RMR Hospitality & Real Estate Fund Sues Its Largest Shareholder.

SADDLE BROOK, N.J. -- Bulldog Investors General Partnership ("BIGP"), the largest shareholder of RMR Hospitality & Real Estate Fund ("RHR") (AMEX: RHR) today announced that RHR has sued BIGP to enforce a purported ownership limitation on RHR's stock. RHR's lawsuit was filed after BIGP publicly announced its intention to nominate directors for an election at the next annual meeting and to propose shareholders vote to terminate RHR's advisory agreement with RMR Advisors, Inc.

Phillip Goldstein, a principal of BIGP, commented:

We believe that RHR imposes a limitation that is not in the best interest of its shareholders and is discriminatory because RMR Advisors is exempt from the provision. After we brought this concern to management's attention, Thomas M. O'Brien, RHR's President and a principal of RMR Advisors advised us that "shareholder democracy" is "inappropriate" for RHR and is incompatible with its business plan.

The Investment Company Act of 1940 has a policy to prevent investment companies like RHR from issuing stock that has unequal voting rights or contains inequitable or discriminatory provisions. Ignoring the policies of the Investment Company Act of 1940, the RHR's board adopted a provision in its Agreement and Declaration of Trust that bars anyone other than RMR Advisors or its affiliates from acquiring more than 9.8% of RHR's shares.

Mr. Goldstein added: "We are hopeful that the court will take a more hospitable view of shareholder rights than Mr. O'Brien. The primary purpose of management's tactics including this lawsuit is pretty obvious."