                                        AAA             2,847
          2,000   Kane, Cooke, & DuPage Cos. (IL) Elgin Sch. Dist. Number U-46
                  G.O., Ser. 1998, 5.35%, due 1/1/15                                      Aaa                       2,222
          5,000   King & Snohomish Cos. (WA) Northshore Sch. Dist. Number 417
                  G.O., Ser. 2002, 5.50%, due 12/1/17                                     Aaa       AAA             5,665
          4,260   King Co. (WA) Pub. Trans. Sales Tax Ref. G.O., Ser. 2002,
                  5.38%, due 12/1/14                                                      Aaa       AAA             4,853
          3,015   Knox Co. (TN) Hlth., Ed., & Hsg. Fac. Board Hosp. Ref. & Imp.
                  Rev., Ser. 2002 A, 5.50%, due 1/1/18                                    Aaa       AAA             3,325++
          1,725   Maine Muni. Bond Bank Rev., Ser. 1998 C,
                  5.35%, due 11/1/18                                                                AAA             1,904
          5,000   New Jersey Bldg. Au. St. Bldg. Ref. Rev., Ser. 2002 B,
                  5.25%, due 12/15/15                                                               AAA             5,618
          4,665   South Carolina St. Pub. Svc. Au. Rev., Ser. 2002 B,
                  5.38%, due 1/1/18                                                       Aaa       AAA             5,218
          4,200   Tarrant (TX) Reg. Wtr. Dist. Wtr. Ref. & Imp. Rev., Ser. 2002,
                  5.38%, due 3/1/16                                                       Aaa       AAA             4,685
          5,395   Truckee Meadows (NV) Wtr. Au. Wtr. Rev., Ser. 2001 A,
                  5.50%, due 7/1/15                                                                 AAA             6,052
          1,370   Wisconsin Hlth. & Ed. Fac. Au. Rev. (Aurora Med. Group, Inc.
                  Proj.), Ser. 1996, 6.00%, due 11/15/11                                  Aaa       AAA             1,596++

     MUNICIPAL BOND INVESTORS ASSURANCE CORP.
          1,465   Arizona St. Energy Mgt. Svcs. (Main) LLC Energy Conservation
                  Rev. (Arizona St. Univ. Proj.-Main Campus), Ser. 2002,
                  5.25%, due 7/1/17                                                                 AAA             1,632
          3,000   CDP-King Co. III (WA) Lease Rev. (King Street Ctr. Proj.),
                  Ser. 1997, 5.13%, due 6/1/17                                            Aaa       AAA             3,113
          5,335   Clark Co. (NV) Passenger Fac. Charge Ref. Rev.
                  (Las Vegas-McCarran Int'l. Arpt. Proj.), Ser. 2002 A,
                  5.25%, due 7/1/10                                                                 AAA             5,834
          4,575   Henry Co. (GA) Wtr. & Swr. Au. Wtr. & Swr. Ref. Rev., Ser. 2002 A,
                  5.13%, due 2/1/17                                                       Aaa       AAA             5,078
          4,955   Houston (TX) Pub. Imp. Ref. G.O., Ser. 2002, 5.25%, due 3/1/17                    AAA             5,492
          5,000   Illinois G.O., First Ser. 2002, 5.25%, due 10/1/14                      Aaa                       5,623


See Notes to Schedule of Investments

                                       15




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     $    3,000   Illinois Hlth. Fac.
                  Au. Rev. (Loyola Univ. Hlth. Sys.), Ser. 1997 A,
                  6.00%, due 7/1/14                                                       Aaa       AAA        $    3,544++
          1,000   Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev., Ser. 2002 B,
                  5.25%, due 1/1/18                                                       Aaa       AAA             1,091
          1,850   Massachusetts St. G.O., Ser. 2002 E, 5.38%, due 1/1/18                            AAA             2,100
          5,000   Michigan St. Hsg. Dev. Au. Single-Family Mtge. Rev., Ser. 2001 A,
                  5.30%, due 12/1/16                                                                AAA             5,306
          2,710   Newnan (GA) Hosp. Au. Rev. Anticipation Certificate
                  (Newnan Hosp., Inc. Proj.), Ser. 2002, 5.50%, due 1/1/18                Aaa                       3,015++
          1,910   Southmost (TX) Reg. Wtr. Au. Wtr. Supply Contract Rev.
                  (Desalination Plant Proj.), Ser. 2002, 5.50%, due 9/1/19                Aaa                       2,153
          1,000   Trinity (TX) River Au. Imp. & Ref. Rev. (Tarrant Co. Wtr. Proj.),
                  Ser. 2003, 5.50%, due 2/1/16                                                      AAA             1,134
          4,555   Washington St. G.O., Ser. 1998 C, 6.00%, due 7/1/12                               AAA             5,376
          7,205   Wisconsin St. G.O., Ser. 2002 C, 5.25%, due 5/1/17                      Aaa       AAA             8,017
                                                                                                               ----------
                                                                                                                  233,810
                                                                                                               ----------

     TAX-EXEMPT SECURITIES--OTHER (78.3%)
          4,145   Anson (TX) Ed. Fac. Corp. Std. Hsg. Rev. (Univ. of Texas at
                  Dallas-Waterview Park Proj.), Ser. 2002, 5.00%, due 1/1/23                         A              4,191++
          1,000   Austin (TX) Convention Enterprises, Inc. Convention Ctr.
                  Hotel First Tier Rev., Ser. 2001 A, 6.38%, due 1/1/16                  Baa3       BBB-            1,049
          1,645   Badger (WI) Tobacco Asset Securitization Corp. Tobacco
                  Settlement Asset-Backed Rev., Ser. 2002, 6.13%, due 6/1/27             Baa3       BBB             1,595
          2,000   Boone Co. (MO) Hosp. Ref. Rev. (Boone Hosp. Ctr.), Ser. 2002,
                  5.05%, due 8/1/20                                                       A3                        2,064++
          2,425   Branson (MO) Dev. Fin. Board Infrastructure Fac. Board Rev.,
                  Ser. 2003 A, 5.00%, due 12/1/17                                        Baa1                       2,531
          3,300   Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
                  Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13                          Baa2       BBB             3,749++
          1,000   Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
                  Ser. 2003 D, 5.40%, due 10/1/29 Putable 10/1/14                        Baa2                       1,057++
          1,000   Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
                  Ser. 1999 B, 7.75%, due 12/1/18                                         Ba1      BBB-             1,095++
          4,000   Brazos (TX) River Harbor Navigation Dist. Env. Fac. Rev.
                  (Dow Chemical Co. Proj.), Ser. 2002 B-2,
                  4.75%, due 5/15/33 Putable 5/15/07                                      A3         A              4,168++
          2,500   Broward Co. (FL) G.O., Ser. 2001 A, 5.25%, due 1/1/18                   Aa1                       2,767
          3,500   California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
                  (Republic Svc., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23            Baa3       BBB             3,704++
          2,500   California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
                  5.75%, due 5/1/17                                                       A3       BBB+             2,836
          3,460   California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
                  5.38%, due 5/1/22                                                       A3       BBB+             3,737
          1,240   California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.),
                  Ser. 2003 A, 6.00%, due 10/1/16                                         A3         A              1,379++
          1,500   California Statewide CDA Rev. (East Valley Tourist Dev. Au.),
                  Ser. 2003 A, 9.25%, due 10/1/20                                                                   1,646^^
          1,500   Chicago (IL) Metro. Wtr. Reclamation Dist. Cap. Imp. G.O.,
                  Ser. 2002 C, 5.38%, due 12/1/16                                                   AAA             1,698
          1,000   Clark Co. (WA) Vancouver Sch. Dist. Number 37 G.O., Ser. 1998,
                  5.13%, due 12/1/12                                                      A3                        1,124
          1,765   Cumberland Co. (PA) West Shore Area Au. Hosp. Rev., (Holy
                  Spirit Hosp. of the Sisters of Christian Charity Proj.), Ser. 2001,
                  6.05%, due 1/1/19                                                                 BBB+            1,881++


