Lincoln National Income Fund Announces Proposed Reorganization Into Delaware Corporate Bond Fund

Feb 15, 2006, 00:00 ET from Delaware Investments

    PHILADELPHIA, Feb. 15 /PRNewswire-FirstCall/ -- The Board of Directors of
 Lincoln National Income Fund, Inc. (NYSE:   LND) (the "Fund") today announced
 its decision to approve a proposal providing for the reorganization of the
 Fund into the Delaware Corporate Bond Fund (the "Corporate Bond Fund"), an
 open-end series of Delaware Group Income Funds.  Under the terms of the
 proposed reorganization, the Corporate Bond Fund would acquire substantially
 all of the assets of the Fund in exchange for Class A shares of the Corporate
 Bond Fund; those Class A shares of the Corporate Bond Fund would then be
 distributed pro rata to the shareholders of the Fund's common stock; and the
 Fund would subsequently be liquidated and dissolved.  This transaction (the
 "Reorganization"), which is expected to be tax-free, is subject to the
 approval of the Fund's shareholders.  The Board of Trustees of Delaware Group
 Income Funds also approved the proposed Reorganization today.  If approved by
 shareholders of the Fund, shares will be exchanged based on the respective net
 asset values of the Fund's common stock and the Class A shares of the
 Corporate Bond Fund.
     It is currently anticipated that, during the three months following the
 closing of the Reorganization, redemptions of the Corporate Bond Fund shares
 issued to shareholders of the Fund in the Reorganization will be subject to a
 redemption fee of two percent (2%).  This redemption fee will be paid to the
 Corporate Bond Fund to help defray the transaction costs associated with such
     The Fund's Board of Directors plans to submit the proposed Reorganization
 to the Fund's shareholders at a special meeting, currently expected to take
 place in June 2006.  Any solicitation of proxies by the Fund in connection
 with this shareholder meeting will be made only pursuant to separate proxy
 materials filed under the federal securities laws.  It is anticipated that
 these proxy materials will be distributed to the Fund's shareholders at the
 end of March 2006.  There can be no assurance that the shareholders of the
 Fund will vote in favor of the proposed Reorganization.
     The Fund is a closed-end, non-diversified investment management company
 managed by Delaware Management Company.  Delaware Management Company is a
 series of Delaware Management Business Trust, a wholly owned subsidiary of
 Lincoln National Corporation.  The Fund's primary objective is to seek to
 produce increasing dollar amounts of income for distribution to its
 shareholders over the long term.  As of February 14, 2006, the Fund had total
 assets of approximately $93.5 million.
     The Corporate Bond Fund is an open-end, diversified mutual fund managed by
 Delaware Management Company.  The Fund's investment objective is to seek to
 provide investors with total return.  As of February 14, 2006, the Corporate
 Bond Fund had total assets of approximately $443.3 million.
     In connection with the proposed Reorganization, the Fund and Delaware
 Group Income Funds, on behalf of the Corporate Bond Fund, intend to file
 relevant materials with the U.S. Securities and Exchange Commission (the
 "SEC"), including a Form N-14 combined proxy statement for the Fund and a
 registration statement for the Corporate Bond Fund that will contain a
 prospectus.  Because those documents will contain important information, the
 Fund's shareholders are urged to read them carefully when they become
 available.  When filed with the SEC, those documents will be available free of
 charge at the SEC's website,  The Fund's shareholders will
 also be able to obtain copies of these documents and other transaction-related
 documents, when available, by calling Delaware Investments toll-free at
 800-523-1918.  The foregoing is not an offer to sell, nor a solicitation of an
 offer to buy, shares of any fund, nor is it a solicitation of any proxy.
     About Delaware Investments:
     Delaware Investments, an affiliate of Lincoln Financial Group, is a
 Philadelphia-based diversified asset management firm with more than $110
 billion in assets under management as of December 31, 2005. Through a broad
 range of managed accounts and portfolios, mutual funds, retirement plan
 services, subadvised funds, college savings plans and other investment
 products, Delaware Investments provides investment services to individual
 investors and to institutional investors such as private and public pension
 funds, foundations, and endowment funds. Delaware Investments is the marketing
 name for Delaware Management Holdings, Inc. and its subsidiaries. For more
 information on Delaware Investments, visit the company at Lincoln Financial Group is the marketing
 name for Lincoln National Corporation (NYSE:   LNC) and its affiliates. For more
 information on Lincoln Financial Group, visit

SOURCE Delaware Investments