Leading Independent Proxy Advisory Firm Supports Trustees of MFS Intermediate Income Trust Against Dissident Karpus Management

Business Wire, Sept 24, 2008

BOSTON -- 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 Ye-  <  <

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.

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.