                                       16




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     $    2,100   Dallas-Fort Worth
                  (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
                  Ser. 2004 A-1, 6.15%, due 1/1/16                                       Baa3       BBB-       $    2,100++
          4,210   DCH Hlth. Care Au. (AL) Hlth. Care Fac. Rev., Ser. 2002,
                  5.25%, due 6/1/14                                                       A1          A+            4,530
          1,000   Delaware River (PA-NJ) Joint Toll Bridge Comm. Sys. Rev.,
                  Ser. 2003, 5.25%, due 7/1/18                                            A2          A-            1,088
          1,000   Denton, Tarrant, & Wise Cos. (TX) Northwest Ind. Sch. Dist.
                  Unlimited Sch. Bldg. & Ref. G.O., Ser. 2002,
                  5.50%, due 8/15/17                                                                AAA             1,119
          2,000   Denver (CO) City & Co. Arpt. Sys. Rev., Ser. 1991 D,
                  7.75%, due 11/15/13                                                               AAA             2,467
          4,495   Dist. of Columbia (Washington, D.C.) Ref. G.O., Ser. 2002 C,
                  5.25%, due 6/1/13                                                                 AAA             4,995
          1,750   Ector Co. (TX) Hosp. Dist. Hosp. Rev., Ser. 2002 A,
                  5.63%, due 4/15/16                                                      A2        A-              1,828
          1,745   Ector Co. (TX) Hosp. Dist. Hosp. Rev., Ser. 2002 A,
                  5.63%, due 4/15/17                                                      A2        A-              1,816
          3,000   Fiddlers Creek (FL) Comm. Dev. Dist. Number 2 Spec.
                  Assessment Rev., Ser. 2003 A, 6.00%, due 5/1/16                                   BB-             3,056
            825   Fort Bend Co. (TX) Ind. Dev. Corp. Ref. PCR (Frito-Lay, Inc.
                  Proj.), Ser. 1987, 3.00%, due 10/1/11                                   A1                          833++
          2,000   Freeborn Co. (MN) Hsg. & Redev. Au. Lease Rev.
                  (Criminal Justice Ctr. Proj.), Ser. 2002, 5.38%, due 2/1/17            Baa1                       2,111
          3,000   Golden St. (CA) Tobacco Securitization Corp. Tobacco
                  Settlement Asset-Backed Rev., Ser. 2003 A-1,
                  6.25%, due 6/1/33                                                      Baa3       BBB             2,862
          5,130   Illinois Ed. Fac. Au. Rev. (Field Museum of Natural History),
                  Ser. 2002, 4.30%, due 11/1/36                                           A2         A              5,234++
          3,560   Indiana Bond Bank Rev., Ser. 2002 B, 5.25%, due 2/1/18                 Baa2       A-              3,886
         10,000   Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2001 A,
                  5.38%, due 2/1/17                                                                 AAA            11,127
          2,050   Indiana St. Hlth. Fac. Fin. Au. Rev. (Hlth. Sys. Sisters of
                  St. Francis), Ser. 2001, 5.35%, due 11/1/15                             Aa3        A              2,219++
          1,070   Ingham & Clinton Cos. (MI) East Lansing Bldg. Au. Ref. G.O.,
                  Ser. 1999, 5.25%, due 10/1/16                                                     AA              1,177
          3,000   Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed
                  Rev., Ser. 2001 B, 5.30%, due 6/1/25                                   Baa3       BBB             2,537
          2,000   Jasper (IN) Hosp. Au. Hosp. Fac. Ref. Rev. (Mem. Hosp. & Hlth.
                  Care Ctr. Proj.), Ser. 2002, 5.50%, due 11/1/17                                   AA              2,189++
          1,050   Kent Co. (MI) Forest Hills Pub. Sch. Unlimited G.O., Ser. 2000,
                  5.25%, due 5/1/19                                                       Aa2                       1,159
          2,000   Lehigh Co. (PA) Gen. Purp. Au. Rev. (KidsPeace Oblig. Group),
                  Ser. 1998, 6.00%, due 11/1/23                                           Ba2                       1,739++
          2,000   Lubbock (TX) Hlth. Fac. Dev. Corp. Rev. (St. Joseph Hlth. Sys.),
                  Ser. 1998, 5.25%, due 7/1/16                                            Aa3       AA-             2,093++
          1,310   Lyons (NY) Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004,
                  5.50%, due 9/1/14                                                       A2                        1,437
          1,375   Macomb Co. (MI) New Haven Comm. Sch. Bldg. & Site G.O.,
                  Ser. 2002, 5.25%, due 5/1/17                                            Aa1       AA+             1,530
          1,000   Martin Co. (NC) Ind. Fac. & Poll. Ctrl. Fin. Au. Solid Waste
                  Disp. Rev. (Weyerhaeuser Co. Proj.), Ser. 1994,
                  6.80%, due 5/1/24                                                      Baa2       BBB             1,025++
          1,000   Maryland St. Hlth. & Higher Ed. Fac. Au. Rev. (Union Hosp.
                  of Cecil Co.), Ser. 2002, 5.50%, due 7/1/14                             A3                        1,099++


See Notes to Schedule of Investments

                                       17




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     $    2,400   Mashantucket (CT) Western Pequot Tribe Spec. Rev., Sub.
                  Ser. 1997 B, 5.70%, due 9/1/12                                         Baa3                  $    2,571**
          2,450   Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Caritas Christi
                  Oblig. Group), Ser. 1999 A, 5.70%, due 7/1/15                                     BBB             2,535++
          2,810   Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Milford-Whitinsville
                  Reg. Hosp.), Ser. 1998 C, 5.75%, due 7/15/13                           Baa2       BBB             2,931++
          5,030   Massachusetts St. Wtr. Poll. Abatement Trust Rev. (MWRA Prog.),
                  Ser. 2002 A, 5.25%, due 8/1/19                                         Aaa        AAA             5,583
          2,775   Massachusetts St. Wtr. Poll. Abatement Trust Unrefunded
                  Balance Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16                Aaa        AAA             3,079
          3,085   Memphis-Shelby Co. (TN) Arpt. Au. Spec. Fac. Ref. Rev.
                  (Federal Express Corp.), Ser. 2002, 5.05%, due 9/1/12                  Baa2       BBB             3,317++
          1,750   Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
                  Med. Ctr. Florida Proj.), Ser. 2004, 6.25%, due 11/15/09                Ba2       BB              1,801++
          1,500   Michigan St. Bldg. Au. Rev. (Fac. Prog.), Ser. 2001 II,
                  5.50%, due 10/15/18                                                     Aa1       AA+             1,687
          2,735   Michigan Strategic Fund Solid Waste Disp. Ltd. Oblig. Ref.
                  Rev. (Waste Mgt. Inc. Proj.), Ser. 2002, 4.20%, due 12/1/12                       BBB             2,774++
          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             2,265
          1,115   Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev., Ser. 2001 II,
                  5.25%, due 12/1/16                                                                AA              1,198
            775   Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev., Ser. 2001 III,
                  5.05%, due 12/1/15                                                                AA                832
          5,000   Montgomery Co. (PA) Higher Ed. & Hlth. Au. Hosp. Rev.
                  (Abington Mem. Hosp. Proj.), Ser. 2002 A, 5.00%, due 6/1/19                       A               5,180++
          3,000   Moraine (OH) Solid Waste Disp. Rev. (General Motors Corp. Proj.),
                  Ser. 1994, 6.75%, due 7/1/14                                            A3        BBB             3,431++
          2,500   Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
                  Ser. 2001 A, 5.25%, due 11/15/13                                       Baa2       BBB             2,696++
          2,000   MuniMae Subordinate Cumulative Perpetual Preferred Shares,
                  4.70%, due 6/30/49 Putable 9/30/09                                      Ba2                       2,002
          2,000   Nevada St. Cap. Imp. Ltd. G.O., Ser. 1998 B,
                  5.13%, due 4/15/17                                                      Aa2                       2,147
          1,500   New Jersey Econ. Dev. Au. Cigarette Tax Rev., Ser. 2004,
                  5.63%, due 6/15/19                                                     Baa2       BBB             1,582
          6,900   New Jersey Ed. Fac. Au. Rev. (Stevens Institute of Technology),
                  Ser. 2002 C, 5.25%, due 7/1/17                                         Baa1       A-              7,411++
          4,000   New Jersey Hlth. Care Fac. Fin. Au. Rev. (Somerset Med. Ctr. Issue),
                  Ser. 2003, 5.50%, due 7/1/18                                           Baa2                       4,191++
          3,250   New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15                 A2                        3,624
          2,580   New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
                  New York Proj.), Ser. 2002 A, 5.50%, due 6/1/14                                    A              2,810++
          1,000   New York Convention Ctr. Operating Corp. Cert. of Participation
                  (Yale Bldg. Acquisition Proj.), Ser. 2003, 5.25%, due 6/1/08                      BB+             1,032
          3,500   New York St. Dorm. Au. Personal Income Tax Rev., Ser. 2003 A,
                  5.38%, due 3/15/20                                                                AA              3,842
          1,000   New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth. Oblig. Group),
                  Ser. 2000 C, 6.00%, due 7/1/26                                         Baa3                       1,003++
          1,300   New York St. Urban Dev. Corp. Ref. Rev. (Correctional Cap. Fac.),
                  Ser. 1998, 5.00%, due 1/1/14                                            A3        AA-             1,374
          4,780   North Central (TX) Hlth. Fac. Dev. Corp. Hosp. Ref. Rev. (Baylor
                  Hlth. Care Sys. Proj.), Ser. 1998, 5.10%, due 5/15/13                   Aa3       AA-             5,099++


                                       18




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     $    3,760   Ohio Air Quality Dev. Au. Env. Imp. Ref. Rev. (USX Corp. Proj.),
                  Ser. 1995, 5.00%, due 11/1/15                                          Baa1                  $    4,100++
          2,085   Palm Beach Co. (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (BRCH Corp.
                  Oblig. Group), Ser. 2001, 5.00%, due 12/1/12                                      A+              2,230++
          3,850   Royal Oak (MI) Hosp. Fin. Au. Hosp. Ref. Rev. (William
                  Beaumont Hosp.), Ser. 1996 I, 6.25%, due 1/1/12                         Aa3       AA-             4,484++
          6,795   San Antonio (TX) Ind. Sch. Dist. Unlimited Tax G.O., Ser. 2001 B,
                  5.38%, due 8/15/17                                                      Aaa       AAA             7,559
          1,240   San Antonio (TX) Unrefunded Balance Cert. of Obligation G.O.,
                  Ser. 2002, 5.00%, due 2/1/14                                            Aa2       AA+             1,362
            740   San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
                  Redev. Proj.), Ser. 2003 B, 5.00%, due 9/1/17                          Baa2       A-                765
          2,000   Sayre (PA) Hlth. Care Fac. Au. Rev. (Guthrie Hlth. Proj.), Ser.
                  2002 A, 5.75%, due 12/1/21                                                        A-              2,133++
          1,625   Skagit Co. (WA) Pub. Hosp. Dist. Ref. Rev., Ser. 2003,
                  6.00%, due 12/1/18                                                     Baa3                       1,689
          2,345   South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev. (Palmetto
                  Hlth. Alliance), Ser. 2003 A, 6.00%, due 8/1/13                        Baa2       BBB             2,599++
          2,000   South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev. (Palmetto
                  Hlth. Alliance), Ser. 2003 A, 6.13%, due 8/1/23                        Baa2       BBB             2,128++
            155   Spokane Co. (WA) Ltd. Tax G.O., Ser. 1998, 5.10%, due 12/1/17           Aa3                         166
          2,540   St. Paul (MN) Port Au. Lease Rev. (Office Bldg. at Cedar Street),
                  Ser. 2002, 5.00%, due 12/1/17                                           Aa1                       2,745
            500   Texas Std. Hsg. Corp. Std. Hsg. Rev. (Midwestern St. Univ. Proj.),
                  Ser. 2002, 5.50%, due 9/1/12                                           Baa3                         516
          1,000   Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
                  Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30                     Baa3       BBB               892
          1,085   Tyler (TX) Hlth. Fac. Dev. Corp. Hosp. Rev. (Mother Frances Hosp.
                  Reg. Hlth. Care Ctr. Proj.), Ser. 2003, 5.25%, due 7/1/13              Baa1                       1,151
          3,500   Union Co. (SC) IDR (Federal Paper Board Co., Inc. Proj.),
                  Ser. 1989, 4.55%, due 11/1/09                                          Baa2       BBB             3,651++
          2,950   Univ. of Texas Board of Regents Fin. Sys. Rev., Ser. 1999 B,
                  5.38%, due 8/15/18                                                                AAA             3,310
          1,900   Univ. of Wisconsin Hosp. & Clinics Au. Hosp. Rev., Ser. 2002 B,
                  5.50%, due 4/1/12                                                       A1                        2,079
          1,750   Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
                  6.15%, due 7/15/17                                                                BB-             1,786
          1,000   Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (Hovensa
                  Refinery Proj.), Ser. 2003, 6.13%, due 7/1/22                          Baa3      BBB-             1,073
          1,500   Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (Hovensa
                  Refinery Proj.), Ser. 2004, 5.88%, due 7/1/22                          Baa3      BBB-             1,587++
          3,125   Washington St. Hlth. Care Fac. Au. Rev. (Yakima Valley Mem.
                  Hosp. Assoc.), Ser. 2002, 5.00%, due 12/1/17                                       A              3,241++
          1,000   Washington St. Var. Purp. G.O., Ser. 1999 A, 4.75%, due 7/1/17          Aa1       AA+             1,057
          2,000   Westmoreland Co. (PA) IDA Gtd. Rev. (National Waste & Energy
                  Corp., Valley Landfill Expansion Proj.), Ser. 1993,
                  5.10%, due 5/1/18                                                                 BBB             2,109++
          2,780   Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Kenosha Hosp. & Med.
                  Ctr., Inc. Proj.), Ser. 1999, 5.50%, due 5/15/15                                   A              2,924++
                                                                                                               ----------
                                                                                                                  244,860
                                                                                                               ----------

     TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY INSURANCE (0.3%)
     MUNICIPAL BOND INVESTORS ASSURANCE CORP.
          1,000   California Hsg. Fin. Agcy. Home Mtge. Rev., Ser. 2003 U,
                  1.76%, VRDN due 11/1/04                                                VMIG1     A-1+             1,000
                                                                                                               ----------


See Notes to Schedule of Investments

                                       19




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     TAX-EXEMPT VARIABLE RATE DEMAND NOTES--OTHER (0.5%)
     $      200   Valdez (AK) Marine Term. Ref. Rev. (BP Pipelines Inc. Proj.),
                  Ser. 2003 B, 1.74%, VRDN due 11/1/04                                   VMIG1     A-1+        $      200++
          1,200   Will Co. (IL) Exempt Fac. Ind. Rev. (BP Amoco Chemical Co. Proj.),
                  Ser. 2002, 1.79%, VRDN due 11/1/04                                     VMIG1     A-1+             1,200++
                                                                                                               ----------
                                                                                                                    1,400
                                                                                                               ----------

                  TOTAL INVESTMENTS (155.2%) (COST $466,443)                                                      485,582##

                  Cash, receivables and other assets, less liabilities (2.2%)                                       6,629
                  Liquidation Value of Auction Market Preferred Shares [(57.4%)]                                 (179,400)
                                                                                                               ----------

                  TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%)                                  $  312,811
                                                                                                               ----------


                                       20


SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc.



     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (34.3%)
     AMERICAN CAPITAL ACCESS
     $    1,060   Puerto Rico Ind., Tourist, Ed., Med., & Env. Ctrl. Fac. Rev.,
                  (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
                  5.25%, due 8/1/16                                                                  A         $    1,123++

     AMERICAN MUNICIPAL BOND ASSURANCE CORP.
          2,000   Metro. Trans. Au. (NY) Ref. Rev., Ser. 2002 A,
                  5.50%, due 11/15/15                                                               AAA             2,263
          2,920   New York City (NY) IDA Civic Fac. Rev. (Packer Collegiate
                  Institute Proj.), Ser. 2002, 5.00%, due 6/1/22                          Aaa       AAA             3,086++
            960   New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
                  Ser. 1992 A, 5.88%, due 6/15/13                                         Aaa                       1,133
          2,025   New York City (NY) Trans. Fin. Au. Ref. Rev., Ser. 2002 C,
                  5.25%, due 8/1/17                                                                 AAA             2,231
          2,410   New York St. Dorm. Au. Rev. (Rochester Institute of
                  Technology Proj.), Ser. 2002 A, 5.25%, due 7/1/19                       Aaa                       2,634++
          3,000   Port Authority of NY & NJ Rev., Ser. 2002, 5.50%, due 12/15/12                    AAA             3,379
          1,535   Ulster Co. (NY) Res. Rec. Agcy. Solid Waste Sys. Ref. Rev.,
                  Ser. 2002, 5.25%, due 3/1/16                                                      AAA             1,685

     FINANCIAL GUARANTY INSURANCE CO.
          2,505   Metro. Trans. Au. (NY) Dedicated Tax Fund Rev., Ser. 2001 A,
                  5.25%, due 11/15/14                                                               AAA             2,812

     FINANCIAL SECURITY ASSURANCE INC.
            500   Long Island (NY) Pwr. Au. Elec. Sys. Rev., Ser. 1998 A,
                  5.13%, due 12/1/16                                                      Aaa       AAA               544
          1,410   New York City (NY) Hlth. & Hosp. Corp. Rev., Ser. 2002 A,
                  5.50%, due 2/15/13                                                                AAA             1,597

     MUNICIPAL BOND INVESTORS ASSURANCE CORP.
          2,000   New York St. Dorm. Au. Insured Rev. (Long Island Jewish Med. Ctr.),
                  Ser. 1998, 5.00%, due 7/1/18                                                      AAA             2,088++
          1,600   New York St. Dorm. Au. Insured Rev. (The Culinary Institute
                  of America), Ser. 1999, 5.38%, due 7/1/15                                         AAA             1,782++
          1,980   New York St. Dorm. Au. Rev. (New York Med. College Proj.),
                  Ser. 1998, 5.00%, due 7/1/21                                            Aaa       AAA             2,121++
                                                                                                               ----------
                                                                                                                   28,478
                                                                                                               ----------

     TAX-EXEMPT SECURITIES--OTHER (121.5%)
          3,000   Albany (NY) IDA Civic Fac. Rev., (Charitable Leadership Foundation
                  Ctr. for Med. Science Proj.), Ser. 2002 A, 6.00%, due 7/1/19           Baa3                       3,241
            800   Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
                  Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13                          Baa2       BBB               909
            750   Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
                  Ser. 1999 B, 7.75%, due 12/1/18                                         Ba1      BBB-               821++
          1,000   Brazos (TX) River Harbor Navigation Dist. of Brazoria Co.
                  Env. Fac. Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4,
                  5.20%, due 5/15/33 Putable 5/15/08                                      A3         A              1,066++
          1,590   Cumberland Co. (PA) West Shore Area Au. Hosp. Rev., (Holy
                  Spirit Hosp. of the Sisters of Christian Charity Proj.), Ser. 2001,
                  5.90%, due 1/1/17                                                                BBB+              1,700++
            400   Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
                  Ser. 2004 A-1, 6.15%, due 1/1/16                                       Baa3      BBB-               400++
          1,000   De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp. Proj.),
                  Ser. 2002, 6.00%, due 3/15/21                                           A3        BBB             1,077++
          1,000   Dutchess Co. (NY) IDA Civic Fac. Ref. Rev. (Marist College Proj.),
                  Ser. 2003 A, 5.15%, due 7/1/17                                         Baa1                       1,065++


See Notes to Schedule of Investments

                                       21




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     $    2,000   Dutchess Co. (NY) IDA Ind. Dev. Rev. (IBM Proj.), Ser. 1999,
                  5.45%, due 12/1/29                                                      A1        A+         $    2,197++
          2,000   Long Island Pwr. Au. (NY) Elec. Sys. Gen. Rev., Ser. 1998 A,
                  5.50%, due 12/1/13                                                      Aaa       AAA             2,336
          1,500   Lyons (NY) Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004,
                  5.50%, due 9/1/14                                                       A2                        1,646
            500   Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
                  Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09             Ba2       BB                515++
            980   Monroe Co. (NY) IDA Std. Hsg. Rev., (Collegiate Hsg.
                  Foundation - Rochester Institute of Technology Proj.),
                  Ser. 1999 A, 5.25%, due 4/1/19                                         Baa3                         980++
          1,000   Monroe Co. (NY) Newpower Corp. Pwr. Fac. Rev., Ser. 2003,
                  5.10%, due 1/1/16                                                                 BBB+            1,067
          1,000   Monroe Co. (NY) Pub. Imp. Ref. G.O., Ser. 1996,
                  6.00%, due 3/1/13                                                       A3        AA-             1,165
          1,000   Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
                  Ser. 2001 A, 5.25%, due 11/15/13                                       Baa2       BBB             1,078++
          1,000   New York City (NY) G.O., Ser. 1998 J, 5.00%, due 8/1/11                 A2         A              1,067
          1,000   New York City (NY) G.O., Ser. 2002 A, 5.75%, due 8/1/16                 A2         A              1,121
            750   New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15                 A2                          836
          4,000   New York City (NY) Hsg. Dev. Corp. Multi-Family Hsg. Rev.,
                  Ser. 2002 E-2, 5.05%, due 11/1/23                                       Aa2       AA              4,111
          1,000   New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
                  New York Proj.), Ser. 2002 A, 5.50%, due 6/1/15                                    A              1,084++
          1,030   New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
                  New York Proj.), Ser. 2002 A, 5.50%, due 6/1/17                                    A              1,106++
          1,000   New York City (NY) IDA Ind. Dev. Rev. (Brooklyn Navy Yard
                  Cogeneration Partners, L.P. Proj.), Ser. 1997,
                  6.20%, due 10/1/22                                                      Ba1      BBB-             1,002
            500   New York City (NY) IDA Ind. Dev. Rev. (Harlem Auto Mall Proj.),
                  Ser. 2004, 5.13%, due 12/30/23                                         Baa1       BBB               500++
          4,000   New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
                  Ser. 2002 D, 5.25%, due 6/15/15                                         Aa2       AA              4,456
          3,000   New York City (NY) Trans. Fin. Au. Ref. Rev., Ser. 2002 B,
                  5.25%, due 2/1/29                                                       Aa2                       3,311
            800   New York Convention Ctr. Operating Corp. Cert. of Participation
                  (Yale Bldg. Acquisition Proj.), Ser. 2003, 5.25%, due 6/1/08            Aa1                         826
          2,000   New York St. Dorm. Au. Court Fac. Lease Rev. (New York City
                  Issue), Ser. 2003 A, 5.50%, due 5/15/17                                 A3         A              2,217
          1,675   New York St. Dorm. Au. Insured Rev. (Long Island Univ.),
                  Ser. 2003 A, 5.25%, due 9/1/15                                                    AA              1,838++
          3,000   New York St. Dorm. Au. Ref. Rev. (North Gen. Hosp. Proj.),
                  Ser. 2003, 5.75%, due 2/15/17                                                     AA-             3,374++
          1,125   New York St. Dorm. Au. Rev. (City Univ. Sys. Proj.), Ser. 1995 A,
                  5.63%, due 7/1/16                                                       A3        AA-             1,311
          1,010   New York St. Dorm. Au. Rev. (Columbia Univ. Proj.), Ser. 2001 A,
                  5.25%, due 7/1/16                                                                 AAA             1,118++
          2,985   New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.),
                  Ser. 2001, 5.75%, due 7/1/14                                            A3                        3,278++
          2,000   New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.),
                  Ser. 2001, 5.75%, due 7/1/16                                            A3        A-              2,171++
          2,500   New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth. Oblig. Group),
                  Ser. 2000 B, 6.25%, due 7/1/22                                         Baa3                       2,510++
            525   New York St. Dorm. Au. Rev. (New York Methodist Hosp.),
                  Ser. 2004, 5.25%, due 7/1/18                                            A3                          566


