BNY Mellon Intermediate Municipal Bond Fund (DITEX) N-CSR Certified annual shareholder report (management investment company)

	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 811-3721
DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.
	(Exact name of Registrant as specified in charter)
	c/o The Dreyfus Corporation
	200 Park Avenue
	New York, New York 10166
	(Address of principal executive offices)	(Zip code)
	Mark N. Jacobs, Esq.
	200 Park Avenue
	New York, New York 10166
	(Name and address of agent for service)
Registrant's telephone number, including area code:		(212) 922-6000
Date of fiscal year end:	5/31
Date of reporting period:	5/31/04

SSL-DOCS2 70128344v10

		FORM N-CSR
Item 1.	Reports to Stockholders.

Dreyfus

Intermediate Municipal

Bond Fund, Inc.

ANNUAL REPORT May 31, 2004

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

Contents

THE FUND

2	Letter from the Chairman
3	Discussion of Fund Performance
6	Fund Performance
7	Statement of Investments
21	Statement of Assets and Liabilities
22	Statement of Operations
23	Statement of Changes in Net Assets
24	Financial Highlights
25	Notes to Financial Statements
30	Report of Independent Registered Public Accounting Firm
31	Important Tax Information
32	Board Members Information
34	Officers of the Fund
FOR MORE INFORMATION
Back Cover

Dreyfus Intermediate Municipal

   Bond Fund, Inc.

The Fund

LETTER FROM THE CHAIRMAN

Dear Shareholder:

This annual report for Dreyfus Intermediate Municipal Bond Fund, Inc. covers the 12-month period from June 1, 2003, through May 31, 2004. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s portfolio manager, Monica Wieboldt.

Positive economic data continued to accumulate during the reporting period, as consumers, flush with extra cash from their 2003 federal tax refunds and mortgage refinancings, continued to spend. Corporations have become more willing to hire new workers and invest in new projects and equipment. In addition, many states and municipalities have reported an increase in tax revenues, helping to relieve some of the fiscal pressures that arose during the economic downturn.As the economy has gained strength, fixed-income investors apparently have grown more concerned that long-dormant inflationary pressures could resurface, and municipal bond prices recently have become more volatile.

Despite fixed-income investors’ current concerns, we believe that history confirms that bonds represent an important component of most investors’ long-term investment portfolios. As always, we encourage you to speak regularly with your financial advisor, who may be in the best position to suggest ways to position your portfolio for the opportunities and challenges of today’s financial markets.

Thank you for your continued confidence and support.

Sincerely,

Stephen E. Canter

Chairman and Chief Executive Officer

The Dreyfus Corporation

June 15, 2004

2

DISCUSSION OF FUND PERFORMANCE

Monica Wieboldt, Senior Portfolio Manager

How did Dreyfus Intermediate Municipal Bond Fund, Inc. perform during the reporting period?

For the 12-month period ended May 31, 2004, the fund achieved a total return of –0.81%.¹ The Lehman Brothers 7-Year Municipal Bond Index (the “Index”), the fund’s benchmark, achieved a total return of –0.32% for the same period.² In addition, the average total return for all funds reported in the Lipper Intermediate Municipal Debt Funds category was –0.70%.³

After gaining value early in the reporting period, municipal bonds were hurt during the spring of 2004, when investors’ concerns regarding potential inflationary pressures and higher interest rates intensified.The fund produced returns that were generally in line with the Lipper category average, primarily due to income contributions from its core holdings, favorable yield curve positioning and successful yield enhancement strategies. However, the fund underperformed the Index, which does not reflect fund fees and expenses.

What is the fund’s investment approach?

The fund seeks the maximum amount of current income exempt from federal income tax as is consistent with the preservation of capital.To pursue this goal, the fund normally invests substantially all of its assets in municipal bonds that provide income exempt from federal personal income tax.

The fund will invest at least 80% of its assets in municipal bonds rated A or higher, or the unrated equivalent as determined by Dreyfus.The fund may invest up to 20% of its assets in municipal bonds rated below A, including bonds rated below investment grade (“high yield” or “junk” bonds) or the unrated equivalent as determined by Dreyfus. The dollar-weighted average maturity of the fund’s portfolio ranges between three and 10 years.

The Fund

3

DISCUSSION OF FUND PERFORMANCE (continued)

The portfolio manager may buy and sell bonds based on credit quality, market outlook and yield potential. In selecting municipal bonds for investment, the portfolio manager may assess the current interest-rate environment and the municipal bond’s potential volatility in different rate environments. The portfolio manager focuses on bonds with the potential to offer attractive current income, typically looking for bonds that can provide consistently attractive current yields or that are trading at competitive market prices.A portion of the fund’s assets may be allocated to “discount” bonds, which are bonds that sell at a price below their face value, or to “premium” bonds, which are bonds that sell at a price above their face value.The fund’s allocation to either discount bonds or to premium bonds will change along with our changing views of the current interest-rate and market environment. The portfolio manager also may look to select bonds that are most likely to obtain attractive prices when sold.

What other factors influenced the fund’s performance?

The fund was affected during the reporting period by heightened market volatility, including a sharp decline in intermediate-term bond prices during the summer of 2003.Although evidence of a sustained economic recovery continued in the fall of 2003 and the winter of 2004, municipal bond prices gradually recovered, supported by robust demand from individual and institutional investors and a moderating supply of newly-issued bonds compared to the same period one year earlier.

In April and May 2004, however, reports of an unexpectedly strong U.S. labor market and higher energy prices rekindled fears that renewed inflationary pressures might prompt the Federal Reserve Board (the “Fed”) to raise short-term interest rates earlier than most investors previously had believed. As a result, selling pressure intensified, and municipal bond prices generally ended the reporting period modestly lower than where they began.

In this volatile environment, we attempted to manage risk by diversifying the fund’s investment more broadly among municipal bonds of various maturities, complementing core intermediate-term holdings with

4

new investments in the five- to seven-year range as well as bonds with maturities within 20 years. We also diversified more broadly among issuers, adding to the fund’s holdings of bonds from “specialty states” such as California, New York and Florida. Because many of these new positions were added during periods of relative market weakness, the fund’s performance benefited as their prices recovered.When adding new securities, we attempted to complement the fund’s high-coupon, seasoned holdings with bonds from well-known issuers selling at par, which we believe are likely to attract retail interest when we deem it time to sell.

Finally, while the fund received positive contributions to its performance from yield enhancement strategies, we began to sell many of those positions later in the reporting period, when it became clearer to us that interest rates were likely to rise.

What is the fund’s current strategy?

We have continued to maintain the fund’s investment posture, which includes a diversified portfolio, a focus on issues that are rated A or better by one or more of the major rating agencies, and an average duration — a measure of sensitivity to changing interest rates — in the neutral range. In our view, these are reasonable strategies as investors and, potentially, the Fed adjust to a stronger economic environment.

June 15, 2004

1	Total return includes reinvestment of dividends and any capital gains paid. Past performance is no guarantee of future results. Share price, yield and investment return fluctuate such that upon redemption, fund shares may be worth more or less than their original cost. Income may be subject to state and local taxes, and some income may be subject to the federal alternative minimum tax (AMT) for certain investors. Capital gains, if any, are fully taxable. Return figure provided reflects the absorption of fund expenses by The Dreyfus Corporation pursuant to an undertaking in effect that may be extended, terminated or modified at any time. Had these expenses not been absorbed, the fund’s return would have been lower.
2	SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital gain distributions.The Lehman Brothers 7-Year Municipal Bond Index is an unmanaged total return performance benchmark for the investment-grade, geographically unrestricted 7-year tax-exempt bond market, consisting of municipal bonds with maturities of 6-8 years. Index returns do not reflect fees and expenses associated with operating a mutual fund.
3	Source: Lipper Inc.

