SOURCE: Kayne Anderson Energy Total Return Fund, Inc.

July 15, 2008 18:12 ET

Kayne Anderson Energy Total Return Fund, Inc. Files Notice With SEC to Redeem All of Its Currently Outstanding Auction Rate Preferred Shares in Early September 2008

HOUSTON, TX--(Marketwire - July 15, 2008) - Kayne Anderson Energy Total Return Fund, Inc. (the "Fund") (NYSE: KYE) announced today that it has filed with the Securities and Exchange Commission a notice of its intention to redeem $155,875,000 aggregate principal amount, or all the Fund's currently outstanding Series A, B and C auction rate preferred shares ("ARPs"), at 100% of par. The table below sets forth amounts outstanding under each series of ARPs and anticipated redemption dates. The Fund currently expects to finance the redemption using the net proceeds from a private placement of debt securities.

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                                Amount                  Notes
                  Principal     to be        Notes      to be     Expected
Series  CUSIP    Outstanding   Redeemed   Outstanding  Redeemed  Redemption
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  A   48660P203  $58,325,000  $58,325,000    2,333      2,333     September
                                                                   3, 2008
  B   48660P302   39,200,000   39,200,000    1,568      1,568     September
                                                                   4, 2008
  C   48660P401   58,350,000   58,350,000    2,334      2,334     September
                                                                   2, 2008
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Total           $155,875,000 $155,875,000    6,235      6,235
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The Fund is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940. The Fund's investment objective is to obtain a high total return with an emphasis on current income by investing primarily in securities of companies engaged in the energy industry, principally including publicly-traded energy-related master limited partnerships and limited liability companies taxed as partnerships and their affiliates, energy-related U.S. and Canadian royalty trusts and income trusts and other companies that derive at least 50% of their revenues from operating assets used in, or providing energy-related services for, the exploration, development, production, gathering, transportation, processing, storing, refining, distribution, mining or marketing of natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from the Company's historical experience and its present expectations or projections indicated in any forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; MLP industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in the Company's filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Company's investment objectives will be attained.

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