Western Asset Inflation Management Fund Inc. as of June 30, 2009

Investment Objective: The Fund's primary investment objective is total return with an emphasis on income.

Portfolio Composition*:
Asset Allocation
Index-Linked                  86.7%
Mortgage Backed               1.9%
Investment Grade              1.2%
Emerging Market Debt          0.6%
Non-Investment Grade          0.3%
US Dollar                     0.2%
Local Currency                0.1%
Investment Grade              0.4%
US Dollar                     0.4%
High Yield                    2.0%
Cash & Other Securities       7.6%
Credit Quality Allocation
(Higher of S&P/Moody/Fitch)
Aaa/AAA                       95.8%
Aa/AA                         0.1%
A/A                           0.5%
Baa/BBB                       1.3%
Ba/BB                         0.2%
B/B                           1.0%
Caa/CCC                       0.7%
C/C                           0.1%
D/D                           0.1%
Average Life (years)          7.2
Effective Duration (years)    5.7
Average Credit Quality (S&P)  AAA
Portfolio Statistics:
Inception Date                May 25, 2004
Inception Price               $20.00
Total Net Assets              $119,705,631
Market Price                  $15.46
NAV                           $16.95
(Daily NAV is available on market quotation systems using the symbol
XIMFX.)
Distribution Rate             $0.0500 per share
Frequency                     Monthly (Declared quarterly, paid monthly)
Leverage**                    0.00%

* Portfolio holdings and weightings are historical and are presented here for informational purposes only. They are subject to change at any time.

** The Fund may employ leverage in the form of loans, preferred stock, reverse repurchase agreements and/or other instruments. If the Fund establishes a segregated account in which it maintains cash and/or liquid securities equal in value to its obligation in respect of the reverse repurchase agreements (or other instruments), these investments are not considered to be a borrowing or a "senior security" for purposes of the asset coverage requirements under the 1940 Act, although they may have the same economic effect as other types of leverage.

Western Asset Inflation Management Fund Inc., a non-diversified closed-end investment management company traded on the New York Stock Exchange under the symbol "IMF", is advised by Legg Mason Partners Fund Advisor, LLC, a wholly owned subsidiary of Legg Mason, Inc., and is sub-advised by Western Asset Management Company, an affiliate of the advisor.

Past performance is no guarantee of future results. An investment in the Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate.

For more information, please call Fund Investor Services at 888-777-0102, or consult the Fund's web site at www.leggmason.com/cef.

SOURCE: Western Asset Inflation Management Fund Inc.

Fund Investor Services, 888-777-0102 
www.leggmason.com/cef