Board Approves Leverage Refinancing Plan for MFS Municipal Income Trust, MFS Investment Grade Municipal Trust, MFS California Municipal Fund, MFS High Income Municipal Trust, and MFS High Yield Municipal Trust

BOSTON (February 10, 2016) – MFS Municipal Income Trust (NYSE: MFM), MFS Investment Grade Municipal Trust (NYSE: CXH), MFS California Municipal Fund (NYSE MKT: CCA), MFS High Income Municipal Trust (NYSE: CXE), and MFS High Yield Municipal Trust (NYSE: CMU) today announced that the Board of Trustees of each fund has approved a refinancing plan that is expected to result in the outstanding leverage remaining unchanged for each fund. As part of the refinancing plan, each fund plans to redeem all of its currently outstanding Variable Rate Municipal Term Preferred Shares, Series 2016/9 (the “Series 2016/9 VMTPS”) which have a September 2016 maturity date. In addition, each of MFM, CXH, CXE and CMU plan to redeem all of its currently outstanding auction rate municipal preferred shares (“ARPS”). The redemption of each fund’s respective Series 2016/9 VMTPS and ARPS will be subject to the receipt of financing in the form of new preferred leverage. The Series 2016/9 VMTPS and ARPS will be redeemed at their respective liquidation preferences per share plus additional amounts representing any dividend amounts owed. Taking into account the relatively small amount of ARPS of each fund that remain outstanding following tender offers conducted in 2012, the availability of replacement leverage and other factors, the respective Board of each fund approved the redemption of the remaining ARPS at full liquidation preference as being in the best interests of the fund and its shareholders.

Details regarding the specific terms and timing of the above-described redemptions will be communicated as appropriate at a later date through filings with the Securities and Exchange Commission and public press releases.

About MFS Investment Management
Established in 1924, MFS is an active, global asset manager with investment offices in Boston, Hong Kong, London, Mexico City, São Paulo, Singapore, Sydney, Tokyo and Toronto. We employ a uniquely collaborative approach to build better insights for our clients. Our investment approach has three core elements: integrated research, global collaboration and active risk management. As of January 31, 2016, MFS manages US$397.6 billion in assets on behalf of individual and institutional investors worldwide.

Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in a fund’s performance, a general downturn in the economy, competition from other closed-end investment companies, changes in government policy or regulation, inability of a fund’s investment adviser to attract or retain key employees, inability of a fund to implement its investment strategy, inability of a fund to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.

MFS Investment Management:
Shareholders or Advisors (investment product information):
Jeff Schwarz, 800-343-2829, ext. 55872

Media Only:
James Aber, 617-954-6154, or Dan Flaherty, 617-954-4256

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