The Fund

5

FUND PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus Intermediate Municipal Bond Fund, Inc. and the Lehman Brothers 7-Year Municipal Bond Index

Average Annual Total Returns as of 5/31/04

	1 Year	5 Years	10 Years
Fund	(0.81)%	3.91%	4.88%

^† Source: Lipper Inc.

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The above graph compares a $10,000 investment made in Dreyfus Intermediate Municipal Bond Fund, Inc. on 5/31/94 to a $10,000 investment made in the Lehman Brothers 7-Year Municipal Bond Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested.

The fund invests primarily in municipal securities and maintains a portfolio with a weighted average maturity ranging between 3 and 10 years.The fund’s performance shown in the line graph above takes into account fees and expenses.The Index, unlike the fund, is an unmanaged total return performance benchmark for the investment-grade, geographically unrestricted 7-year tax-exempt bond market, consisting of municipal bonds with maturities of 6-8 years.The Index does not take into account charges, fees and other expenses.These factors can contribute to the Index potentially outperforming or underperforming the fund. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

6

STATEMENT OF INVESTMENTS
May 31, 2004
	Principal
Long-Term Municipal Investments—98.0%	Amount ($)		Value ($)
Alabama—.3%
McIntosh Industrial Development Board, EIR
4.65%, 6/1/2008	2,800,000		2,932,355
Alaska—4.8%
Alaska International Airports, Revenue:
5.50%, 10/1/2011 (Insured; AMBAC)	2,560,000		2,850,610
5.50%, 10/1/2012 (Insured; AMBAC)	1,620,000		1,804,436
Alaska Student Loan Corp., Student Loan Revenue:
5.60%, 7/1/2011 (Insured; AMBAC)	4,700,000		4,901,065
5.70%, 7/1/2013 (Insured; AMBAC)	5,990,000		6,214,624
6%, 7/1/2016 (Insured; AMBAC)	6,380,000		6,807,650
Anchorage:
5.875%, 12/1/2015 (Insured; FGIC)	2,365,000		2,629,761
5.875%, 12/1/2016 (Insured; FGIC)	1,500,000		1,667,924
Electric Utility Revenue:
6.50%, 12/1/2008 (Insured; MBIA)	2,755,000		3,147,642
6.50%, 12/1/2009 (Insured; MBIA)	2,910,000		3,359,827
5.875%, 2/1/2012 (Insured; FSA)	3,175,000		3,542,919
Northern Tobacco Securitization Corp.,
Tobacco Settlement Revenue:
6%, 6/1/2013	4,745,000		4,533,800
6.20%, 6/1/2022	2,400,000		2,235,264
Arizona—.6%
Glendale Municipal Property Corp., Excise Tax Revenue
5%, 7/1/2017 (Insured; AMBAC)	2,160,000		2,253,701
Maricopa County Industrial Development Authority,
Hospital Systems Revenue (Baptist Hospital)
5.20%, 9/1/2005 (Insured; MBIA)	3,125,000		3,266,156
Arkansas—.5%
Arkansas Student Loan Authority, Student Loan Revenue
5.35%, 6/1/2009	4,465,000		4,644,493
California—9.3%
California (Veterans) 9.263%, 12/1/2013	5,000,000	a,b	5,342,550
California Department of Water Resources,
Water Revenue (Central Valley Project)
5.25%, 12/1/2012 (Insured; FGIC)	10,000,000		11,080,200
California Economic Recovery
5%, 7/1/2015 (Insured; MBIA)	8,000,000		8,538,720
California Educational Facilities Authority, Revenue
(Stanford University) 5.25%, 12/1/2013	2,000,000		2,233,840

The Fund

7

S T A T E M E N T O F I N V E S T M E N T S (continued)

	Principal
Long-Term Municipal Investments (continued)	Amount ($)		Value ($)
California (continued)
California Infrastructure & Economic Development,
Bank Revenue (Bay Area Toll Bridges—1st Lien)
5.25%, 7/1/2017 (Insured; FSA)	3,300,000		3,517,107
California Pollution Control Financing Authority, PCR
(Southern California Edison Co.) 2%, 3/1/2006	5,500,000		5,412,605
California Public Works Board, LR
(Department of Mental Health—Coalinga)
5.50%, 6/1/2018	3,000,000		3,168,990
California Statewide Community Development Authority:
MFHR (Equity Residential) 5.20%, 6/15/2009	3,000,000		3,166,650
Revenue 3.075%, 5/1/2006	2,500,000	a,b	2,378,650
Elsinore Valley Municipal Water District, COP
5.375%, 7/1/2016 (Insured; FGIC)	3,295,000		3,601,732
Foothill/Eastern Transportation Corridor Agency,
Toll Road Revenue
0%/7%, 1/1/2008	5,000,000	c	5,487,000
Golden State Tobacco Securitization Corporation,
Tobacco Settlement Revenue:
5.75%, 6/1/2021	6,950,000		7,100,537
5.75%, 6/1/2023	1,735,000		1,766,299
Los Angeles County Public Works Financing Authority,
Revenue (Regional Park & Open Space District)
5%, 10/1/2019	6,000,000		6,090,840
San Francisco City & County Public Utilities Commission,
Water Revenue 5%, 11/1/2015 (Insured; MBIA)	2,000,000		2,116,120
University of California, Revenues
5.25%, 5/15/2016 (Insured; AMBAC)	11,765,000		12,629,610
Colorado—2.1%
Denver City & County, Airport Revenue
5%, 11/15/2008	5,000,000		5,339,350
Denver City & County Board of Water Commissioners,
Water Revenue 5%, 12/1/2009 (Insured; FSA)	2,830,000		3,066,192
El Paso County School District
(Number 11 Colorado Springs):
6.25%, 12/1/2009	1,000,000		1,147,470
6.50%, 12/1/2010	2,000,000		2,348,680
6.50%, 12/1/2011	2,040,000		2,415,727
Interlocken Metropolitan District:
Zero Coupon, 12/15/2007	2,835,000		2,497,011
Zero Coupon, 12/15/2008	2,835,000		2,361,442
8

	Principal
Long-Term Municipal Investments (continued)	Amount ($)		Value ($)
Connecticut—.7%
Connecticut, Revenue
(Mashantucket Western Pequot Tribe):
6.50%, 9/1/2006	2,475,000	b	2,713,739
6.50%, 9/1/2006	2,525,000	b	2,715,284
5.60%, 9/1/2009	1,000,000	b	1,080,490
District of Columbia—.4%
District of Columbia
6%, 6/1/2012 (Insured; MBIA)	3,280,000		3,761,766
Florida—3.3%
Capital Projects Finance Authority, Student Housing
Revenue (Capital Projects Loan Program)
5.50%, 10/1/2015 (Insured; MBIA)	4,060,000		4,307,295
Collier County, Gas Tax Revenue
5.25%, 6/1/2019 (Insured; AMBAC)	2,190,000		2,311,370
FSU Financial Assistance Inc., Educational & Athletic
Facilities Improvement Revenue:
5%, 10/1/2017 (Insured; AMBAC)	1,630,000		1,703,529
5%, 10/1/2018 (Insured; AMBAC)	1,705,000		1,771,307
5%, 10/1/2019 (Insured; AMBAC)	1,785,000		1,843,405
Orlando Utilities Commission, Water & Electric Revenue
5%, 10/1/2014	5,455,000		5,839,959
Palm Beach County School Board, COP
5.375%, 8/1/2014 (Insured; AMBAC)	4,000,000		4,455,440
Palm Beach County Solid Waste Authority, Revenue
4%, 1/1/2011 (Insured; AMBAC)	5,000,000		5,098,700
Polk County, Utility System Revenue
5.25%, 10/1/2018 (Insured; FGIC)	2,000,000		2,125,020
Georgia—1.7%
Athens Housing Authority, Student Housing LR
(Ugaref East Campus Housing):
5.25%, 12/1/2015 (Insured; AMBAC)	2,560,000		2,756,326
5.25%, 12/1/2016 (Insured; AMBAC)	2,700,000		2,893,482
Atlanta, Airport Facilities Revenue
6%, 1/1/2007 (Insured; AMBAC)	5,780,000		6,273,092
Municipal Electric Authority (Combustion Turbine Project)
5.25%, 11/1/2012 (Insured; MBIA)	2,735,000		3,019,167
Hawaii—.3%
Kuakini Health System, Special Purpose Revenue
5.50%, 7/1/2012	2,575,000		2,616,020

