Edgar Filing: DNP SELECT INCOME FUND INC

Dear Fellow Shareholders:

The Fund Gets a New Name But Keeps Its Objectives and Strategy--The Securities
and Exchange Commission (SEC) has adopted a new rule under which a fund whose
name suggests investment in a certain industry must adopt a policy to invest at
least 80% of the value of its assets in that particular industry. While your
Fund currently has over 80% of its assets invested in companies in the public
utilities industry, historically the Fund's investment policy has only required
65% of the Fund's assets to be invested in the utilities industry. Your Fund's
Board of Directors believes that it would not be in the best interest of Fund
shareholders to change investment policy at this time. Instead, the Board has
decided to change the name of the Fund to "DNP Select Income Fund Inc." This
new name will enable the Fund to maintain its existing investment allocation
policy both inside and outside the utilities industry and thereby preserve its
current flexibility to pursue the primary objectives of current income and
long-term growth of income.

For those shareholders who hold physical stock certificates, there is no need
to exchange them for ones with the new Fund name. If a shareholder wants to
submit their existing certificates and receive new ones, there is no charge.

The Fund Receives a Lipper Long-Term Performance Achievement
Certificate--Lipper, a global leader in providing mutual fund analysis and
information, awards Performance Achievement Certificates to funds with returns
that topped their Lipper investment category over a variety of time periods. We
are pleased to report that your Fund received an award for the five-year period
ending December 31, 2001. The Fund ranks number one in the Lipper closed-end
Equity Income & Preferred Stock Funds classification for that period.

Performance Review--Your Fund had a total return (market price change plus
income) of 3.9% for the first quarter of 2002. In comparison, the S&P Utilities
Index had a total return of 3.4%, and a composite of the S&P Utilities Index
and the Lehman Utility Bond Index, reflecting the stock and bond ratio of the
Fund, had a total return of 2.6%.

During the first quarter of 2002, your Fund paid three monthly 6.5 cent
dividends. The 6.5 cent per share monthly rate, without compounding, would be
78 cents annualized, or a 6.91% common stock dividend yield based on the March
28, 2002 closing price of $11.28 per share. That yield compares favorably with
the quarter-end yield of 3.9% on the Dow Jones Utility Index and the 3.5% yield
on the S&P Utilities Index.

Annual Meeting of Shareholders--The annual meeting of shareholders was held on
April 23, 2002 in Naples, Florida. Nathan Partain, the Fund's President and
Chief Executive Officer, addressed shareholders in regard to the investment
environment and outlook. Below are selected comments from his address:

"If the past several years of relatively rapid evolution in the utility
industries have taught investors anything, it is that fundamental analysis
remains not only relevant but also essential to finding quality investments.
Your Fund's investment management team continues to pursue basic fundamental
research to find the best investments to achieve our primary objective for
you, our shareholders. What does fundamental research mean? It means that we
have a dedicated group of ten investment professionals who like to read
financial reports and dig through the financial footnotes. We get on planes
and go all over the United States and the world to look at power plants and
distribution systems, and we climb down ladders to look at telecom switches,
optical equipment, and gas pipelines. We meet with management and ask tough
questions. If we do not get good answers to our questions then we do not
invest in those companies. Our team of

professionals does this day-in and day-out, year-in and year-out, and
believes it is the only way to find quality investments for the Fund.

The utility industries are capital intensive. They always have been and, I
feel safe in saying, always will be. Hence, the relatively high level of
debt associated with these industries requires a valuation approach to fully
reflect the capital invested and financing costs. Asset, revenue, and
pro-forma financial metrics were widely used to justify the valuation of
many companies in the recent bull market, but subsequently let investors
down. Those measures did not capture the differences between corporations in
terms of capital deployed, profitability, effective tax rates, or financing
costs.

A comment on Enron Corp. fits naturally into the consideration of
fundamental research and bull market valuations, although there is not much
to say that has not already been reported in the media. Enron was a trading
company that had its roots in the energy industry but never wanted to be
associated with the traditional utility industry. Enron tried for
astronomical returns and blew up in the process. However, your Fund's
investment professionals had already determined that Enron's financial
statements did not stand up to close fundamental analysis and, therefore,
your Fund no longer owned any stock in Enron when it collapsed.

The telecommunications investment environment during 2001 suffered a
continuous flow of bad news--everything from bankruptcies to weak demand as
a result of the recession. Because of the high quality nature of your Fund,
the telecom stocks in your portfolio performed relatively well compared to
the rest of the industry. Can we expect a recovery in 2002? Let's look at
the key industry trends.

