Exhibit 99.1
MFS Intermediate High Income Fund Announces Revisions to Investment Objective and Strategies
BOSTON (December 21, 2007) – The Board of Trustees of MFS Intermediate High Income Fund* (NYSE: CIF) has approved changes to the investment objective and policies of the fund. Effective December 21, 2007, CIF’s current investment objective of seeking “high current income and total return by investing primarily in lower-rated corporate debt securities” will be revised to provide that CIF will seek “high current income but may also consider capital appreciation.” CIF’s principal investment strategies are described below.
Significant items to note in connection with the changes include:
| • | CIF will invest at least 80% of its net assets in high income debt instruments. |
| • | Percentage limitations on certain types of investments have been eliminated to allow the portfolio manager more flexibility to invest in appropriate securities. |
| • | The fund may invest up to 100% of its assets in lower quality debt instruments. |
| • | Certain limitations on the fund’s ability to invest in derivatives have been removed. |
CIF’s principal investment strategies, as revised effective December 21, 2007, are described below:
Principal Investment Strategies
MFS normally invests at least 80% of the fund’s net assets in high income debt instruments. MFS may invest the fund’s assets in other types of debt instruments and equity securities. MFS may invest up to 100% of the fund’s assets in lower quality debt instruments, including those that are in default.
MFS may invest the fund’s assets in foreign securities, including emerging market securities.
The fund’s dollar-weighted average life will normally be between three and ten years. In determining an instrument’s life for purposes of calculating the fund’s average life, an estimate of the average time for its principal to be paid is used. This can be substantially shorter than its stated maturity.
MFS may invest the fund’s assets in mortgage dollar rolls.
MFS may use derivatives for different purposes, including to earn income and enhance returns, to increase or decrease exposure to a particular market, to manage or adjust the risk profile of the fund, or as alternatives to direct investments.
MFS uses a bottom-up investment approach in buying and selling investments for the fund. Investments are selected primarily based on fundamental analysis of instruments and their issuers in light of current market, economic, political, and regulatory conditions. Factors considered may include the instrument’s credit quality, collateral characteristics, and indenture provisions, and the issuer’s management ability, capital structure, leverage, and ability to meet its current obligations. Quantitative analysis of the structure of the instrument and its features may also be considered.
The fund may use leverage by borrowing up to 331/3% of the fund’s gross assets and investing the proceeds pursuant to its investment strategies.
MFS Intermediate High Income Fund is advised by MFS Investment Management. MFS manages $204 billion in assets on behalf of more than 5 million individual and institutional investors worldwide as of September 30, 2007. The company traces its origins to 1924 and the creation of America’s first mutual fund.
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*Formerly Colonial Intermediate High Income Fund
This announcement is not a prospectus, circular or representation intended for use in the purchase or sale of Trust shares. Shares of the Trust are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Shares of the Trust involve investment risk, including possible loss of principal. For more complete information about the Trust, including risks, charges, and expenses, please see the Trust’s annual and semi annual shareholder report or contact your financial adviser.
The Trust is a closed-end investment product. Shares of the Trust are only available for purchase/sale on the NYSE at the current market price. Shares may trade at a discount to NAV.
MFS Fund Distributors, Inc.
500 Boylston St., Boston, MA 02109
12861.1
Contacts:
Computershare Shareholders Services:
Shareholders (account information, quotes): 800-637-2304
MFS Investment Management:
Shareholders or Advisors (investment product information):
Jed Koenigsberg, 617-954-5697
Media Only:
John Reilly, 617-954-5305, or Dan Flaherty, 617-954-4256
