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RAC INCOME FUND ANNOUNCED EQUITY RIGHTS OFFERING

 RAC INCOME FUND ANNOUNCED EQUITY RIGHTS OFFERING
 COLUMBIA, Md., April 8 /PRNewswire/ -- RAC Income Fund (NYSE: RMF)


today announced that it will initiate a new equity rights offering to its shareholders.
 Subject to the registration statement becoming effective under the Securities Act of 1933, shareholders will receive one right for each full share of common stock owned as of the record date. These rights entitle the holder to acquire one share for each seven rights held. The company said it anticipates the rights offering will commence in early May.
 This offering will cover the right to subscribe for an aggregate of approximately 1,700,000 shares of common stock of the fund. Shareholders are entitled to the additional privilege of over- subscribing for any shares not acquired by exercise of primary subscription rights, subject to certain limitations.
 The subscription price will be the greater of (a) 95 percent of the average of the last reported sales prices of a share of the fund's common stock on the New York Stock Exchange on the pricing date and the four preceding business days, or (b) the net asset value per share of the fund as of the pricing date.
 "We are pleased to offer this opportunity to our shareholders. This offering will enable them to purchase additional shares of the fund at a favorable price," said Thomas H. Potts, president.
 The fund will pay participating broker/dealers a soliciting fee in connection with the subscription of the shares pursuant to the rights. These rights are non-transferable and will not be listed for trading. The timing for this offering will depend on market conditions and other factors.
 RAC Income Fund, a closed-end investment fund, primarily invests in fixed-income mortgage-backed securities that are rated AAA or AA by a nationally recognized rating agency, or are issued or guaranteed by the U.S. government, its agencies or instrumentalities. The fund's goal is to distribute monthly income that is 150 to 200 basis points greater than the rate obtainable from U.S. Treasury securities, having the same maturity as the expected average life of the fund's investments.
 -0- 4/8/92
 /CONTACT: Sylvia R. Gillan of RAC Income Fund, Inc., 410-730-6851/
 (RMF) CO: RAC Income Fund, Inc. ST: Maryland IN: FIN SU: OFR


JS-CC -- PH028 -- 6465 04/08/92 17:22 EDT
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Publication:PR Newswire
Date:Apr 8, 1992
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