First, there is a back-to-basics mentality evident among corporate
managements. After a few years of investment without concern for earning a
reasonable return, an almost singular focus on the successful execution of a
core telecommunications business strategy has surfaced among corporate
managements. Since consumer and business demand is still muted and the
industry tends to lag an economic recovery by six months, running the
current operations as efficiently as possible is management's first priority
in order to weather the industry's storm.

Second, we do not believe the industry shakeout is over. Several companies
entered bankruptcy last year and a couple of former stars have already
fallen in 2002. However painful this trend may be, it is entirely necessary
in order for the industry to return to health. As competitors fail, the
pricing environment improves, excess capacity is worked off, and returns on
invested capital should begin to increase for the survivors. Consolidation
will also eventually play a part in improving the industry structure, but it
is unlikely to occur this year. Low stock prices and focus on the core
business has discouraged the strong companies from entering into a lengthy
merger process.

Finally, we would highlight the continuation of a trend that came to the
forefront last year--the importance of financial strength and flexibility.
Given the Enron debacle, this issue has taken on even greater meaning. A
combination of lower capital spending and anticipated non-core business
asset sales should lower corporate debt levels and increase corporate
financial strength by the end of 2002. We believe greater financial strength
could be a catalyst for improved stock performance. Your Fund's
telecommunication holdings are in financially strong, incumbent local
companies and, at least for the near term, industry trends justify continued
investor caution.

I remain confident that despite a changing investment landscape, your Fund's
investment management team and its fundamental research approach to
selecting investments will continue to meet the primary objectives of the
Fund--current income and growth in current income."

Also at the annual shareholder meeting, the five nominees for director were
elected. Three of the five directors are continuing their service to the
Fund--Claire V. Hansen, Wallace B. Behnke, and Gordon B. Davidson. The other
two directors are new to the Board - Connie K. Duckworth and Carl F. Pollard.
Ms. Duckworth is a Partner with Eight Wings Enterprises (investor in early
stage businesses) and until recently served as Advisory and Managing Partner
with Goldman, Sachs & Company. Mr. Pollard is Owner of Hermitage Farm LLC and
Chairman of Churchill Downs Incorporated and has served as Chairman of Columbia
Healthcare Corporation, Chairman and Chief Executive Officer of Galen Health
Care, Inc, and President and Chief Operating Officer of Humana Inc.

The shareholders also ratified the selection of Arthur Andersen LLP as
independent public accountants for the Fund. Andersen has served as independent
public accountants for the Fund since the Fund commenced operations in 1987. At
the annual meeting, shareholders were informed that, as a matter of business
prudence, the Audit Committee of the Board initiated a process to identify an
independent public accounting firm that could be appointed to replace Andersen
in the event that Andersen becomes unable to continue service to the Fund.

Board of Directors Meeting--At the regular April Board of Directors' meeting,
the Board declared the following monthly dividend:

Cents Per Share Record Date Payable Date
--------------- ----------- ------------

6.5 cents... May 31 June 10
6.5 cents... June 28 July 10
6.5 cents... July 31 August 12

Automatic Dividend Reinvestment Plan and Direct Deposit Service--The Fund has a
dividend reinvestment plan available to all registered shareholders. Those
shareholders whose shares are held for them by a brokerage house or nominee in
"street-name" may not participate in the Fund's automatic dividend reinvestment
plan. For such shareholders desiring automatic dividend reinvestment, we
suggest you contact your broker or other nominee.

As an added service, without cost to the shareholder, the Fund offers direct
deposit service through electronic funds transfer to all registered
shareholders currently receiving a monthly dividend check. This service is
offered through The Bank of New York. For more information and/or an
authorization form on automatic dividend reinvestment or direct deposit, please
contact The Bank of New York (1-877-381-2537 or http://stock.bankofny.com).

Visit us on the Web--You can obtain the most recent shareholder financial
report and dividend information at our web site, which has a new home address,
http://www.dnpselectincome.com.

We appreciate your interest in DNP Select Income Fund Inc., and we will
continue to do our best to be of service to you.