                                       22




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     $      500   New York St. Dorm. Au. Rev. (North Shore-Long Island Jewish
                  Oblig. Group), Ser. 2003, 5.00%, due 5/1/18                             A3                   $      521++
          2,855   New York St. Dorm. Au. Rev. (Rivington House Hlth. Care Fac.),
                  Ser. 2002, 5.25%, due 11/1/15                                           Aa1                       3,155++
          3,000   New York St. Dorm. Au. Rev. (SS Joachim & Anne Residence
                  Proj.), Ser. 2002, 4.60%, due 7/1/16                                    Aa3                       3,101
            250   New York St. Dorm. Au. Secured Hosp. Ref. Rev. (Brookdale
                  Hosp. Med. Ctr.), Ser. 1998 J, 5.20%, due 2/15/16                       A3        AA-               263++
          5,500   New York St. Dorm. Au. St. Personal Income Tax Rev., Ser. 2003 A,
                  5.38%, due 3/15/17                                                                AA              6,112
          1,000   New York St. Dorm. Au. Third Gen. Resolution Rev. (St. Univ.
                  Ed. Fac. Issue Proj.), Ser. 2002 B, 5.25%, due 11/15/23                 A3        AA-             1,111
          5,000   New York St. Energy Res. & Dev. Au. Fac. Rev. (Consolidated
                  Edison Co. of New York, Inc. Proj.), Ser. 2001 A,
                  4.70%, due 6/1/36                                                       A1        A+              5,042++
          1,000   New York St. Env. Fac. Corp. Solid Waste Disp. Rev. (Waste
                  Management, Inc. Proj.), Ser. 2004 A,
                  4.45%, due 7/1/17 Putable 7/1/09                                                  BBB             1,035
          2,000   New York St. Mtge. Agcy. Homeowner Mtge. Rev., Ser. 1997-67,
                  5.70%, due 10/1/17                                                      Aa1                       2,095
          2,000   New York St. Pwr. Au. Rev., Ser. 2002 A, 5.25%, due 11/15/16            Aa2       AA-             2,215
            500   New York St. Urban Dev. Corp. Correctional & Youth Fac. Svc.
                  Rev., Ser. 2002 C, 4.00%, due 1/1/20                                              AA-               517
          1,325   New York St. Urban Dev. Corp. Proj. Ref. Rev. (Ctr. for Ind.
                  Innovation), Ser. 1995, 6.25%, due 1/1/09                               A3        AA-             1,511
          2,000   Niagara Co. (NY) IDA Civic Fac. Rev. (Niagara Univ. Proj.),
                  Ser. 2001 A, 5.50%, due 11/1/16                                                   AA              2,188++
          2,500   Niagara Co. (NY) IDA Solid Waste Disp. Fac. Ref. Rev.
                  (American Ref.-Fuel Co. of Niagara), Ser. 2001 C,
                  5.63%, due 11/15/24                                                    Baa1       BBB             2,680
            945   Puerto Rico Children's Trust Tobacco Settlement Asset-Backed
                  Rev., Ser. 2002, 5.38%, due 5/15/33                                    Baa3       BBB               864
          1,000   Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise Rev.,
                  Ser. 2003, 6.13%, due 3/1/13                                                      BBB             1,004
          1,000   Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
                  Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30                     Baa3       BBB               892
          3,000   Triborough Bridge & Tunnel Au. (NY) Gen. Purp. Ref. Rev.,
                  Ser. 2002 B, 5.25%, due 11/15/18                                        Aa3       AA-             3,338
            500   United Nations (NY) Dev. Corp. Sr. Lien Ref. Rev., Ser. 2004
                  A, 5.25%, due 7/1/17                                                    A3                          529
            500   Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
                  6.15%, due 7/15/17                                                                BB-               510
            250   Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (Hovensa
                  Refinery Proj.), Ser. 2003, 6.13%, due 7/1/22                          Baa3      BBB-               268
            750   Virgin Islands Pub. Fin. Au. Rev. (Sub. Lien/Cap. Proj.),
                  Ser. 1998 E, 6.00%, due 10/1/22                                                   BBB               772
          1,000   Westchester Co. (NY) IDA Continuing Care Retirement Comm.
                  Rev. (Kendal on Hudson Proj.), Ser. 2003 B,
                  5.70%, due 1/1/34                                                                 BB              1,030++
          1,000   Yonkers (NY) IDA Civic Fac. Rev. (Comm. Dev.
                  Properties - Yonkers, Inc.), Ser. 2001 A, 6.25%, due 2/1/16            Baa3      BBB-             1,094++
                                                                                                               ----------
                                                                                                                  100,913
                                                                                                               ----------


See Notes to Schedule of Investments

                                       23




     PRINCIPAL AMOUNT                                                                      RATING *                 VALUE +
     (000'S OMITTED)                           SECURITY @                               MOODY'S    S&P    (000'S OMITTED)
                                                                                                   
     TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY LETTERS OF CREDIT (0.1%)
     MORGAN GUARANTY TRUST CO.
     $      100   New York City (NY) G.O., Sub.Ser. 1993 E-2,
                  1.70%, VRDN due 11/1/04                                                VMIG1     A-1+        $      100
                                                                                                               ----------

                  TOTAL INVESTMENTS (155.9%) (COST $125,152)                                                      129,491##

                  Cash, receivables and other assets, less liabilities (2.2%)                                       1,829
                  Liquidation Value of Auction Market Preferred Shares [(58.1%)]                                  (48,250)
                                                                                                               ----------
                  TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%)                                  $   83,070
                                                                                                               ----------


                                       24


                                               NEUBERGER BERMAN OCTOBER 31, 2004

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",
          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
          requiring daily quotations, bid prices are obtained from principal
          market makers in those securities or, if quotations are not available,
          by a method the Board of Directors of California, Intermediate, and
          New York, believes accurately reflects 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, 2004, selected Fund information on a U.S. Federal
          income tax basis was as follows:



                                                               GROSS            GROSS               NET
     (000'S OMITTED)                                      UNREALIZED       UNREALIZED        UNREALIZED
     NEUBERGER BERMAN                         COST      APPRECIATION     DEPRECIATION      APPRECIATION
                                                                                   
     CALIFORNIA                          $ 153,401          $  5,950            $  92          $  5,858
     INTERMEDIATE                          466,443            19,562              423            19,139
     NEW YORK                              125,152             4,402               63             4,339


     @    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%, 74%, and 54% of the municipal
          securities held by California, Intermediate, and New York,
          respectively, have credit enhancement features backing them, which the
          Funds may rely on, such as letters of credit, insurance, or
          guarantees. Without these credit enhancement features the securities
          may or may not meet the quality standards of the Funds. Pre-refunded
          bonds are supported by securities in escrow issued or guaranteed by
          the U.S. Government, its agencies, or instrumentalities. The amount
          escrowed is sufficient to pay the periodic interest due and the
          principal of these bonds. Putable bonds give the Funds the right to
          sell back the issue on the date specified.

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

     **   Security exempt from registration under the Securities Act of 1933.
          These securities may be resold in transactions exempt from
          registration, normally to qualified institutional buyers under Rule
          144A and are deemed liquid. At October 31, 2004, these securities
          amounted to $2,571,000 or 0.8% of net assets for Intermediate.

     *    Credit ratings are unaudited.

     ^^   Not rated by a nationally recognized statistical rating organization.