The Fund

9

S T A T E M E N T O F I N V E S T M E N T S (continued)

	Principal
Long-Term Municipal Investments (continued)	Amount ($)		Value ($)
Illinois—2.2%
Chicago (Neighborhoods Alive 21 Program)
5.50%, 1/1/2014 (Insured; FGIC)	3,230,000		3,541,081
Chicago Housing Authority, Revenue (Capital Program):
5%, 7/1/2009	2,500,000		2,665,625
5.25%, 7/1/2010	2,420,000		2,613,237
Chicago O’Hare International Airport, Revenue
(Third Lien) 5.50%, 1/1/2015	6,450,000		7,060,815
Illinois Health Facilities Authority, Revenue
(Evangelical Hospital) 6.75%, 4/15/2007	150,000		161,499
Illinois Student Assistance Commission,
Student Loan Revenue 5.55%, 9/1/2006	4,000,000		4,261,480
Indiana—3.1%
Central High School Building Corp., First Mortgage
5.50%, 8/1/2009 (Insured; AMBAC)	3,960,000		4,339,606
Indiana Health Facility Financing Authority, HR
(Clarian Health Partners, Inc.):
5.50%, 2/15/2010	3,000,000		3,183,840
5.50%, 2/15/2011	5,000,000		5,280,000
Indianapolis Local Public Improvement Bond Bank
6.50%, 1/1/2011 (Insured; FSA)	6,415,000		7,499,777
North Montgomery Elementary School Building Corp.,
First Mortgage Revenue 6.50%, 7/1/2006	3,710,000		3,895,834
Plymouth, Multi-School Building Corp.
(First Mortgage-Plymouth Community School)
5.50%, 7/1/2005 (Insured; MBIA)	2,445,000		2,504,291
Westfield High School Building Corp.,
First Mortgage Revenue
5.25%, 7/5/2013 (Insured; AMBAC)	1,500,000		1,613,625
Kentucky—1.3%
Ashland, PCR (Ashland, Inc.) 5.70%, 11/1/2009	4,000,000		4,249,360
Carrolton and Henderson Public Energy Authority,
Gas Revenue (Kentucky Trust)
5%, 1/1/2006 (Insured; FSA)	3,500,000		3,661,105
Kenton County Airport Board, Airport Revenue
(Cincinnati/Northern Kentucky International)
5.75%, 3/1/2009 (Insured; MBIA)	3,710,000		3,967,437
Massachusetts—2.0%
Massachusetts Consolidated Loan:
5%, 12/1/2010	3,000,000		3,237,420
5.75%, 10/1/2020 (Prerefunded 10/1/2010)	3,000,000	d	3,370,770
10

	Principal
Long-Term Municipal Investments (continued)	Amount ($)		Value ($)
Massachusetts (continued)
Massachusetts Housing Finance Agency
Housing Revenue:
6.30%, 7/1/2007 (Insured; AMBAC)	2,795,000		2,856,043
6.35%, 7/1/2008 (Insured; AMBAC)	3,005,000		3,069,668
6.40%, 7/1/2009 (Insured; AMBAC)	3,275,000		3,344,365
Plymouth County, COP (Correctional Facilities Project)
5%, 4/1/2015 (Insured; AMBAC)	2,025,000		2,110,577
Michigan—7.9%
Detroit Local Development Finance Authority
5.20%, 5/1/2010	5,745,000		5,978,534
Greater Detroit Resource Recovery Authority, Revenue:
6.25%, Series A, 12/13/2008 (Insured; AMBAC)	11,000,000		12,419,990
6.25%, Series B, 12/13/2008 (Insured; AMBAC)	7,755,000		8,756,093
Michigan Building Authority, Revenue
(State Police Communications System)
5.25%, 10/1/2013	1,945,000		2,133,646
Michigan Hospital Finance Authority, Revenue:
9.431%, 11/15/2007	5,750,000	a,b	6,627,163
(Genesys Health System)
8.10%, 10/1/2013 (Prerefunded 10/1/2005)	7,000,000	d	7,734,650
(Oakwood Obligation Group):
5%, 11/1/2007	3,000,000		3,213,540
5.50%, 11/1/2011	5,000,000		5,429,050
(Sparrow Obligation Group):
5.25%, 11/15/2011	2,500,000		2,655,800
5.75%, 11/15/2016	3,250,000		3,442,920
Michigan Municipal Bond Authority, Revenue
5%, 5/1/2009 (LOC; Government Loan Progam)	3,000,000		3,240,630
(Drinking Water Revolving Fund)
5.25%, 10/1/2016 (Prerefunded; 10/1/2009)	2,370,000	d	2,607,332
Michigan Strategic Fund:
Exempt Facilities Revenue,
(Waste Management Inc. Project) 4.20%, 8/1/2004	3,000,000		3,008,220
SWDR (Waste Management) 3%, 2/1/2007	4,000,000		3,922,200
Minnesota—1.4%
Minnesota Public Facilities Authority,
Water Pollution Control Revenue 5%, 3/1/2013	6,755,000		7,181,308
Western Minnesota Municipal Power Agency,
Power Supply Revenue
5%, 1/1/2014 (Insured; MBIA)	5,165,000		5,566,527

The Fund

11

S T A T E M E N T O F I N V E S T M E N T S (continued)