/s/ Claire V. Hansen
/s/ Nathan I. Partain

Claire V. Hansen, CFA
Nathan I. Partain, CFA
Chairman
President and Chief
Executive Officer

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 2002

COMMON STOCKS--69.0%

Market
Value
Shares Company (Note 1)
---------- ------- ------------

[_] ELECTRIC--39.9%

1,300,000 Allegheny Energy Inc....................... $ 53,755,000
#1,000,000 Allete Inc................................. 29,090,000
2,425,000 Aquila Inc................................. 60,237,000
#796,000 Dominion Resources......................... 51,867,360
#1,417,000 DTE Energy Co.............................. 64,473,500
#1,300,000 Duke Energy Corp........................... 49,140,000
#1,593,400 Endesa S.A................................. 23,757,594
#1,005,000 Entergy Corp............................... 43,627,050
#1,000,000 Exelon Corp................................ 52,970,000
900,000 FPL Group Inc.............................. 53,595,000
#1,000,000 Keyspan Corp............................... 36,390,000
#215,000 National Grid Group PLC ADR................ 7,030,500
770,000 National Grid Group PLC (United Kingdom)... 5,088,009
#2,256,600 NiSource Inc............................... 51,788,970
#1,318,600 NSTAR...................................... 59,785,324
1,120,000 Pinnacle West Capital Corp................. 50,792,000
#1,375,000 Progress Energy Inc........................ 68,805,000
#1,000,000 Public Service Enterprise Group............ 45,800,000
850,000 Scottish & Southern Energy (United Kingdom) 8,225,221
200,000 Scottish & Southern Energy ADR............. 19,352,080
#2,647,300 Southern Co................................ 70,126,977
#1,000,000 TECO Energy Inc............................ 28,630,000
#420,748 TXU Corp................................... 22,934,973
1,500,000 Vectren Corp............................... 38,535,000
------------
995,796,558

[_] GAS--6.2%

926,000 AGL Resources.............................. 21,761,000
800,000 National Fuel Gas Co....................... 19,480,000
600,000 NICOR Inc.................................. 27,330,000
600,000 Peoples Energy Corp........................ 23,628,000
#1,000,000 WGL Holdings Inc........................... 26,860,000
#1,500,000 Williams Companies Inc..................... 35,340,000
------------
154,399,000

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 2002

Market Value
Shares Company (Note 1)
---------- ------- ------------

[_] TELECOMMUNICATION--12.8%

1,000,000 Alltel Corp.............................. $ 55,550,000
#1,000,000 BCE Inc.................................. 17,620,000
1,730,000 BellSouth Corp........................... 63,767,800
#1,637,230 SBC Communications Inc................... 61,297,891
#700,000 Swisscom AG ADR.......................... 20,930,000
856,250 Telecom Corp. of New Zealand Interim ADR. 14,496,313
1,068,400 Telstra Corp. ADR........................ 15,224,700
#1,519,000 Verizon Communications................... 69,342,350
------------
318,229,054

[_] NON-UTILITY--10.1%

223,450 Apartment Investment & Management Co..... 10,808,276
195,000 Archstone Smith Trust.................... 5,224,050
80,000 Avalon Bay Communities Inc............... 3,984,000
340,000 Boston Properties Inc.................... 13,413,000
266,900 Camden Property Trust.................... 10,441,128
#382,400 CBL & Associates Properties Inc.......... 13,517,840
247,000 Centerpoint Properties Corporation....... 13,350,350
290,000 Chelsea GCA Realty Inc................... 15,671,600
50,318 Corporate Office Properties Trust........ 659,166
281,214 Developers Diversified Realty Corporation 5,905,494
295,000 Duke Realty Corp......................... 7,670,000
300,000 Equity Office Properties Trust........... 8,997,000
#310,000 Equity Residential Properties Trust...... 8,909,400
83,100 Essex Property Trust Inc................. 4,336,158
200,000 First Industrial Realty Trust ........... 6,850,000
#250,000 General Growth Properties, Inc........... 11,050,000
#290,000 Green S.L. Realty Properties Inc......... 9,744,000
135,000 Health Care Property Investors Inc....... 5,474,250
178,000 Healthcare Realty Trust Inc.............. 5,404,080
75,000 Hospitality Properties Trust............. 2,574,750
139,100 iStar Financial Inc...................... 4,019,990
48,000 Kimco Realty Corp........................ 1,569,600
90,000 Macerich Co.............................. 2,713,500
300,000 Pan Pacific Retail Properties Inc........ 9,171,000