See Notes to Financial Statements

                                       25


                                               NEUBERGER BERMAN OCTOBER 31, 2004

STATEMENTS OF ASSETS AND LIABILITIES



                                                                              CALIFORNIA      INTERMEDIATE          NEW YORK
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS                    INTERMEDIATE         MUNICIPAL      INTERMEDIATE
(000'S OMITTED EXCEPT PER SHARE AMOUNTS)                                  MUNICIPAL FUND              FUND    MUNICIPAL FUND
                                                                                                     
ASSETS
     INVESTMENTS IN SECURITIES, AT MARKET VALUE* (NOTE A)--SEE
     SCHEDULE OF INVESTMENTS                                              $      159,259    $      485,582    $      129,491
     Cash                                                                             15                54                93
     Interest receivable                                                           2,470             7,964             2,118
     Prepaid expenses and other assets                                               178               409               146
============================================================================================================================
TOTAL ASSETS                                                                     161,922           494,009           131,848
============================================================================================================================

LIABILITIES
     Dividends payable--preferred shares                                              73               219                60
     Dividends payable--common shares                                                424             1,372               362
     Payable to administrator (Note B)                                                40               121                32
     Accrued expenses and other payables                                              75                86                74
============================================================================================================================
TOTAL LIABILITIES                                                                    612             1,798               528
============================================================================================================================

AUCTION MARKET PREFERRED SHARES SERIES A & B AT LIQUIDATION VALUE
     3,000, 8,000 and 3,000 shares authorized; 2,360, 7,176 and 1,930
     shares issued and outstanding for California, Intermediate and
     New York, respectively; $.0001 par value;
     $25,000 liquidation value per share (Note A)                                 59,000           179,400            48,250
============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE                     $      102,310    $      312,811    $       83,070
============================================================================================================================

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF:
     Paid-in capital--common shares                                       $       96,347    $      293,853    $       79,063
     Undistributed net investment income (loss)                                      449               904               245
     Accumulated net realized gains (losses) on investments                         (344)           (1,085)             (577)
     Net unrealized appreciation (depreciation) in value of investments            5,858            19,139             4,339
============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE                     $      102,310    $      312,811    $       83,070
============================================================================================================================

COMMON SHARES OUTSTANDING ($.0001 par value; 999,997,000,
     999,992,000 and 999,997,000 shares authorized for
     California, Intermediate and New York, respectively)                          6,792            20,705             5,575
============================================================================================================================
NET ASSET VALUE PER COMMON SHARE OUTSTANDING                              $        15.06    $        15.11    $        14.90
============================================================================================================================

*COST OF INVESTMENTS                                                      $      153,401    $      466,443    $      125,152
============================================================================================================================


See Notes to Financial Statements

                                       26


                            NEUBERGER BERMAN FOR THE YEAR ENDED OCTOBER 31, 2004

STATEMENTS OF OPERATIONS



                                                                              CALIFORNIA      INTERMEDIATE          NEW YORK
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS                    INTERMEDIATE         MUNICIPAL      INTERMEDIATE
(000'S OMITTED)                                                           MUNICIPAL FUND              FUND    MUNICIPAL FUND
                                                                                                     
INVESTMENT INCOME
INCOME:
Interest income (Note A)                                                  $        7,157    $       22,066    $        6,008
============================================================================================================================

EXPENSES:
Investment management fee (Notes A & B)                                              396             1,213               324
Administration fee (Note B)                                                          475             1,455               389
Stock transfer agent fees                                                             48                48                48
Auction agent fees (Note B)                                                          150               456               123
Special rate period expense (Notes A & B)                                             47               161                38
Audit fees                                                                            40                40                40
Basic maintenance expense (Note B)                                                    25                25                25
Custodian fees (Note B)                                                               78               138                67
Insurance expense                                                                      4                12                 3
Legal fees                                                                            34                71                31
Shareholder reports                                                                   20                58                18
Stock exchange listing fees                                                            3                 7                 2
Directors' fees and expenses                                                          25                26                25
Miscellaneous                                                                          2                 5                 4
============================================================================================================================
Total expenses                                                                     1,347             3,715             1,137

Investment management fee waived (Note B)                                           (396)           (1,213)             (324)
============================================================================================================================
Expenses reduced by custodian fee expense offset arrangement (Note B)                 (0)               (1)               (1)
============================================================================================================================
Total net expenses                                                                   951             2,501               812
============================================================================================================================
Net investment income                                                              6,206            19,565             5,196
============================================================================================================================

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE A)
Net realized gain (loss) on:
       Investment securities sold                                                   (274)             (328)             (157)
============================================================================================================================
Change in net unrealized appreciation (depreciation) in value of:
       Investment securities                                                       4,830            13,555             2,797
============================================================================================================================
Net gain (loss) on investments                                                     4,556            13,227             2,640

DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
       Net investment income                                                        (859)           (2,590)             (704)
============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON
       SHAREHOLDERS RESULTING FROM OPERATIONS                             $        9,903    $       30,202    $        7,132
============================================================================================================================


See Notes to Financial Statements

                                       27


STATEMENTS OF CHANGES IN NET ASSETS



                                                                                        CALIFORNIA INTERMEDIATE MUNICIPAL FUND
                                                                                      ------------------------------------------
                                                                                               YEAR                         YEAR
                                                                                              ENDED                        ENDED
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS                                OCTOBER 31,                  OCTOBER 31,
(000'S OMITTED)                                                                                2004                         2003
                                                                                                             
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss)                                                          $       6,206                $       5,744
Net realized gain (loss) on investments                                                        (274)                         (70)
Change in net unrealized appreciation (depreciation) of investments                           4,830                        1,031

DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income                                                                          (859)                        (551)
================================================================================================================================
Net increase (decrease) in net assets applicable to common shareholders
       resulting from operations                                                              9,903                        6,154
================================================================================================================================

DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income                                                                        (5,094)                      (5,094)
================================================================================================================================

FROM CAPITAL SHARE TRANSACTIONS:
Net proceeds from underwriters' over-allotment option exercised                                  --                        2,644
Proceeds from reinvestment of dividends                                                          --                           --
Payments for preferred shares offering costs                                                     --                         (744)
================================================================================================================================
Total net proceeds from capital share transactions                                               --                        1,900
================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS                       4,809                        2,960

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of year                                                                            97,501                       94,541
================================================================================================================================
End of year                                                                           $     102,310                $      97,501
================================================================================================================================
Undistributed net investment income (loss) at end of year                             $         449                $         196
================================================================================================================================


See Notes to Financial Statements

                                       28




                                                                                              INTERMEDIATE MUNICIPAL FUND
                                                                                      ------------------------------------------
                                                                                               YEAR                         YEAR
                                                                                              ENDED                        ENDED
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS                                OCTOBER 31,                  OCTOBER 31,
(000'S OMITTED)                                                                                2004                         2003
                                                                                                             
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss)                                                          $      19,565                $      18,172
Net realized gain (loss) on investments                                                        (328)                        (757)
Change in net unrealized appreciation (depreciation) of investments                          13,555                        5,860

DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income                                                                        (2,590)                      (1,773)
================================================================================================================================
Net increase (decrease) in net assets applicable to common shareholders
       resulting from operations                                                             30,202                       21,502
================================================================================================================================

DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income                                                                       (16,462)                     (16,450)
================================================================================================================================

FROM CAPITAL SHARE TRANSACTIONS:
Net proceeds from underwriters' over-allotment option exercised                                  --                        2,501
Proceeds from reinvestment of dividends                                                          --                          337
Payments for preferred shares offering costs                                                     --                       (2,132)
================================================================================================================================
Total net proceeds from capital share transactions                                               --                          706
================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS                      13,740                        5,758

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of year                                                                           299,071                      293,313
================================================================================================================================
End of year                                                                           $     312,811                $     299,071
================================================================================================================================
Undistributed net investment income (loss) at end of year                             $         904                $         391
================================================================================================================================


                                                                                         NEW YORK INTERMEDIATE MUNICIPAL FUND
                                                                                      ------------------------------------------
                                                                                               YEAR                         YEAR
                                                                                              ENDED                        ENDED
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS                                OCTOBER 31,                  OCTOBER 31,
(000'S OMITTED)                                                                                2004                         2003
                                                                                                             
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss)                                                          $       5,196                $       4,818
Net realized gain (loss) on investments                                                        (157)                        (420)
Change in net unrealized appreciation (depreciation) of investments                           2,797                        1,501

DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income                                                                          (704)                        (457)
================================================================================================================================
Net increase (decrease) in net assets applicable to common shareholders
       resulting from operations                                                              7,132                        5,442
================================================================================================================================

DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income                                                                        (4,348)                      (4,347)
================================================================================================================================

FROM CAPITAL SHARE TRANSACTIONS:
Net proceeds from underwriters' over-allotment option exercised                                  --                        3,074
Proceeds from reinvestment of dividends                                                          --                           37
Payments for preferred shares offering costs                                                     --                         (626)
================================================================================================================================
Total net proceeds from capital share transactions                                               --                        2,485
================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS                       2,784                        3,580

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of year                                                                            80,286                       76,706
================================================================================================================================
End of year                                                                           $      83,070                $      80,286
================================================================================================================================
Undistributed net investment income (loss) at end of year                             $         245                $         101
================================================================================================================================


                                       29


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

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

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

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

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

          Income dividends and capital gain distributions are determined in
          accordance with income tax regulations, which may differ from
          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, 2004, there were no permanent differences
          resulting from different book and tax accounting reclassified at year
          end.

          The tax character of distributions paid during the years ended October
          31, 2004 and 2003 were as follows:



                                                      DISTRIBUTIONS PAID FROM:
                                        TAX-EXEMPT INCOME                 ORDINARY INCOME               TOTAL
                                     2004            2003            2004            2003            2004           2003
                                                                                          
          CALIFORNIA        $   5,945,965   $   5,621,479   $       6,705   $      23,102   $   5,952,670   $   5,644,581
          INTERMEDIATE         19,015,689      18,151,315          35,236          71,380      19,050,925      18,222,695
          NEW YORK              5,050,381       4,789,367           2,299          14,100       5,052,680       4,803,467


                                       30


                                               NEUBERGER BERMAN OCTOBER 31, 2004

          As of October 31, 2004, the components of distributable earnings
          (accumulated losses) on a U.S. Federal income tax basis were as
          follows:



                            UNDISTRIBUTED   UNDISTRIBUTED   UNDISTRIBUTED       UNREALIZED            LOSS
                               TAX-EXEMPT        ORDINARY       LONG-TERM     APPRECIATION   CARRYFORWARDS
                                   INCOME          INCOME            GAIN   (DEPRECIATION)   AND DEFERRALS           TOTAL
                                                                                           
          CALIFORNIA        $     946,699   $          --   $          --   $    5,857,106   $    (343,321)  $   6,460,484
          INTERMEDIATE          2,494,886              --              --       19,138,670      (1,085,587)     20,547,969
          NEW YORK                667,827              --              --        4,339,348        (577,111)      4,430,064


          The difference between book basis and tax basis is attributable
          primarily to timing differences of dividend 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, 2004, the
          Funds had unused capital loss carryforwards available for Federal
          income tax purposes to offset net realized capital gains, if any, as
          follows:



                                                                                             EXPIRING IN:    EXPIRING IN:
                                                                                                     2011           2012
                                                                                                      
          CALIFORNIA                                                                        $      69,587   $     273,734
          INTERMEDIATE                                                                            757,224         328,363
          NEW YORK                                                                                420,475         156,636


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

          Subsequent to October 31, 2004, each Fund declared two monthly
          dividends to common shareholders from its net investment income
          payable December 15, 2004 and January 18, 2005, to shareholders of
          record on November 26, 2004 and December 27, 2004, respectively, with
          ex-dividend dates of November 23, 2004 and December 22, 2004,
          respectively, as follows:



                                                                                                       DIVIDEND PER SHARE
                                                                                                    
          CALIFORNIA                                                                                   $          0.06250
          INTERMEDIATE                                                                                            0.06625
          NEW YORK                                                                                                0.06500


     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.