	Principal
Long-Term Municipal Investments (continued)	Amount ($)		Value ($)
Mississippi—1.3%
Mississippi Development Bank, Special Obligation
(Adams County HR Project)
5.75%, 7/1/2010 (Insured; FSA)	3,445,000		3,715,433
Mississippi Higher Education Assistance Corp.
Student Loan Revenue 5.30%, 9/1/2008	2,390,000		2,517,291
Walnut Grove Correctional Authority, COP:
5.25%, 11/1/2005 (Insured; AMBAC)	1,670,000		1,754,402
5.50%, 11/1/2006 (Insured; AMBAC)	1,760,000		1,896,875
5.50%, 11/1/2007 (Insured; AMBAC)	1,855,000		2,026,847
Missouri—1.9%
Independence School District
(Missouri School District Direct Deposit
Program) 4.50%, 3/1/2018 (Insured; FSA)	1,000,000		990,330
Joplin Industrial Development Authority, Revenue
(Catholic Health Initiatives):
5.50%, 12/1/2009	3,185,000		3,407,727
5.625%, 12/1/2010	3,340,000		3,566,786
Missouri Health & Educational
Facilities Authority, Revenue
(SSM Health Care) 5%, 6/1/2007	2,940,000		3,123,427
Saint Louis, Airport Revenue
(Airport Development Program):
5.50%, 7/1/2010 (Insured; MBIA)	3,000,000		3,302,310
5.625%, 7/1/2015 (Insured; MBIA)	2,500,000		2,715,625
Nevada—.6%
Washoe County, Water Facility Revenue
(Sierra Pacific Power Company) 5%, 7/1/2009	5,000,000		4,997,550
New Jersey—4.0%
New Jersey Economic Development Authority, Revenue:
9.221%, 6/15/2008	5,000,000	a,b	6,009,700
School Facilities
(Construction 2001) 5.25%, 6/15/2010	30,000		33,029
Waste Paper Recycling (Marcal Paper Mills, Inc.)
8.50%, 2/1/2010 (Insured; MBIA)	2,005,000		1,770,776
New Jersey Educational Facilities Authority, Revenue
(Rider University):
5%, 7/1/2010	1,880,000		2,002,125
5%, 7/1/2011	1,970,000		2,094,898
New Jersey Health Care Facilities
Financing Authority, Revenue
(South Jersey Hospital) 6%, 7/1/2012	3,425,000		3,800,688
12

	Principal
Long-Term Municipal Investments (continued)	Amount ($)		Value ($)
New Jersey (continued)
New Jersey Transportation Trust Fund Authority
(Transportation System):
5.50%, 12/15/2013 (Insured: AMBAC)	10,000,000		11,204,900
6%, 6/15/2016 (Prerefunded 6/15/2010)	4,000,000	d	4,575,840
New Jersey Turnpike Authority, Revenue
5.625%, 1/1/2015
(Insured MBIA, Prerefunded; 1/1/2010)	3,910,000	d	4,371,654
New Mexico—1.3%
Jicarilla, Apache Nation Revenue:
5%, 9/1/2011	1,500,000		1,577,955
5%, 9/1/2013	2,905,000		3,024,512
Las Cruces, Joint Utility Improvement Revenue
5.50%, 7/1/2016 (Insured; MBIA)	7,000,000		7,536,690
New York—10.9%
Battery Park City Authority, Revenue
5.25%, 11/1/2017	5,405,000		5,762,595
City University of New York, COP (John Jay College)
5.75%, 8/15/2004	5,970,000		6,024,805
New York City:
5.25%, 8/1/2008	5,000,000		5,376,100
6.25%, 8/1/2009 (Prerefunded 8/1/2006)	2,000,000	d	2,204,060
6.375%, 8/15/2009 (Prerefunded 8/15/2005)	5,760,000	d	6,151,162
5%, 8/1/2014	5,000,000		5,251,600
New York City Transitional Finance Authority, Revenue
(Future Tax Secured) 5.375%, 2/1/2015	3,000,000		3,236,220
New York State 5%, 4/15/2009	2,800,000		3,022,012
New York State Dormitory Authority, Revenues:
(Department of Health):
5.50%, 7/1/2010 (Prerefunded 7/1/2006)	2,000,000	d	2,176,900
5.625%, 7/1/2011 (Prerefunded 7/1/2006)	3,240,000	d	3,534,840
(Personal Income Tax) 5.375%, 3/15/2017	5,500,000		5,885,220
New York State Local Government
Assistance Corporation:
5.25%, 4/1/2016	3,425,000		3,689,616
5.25%, 4/1/2016 (Insured; FSA)	2,200,000		2,380,532
New York State Thruway Authority, Service Contract
Revenue (Local Highway & Bridge):
6%, 4/1/2011	2,040,000		2,257,117
5.50%, 4/1/2012	3,950,000		4,364,237
5.50%, 4/1/2013	5,000,000		5,509,100

The Fund

13

S T A T E M E N T O F I N V E S T M E N T S (continued)

	Principal
Long-Term Municipal Investments (continued)	Amount ($)	Value ($)
New York (continued)
New York State Urban Development Corp.:
Corporate Purpose 5.125%, 7/1/2019	2,000,000	2,033,000
Correctional Capital Facilities 5.25%, 1/1/2010	4,520,000	4,797,392
Correctional & Youth Facilities Service Contract
Revenue:
5%, 1/1/2008	3,400,000	3,633,988
(Empire State Development Corp.):
5%, 1/1/2009	3,000,000	3,189,270
5.25%, 1/1/2009	5,000,000	5,368,000
Personal Income Tax 5.25%, 3/15/2011	1,565,000	1,712,971
Tobacco Settlement Financing Corp., Revenue
5.50%, 6/1/2018	4,000,000	4,243,000
Triborough Bridge and Tunnel Authority, Revenue
6.75%, 1/1/2009	5,100,000	5,725,260
North Carolina—2.7%
North Carolina Eastern Municipal Power Agency,
Power System Revenue:
5.50%, 1/1/2012	3,000,000	3,211,890
5.125%, 1/1/2014	3,000,000	3,116,010
North Carolina Medical Care Commission,
Retirement Facilities Revenue
(Givens Estates Project):
4.75%, 7/1/2010	1,000,000	1,001,530
5%, 7/1/2011	500,000	500,865
5.25%, 7/1/2012	750,000	756,353
North Carolina Municipal Power Agency
Electric Revenue (Number 1 Catawba):
5.25%, 1/1/2016 (Insured; FSA)	2,540,000	2,705,125
5.25%, 1/1/2017 (Insured; FSA)	10,000,000	10,576,600
Raleigh Durham Airport Authority, Airport Revenue
5.25%, 11/1/2012 (Insured; FGIC)	2,365,000	2,586,151
Ohio—1.2%
Cuyahoga County, HR
(Cleveland Clinic Health System) 6%, 1/1/2017	4,000,000	4,330,160
Knox County, Hospital Facilities Revenue
(Knox Community Hospital Asset Guaranty)
5%, 6/1/2012	1,500,000	1,589,790
Lorain, HR (Catholic Healthcare)
5.25%, 10/1/2009	5,000,000	5,368,500
Oklahoma—1.1%
Norman Regional Hospital Authority, HR
5.625%, 9/1/2016 (Insured; MBIA)	4,510,000	4,807,570
14

	Principal
Long-Term Municipal Investments (continued)	Amount ($)		Value ($)
Oklahoma (continued)
Oklahoma Development Finance Authority, LR
(Oklahoma State System Higher Education):
4%, 6/1/2007	1,020,000		1,058,699
4%, 6/1/2008	1,060,000		1,097,397
Washington County Medical Authority, Revenue
(Jane Phillips Medical Center)
5.50%, 11/1/2010 (Insured; Connie Lee)	3,175,000		3,414,014
Oregon—1.3%
Oregon Department of Administrative Services
5%, 91//2009 (Insured; FSA)	5,000,000		5,421,600
Washington County Unified Sewer Agency,
Sewer Revenue 5.75%, 10/1/2012 (Insured; FGIC)	5,670,000		6,458,981
Pennsylvania—7.6%
Allegheny County Industrial Development Authority,
PCR 4.05%, 9/1/2011 (Insured; AMBAC)	4,000,000		4,060,680
Carbon County Industrial Development Authority, RRR
(Panther Creek Partners Project) 6.65%, 5/1/2010	10,040,000		10,762,077
Delaware County Industrial Development Authority:
PCR (Peco Energy Co.) 5.20%, 10/1/2004	4,000,000		4,039,760
(Resource Recovery Facility) 6.10%, 7/1/2013	10,000,000		10,512,700
Delaware River Joint Toll Bridge Commission
Bridge Revenue 5.25%, 7/1/2013	2,500,000		2,713,300
Delaware Valley Regional Finance Autority,
Local Government Revenue 5.75%, 7/1/2017	6,830,000		7,663,806
Erie County Hospital Authority, Revenue
(Hamot Health Foundation)
5.375%, 5/15/2010 (Insured; AMBAC)	2,340,000		2,507,310
Erie County Industrial Development Authority,
EIR (International Paper Company Project)
5.25%, 9/1/2010	2,100,000		2,203,614
Montgomery County Higher Education & Health
Authority, HR (Abington Memorial)
6.10%, 6/1/2012 (Insured; AMBAC)	5,000,000		5,707,900
Pennsylvania Higher Educational Facilities Authority,
Health Services Revenue (University of Pennsylvania):
5.60%, Series A, 1/1/2010	4,750,000		4,921,665
5.60%, Series B, 1/1/2010	4,350,000		4,510,298
5.70%, 1/1/2011	3,250,000		3,374,995
(UPMC Health System) 6.25%, 1/15/2015	3,660,000		4,012,092
Sayre Health Care Facilities Authority, Revenue
(Guthrie Health) 6%, 12/1/2012	2,000,000		2,180,700
		The Fund		15

