Kayne Anderson Energy Total Return Fund, Inc. Announces Its Net Asset Value and Asset Coverage Ratio at November 30, 2008 and Announces Agreement to Repurchase $60 Million of Senior Notes

• Press Release
• Source: Kayne Anderson Energy Total Return Fund, Inc.
• On 7:40 pm EST, Tuesday December 2, 2008

HOUSTON, TX--(MARKET WIRE)--Dec 2, 2008 -- Kayne Anderson Energy Total Return Fund, Inc. (the "Fund") (NYSE:KYE - News) announced that as of November 30, 2008, its net assets were $438 million and its net asset value per share was $13.43 based on 32.6 million shares outstanding. In addition, the Fund has reached an agreement to repurchase $60 million aggregate principal amount of its senior notes series A, B and C (the "Senior Notes"). As of November 30, 2008, the Fund's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness, pro forma for the repurchase of $60 million of Senior Notes as outlined below, was 364%.

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Symbol	Price	Change
KYE	21.25	+0.18

{"s" : "kye","k" : "c10,l10,p20,t10","o" : "","j" : ""}

As of November 30, 2008, equity and fixed income investments were 84% and 16%, respectively, of the Fund's long-term investments of $554 million. Long-term investments were comprised of MLPs and MLP Affiliates (54%), U.S. and Canadian Royalty Trusts (19%), Marine Transportation (10%), Coal (1%) and Energy Debt (16%). As of November 30, 2008, the Fund had short term investments of $103 million in cash and repurchase agreements.

The Fund's ten largest holdings by issuer at November 30, 2008 were:

 

                                                                 Percent of
                                     Units/Par ($)    Amount     Long-Term
                                    (in thousands) ($ millions) Investments
                                    -------------- ------------ -----------
1.   Kinder Morgan Management, LLC
     (MLP Affiliate)                        2,391        $98.6      17.8%
2.   Plains All American Pipeline, L.P.
     (Pipeline MLP)                         1,318         45.1       8.1%
3.   Enterprise Products Partners L.P.
     (Pipeline MLP)                         1,350         28.8       5.2%
4.   Enbridge Energy Management, L.L.C.
     (MLP Affiliate)                          942         26.6       4.8%
5.   Crescent Point Energy Trust
     (Canadian Royalty Trust)                 870         19.1       3.5%
6.   Enerplus Resources Fund
     (Canadian Royalty Trust)                 718         17.1       3.1%
7.   Navios Maritime Holdings, Inc.
     (Marine Transportation)              $25,250         15.2       2.7%
8.   Athabasca Oil Sands Corp.
     (Canadian Upstream)                  $19,500         14.6       2.6%
9.   Nordic American Tanker Shipping
     Limited (Marine Transportation)          467         13.6       2.5%
10.  ARC Energy Trust
     (Canadian Royalty Trust)                 822         13.3       2.4%

The Fund plans to repurchase $60 million of Senior Notes at 103% of par value, as detailed in the table below. The Fund will utilize cash on hand to repurchase the Senior Notes and anticipates closing on December 5, 2008.

 
           Principal
            Before          Principal       Principal
Series    Redemption         Redeemed       Remaining        Maturity
------   ------------      -----------    ------------      ---------
  A       $53,000,000      $44,000,000      $9,000,000      8/13/2011
  B        35,000,000        7,000,000      28,000,000      8/13/2012
  C       137,000,000        9,000,000     128,000,000      8/13/2013
------   ------------      -----------    ------------      ---------
Total    $225,000,000      $60,000,000    $165,000,000

The Fund is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940 whose common stock is traded on the NYSE. 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 materially differ from the Fund's historical experience and its present expectations or projections indicated in any forward-looking statement. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; energy industry risk; commodity pricing risk; leverage risk; valuation risk; non-diversification risk; interest rate risk; tax risk; and other risks discussed in the Fund'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 Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund's investment objectives will be attained.

     Contact:
     KA Fund Advisors, LLC
     Monique Vo
     877-657-3863
     http://www.kaynefunds.com/