                                       31


     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 dividends, whether or
          not earned or declared by the Fund, but excluding interest thereon
          ("Liquidation Value"). Dividends to AMPS shareholders, which are
          cumulative, are accrued daily. It is the policy of each Fund to pay
          dividends 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, dividend rates are reset
          every 7 days for each Fund's AMPS Series A, based on the results of an
          auction. Each Fund has approved a special rate period for its AMPS
          Series A of 728 days for California and New York and 546 days for
          Intermediate. The effective dates and dividend rates for each Fund are
          as follows:



                                                                                   EFFECTIVE DATE     DIVIDEND RATE
                                                                                                         
          CALIFORNIA                                                             October 23, 2003              1.70%
          INTERMEDIATE                                                           October 24, 2003              1.65%
          NEW YORK                                                               October 22, 2003              1.70%


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



                                                                                   EFFECTIVE DATE     DIVIDEND RATE
                                                                                                        
          CALIFORNIA                                                               March 11, 2004             1.170%
          INTERMEDIATE                                                             March 15, 2004             1.185%
          NEW YORK                                                                  March 9, 2004             1.198%


          The Funds declared dividends to AMPS shareholders for the period
          November 1, 2004 to November 30, 2004, for each series of the AMPS as
          follows:



                                                                                  SERIES A SHARES   SERIES B SHARES
                                                                                              
          CALIFORNIA                                                              $        41,796   $        28,768
          INTERMEDIATE                                                                    123,355            88,588
          NEW YORK                                                                         34,180            24,086


                                       32


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

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

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

     8    ORGANIZATION EXPENSES AND OFFERING COSTS: Management has agreed to pay
          all organizational expenses and the amount by which each Fund's
          offering costs for common stock (other than sales load) exceed $0.03
          per share. The costs incurred by management were $261,029, $276,501,
          and $289,752 for California, Intermediate and New York, respectively.
          Offering costs for common stock paid by each Fund were charged as a
          reduction of common stock paid-in-capital at the completion of each
          Fund's offerings and amounted to $203,759, $620,459, and $167,159 for
          California, Intermediate, and New York, respectively.

          Additionally, offering costs of $154,612, $337,770, and $143,704 and
          sales loads of $590,000, $1,794,000, and $482,500 for AMPS for
          California, Intermediate, and New York, respectively, were charged as
          a reduction of common stock paid-in capital for each Fund's AMPS
          offering.

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

     10   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

                                       33


          average daily Managed Assets. Managed Assets equal the total assets of
          the Fund, less liabilities other than the aggregate indebtedness
          entered into for purposes of leverage. For purposes of calculating
          Managed Assets, the Liquidation Value of any AMPS outstanding is not
          considered a liability.

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



                         YEAR ENDED                      % OF AVERAGE
                         OCTOBER 31,                 DAILY MANAGED ASSETS
            --------------------------------------------------------------------
                                                           
                         2004 - 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, 2004, such waived fees amounted to
          $396,184, $1,212,644, and $324,473 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.

          On October 31, 2003, Management and Neuberger Berman, LLC
          ("Neuberger"), a member firm of the New York Stock Exchange and
          sub-adviser to each Fund, became indirect 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. The impact of this arrangement, reflected in the
          Statements of Operations under the caption Custodian fees, was a
          reduction of $498, $610, and $524 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.

                                       34


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

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

          NOTE C--SECURITIES TRANSACTIONS:

          During the year ended October 31, 2004, there were purchase and sale
          transactions (excluding short-term securities) as follows:



          (000'S OMITTED)                                                               PURCHASES        SALES
                                                                                               
          CALIFORNIA                                                                    $   5,187    $   5,277
          INTERMEDIATE                                                                     16,576       14,755
          NEW YORK                                                                          6,291        5,799


          NOTE D--CAPITAL:

          At October 31, 2004, the common shares outstanding and the common
          shares of each Fund owned by Neuberger were as follows:



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


          Transactions in common shares for the years ended October 31, 2004 and
          October 31, 2003, were as follows:



                                                   COMMON SHARES ISSUED IN CONNECTION WITH:
                                  UNDERWRITERS' EXERCISE           REINVESTMENT OF
                                       OF OVER-ALLOTMENT             DIVIDENDS AND    NET INCREASE IN COMMON
                                                  OPTION             DISTRIBUTIONS        SHARES OUTSTANDING
                                       2004         2003         2004         2003         2004         2003
                                                                                   
          CALIFORNIA                     --      185,000           --           --           --      185,000
          INTERMEDIATE                   --      175,000           --       23,143           --      198,143
          NEW YORK                       --      215,000           --        2,569           --      217,569


                                       35


FINANCIAL HIGHLIGHTS California Intermediate Municipal Fund

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



                                                                                                                    PERIOD FROM
                                                                                                            SEPTEMBER 27, 2002^
                                                                                YEAR ENDED OCTOBER 31,           TO OCTOBER 31,
                                                                              -------------------------     -------------------
                                                                                    2004           2003                    2002
                                                                                                   
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD                             $    14.36     $    14.31     $             14.32
                                                                              ----------     ----------     -------------------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS)                                                         .91            .85                     .02
NET GAINS OR LOSSES ON SECURITIES
   (BOTH REALIZED AND UNREALIZED)                                                    .67            .14                      --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
   NET INVESTMENT INCOME                                                            (.13)          (.08)                     --
                                                                              ----------     ----------     -------------------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS                  1.45            .91                     .02
                                                                              ----------     ----------     -------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
   NET INVESTMENT INCOME                                                            (.75)          (.75)                     --
                                                                              ----------     ----------     -------------------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES                                                             --             --                    (.03)
ISSUANCE OF PREFERRED SHARES                                                          --           (.11)                     --
                                                                              ----------     ----------     -------------------
TOTAL CAPITAL CHARGES                                                                 --           (.11)                   (.03)
                                                                              ----------     ----------     -------------------
COMMON SHARE NET ASSET VALUE, END OF PERIOD                                   $    15.06     $    14.36     $             14.31
                                                                              ----------     ----------     -------------------
COMMON SHARE MARKET VALUE, END OF PERIOD                                      $    13.47     $    13.00     $             15.00
                                                                              ----------     ----------     -------------------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+                                       +10.97%         +6.02%                  -0.10%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+                                           +9.63%         -8.44%                  +0.00%**

RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS)     $    102.3     $     97.5     $              94.5
PREFERRED STOCK, AT LIQUIDATION VALUE ($25,000
   PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS)                            $     59.0     $     59.0     $                --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
   COMMON SHAREHOLDERS#                                                              .96%           .88%                    .84%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
   COMMON SHAREHOLDERS++                                                             .96%           .88%                    .83%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
   STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
   COMMON SHAREHOLDERS                                                              6.24%          5.88%                   1.10%*
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
   NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS                                      .86%           .56%                     --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
   STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
   COMMON SHAREHOLDERS                                                              5.38%          5.32%                   1.10%*
PORTFOLIO TURNOVER RATE                                                                3%             9%                      0%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@                   $   68,383     $   66,332     $                --


See Notes to Financial Highlights

                                       36


                                               NEUBERGER BERMAN OCTOBER 31, 2004

FINANCIAL HIGHLIGHTS Intermediate Municipal Fund

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



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

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


See Notes to Financial Highlights

                                       37


FINANCIAL HIGHLIGHTS New York Intermediate Municipal Fund

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



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

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


See Notes to Financial Highlights

                                       38


NOTES TO FINANCIAL HIGHLIGHTS Intermediate Municipal Closed-End Funds

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

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

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



                                                                                       PERIOD ENDED
                                                             YEAR ENDED OCTOBER 31,      OCTOBER 31,
                                                             2004             2003           2002(1)
                                                                                       
CALIFORNIA                                                   1.35%            1.26%             1.08%
INTERMEDIATE                                                 1.22%            1.13%              .76%
NEW YORK                                                     1.39%            1.31%             1.18%


(1)  Period from September 27, 2002 to October 31, 2002.

^    The date investment operations commenced.

*    Annualized.

**   Not annualized.

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

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

                                       39


REPORT OF ERNST & YOUNG LLP, 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, including
the schedules of investments, 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") as of
October 31, 2004, 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
ended October 31, 2004 and financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of October 31, 2004, by
correspondence with the custodian and brokers or other appropriate auditing
procedures where replies from brokers were not received. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
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 each
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, 2004, 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 ended October 31, 2004, and their financial
highlights for each of the periods indicated therein, in conformity with U.S.
generally accepted accounting principles.

/s/ Ernst & Young LLP


Boston, Massachusetts
December 3, 2004

                                       40


DIVIDEND REINVESTMENT PLAN (Unaudited)

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

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

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

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

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

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.

                                       41


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.

                                       42


                                               NEUBERGER BERMAN OCTOBER 31, 2003

DIRECTORY

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

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

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

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

          LEGAL COUNSEL
          Kirkpatrick & Lockhart LLP
          1800 Massachusetts Avenue, NW
          2nd Floor
          Washington, DC 20036-1221

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

                                       43


DIRECTORS AND OFFICERS (Unaudited)

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

THE BOARD OF DIRECTORS



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

INDEPENDENT FUND DIRECTORS*

Faith Colish (69)                Counsel, Carter Ledyard & Milburn LLP (law             41         Director, American Bar
Director                         firm) since October 2002; formerly,                               Retirement Association (ABRA)
                                 Attorney-at-Law and President, Faith Colish, A                    since 1997 (not-for- profit
                                 Professional Corporation, 1980 to 2002.                           membership association).