S T A T E M E N T O F I N V E S T M E N T S (continued)

	Principal
Long-Term Municipal Investments (continued)	Amount ($)		Value ($)
Rhode Island—1.8%
Rhode Island Health and Educational Building Corp.:
Health Facilities Revenue (San Antoine)
5.50%, 11/15/2009	3,320,000		3,584,172
Hospital Financing Revenue
(Lifespan Obligation Group):
5.75%, 5/15/2007 (Insured; MBIA)	4,805,000		5,218,422
5.75%, 5/15/2008 (Insured; MBIA)	5,560,000		6,076,413
Revenue (Roger Williams University
Radianassurance ) 5%, 11/15/2021	1,360,000		1,337,424
South Carolina—1.9%
Anderson County, IDR (Federal Paper Board)
4.75%, 8/1/2010	4,520,000		4,620,163
Berkeley County School District, Installment
Purchase Revenue (Securing Assets for Education)
5.25%, 12/1/2021	9,395,000		9,426,379
Charleston, COP (Public Facilities Corp.)
5%, 9/1/2015	2,145,000		2,266,943
Hilton Head Island Public Facilities Corp., COP
5%, 3/1/2013 (Insured; AMBAC)	1,065,000		1,145,578
Tennessee—1.3%
Johnson City Health and Educational Facility Board, HR
(Medical Center Hospital Improvement)
5.125%, 7/1/2011 (Insured; MBIA)	6,720,000		7,169,030
Tennessee Housing Development Agency
(Homeownership Program):
5.20%, 7/1/2010	1,815,000		1,917,094
5.30% 7/1/2011	2,140,000		2,254,362
Texas—9.3%
Austin Independent School District
5.60% 8/1/2009	2,025,000		2,159,582
Bexar County, Revenue (Venue)
5.75%, 8/15/2013 (Insured; MBIA)	5,000,000		5,562,300
Cypress—Fairbanks Independent School District
(Schoolhouse) 6.75%, 2/15/2012
(Prerefunded 2/15/2010)	1,700,000	d	1,997,228
Gulf Coast Waste Disposal Authority:
Revenue (Bayport Area System)
5%, 10/1/2014 (Insured; AMBAC)	2,065,000		2,201,786
SWDR (Quaker Oats Co. Project) 5.70%, 5/1/2006	3,210,000		3,390,948
Harris County (Permanent Improvement)
5.25%, 10/1/2016	3,435,000		3,659,031
16

	Principal
Long-Term Municipal Investments (continued)	Amount ($)		Value ($)
Texas (continued)
Harris County Health Facilities Development Corp., HR:
(Memorial Hermann Hospital System)
5.50%, 6/1/2012 (Insured; FSA)	8,295,000		9,197,330
(Memorial Hospital System)
6%, 6/1/2008 (Insured; MBIA)	9,080,000		10,066,088
Houston, Utility System Revenue
(First Lien) 5.25%, 5/15/2015 (Insured; MBIA)	7,500,000		8,138,850
Port Corpus Christi Industrial Development Corp.,
Revenue (Valero):
5.125%, 4/1/2009	2,250,000		2,359,283
5.40%, 4/1/2018	1,500,000		1,518,450
Tarrant County Health Facilities Development Corp.,
Health Systems Revenue:
(Harris Methodist Health Systems) 6%, 9/1/2010	7,725,000		8,672,317
(Health Resources Systems)
5.75%, 2/15/2014 (Insured; MBIA)	5,000,000		5,614,300
Texas Municipal Power Agency, Revenue:
(Subordinated Lien) 4.40%, 9/1/2011 (Insured; FGIC)	5,000,000		5,112,750
Zero Coupon, 9/1/2009 (Insured; AMBAC)
(Escrowed to Maturity)	105,000		87,065
Zero Coupon, 9/1/2009 (Insured; AMBAC)	9,265,000		7,623,149
University of Texas University Revenues Financing
System 5.25%, 8/15/2018	6,000,000		6,352,200
Utah—1.5%
Carbon County, SWDR
(Sunnyside Cogeneration-A) 6.375%, 8/15/2011	8,450,000		7,774,254
Jordanelle Special Service District
(Special Assessment Improvement District)
8%, 10/1/2011	5,565,000		5,863,395
Virginia—1.0%
Arlington County Industrial Development Authority, RRR
(Ogden Martin System of Alexandria/Arlington
Inc. Project) 5.375%, 1/1/2012 (Insured; FSA)	2,530,000		2,687,923
Big Stone Gap Redevelopment and Housing Authority,
Correctional Facility LR
(Wallens Ridge Development Project) 6%, 9/1/2007
(Prerefunded 9/1/2005)	4,000,000	d	4,298,840
Greater Richmond Convention Center Authority,
Hotel Tax Revenue (Convention Center
Expansion Project) 6%, 6/15/2011	2,000,000		2,249,880

The Fund

17

S T A T E M E N T O F I N V E S T M E N T S (continued)

	Principal
Long-Term Municipal Investments (continued)	Amount ($)		Value ($)
Washington—3.1%
Energy Northwest
Revenue (Wind Project):
4.55%, 7/1/2006	1,600,000		1,644,960
5.60%, 7/1/2015	2,530,000		2,603,117
Seattle Municipal Light & Power, Revenue:
5.25%, 3/1/2010 (Insured; FSA)	50,000		54,645
9.31%, 3/1/2010	6,500,000	a,b	7,707,635
Washington:
5.75%, 10/1/2012	20,000		22,467
5.75%, 10/1/2012	2,305,000		2,593,448
Washington Health Care Facilities Authority, Revenue
(Sisters of Providence)
5.40%, 10/1/2010 (Insured; AMBAC)	3,000,000		3,187,380
Washington, Public Power Supply Systems Revenue
(Nuclear Project Number 1)
6%, 7/1/2007 (Insured; AMBAC)	9,720,000		10,554,754
Wisconsin—.9%
Racine, SWDR (Republic Services Project)
3.25%, 4/1/2009	4,000,000		3,791,680
Wisconsin Health and Educational Facilities Authority,
Revenue (Aurora Medical Group, Inc.)
6%, 11/15/2011 (Insured; FSA)	3,500,000		3,996,020
U. S. Related—1.4%
Children’s Trust of Puerto Rico, Tobacco Settlement
Revenue, Asset Backed Bonds:
5.75%, 7/1/2010	2,500,000		2,825,850
5.75%, 7/1/2012 (Prerefunded 7/1/2010)	5,000,000	d	5,651,700
5.75%, 7/1/2013 (Prerefunded 7/1/2010)	3,300,000	d	3,730,122
Total Long-Term Municipal Investments
(cost $864,388,617)			885,975,204

