Leading Independent Proxy Advisory Firm Supports Trustees
of MFS Intermediate Income Trust (NYSE: MIN) Against
Dissident Karpus Management
BOSTON (September 24, 2008) -- MFS Intermediate Income Trust, a closed-end
fund (NYSE: MIN) announced today that ISS Governance Services, a division of
RiskMetrics Group and a leading independent proxy advisory firm, has recommended
that shareholders vote for the Fund's slate of trustees rather than the nominees
recommended by dissident shareholder Karpus Management, and against a proposal
recommended by Karpus. RiskMetrics recommended that shareholders vote the WHITE
proxy card to re-elect the Board's four nominees for a three-year term and vote
AGAINST the proposal put forward by Karpus Management, Inc. The Board's nominees
are J. Atwood Ives, William R. Gutow, Michael Hegarty and Robert W. Uek. The
Fund will hold its annual shareholders' meeting at 10:30 a.m. Eastern Time on
Thursday, October 9, 2008 at the Fund's offices at 500 Boylston Street, Boston,
Massachusetts.
In reaching its decision to support the Board's nominees, RiskMetrics cited an
active and engaged Board and strong performance. RiskMetrics observed that the
incumbent Board has taken steps to reduce the Fund's discount to net asset value
(NAV), concluding that "changing the investment strategy, adopting a level-rate
distribution plan and authorizing the Fund's investment adviser to more
aggressively engage in open market purchases have effectively managed" the
discount, and that since the distribution policy became effective on January 1,
2008, the Fund's discount to net asset value decreased from 13.76% to 8.21%.
Additionally, RiskMetrics noted that "the Fund's average annual total investment
return, during the one- and three-year periods ended July 31, 2008, outperformed
the average of similar closed-end bond funds as measured by Lipper, Inc."
Fund Performance (as of 7/31/08)(1)
------------ --------------------- ---------------------
1 Year 3 Year
------------ --------- ----------- --------- -----------
NAV Market NAV Market
------------ --------- ----------- --------- -----------
------------ --------- ----------- --------- -----------
MIN 6.21% 9.63% 4.01% 4.54%
Lipper 2.65% 1.87% 3.36% 1.31%
------------ --------- ----------- --------- -----------
"I am pleased that RiskMetrics has recommended that the candidates recommended
by the Board be re-elected, " said J. Atwood Ives, an independent trustee and
Board nominee. "As RiskMetrics noted, we have taken steps to increase
shareholder value and narrow the discount to net asset value, and will work hard
to continue to build on our proven track record of protecting the long-term
interests of all shareholders."
RiskMetrics also advised shareholders to vote AGAINST Karpus's proposal that the
Board of Trustees adopt a policy to conduct annual tender offers for shares of
the Fund. RiskMetrics considered the impact such a policy would have on all
shareholders, and concluded that the effects of the Karpus proposal "could
negatively impact the return for long-term shareholders of the Fund" and cause
"a potential increase in the Fund's expense ratio." RiskMetrics agreed with the
Board that Karpus's strategies are not designed to enhance long-term
performance.
After hearing from each side, RiskMetrics concluded that the Board is actively
engaged in seeking to deliver strong performance to all shareholders while
managing the Fund's discount to net asset value. For these reasons, RiskMetrics
recommends shareholders vote the Fund's WHITE proxy card FOR the Board's
nominees and AGAINST the shareholder proposal.
RiskMetrics Group is widely recognized as a leading independent proxy advisory
firm. Its recommendations are relied upon by hundreds of major institutional
investment firms, mutual funds and other fiduciaries throughout the country.
____________________
(1) All data from Lipper, including Lipper General Bond Funds- Closed-End
average. The performance data quoted represents past performance. Past
performance is no guarantee of future performance. The value of an investment
will fluctuate and shares may be worth more or less than their original cost.
Current performance may be lower or higher than the performance data quoted.
If you have any questions, please call the fund's proxy solicitation firm: The
Altman Group, toll free at (866) 207-3648 (toll free).
Additional Information
On August 21, 2008, the fund filed with the Securities and Exchange Commission
(SEC) and began mailing to shareholders a notice of annual meeting and a
definitive proxy statement, together with a White Proxy Card that can be used to
elect the trustee nominees and to vote upon all the proposals expected to be
presented at the annual meeting. BEFORE MAKING ANY VOTING DECISION, SHAREHOLDERS
ARE URGED TO READ THE NOTICE OF ANNUAL MEETING AND PROXY STATEMENT, AND ANY
OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE, BECAUSE
THEY CONTAIN IMPORTANT INFORMATION ABOUT THE FUND AND THE 2008 ANNUAL MEETING OF
SHAREHOLDERS. Shareholders can obtain additional copies of the notice of annual
meeting and proxy statement, including the White Proxy Card, and other documents
filed by the fund with the SEC when they become available, by contacting the
fund at MFS Intermediate Income Trust, 500 Boylston Street, Boston,
Massachusetts 02116, or by telephone at (617) 954-5182. Copies of the proxy
materials may also be requested by contacting the proxy solicitor, The Altman
Group, toll-free at (866) 207-3648. In addition, documents filed with the SEC by
the fund are available free of charge at the SEC's website at
http://www.sec.gov. The fund and its trustees and executive officers may be
deemed to be participants in the solicitation of the fund's shareholders in
connection with its 2008 annual meeting of shareholders. Shareholders may obtain
information regarding the names, affiliations and interests of such individuals
in the definitive proxy statement.
Forward Looking Statements
Statements made in this presentation that look forward in time involve risks and
uncertainties and are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such risks and uncertainties
include, without limitation, the adverse effect from a decline in the securities
markets or a decline in the Fund's performance, a general downturn in the
economy, competition from other closed-end investment companies, changes in
government policy or regulation, inability of the Fund's investment adviser to
attract or retain key employees, inability of the Fund to implement its
investment strategy, inability of the Fund to manage rapid expansion and
unforeseen costs and other effects related to legal proceedings or
investigations of governmental and self-regulatory organizations.
This release is not a prospectus, circular or representation intended for use in
the purchase or sale of Fund shares. Shares of the Fund are not FDIC-insured and
are not deposits or other obligations of, or guaranteed by, any bank. Shares of
the Fund involve investment risk, including possible loss of principal. For more
complete information about the Fund, including risks, charges, and expenses,
please see the Fund's annual and semi annual shareholder report or contact your
financial adviser. The Fund is a closed-end investment product. Shares of the
Fund are only available for purchase/sale on the NYSE at the current market
price. Shares may trade at a discount to NAV.
MFS Investment Management
500 Boylston St., Boston, MA 02116
Contacts:
The Altman Group
Paul Schulman: (866) 207-3648
MFS Investment Management:
John Reilly, 617-954-5305, or Dan Flaherty, 617-954-4256