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 2002

Market Value
Shares Company (Note 1)
--------- ------- --------------

370,600 ProLogis Trust................................. $ 8,653,510
240,000 Public Storage Inc............................. 8,882,400
90,000 Realty Income Corp............................. 2,988,000
#35,025 Reckson Associates Realty Corp................. 863,717
171,545 Reckson Associates Realty Corp. Class B........ 4,418,999
84,367 Shurgard Storage Centers Inc................... 2,860,041
#387,000 Simon Property Group........................... 12,627,810
#465,800 Vornado Realty Trust........................... 20,569,728
154,500 Weingarten Realty Investors.................... 7,941,300
--------------
251,264,137
--------------
Total Common Stocks (Cost--$1,561,314,494)..... 1,719,688,749
--------------

PREFERRED STOCKS--11.9%

[_] NON-UTILITY--1.0%

500,000 Cox Communications Inc. 7% 8/16/02............. 25,225,000
--------------
25,225,000

[_] UTILITY--10.9%

483,800 Ameren Corp. 9 3/4% 5/15/05.................... 13,110,980
450,900 Aquila Inc. 9 3/4% 11/16/02.................... 12,264,480
626,200 Cinergy Corp. 9 1/2% 2/16/05................... 36,069,120
450,000 Dominion Resources 9 1/2% 11/16/04............. 27,643,500
700,000 Duke Capital Financing Trust III 8 3/8% 8/31/29 18,536,000
1,200,000 Duke Energy 8 1/4% 5/18/04..................... 30,852,000
223,500 EIX Trust II Series B 8.60% 10/29/29*.......... 5,142,735
500,000 FPL Group Inc. 8 1/2% 2/16/05.................. 28,050,000
550,000 MediaOne Group 7.00% 11/15/02.................. 11,220,000
500,000 NiSource Industries Inc. 7.75% 2/19/03......... 22,405,000
209,000 P P & L Capital Trust II 8.10% 7/01/27......... 5,225,000
789,100 Texas Utilities Co. 9 1/4% 8/16/02............. 22,631,388
400,000 Texas Utilities Co. 8 1/4% 11/16/05............ 22,720,000
595,000 Williams Companies Inc. 9% 2/16/05............. 15,249,850
--------------
271,120,053
--------------
Total Preferred Stocks (Cost--$289,843,018).... 296,345,053
--------------

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 2002

BONDS--19.8%

Ratings
--------------------------
Fitch
IBCA, Standard Market
Duff & and Value
Par Value Company Phelps Moody's Poor's (Note 1)
----------- ------- --------- ------- -------- -----------

[_] ELECTRIC--9.5%

$ 5,000,000 AES Ironwood Corp.
8.857%, due 11/30/25............... Not Rated Baa3 BBB- $ 4,645,305
23,571,000 Cleveland Electric Illuminating
9%, due 7/01/23.................... BBB Baa2 BBB 24,074,571
18,050,000 Comed Financing II
8 1/2%, due 1/15/27................ Not Rated Baa2 BBB 18,169,130
7,500,000 Commonwealth Edison Co.
9 7/8%, due 6/15/20................ A- A3 A- 8,441,115
7,000,000 Commonwealth Edison Co.
8 3/8%, due 9/15/22................ A- A3 A- 7,302,526
#10,000,000 Commonwealth Edison Co.
8 3/8%, due 2/15/23................ A- A3 A- 10,486,890
6,000,000 Dayton Power and Light
8.15% due 1/15/2026................ AA A2 BBB+ 5,913,324
#24,000,000 Dominion Resources Capital Trust
7.83%, due 12/01/27................ BBB Baa2 BBB- 22,483,320
5,000,000 Gulf States Utilities
8.94%, due 1/01/22................. BBB Baa3 BBB- 5,024,640
1,000,000 Houston Lighting
8 3/4%, due 3/01/22................ A- A3 BBB+ 1,037,137
#19,800,000 Hydro--Quebec
9 3/4%, due 1/15/18................ AA- A1 A+ 20,729,551
5,000,000 Illinois Power Co.
7 1/2%, due 7/15/25................ A- Baa1 BBB+ 4,596,405
5,000,000 Louisiana Power & Light Co.
8 3/4%, due 3/01/26................ BBB+ Baa2 BBB+ 4,877,685
4,000,000 New York State Electric & Gas Corp.
8 7/8%, due 11/01/21............... A A3 A- 4,008,376
# 5,000,000 Progress Energy Inc.
7 3/4% 3/1/31...................... Not Rated Baa1 BBB 5,229,185