18

			Principal
Short-Term Municipal Investments—.9%			Amount ($)		Value ($)
California—.0%
California, VRDN 1.07% (LOC; West LB AG;
JP Morgan Chase Bank)			500,000	e	500,000
Florida—.4%
Collier County Health Facilities Authority,
Revenue, VRDN (Cleveland Clinic
Health) 1.08% (LOC; UBS AG)			3,650,000	e	3,650,000
Tennessee—.2%
Blount County Public Building Authority, Local
Government Public Improvement, VRDN 1.09%			1,500,000	e	1,500,000
Texas—.3%
North Central Texas Health Facility
Development Corp., Revenue, VRDN
(Methodist Hospitals) 1.11%			2,600,000	e	2,600,000
Total Short-Term Municipal Investments
(cost $	8,250,000)				8,250,000
Total Investments (cost $		872,638,617)	98.9%		894,225,204
Cash and Receivables (Net)			1.1%		9,991,535
Net Assets			100.0%		904,216,739

The Fund

19

S T A T E M E N T O F I N V E S T M E N T S (continued)

Summary of Abbreviations

ACA	American Capital Access	IDC	Industrial Development Corporation
AMBAC	American Municipal Bond Assurance	IDR	Industrial Development Revenue
	Corporation	LOC	Letter of Credit
COP	Certificate of Participation	LR	Lease Revenue
EIR	Environment Improvement Revenue	MBIA	Municipal Bond Investors Assurance
FGIC	Financial Guaranty Insurance		Insurance Corporation
	Company	MFHR	Multi-Family Housing Revenue
FNMA	Federal National Mortgage	PCR	Pollution Control Revenue
	Association	RRR	Resources Recovery Revenue
FSA	Financial Security Assurance	SWDR	Solid Waste Disposal Revenue
HR	Hospital Revenue	VRDN	Variable Rate Demand Notes

Summary of Combined Ratings (Unaudited)
Fitch	or	Moody’s	or	Standard & Poor’s	Value (%)
AAA		Aaa		AAA	55.3
AA		Aa		AA	19.5
A		A		A	12.6
BBB		Baa		BBB	9.2
F1		MIG1/P1		SP1/A1	.6
Not Rated f		Not Rated f		Not Rated f	2.8
					100.0

a Inverse floater security—-the interest rate is subject to change periodically.

b	Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in transactions exempt from registration normally to qualified institutional buyers.At May 31, 2004, these securities amounted to $34,575,211 or 3.8% of net assets.
c	Zero coupon until a specified date, at which time the stated coupon rate becomes effective until maturity.
d	Bonds which are prerefunded are collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date.
e	Securities payable on demand.Variable interest rate—subject to periodic change.
f	Securities which, while not rated by Fitch, Moody’s and Standard & Poors, have been determined by the Manager to be of comparable quality to those rated securities in which the fund may invest.

See notes to financial statements.

20

STATEMENT OF ASSETS AND LIABILITIES

May 31, 2004
		Cost	Value
Assets ($):
Investments in securities—See Statement of Investments		872,638,617	894,225,204
Cash			6,594,863
Interest receivable			14,810,056
Receivable for investment securities sold			3,011,478
Receivable for shares of Common Stock subscribed			1,565
Prepaid expenses and other assets			420,765
			919,063,931
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(a)			556,770
Payable for investment securities purchased			13,746,593
Payable for shares of Common Stock redeemed			403,189
Accrued expenses			140,640
			14,847,192
Net Assets (	$)		904,216,739
Composition of Net Assets ($):
Paid-in capital			896,643,858
Accumulated undistributed investment income—net			280,714
Accumulated net realized gain (loss) on investments			(14,294,420)
Accumulated net unrealized appreciation
(depreciation) on investments			21,586,587
Net Assets (	$)		904,216,739
Shares Outstanding
(300 million shares of $.001 par value Common Stock authorized)			68,063,179
Net Asset Value, offering and redemption price per share—Note 3(d) ($)			13.28
See notes to financial statements.

The Fund

21

STATEMENT OF OPERATIONS
Year Ended May 31, 2004
Investment Income ($):
Interest Income	44,753,758
Expenses:
Management fee—Note 3(a)	5,834,676
Shareholder servicing costs—Note 3(b)	1,051,887
Custodian fees	79,798
Directors’ fees and expenses—Note 3(c)	56,965
Professional fees	49,134
Registration fees	34,930
Prospectus and shareholders’ reports	20,305
Loan commitment fees—Note 2	9,057
Miscellaneous	58,881
Total Expenses	7,195,633
Investment Income—Net	37,558,125
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments	10,267,229
Net unrealized appreciation (depreciation) on investments	(55,517,040)
Net Realized and Unrealized Gain (Loss) on Investments	(45,249,811)
Net (Decrease) in Net Assets Resulting from Operations	(7,691,686)
See notes to financial statements.

22

STATEMENT OF CHANGES IN NET ASSETS

		Year Ended May 31,
	2004	2003
Operations ($):
Investment income—net	37,558,125	44,604,987
Net realized gain (loss) on investments	10,267,229	3,053,294
Net unrealized appreciation
(depreciation) on investments	(55,517,040)	34,146,641
Net Increase (Decrease) in Net Assets
Resulting from Operations	(7,691,686)	81,804,922
Dividends to Shareholders from ($):
Investment income—net	(37,207,071)	(44,357,527)
Capital Stock Transactions ($):
Net proceeds from shares sold	70,360,162	195,712,715
Dividends reinvested	27,275,524	32,502,166
Cost of shares redeemed	(196,272,299)	(275,909,166)
Increase (Decrease) in Net Assets
from Capital Stock Transactions	(98,636,613)	(47,694,285)
Total Increase (Decrease) in Net Assets	(143,535,370)	(10,246,890)
Net Assets ($):
Beginning of Period	1,047,752,109	1,057,998,999
End of Period	904,216,739	1,047,752,109
Undistributed investment income—net	280,714	112,012
Capital Share Transactions (Shares):
Shares sold	5,171,532	14,420,826
Shares issued for dividends reinvested	2,014,036	2,386,133
Shares redeemed	(14,462,858)	(20,302,480)
Net Increase (Decrease) in Shares Outstanding	(7,277,290)	(3,495,521)
See notes to financial statements.

The Fund

23

FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

			Year Ended May 31,
	2004	2003	2002a	2001	2000
Per Share Data ($):
Net asset value, beginning of period	13.91	13.42	13.51	12.94	13.83
Investment Operations:
Investment income—net	.52b	.57b	.64b	.65	.66
Net realized and unrealized
gain (loss) on investments	(.63)	.49	(.09)	.57	(.79)
Total from Investment Operations	(.11)	1.06	.55	1.22	(.13)
Distributions:
Dividends from
investment income—net	(.52)	(.57)	(.64)	(.65)	(.67)
Dividends from net realized
gain on investments	—	—	—	—	(.09)
Total Distributions	(.52)	(.57)	(.64)	(.65)	(.76)
Net asset value, end of period	13.28	13.91	13.42	13.51	12.94
Total Return (%)	(.81)	8.09	4.14	9.54	(.97)
Ratios/Supplemental Data (%):
Ratio of expenses
to average net assets	.74	.74	.74	.74	.75
Ratio of net investment income
to average net assets	3.86	4.23	4.74	4.82	4.97
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation	—	—	—	.00c	.02
Portfolio Turnover Rate	35.07	41.30	27.32	24.32	20.86
Net Assets, end of period
($ x 1,000)	904,217	1,047,752	1,057,999	1,065,775	1,066,938

a As required, effective June 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing discount or permium on a scientific basis for debt securities on a daily basis.The effect of this change for the period ended May 31, 2002 was to increase net investment income per share and decrease net realized and unrealized gain (loss) on investments by less than $.01 and increase the ratio of net investment income to average net assets by less than .01%. Per share data and ratios/supplemental data for periods prior to June 1, 2001 have not been restated to reflect this change in presentation.

b	Based on average shares outstanding at each month end.
c	Amount represents less than .01%.