C. Anne Harvey (67)              Consultant, C. A. Harvey Associates, since June        41         President, Board of Associates
Director                         2001; formerly, Director, AARP, 1978 to                           to The National Rehabilitation
                                 December 2001.                                                    Hospital's Board of Directors
                                                                                                   since 2002; formerly, Member,
                                                                                                   Individual Investors Advisory
                                                                                                   Committee to the New York Stock
                                                                                                   Exchange Board of Directors,
                                                                                                   1998 to June 2002; formerly,
                                                                                                   Member, American Savings
                                                                                                   Education Council's Policy Board
                                                                                                   (ASEC), 1998-2000; formerly,
                                                                                                   Member, Executive Committee,
                                                                                                   Crime Prevention Coalition of
                                                                                                   America, 1997-2000.

Cornelius T. Ryan (72)           Founding General Partner, Oxford Partners and          41         Director, Capital Cash
Director                         Oxford Bioscience Partners (venture capital                       Management Trust (money market
                                 partnerships) and President, Oxford Venture                       fund), Naragansett Insured
                                 Corporation.                                                      Tax-Free Income Fund, Rocky
                                                                                                   Mountain Equity Fund, Prime Cash
                                                                                                   Fund, several private companies
                                                                                                   and QuadraMed Corporation
                                                                                                   (NASDAQ).

Peter P. Trapp (59)              Regional Manager for Atlanta Region, Ford Motor        41         None.
Director                         Credit Company since August 1997; formerly,
                                 President, Ford Life Insurance Company, April
                                 1995 until August 1997.


                                       44


                                               NEUBERGER BERMAN OCTOBER 31, 2004



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

Peter E. Sundman* (45)           Executive Vice President, Neuberger Berman Inc.        41         Director and Vice President,
Chief Executive Officer,         (holding company) since 1999; Head of Neuberger                   Neuberger & Berman Agency, Inc.
Director and Chairman of the     Berman Inc.'s Mutual Funds and Institutional                      since 2000; formerly, Director,
Board                            Business since 1999; President and Director, NB                   Neuberger Berman Inc. (holding
                                 Management since 1999; Executive Vice                             company) from October 1999
                                 President, Neuberger Berman since 1999;                           through March 2003.
                                 formerly, Principal, Neuberger Berman from 1997
                                 until 1999; formerly, Senior Vice President, NB
                                 Management from 1996 until 1999.

                                                              CLASS II

INDEPENDENT FUND DIRECTORS*

John Cannon (74)                 Consultant. Formerly, Chairman, CDC Investment         41         Independent Trustee or Director
Director                         Advisers (registered investment adviser),                         of three series of
                                 1993-January 1999; formerly, President and                        OppenheimerFunds: Limited Term
                                 Chief Executive Officer, AMA Investment                           New York Municipal Fund,
                                 Advisors, an affiliate of the American Medical                    Rochester Fund Municipals, and
                                 Association.                                                      Oppenheimer Convertible
                                                                                                   Securities Fund, since 1992.

Barry Hirsch (71)                Attorney-at-Law. Formerly, Senior Counsel,             41         None.
Director                         Loews Corporation (diversified financial
                                 corporation) May 2002 until April 2003;
                                 formerly, Senior Vice President, Secretary and
                                 General Counsel, Loews Corporation.


                                       45




                                                                                     NUMBER OF
                                                                                   PORTFOLIOS IN
                                                                                    FUND COMPLEX
 NAME, AGE, AND ADDRESS (1)                                                         OVERSEEN BY    OTHER DIRECTORSHIPS HELD OUTSIDE
    AND POSITION WITH FUND                 PRINCIPAL OCCUPATION(S) (2)                DIRECTOR         FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
                                                                                          
Tom Decker Seip (54)             General Partner, Seip Investments LP (a private        41         Director, H&R Block, Inc.
Director                         investment partnership); formerly, President                      (financial services company)
                                 and CEO, Westaff, Inc. (temporary staffing),                      since May 2001; Director,
                                 May 2001 to January 2002; Senior Executive at                     Forward Management, Inc. (asset
                                 the Charles Schwab Corporation from 1983 to                       management) since 2001;
                                 1999, including Chief Executive Officer,                          formerly, Director, General
                                 Charles Schwab Investment Management, Inc. and                    Magic (voice recognition
                                 Trustee, Schwab Family of Funds and Schwab                        software) 2001 until 2002;
                                 Investments from 1997 to 1998 and Executive                       formerly, Director, E-Finance
                                 Vice President-Retail Brokerage, Charles Schwab                   Corporation (credit decisioning
                                 Investment Management from 1994 to 1997.                          services) 1999-2003; formerly,
                                                                                                   Director, Save-Daily.com (micro
                                                                                                   investing services) 1999-2003;
                                                                                                   Director, Offroad Capital Inc.
                                                                                                   (pre-public internet commerce
                                                                                                   company).

DIRECTOR WHO IS AN "INTERESTED PERSON"

Jack L. Rivkin* (64)
President and Director

                                 Executive Vice President and Chief Investment          41         Director, Dale Carnegie and
                                 Officer, Neuberger Berman Inc. (holding                           Associates, Inc. (private
                                 company) since 2002 and 2003, respectively;                       company) since 1998; Director,
                                 Executive Vice President and Chief Investment                     Emagin Corp. (public company)
                                 Officer, Neuberger Berman since 2002 and 2003,                    since 1997; Director, Solbright,
                                 respectively; Director and Chairman, NB                           Inc. (private company) since
                                 Management since December 2002; formerly,                         1998; Director, Infogate, Inc.
                                 Executive Vice President, Citigroup                               (private company) since 1997;
                                 Investments, Inc. from September 1995 to                          Director, Broadway Television
                                 February 2002; formerly, Executive Vice                           Network (private company) since
                                 President, Citigroup Inc. from September 1995                     2000.
                                 to February 2002.

                                                             CLASS III

INDEPENDENT FUND DIRECTORS*

Walter G. Ehlers (71)            Consultant; Retired President and Trustee,             41       None.
Director                         Teachers Insurance & Annuity (TIAA) and College
                                 Retirement Equities Fund (CREF).


                                       46




                                                                                     NUMBER OF
                                                                                   PORTFOLIOS IN
                                                                                    FUND COMPLEX
 NAME, AGE, AND ADDRESS (1)                                                         OVERSEEN BY    OTHER DIRECTORSHIPS HELD OUTSIDE
    AND POSITION WITH FUND                 PRINCIPAL OCCUPATION(S) (2)                DIRECTOR         FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
                                                                                          
Robert A. Kavesh (77)            Marcus Nadler Professor Emeritus of Finance and        41         Director, DEL Laboratories, Inc.
Director                         Economics, New York University Stern School of                    (cosmetics and pharmaceuticals)
                                 Business.                                                         since 1978; Director, The Caring
                                                                                                   Community (not-for-profit).

Howard A. Mileaf (67)            Retired. Formerly, Vice President and Special          41         Director, WHX Corporation
Director                         Counsel, WHX Corporation (holding company)                        (holding company) since August
                                 1993-2001.                                                        2002; Director, Webfinancial
                                                                                                   Corporation (holding company)
                                                                                                   since December 2002; Director,
                                                                                                   State Theatre of New Jersey
                                                                                                   (not-for-profit theater) since
                                                                                                   2000; formerly, Director, Kevlin
                                                                                                   Corporation (manufacturer of
                                                                                                   microwave and other products).

William E. Rulon (72)            Retired. Formerly, Senior Vice President,              41         Director, Pro-Kids Golf and
Director                         Foodmaker, Inc. (operator and franchiser of                       Learning Academy (teach golf and
                                 restaurants) until January 1997.                                  computer usage to "at risk"
                                                                                                   children) since 1998; formerly,
                                                                                                   Director, Prandium, Inc.
                                                                                                   (restaurants) from March 2001
                                                                                                   until July 2002.

Candace L. Straight (57)         Private investor and consultant specializing in        41         Director, The Proformance
Director                         the insurance industry; formerly, Advisory                        Insurance Company (personal
                                 Director, Securitas Capital LLC (a global                         lines property and casualty
                                 private equity investment firm dedicated to                       insurance company) since March
                                 making investments in the insurance sector)                       2004; Director, Providence
                                 1998 until December 2002.                                         Washington (property and
                                                                                                   casualty insurance company)
                                                                                                   since December 1998; Director,
                                                                                                   Summit Global Partners
                                                                                                   (insurance brokerage firm) since
                                                                                                   October 2000.


                                       47




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

Edward I. O'Brien* (76)          Formerly, Member, Investment Policy Committee,         41         Director, Legg Mason, Inc.
Director                         Edward Jones 1993-2001; President, Securities                     (financial services holding
                                 Industry Association ("SIA") (securities                          company) since 1993; formerly,
                                 industry's representative                                         Director, Boston Financial Group
                                                                                                   (real estate and tax shelters)
                                                                                                   1993-1999.



*    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 each is an officer and/or director of NB
     Management and Executive Vice President of Neuberger Berman. Mr. O'Brien is
     an interested person of the Fund by virtue of the fact that he is a
     director of Legg Mason, Inc., a wholly owned subsidiary of which, from time
     to time, serves as a broker or dealer to the Fund and other funds or
     accounts for which NB Management serves as investment manager.

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

(2)  Except as otherwise indicated, each person has held the positions shown for
     at least the last five years. The Board of Directors shall at all 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 meetings of stockholders
     held in 2006, 2004, and 2005 respectively, and at each third annual meeting
     of stockholders thereafter.

                                       48


INFORMATION ABOUT THE OFFICERS OF THE FUND (OTHER THAN THOSE LISTED ABOVE)



                                              POSITION AND
  NAME, AGE, AND ADDRESS (1)            LENGTH OF TIME SERVED (2)                  PRINCIPAL OCCUPATION(S)
-------------------------------------------------------------------------------------------------------------------
                                                                     
Claudia A. Brandon (48)          Secretary since 2002                      Vice President-Mutual Fund Board
                                                                           Relations, NB Management since 2000;
                                                                           Vice President, Neuberger Berman since
                                                                           2002 and employee since 1999; formerly,
                                                                           Vice President, NB Management from 1986
                                                                           to 1999; Secretary, fourteen registered
                                                                           investment companies for which NB
                                                                           Management acts as investment manager
                                                                           and administrator (four since 2002,
                                                                           three since 2003, and four since 2004).

