Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Concerning Certain Mutual Funds Offered by Morgan Keegan Select Fund Inc. and RMK Multi-Sector High Income Fund, Inc

Business Wire, Dec 21, 2007

SAN DIEGO -- Coughlin Stoia Geller Rudman & Robbins LLP ("Coughlin Stoia") (http://www.csgrr.com/cases/morgankeegan/) today announced that a class action has been commenced in the United States District Court for the Western District of Tennessee on behalf of all persons who purchased or otherwise acquired the shares of certain mutual funds offered by Morgan Keegan Select Fund Inc. ("MK Select"), including the Regions Morgan Keegan Select High Income Fund (the "High Income Fund") (Class A:MKHIX; Class C:RHICX; Class I:RHIIX), the Regions Morgan Keegan Select Intermediate Bond Fund (the "Intermediate Fund") (Class A:MKIBX; Class C:RIBCX; Class I:RIBIX) and the Regions Morgan Keegan Select Short Term Bond Fund (the "Short Term Fund") (Class A:MSBIX; Class C:RSTCX; Class I:MSTBX) (collectively the "Select Funds"), or shares of the RMK Multi-Sector High Income Fund, Inc. (the "RHY Fund") (RHY) (the Select Funds and the RHY Fund are collectively referred to as the "Funds"), pursuant and/or traceable to MK Select's and the RHY Fund's false and misleading Registration Statements and Prospectuses since December 6, 2004.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from December 6, 2007. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, Darren Robbins of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/morgankeegan/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges the Funds' registrants, the Funds' administrator, Morgan Keegan & Company, Inc. ("Morgan Keegan"), the Funds' adviser, Morgan Asset Management, Inc., Regions Financial Corp. and certain of Morgan Keegan's officers and/or directors with violations of the Securities Act of 1933.

The complaint alleges that parts of the Funds' portfolios have been invested in collateralized debt obligations ("CDOs"), including CDOs backed by subprime mortgages to higher-risk borrowers. For years, shares of the Funds traded within narrow ranges. Then in early March 2007, as the subprime crisis began to emerge, the Funds began to trend lower as the market learned of their exposure to the subprime market. Nonetheless, the shares of the Funds continued to trade at artificially inflated prices as the full extent of the Funds' exposure had not yet been revealed. As late as the summer of 2007, as the housing and credit crisis deepened, MK Select and the RHY Fund continued to play down and conceal the Funds' growing exposure to the problems in the subprime market. Beginning in early July 2007, the Funds began to acknowledge serious problems in their portfolios related to the Funds' exposure to the subprime market. Then on November 7, 2007, Portfolio Manager James C. Kelsoe wrote a letter to investors in which he acknowledged the full extent of the problems the portfolios faced due to the deterioration in the housing sector and the subprime mortgage crisis.

As a result of these disclosures, the price of the Select Funds' shares collapsed. The High Income Fund Class A shares closed at $4.53 per share on November 8, 2007, a decline of 51% from early July 2007. Likewise, the Intermediate Fund Class A shares closed at $5.88 per share on November 8, 2007, a decline of 38% from early July 2007. Additionally, the Short Term Fund Class A shares closed at $8.84 per share on November 8, 2007, a decline of 12% from early August 2007. The price of the RHY Fund shares also collapsed. The RHY Fund shares closed at $5.41 per share on November 8, 2007, a decline of 63% from early July 2007.

According to the complaint, the true facts which were omitted from the Registration Statements/Prospectuses were as follows: (a) the Funds lacked adequate controls and hedges to minimize the risk of loss from mortgage delinquencies which affected a large part of their portfolios; (b) the Funds' portfolios were materially misstated due to their failure to properly value CDOs; and (c) the extent of the Funds' risk exposure to mortgage-backed assets was misstated.

Plaintiffs seek to recover damages on behalf of all persons who purchased or otherwise acquired shares of the Select Funds and/or the RHY Fund pursuant and/or traceable to MK Select's and the RHY Fund's false and misleading Registration Statements and Prospectuses. The plaintiffs are represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Coughlin Stoia lawyers have been responsible for more than $45 billion in aggregate recoveries. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.