See notes to financial statements.

24

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Intermediate Municipal Bond Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified open-end management investment company. The fund’s investment objective is to provide the maximum amount of current income exempt from federal income tax as is consistent with the preservation of capital. The Dreyfus Corporation (the “Manager”or “Dreyfus”) serves as the fund’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the Board of Directors. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions.

The Fund

25

NOTES TO FINANCIAL STATEMENTS (continued)

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Interest income, adjusted for amortization of discount and premium on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. Under the terms of the custody agreement, the fund received net earnings credits of $33,521 during the period ended May 31, 2004 based on available cash balances left on deposit. Income earned under this arrangement is included in interest income.

(c) Dividends to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gain, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

(d) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, which can distribute tax exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

At May 31, 2004, the components of accumulated earnings on a tax basis were as follows:undistributed tax exempt income $280,714,accumulated capital losses $14,294,420 and unrealized appreciation $21,699,181.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to May 31, 2004. If not applied, the carryover expires in fiscal 2011.

26

The tax character of distributions paid to shareholders during the fiscal periods ended May 31, 2004 and May 31, 2003, were as follows: tax exempt income $37,207,071 and $44,357,527, respectively.

During the period ended May 31, 2004, as a result of permanent book to tax differences primarily due to amortization adjustments, the fund decreased accumulated undistributed investment income-net by $182,352, increased accumulated net realized gain (loss) on investments by $151,338 and increased paid-in capital by $31,014. Net assets were not affected by this reclassification

NOTE 2—Bank Line of Credit:

The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings. During the period ended May 31, 2004, the fund did not borrow under the Facility.

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .60 of 1% of the value of the fund’s average daily net assets and is payable monthly.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consists of: management fees $458,770, shareholder services plan fees $44,000 and transfer agency per account fees $54,000.

(b) Under the Shareholder Services Plan, the fund reimburses the Distributor an amount not to exceed an annual rate of .25 of 1% of the value of the fund’s average daily net assets for certain allocated expenses of providing personal services and/or maintaining sharehold-

The Fund

27

NOTES TO FINANCIAL STATEMENTS (continued)

ers accounts. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquires regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended May 31, 2004, the fund was charged $545,673 pursuant to the Shareholder Services Plan.

The fund compensates Dreyfus Transfer,Inc.,a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended May 31, 2004, the fund was charged $327,997 pursuant to the transfer agency agreement.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Effective October 15, 2003, annual retainer fees and attendance fees are allocated to each fund based on net assets. Prior to October 15, 2003, each trustee who is not an “affiliated person” as defined in the Act, received from the fund an annual fee of $4,500 and an attendance fee of $500 per meeting for services to the fund. The Chairman of the Board received an additional 25% of such compensation and continues to do so under the new compensation structure.

(d) A .10% redemption fee is charged and retained by the fund on shares redeemed within thirty days following the date of issuance, including redemptions made through the use of the fund’s exchange privilege. During the period ended May 31, 2004, redemption fees charged and retained by the fund amounted to $6,205.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended May 31, 2004, amounted to $334,557,386 and $436,966,988, respectively.

At May 31,2004,the cost of investments for federal income tax purposes was $872,526,023; accordingly, accumulated net unrealized appreciation on investments was $21,699,181, consisting of $29,169,853 gross unrealized appreciation and $7,470,672 gross unrealized depreciation.

28

NOTE 5—Legal Matters:

Two class actions (which have been consolidated) have been filed against Mellon Financial and Mellon Bank, N.A., and Dreyfus and Founders Asset Management LLC (the “Investment Advisers”), and the directors of all or substantially all of the Dreyfus funds, alleging that the Investment Advisers improperly used assets of the Dreyfus funds, in the form of directed brokerage commissions and 12b-1 fees, to pay brokers to promote sales of Dreyfus funds,and that the use of fund assets to make these payments was not properly disclosed to investors.The complaints further allege that the directors breached their fiduciary duties to fund shareholders under the Investment Company Act of 1940 and at common law. The complaints seek unspecified compensatory and punitive damages, rescission of the funds’ contracts with the Investment Advisers, an accounting of all fees paid, and an award of attorneys’ fees and litigation expenses. Dreyfus and the Dreyfus funds believe the allegations to be totally without merit and will defend the actions vigorously.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Dreyfus funds believe that any of the pending actions will have a material adverse effect on the Dreyfus funds or Dreyfus’ ability to perform its contracts with the Dreyfus funds.

The Fund

29

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

Shareholders and Board of Directors

Dreyfus Intermediate Municipal Bond Fund, Inc.

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Intermediate Municipal Bond Fund, Inc., as of May 31, 2004, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein.These financial statements and financial highlights are the responsibility of the fund’s 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. Our procedures included confirmation of securities owned as of May 31, 2004 by correspondence with the custodian and others. 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 the Dreyfus Intermediate Municipal Bond Fund, Inc at May 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York

July 12, 2004

30

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended May 31, 2004 as “exempt-interest dividends” (not generally subject to regular federal income tax).

As required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any) and capital gains distributions (if any) paid for the 2004 calendar year on Form 1099 DIV which will be mailed by January 31, 2005.

The Fund

31

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (60)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• The Muscular Dystrophy Association, Director
  
• Levcor International, Inc., an apparel fabric processor, Director
  
• Century Business Services, Inc., a provider of outsourcing functions for small and medium size companies, Director
  
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard mills and paperboard converting plants, Director
  

No. of Portfolios for which Board Member Serves: 186

David W. Burke (68)

Board Member (1994)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• John F. Kennedy Library Foundation, Director
  
• U.S.S. Constitution Museum, Director
  

No. of Portfolios for which Board Member Serves: 83

———————

Samuel Chase (72)

Board Member (1985)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

No. of Portfolios for which Board Member Serves: 15

———————

Gordon J. Davis (62)

Board Member (1995)

Principal Occupation During Past 5 Years:

• Partner in the law firm of LeBoeuf, Lamb, Greene & MacRae LLP
  
• President, Lincoln Center for Performing Arts, Inc. (2001)
  

Other Board Memberships and Affiliations:

• Consolidated Edison, Inc., a utility company, Director
  
• Phoenix Companies, Inc., a life insurance company, Director
  
• Board Member/Trustee for several not-for-profit groups
  

No. of Portfolios for which Board Member Serves: 25

32

Joni Evans (62)

Board Member (1983)

Principal Occupation During Past 5 Years:

• Senior Vice President of the William Morris Agency

No. of Portfolios for which Board Member Serves: 15

———————

Arnold S. Hiatt (77)

Board Member (1983)

Principal Occupation During Past 5 Years:

• Chairman of The Stride Rite Charitable Foundation

Other Board Memberships and Affiliations:

• Isabella Stewart Gardner Museum,Trustee
  
• John Merck Fund, a charitable trust,Trustee
  
• Business for Social Responsibility, Chairman
  

No. of Portfolios for which Board Member Serves: 15

———————

Burton N. Wallack (53)

Board Member (1991)

Principal Occupation During Past 5 Years:

• President and co-owner of Wallack Management Company, a real estate management company

No. of Portfolios for which Board Member Serves: 15

———————

Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.