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 2002

Ratings
--------------------------
Fitch
IBCA, Standard Market
Duff & and Value
Par Value Company Phelps Moody's Poor's (Note 1)
------------ ------- --------- ------- -------- ------------

$ 5,000,000 PSEG Power
8 5/8% 4/15/31................... Not Rated Baa1 BBB $ 5,419,900
#10,000,000 Public Service Co. of Colorado
8 3/4%, due 3/01/22.............. A A3 A 10,429,980
22,750,000 Puget Capital Trust
8.231%, due 6/01/27.............. Not Rated Baa3 BB 20,734,031
#13,000,000 Southern Co. Capital Trust
8.14%, due 2/15/27............... Not Rated Baa1 BBB+ 12,735,008
12,000,000 UtiliCorp United Inc.
8%, due 3/01/23.................. BBB- Baa3 BBB 10,830,528
#10,000,000 Virginia Electric & Power Co.
8 5/8%, due 10/01/24............. A+ A2 A 10,596,610
#17,700,000 Virginia Electric & Power Co.
8 1/4%, due 3/01/25.............. A+ A2 A 18,371,202
------------
236,136,419

[_] GAS--2.4%

5,125,000 ANR Pipeline Co.
9 5/8%, due 11/01/21............. Not Rated Baa1 BBB+ 5,788,990
5,000,000 KN Energy Inc.
7 1/4%, due 3/01/28.............. BBB Baa2 BBB 4,749,955
10,000,000 Northern Border Partners LP
8 7/8%, due 6/15/10.............. BBB+ Baa1 BBB+ 10,693,710
6,488,000 Southern Union Co.
7.60%, due 2/01/24............... BBB+ Baa2 BBB+ 6,096,527
8,850,000 Southern Union Co.
8 1/4%, due 11/15/29............. BBB+ Baa2 BBB+ 8,758,942
10,000,000 TE Products Pipeline Co.
7.51%, due 1/15/28............... Not Rated Baa2 BBB 9,345,450
9,000,000 Trans-Canada Pipeline
9 1/8%, due 4/20/06.............. Not Rated A3 BBB 9,881,307
4,000,000 Transcontinental Gas Pipeline Co.
8 7/8%, due 9/15/02.............. BBB+ Baa1 BBB+ 4,002,712
------------
59,317,593

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 2002

Ratings
--------------------------
Fitch
IBCA, Standard Market
Duff & and Value
Par Value Company Phelps Moody's Poor's (Note 1)
------------ ------- --------- ------- -------- ------------

[_] TELECOMMUNICATION--6.0%
#$19,000,000 AT & T Corp.
8.35%, due 1/15/25......... A- A3 BBB+ $ 18,379,517
15,000,000 AT&T Corp.
8 3/4%, due 3/01/31........ BBB Baa2 BBB 15,625,515
#10,000,000 Bell South Capital Funding
7 7/8% 2/15/30............. AA- Aa3 A+ 11,152,700
25,000,000 British Telecom PLC
8 5/8%, due 12/15/30....... A Baa1 A- 28,585,750
#11,350,000 France Telecom
8 1/2%, due 3/01/31........ BBB+ Baa1 BBB+ 12,169,913
#12,000,000 GTE California Inc.
8.07%, due 4/15/24......... AA Aa3 A+ 12,365,076
#17,625,000 GTE Corp.
7.90%, due 2/01/27......... A+ A2 A+ 17,845,207
# 9,000,000 New York Telephone Co.
7 5/8%, due 2/01/23........ AA A1 A+ 8,870,841
9,000,000 Tele-Commun Inc.
9.80%, due 2/01/12......... A- Baa2 BBB+ 10,020,717
5,000,000 US West Communications
8 7/8%, due 6/01/31........ BBB+ A3 BBB 4,456,310
5,000,000 Vodafone Group PCL
7 7/8% 2/15/30............. Not Rated A2 A 5,445,030
5,000,000 Worldcom Inc
8 1/4% 5/15/13............. BBB+ A3 BBB+ 4,044,385
------------
148,960,961

[_] NON-UTILITY--1.9%

17,500,000 Contl Cablevision
9 1/2%, due 8/01/13........ Not Rated Baa2 BBB+ 18,541,880
# 8,000,000 Dayton Hudson Corp.
9 7/8%, due 7/01/20........ A A2 A+ 10,365,168
#19,940,000 EOP Operating LP
7 1/2%, due 4/19/29........ BBB+ Baa1 BBB+ 19,130,914
------------
48,037,962
------------
Total Bonds (Cost--$505,138,020)...................... 492,452,935
------------

