Colonial Insured Municipal Fund Announces Liquidation

Colonial Insured Municipal Fund (AMEX: CFX) announced that the Fund's Board of Trustees has approved the liquidation and dissolution of the Fund, effective immediately, and that May 25, 2007 has been set as the record date for the first and final liquidating distribution.

The Board concluded that it would be in the best interests of the Fund's shareholders to liquidate the Fund after considering a shareholder's proposal relating to a reorganization of the Fund into an open-end fund and the shareholder's stated intent to solicit proxies in opposition to the recently announced proposal to transfer management of the Fund to another investment adviser. The Board reached this conclusion after considering, among other factors, the small asset size of the Fund, the lack of prospects for significant growth in assets, the likelihood that the Fund could incur significant costs in the future to remain a closed-end fund, and the likelihood that the Fund might not be able to obtain the shareholder vote required to approve a new advisory agreement.

As of May 4, 2007, the Fund had $63,616,414 in assets attributable to the Fund's common shares and $37,000,000 attributable to the auction preferred shares for total assets of $100,616,414.

With respect to the liquidation, the Fund announced that it will begin the orderly liquidation of its assets and its dissolution in accordance with the plan approved by the Board.

In accordance with the plan of liquidation, as of the close of business on May 25, 2007, the transfer agent books of the Fund will be closed, and trading of the Fund's common shares on the American Stock Exchange will be suspended. As of that time, stockholders' respective interests in the Fund's assets will be fixed and will not be transferable. Holders of record of the Fund's common shares as of the close of business on Friday, May 25, 2007 will be paid the final liquidating distribution, representing the Fund's net asset value per share on May 25, 2007. This liquidating distribution will be payable on May 30, 2007. Holders of the Fund's preferred shares will be paid their liquidation preference on May 25, 2007. The Fund intends to issue an additional press release providing an update regarding the amount of liquidating distributions.

Costs of the Fund associated with the liquidation, other than the expenses of all transactions in securities necessary to liquidate the Fund's holdings, will be paid by the Fund's advisor, Columbia Management Advisors, LLC.

Stockholders of the Fund shares will receive their liquidating distributions without further action on their part. Stockholders holding certificates representing their shares ("Certificated Stockholders") may, but are not required to, return their share certificates to the Fund's transfer agent. Any stock certificates of the Fund held after the liquidation will no longer evidence an ownership interest in the Fund and will not be accepted by the Fund's transfer agent.

Stockholders receiving a liquidating distribution will be eligible to invest these proceeds in Class A shares at net asset value of certain other Columbia Funds for 90 days following the date of the liquidation.

Columbia Management Advisors, LLC (CMA), a subsidiary of Bank of America Corporation that manages the seven Colonial closed-end funds, previously announced on April 11, 2007 that it had agreed to sell its Colonial closed-end fund management business to MFS Investment Management (MFS), a registered investment adviser and a subsidiary of Sun Life Financial. MFS and CMA have agreed to modify the terms and conditions of their agreement to allow for the completion of the sale transaction with respect to the business of managing the six other Colonial closed-end funds despite the liquidation of Colonial Insured Municipal Fund, provided that customary conditions are satisfied. The liquidation is expected to occur before the closing of the sale transaction.

As a result of this action, the Fund will not call or hold its 2007 annual meeting of shareholders.

Colonial Insured Municipal Fund is a closed-end investment company managed by CMA. The Fund seeks to provide current income generally exempt from ordinary federal income tax.

Columbia Management, based in Boston, MA, is the primary investment management division of Bank of America. Columbia Management, which offers products across an array of asset classes and investment styles to both individual and institutional investors, is focused on delivering strong investment performance and superior client service. As of March 31, 2007, Columbia Management and affiliates had $547.4 billion in assets under management. (1)

Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 56 million consumer and small business relationships with more than 5,700 retail banking offices, more than 17,000 ATMs and award-winning online banking with nearly 22 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 80 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange. http://www.bankofamerica.com/

(1) Columbia Management and its affiliates comprise the wealth and investment management division of Bank of America Corporation. As of March 31, 2007, Columbia Management and its affiliates managed assets of $547.4 billion. Columbia Management and its affiliates managed assets consists of assets under the discretionary management of the three registered investment advisors, Columbia Management Advisors, LLC ($347.4 billion), Columbia Wanger Asset Management, L.P. ($35.1 billion) and Marsico Capital Management, LLC ($87.9 billion); the Bank of America Private Bank; Banc of America Investment Services, Inc; Banc of America Investment Advisors, Inc; Bank of America Capital Advisors, LLC, and Premier Banking and Investments.

Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member NASD and SIPC. Columbia Management Distributors, Inc. is part of Columbia Management and an affiliate of Bank of America Corporation.