The Fund

33

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since

March 2000.

   Chairman of the Board, Chief Executive

   Officer and Chief Operating Officer of the

   Manager, and an officer of 97 investment

   companies (comprised of 190 portfolios)

   managed by the Manager. Mr. Canter also is a

   Board member and, where applicable, an

   Executive Committee Member of the other

   investment management subsidiaries of Mellon

   Financial Corporation, each of which is an

   affiliate of the Manager. He is 58 years old and

   has been an employee of the Manager since

   May 1995.

STEPHEN R. BYERS, Executive Vice

President since November 2002.

   Chief Investment Officer,Vice Chairman and a

   Director of the Manager, and an officer of 97

   investment companies (comprised of 190

   portfolios) managed by the Manager. Mr. Byers

   also is an officer, director or an Executive

   Committee Member of certain other

   investment management subsidiaries of Mellon

   Financial Corporation, each of which is an

   affiliate of the Manager. He is 50 years old and

   has been an employee of the Manager since

   January 2000. Prior to joining the Manager, he

   served as an Executive Vice President-Capital

   Markets, Chief Financial Officer and Treasurer

   at Gruntal & Co., L.L.C.

MARK N. JACOBS, Vice President since

March 2000.

   Executive Vice President, Secretary and

   General Counsel of the Manager, and an

   officer of 98 investment companies (comprised

   of 206 portfolios) managed by the Manager.

   He is 58 years old and has been an employee

   of the Manager since June 1977.

34

JOHN B. HAMMALIAN, Secretary since

March 2000.

   Associate General Counsel of the Manager,

   and an officer of 37 investment companies

   (comprised of 46 portfolios) managed by the

   Manager. He is 40 years old and has been an

   employee of the Manager since February 1991.

STEVEN F. NEWMAN, Assistant Secretary

since March 2000.

   Associate General Counsel and Assistant

   Secretary of the Manager, and an officer of 98

   investment companies (comprised of 206

   portfolios) managed by the Manager. He is 54

   years old and has been an employee of the

   Manager since July 1980.

MICHAEL A. ROSENBERG, Assistant

Secretary since March 2000.

   Associate General Counsel of the Manager,

   and an officer of 95 investment companies

   (comprised of 199 portfolios) managed by the

   Manager. He is 44 years old and has been an

   employee of the Manager since October 1991.

JAMES WINDELS, Treasurer since

November 2001.

   Director – Mutual Fund Accounting of the

   Manager, and an officer of 98 investment

   companies (comprised of 206 portfolios)

   managed by the Manager. He is 45 years old

   and has been an employee of the Manager

   since April 1985.

GREGORY S. GRUBER, Assistant

Treasurer since March 2000.

   Senior Accounting Manager – Municipal Bond

   Funds of the Manager, and an officer of 30

   investment companies (comprised of 59

   portfolios) managed by the Manager. He is 45

   years old and has been an employee of the

   Manager since August 1981.

KENNETH J. SANDGREN, Assistant

Treasurer since November 2001.

   Mutual Funds Tax Director of the Manager,

   and an officer of 98 investment companies

   (comprised of 206 portfolios) managed by the

   Manager. He is 49 years old and has been an

   employee of the Manager since June 1993.

WILLIAM GERMENIS, Anti-Money

Laundering Compliance Officer since

October 2002.

   Vice President and Anti-Money Laundering

   Compliance Officer of the Distributor, and the

   Anti-Money Laundering Compliance Officer

   of 93 investment companies (comprised of 201

   portfolios) managed by the Manager. He is 33

   years old and has been an employee of the

   Distributor since October 1998.

The Fund

35

NOTES

For More Information

Dreyfus Intermediate

Muncipal Bond Fund, Inc.

200 Park Avenue

New York, NY 10166

Manager

The Dreyfus Corporation

200 Park Avenue

New York, NY 10166

Custodian

The Bank of New York

One Wall Street

New York, NY 10286

Transfer Agent &

Dividend Disbursing Agent

Dreyfus Transfer, Inc.

200 Park Avenue

New York, NY 10166

Distributor

Dreyfus Service Corporation

200 Park Avenue

New York, NY 10166

To obtain information:

By telephone

Call 1-800-645-6561

By mail Write to:

The Dreyfus Family of Funds

144 Glenn Curtiss Boulevard

Uniondale, NY 11556-0144

By E-mail Send your request

to info@dreyfus.com

On the Internet Information

can be viewed online or

downloaded from:

http://www.dreyfus.com

© 2004 Dreyfus Service Corporation

0947AR0504

Item 2. Code of Ethics.

The Registrant has 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.

Item 3. Audit Committee Financial Expert.

The Registrant's Board has determined that Joseph S. DiMartino, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Mr. DiMartino is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4. Principal Accountant Fees and Services

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $35,700 in 2003 and $37,485 in 2004.

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $-0- in 2003 and $-0- in 2004.

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $30,000 in 2003 and $273,500 in 2004.

Note: For the second paragraph in each of (b) through (d) of this Item 4, certain of such services were not pre-approved prior to May 6, 2003, when such services were required to be pre-approved. On and after May 6, 2003, 100% of all services provided by the Auditor were pre-approved as required. For comparative purposes, the fees shown assume that all such services were pre-approved, including services that were not pre-approved prior to the compliance date of the pre-approval requirement.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $2,207 in 2003 and $3,498 in 2004. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, (iii) tax advice regarding tax qualification matters and/or treatment of various

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financial instruments held or proposed to be acquired or held, and (iv) determination of Passive Foreign Investment Companies.

The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $-0- in 2003 and $-0- in 2004.

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $-0- in 2003 and $773 in 2004. These services consisted of a review of the Registrant's anti-money laundering program.

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) and (c) of this Item, which required pre-approval by the Audit Committee were $-0- in 2003 and $-0- in 2004.

Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $275,773 in 2003 and $611,435 in 2004.

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates which were not pre-approved (not requiring pre-approval) is compatible with maintaining the Auditor's independence.

Item 5.	Audit Committee of Listed Registrants.
	Not applicable.
Item 6.	[Reserved]
Item 7.	Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
	Investment Companies.
	Not applicable.
Item 8.	Purchases of Equity Securities by Closed-End Management Investment Companies and
	Affiliated Purchasers.
	Not applicable.
Item 9.	Submission of Matters to a Vote of Security Holders.

The Fund has a Nominating Committee, which is responsible for selecting and nominating persons for election or appointment by the Fund’s Board as Board members. The Committee has adopted a Nominating Committee Charter (“Charter”). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Fund, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8^th Floor West, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a

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recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Fund and its shareholders. Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.

Item 10. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended 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) Code of ethics referred to in Item 2.

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3) Not applicable.

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

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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.

DREYFUS INTERMEDIATE MUNICIPAL BOND FUND, INC.

By:	/s/ Stephen E. Canter
	Stephen E. Canter
	President
Date:	July 28, 2004

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/ Stephen E. Canter
	Stephen E. Canter
	Chief Executive Officer
Date:	July 28, 2004
By:	/s/ James Windels
	James Windels
	Chief Financial Officer
Date:	July 28, 2004

EXHIBIT INDEX

(a)(1) Code of ethics referred to in Item 2.

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)

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