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
March 31, 2002

Market
Value
(Note 1)
--------------

U.S. TREASURY OBLIGATIONS--0.5%

#$10,000,000 U.S. Treasury Notes
10 3/4%, due 5/15/03................................................. $ 10,964,460

2,000,000 U.S. Treasury Bonds
10 3/4%, due 8/15/05................................................. 2,388,594
--------------
Total U.S. Treasury Obligations (Cost--$13,566,250).................. 13,253,054
--------------

U.S. GOVERNMENT AGENCY OBLIGATIONS--2.8%

#65,000,000 Federal Home Loan Mortgage Corp.
9 3/4%, due 2/14/03.................................................. 68,815,435
--------------
Total U.S. Government Agency Obligations (Cost--$70,759,000)......... 68,815,435
--------------

COMMERCIAL PAPER--3.6%

40,000,000 Citicorp
1.65%, due 4/01/02................................................... 40,000,000
50,000,000 General Electric Capital Corp.
1.50%, due 4/01/02................................................... 50,000,000
--------------
Total Commercial Paper (Amortized Cost--$90,000,000)................. 90,000,000
--------------
CASH AND OTHER ASSETS LESS LIABILITIES--(7.6%)............................................. (188,382,118)
--------------
NET ASSETS
(equivalent to $9.30 per share of common stock based on 214,184,640 shares of common
stock outstanding, authorized 250,000,000 shares, $0.001 par value per share and 5,000
shares remarketed preferred stock outstanding, authorized 100,000,000 shares, liquidation
preference $100,000 per share, $0.001 par value per share)............................. $2,492,173,108
==============

*Dividends are currently deferred.
#This security, or a portion of this security, is out on loan at March 31,
2002. Total loaned securities had a market value of $496,790,510 at March 31,
2002.
The percentage shown for each investment category is the total value of that
category as a percentage of the total net assets of the Fund.
--------
(1)The market values for securities are determined as follows: Securities
traded on a national securities exchange or traded over-the-counter and
quoted on the NASDAQ System are valued at last sales prices. Securities so
traded for which there were no sales and other securities are valued at the
mean of the most recent bid-asked quotations. Bonds not traded on a
securities exchange nor quoted on the NASDAQ System are valued at fair value
using a procedure determined in good faith by the Board of Directors which
includes the use of a pricing service. Each money market instrument having a
maturity of 60 days or less is valued on an amortized cost basis. Other
assets and securities are valued at a fair value, as determined in good
faith by the Board of Directors.

Board of Directors

WALLACE B. BEHNKE

HARRY J. BRUCE

FRANKLIN A. COLE

GORDON B. DAVIDSON

CONNIE K. DUCKWORTH

ROBERT J. GENETSKI

CLAIRE V. HANSEN, CFA

FRANCIS E. JEFFRIES, CFA

NANCY LAMPTON

CARL F. POLLARD

DAVID J. VITALE

Officers

CLAIRE V. HANSEN, CFA
Chairman

NATHAN I. PARTAIN, CFA
President and Chief Executive Officer

T. BROOKS BEITTEL, CFA
Senior Vice President, Secretary and Treasurer

MICHAEL SCHATT
Senior Vice President

JOSEPH C. CURRY, JR.
Vice President

DIANNA P. WENGLER
Assistant Secretary

DNP Select
Income Fund Inc.

Common stock listed on the New York Stock Exchange under the symbol DNP

55 East Monroe Street
Chicago, Illinois 60603
(312) 368-5510

Shareholder inquiries please contact

Transfer Agent
Dividend Disbursing
Agent and Custodian

The Bank of New York
Shareholder Relations
Church Street Station
P.O. Box 11258
New York, New York 10286-1258
(877) 381-2537

Investment Adviser

Duff & Phelps
Investment Management Co.
55 East Monroe Street
Chicago, Illinois 60603

Administrator

J.J.B. Hilliard, W.L. Lyons, Inc.
Hilliard Lyons Center
Louisville, Kentucky 40202
(888) 878-7845

Legal Counsel

Mayer, Brown, Rowe & Maw
190 South LaSalle Street
Chicago, Illinois 60603

Independent Public Accountants

Arthur Andersen LLP
33 West Monroe Street
Chicago, Illinois 60603

DNP Select
Income Fund Inc.

First
Quarter Report

March
31, 2002
[Artwork - 1st Quarter]