Robert Conti (48)                Vice President since 2002                 Senior Vice President, Neuberger Berman
                                                                           since 2003; formerly, Vice President,
                                                                           Neuberger Berman from 1999 until 2003;
                                                                           Senior Vice President, NB Management
                                                                           since 2000; formerly, Controller, NB
                                                                           Management until 1996; formerly,
                                                                           Treasurer, NB Management from 1996 until
                                                                           1999; Vice President, fourteen
                                                                           registered investment companies for
                                                                           which NB Management acts as investment
                                                                           manager and administrator (three since
                                                                           2000, four since 2002, three since 2003,
                                                                           and four since 2004).

Brian J. Gaffney (51)            Vice President since 2002                 Managing Director, Neuberger Berman
                                                                           since 1999; Senior Vice President, NB
                                                                           Management since 2000; formerly, Vice
                                                                           President, NB Management from 1997 until
                                                                           1999; Vice President, fourteen
                                                                           registered investment companies for
                                                                           which NB Management acts as investment
                                                                           manager and administrator (three since
                                                                           2000, four since 2002, three since 2003,
                                                                           and four since 2004).

Sheila R. James (39)             Assistant Secretary since 2002            Employee, Neuberger Berman since 1999;
                                                                           Employee, NB Management from 1991 to
                                                                           1999; Assistant Secretary, fourteen
                                                                           registered investment companies for
                                                                           which NB Management acts as investment
                                                                           manager and administrator (seven since
                                                                           2002, three since 2003, and four since
                                                                           2004).


                                                        49




                                              POSITION AND
  NAME, AGE, AND ADDRESS (1)            LENGTH OF TIME SERVED (2)                  PRINCIPAL OCCUPATION(S)
-------------------------------------------------------------------------------------------------------------------
                                                                     
Kevin Lyons (49)                 Assistant Secretary since 2003            Employee, Neuberger Berman since 1999;
                                                                           Employee, NB Management from 1993 to
                                                                           1999; Assistant Secretary, fourteen
                                                                           registered investment companies for
                                                                           which NB Management acts as investment
                                                                           manager and administrator (ten since
                                                                           2003 and four since 2004).

John M. McGovern (34)            Assistant Treasurer since 2002            Vice President, Neuberger Berman since
                                                                           January 2004; Employee, NB Management
                                                                           since 1993; Assistant Treasurer,
                                                                           fourteen registered investment companies
                                                                           for which NB Management acts as
                                                                           investment manager and administrator
                                                                           (seven since 2002, three since 2003, and
                                                                           four since 2004).

Barbara Muinos (45)              Treasurer and Principal Financial and     Vice President, Neuberger Berman since
                                 Accounting Officer since 2002             1999; formerly, Assistant Vice
                                                                           President, NB Management from 1993 to
                                                                           1999; Treasurer and Principal Financial
                                                                           and Accounting Officer, fourteen
                                                                           registered investment companies for
                                                                           which NB Management acts as investment
                                                                           manager and administrator (seven since
                                                                           2002, three since 2003, and four since
                                                                           2004); formerly, Assistant Treasurer,
                                                                           three registered investment companies
                                                                           for which NB Management acts as
                                                                           investment manager and administrator
                                                                           from 1996 until 2002.

Frederic B. Soule (58)           Vice President since 2002                 Senior Vice President, Neuberger Berman
                                                                           since 2003; formerly, Vice President,
                                                                           Neuberger Berman from 1999 until 2003;
                                                                           formerly, Vice President, NB Management
                                                                           from 1995 until 1999; Vice President,
                                                                           fourteen registered investment companies
                                                                           for which NB Management acts as
                                                                           investment manager and administrator
                                                                           (three since 2000, four since 2002,
                                                                           three since 2003, and four since 2004).


--------------
(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.

                                       50


PROXY VOTING POLICIES AND PROCEDURES

A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available, without charge,
by calling 1-800-877-9700 (toll-free) and on the website of the Securities and
Exchange Commission, at www.sec.gov. Beginning September 2004, information
regarding how the Funds voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 will also be available without
charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities
and Exchange Commission, at www.sec.gov, and on the Fund's website at www.nb.com
[http://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,
with out charge, by calling (800) 877-9700.

CHANGES TO THE BYLAWS

On September 21, 2004, the Board adopted an amendment to the Bylaws of the Fund
stating that directors are elected by the vote of a majority of the outstanding
shares entitled to vote on the matter.

                                       51


NOTES TO SHAREHOLDERS (Unaudited)

In January 2005 you will receive information to be used in filing your 2004 tax
returns, which will include a notice of the exact tax status of all dividends
paid to you by each Fund during calendar 2004. Please consult your own tax
advisor for details as to how this information should be reflected on your tax
returns.

                                       52


                                                [NEUBERGER BERMAN LOGO]
                                                A LEHMAN BROTHERS COMPANY

                                                NEUBERGER BERMAN MANAGEMENT INC.
                                                605 Third Avenue 2nd Floor
                                                New York, NY 10158-0180
                                                INTERNAL SALES & SERVICES
                                                800.877.9700
                                                INSTITUTIONAL 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.

                                                [GRAPHIC] C0435 12/04



ITEM 2. CODE OF ETHICS

The Board of  Directors  ("Board")  of  Neuberger  Berman New York  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 was included as an exhibit to the Registrant's Form
N-CSR filed on January 9, 2004.  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 one audit  committee  financial
expert  serving  on  its  audit  committee.  The  Registrant's  audit  committee
financial  expert is John  Cannon.  Mr.  Cannon is an  independent  director  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 each of the last two fiscal years for professional
services  rendered by E&Y for the audit of the annual  financial  statements  or
services  that are normally  provided by E&Y in  connection  with  statutory and
regulatory  filings or  engagements  for those  fiscal  years were  $31,250  and
$56,000 for 2004 and 2003, respectively.

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

The aggregate fees billed to the Registrant in each of the last two fiscal years
for assurance  and related  services by E&Y that are  reasonably  related to the
performance of the audit of the  Registrant's  financial  statements and are not
reported  above in  AUDIT  FEES  were  $5,000  and  $1,666  for  2004 and  2003,
respectively.   The  nature  of  the  services  provided  involved  agreed  upon
procedures relating to the Preferred Shares. The Audit Committee approved 0% and
0% of these services provided by E&Y for 2004 and 2003,  respectively,  pursuant
to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.

The  fees  billed  to other  entities  in the  investment  company  complex  for
assurance  and  related  services  by E&Y that  are  reasonably  related  to the
performance  of the audit  that the Audit  Committee  was  required  to  approve
because  the  engagement  related  directly  to  the  operations  and  financial
reporting of the Registrant were $0 and $0 for 2004 and 2003, respectively.

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



The aggregate fees billed to the Registrant in each of the last two fiscal years
for professional  services rendered by E&Y for tax compliance,  tax advice,  and
tax planning were $8,700 and $10,450 for 2004 and 2003, respectively. The nature
of the services provided was tax compliance,  tax advice, and tax planning.  The
Audit  Committee  approved 0% and 0% of these services  provided by E&Y for 2004
and  2003,   respectively,   pursuant   to  the   waiver   provisions   of  Rule
2-01(c)(7)(i)(C) of Regulation S-X.

The fees billed to other  entities  in the  investment  company  complex for tax
compliance,  tax advice,  and tax planning that the Audit Committee was required
to approve  because  the  engagement  related  directly  to the  operations  and
financial  reporting  of the  Registrant  were  $0 and $0  for  2004  and  2003,
respectively.

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

The aggregate fees billed to the Registrant in each of the last two fiscal years
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  2004  and  2003,
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 2004 and 2003, respectively.

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

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

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

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

Not applicable.

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

Non-audit fees billed by E&Y for services rendered to the Registrant for each of
the last two fiscal  years of the  Registrant  were $13,700 and $12,117 for 2004
and 2003, 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 for



each of the last two fiscal years of the  Registrant  were $256,050 and $233,037
for 2004 and 2003, respectively.

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

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

The Board has  established an Audit Committee to oversee  particular  aspects of
the Registrant's  management.  The Audit Committee's purposes are (a) to oversee
the  accounting  and financial  reporting  processes of the Registrant and their
internal controls and, as the Committee deems  appropriate,  to inquire into the
internal controls of certain service  providers;  (b) to oversee the quality and
objectivity of the Registrant's  financial  statements and the independent audit
thereof;  (c) to oversee,  or, as  appropriate,  assist Board  oversight of, the
Registrant's  compliance with legal and regulatory  requirements  that relate to
the  Portfolios'  accounting  and  financial  reporting,  internal  controls and
independent  audits;  (d) to approve prior to appointment  the engagement of the
Registrant's  independent auditors and, in connection  therewith,  to review and
evaluate the  qualifications,  independence  and performance of the Registrant's
independent  auditors;  and (e) to act as a  liaison  between  the  Registrant's
independent  auditors  and the full  Board.  The  Audit  Committee  is  composed
entirely of Independent Fund Directors;  its members are John Cannon,  Cornelius
T. Ryan (Chairman), Tom D. Seip, and Peter P. Trapp.

ITEM 6. SCHEDULE OF INVESTMENTS

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

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

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

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



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

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

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

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

ITEM 8.  PURCHASES OF EQUITY  SECURITIES  BY  CLOSED-END  MANAGEMENT  INVESTMENT
COMPANY AND AFFILIATED PURCHASERS

No reportable purchases for the period covered by this report.

ITEM 9.  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 10. CONTROLS AND PROCEDURES

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



         accumulated and  communicated to the  Registrant's  management to allow
         timely decisions regarding required disclosure.

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

ITEM 11. EXHIBITS

(a)(1)   A  copy  of  the  Code  of  Ethics  is  incorporated  by  reference  to
         Registrant's Form N-CSR,  Investment  Company Act file number 811-21334
         (filed January 9, 2004).

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

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

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



SIGNATURES

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

Neuberger Berman New York Intermediate Municipal Fund Inc.



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

Date: January 7, 2005

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 7, 2005



By:   /s/ Barbara Muinos
      -------------------------
       Barbara Muinos
       Treasurer and Principal Financial
       and Accounting Officer

Date: January 7, 2005