Kayne Anderson Energy Development Company Announces Its Dividend Reinvestment Price

HOUSTON, TX, Jul 31 (MARKET WIRE) --
(NYSE: KED) Kayne Anderson Energy Development Company (the "Company")
announced today that it intends to satisfy the provisions under the
Company's Dividend Reinvestment Plan by issuing shares of common stock at
$22.33 which was its net asset value per share as of July 24, 2008. The
Company is issuing shares of common stock because its closing market
price on July 24, 2008 of $22.53 exceeded its net asset value per share
of $22.33.

About the Company

The Company is a non-diversified, closed-end investment company that
elected to be treated as a business development company under the
Investment Company Act of 1940. The Company's investment objective is to
generate both current income and capital appreciation primarily through
equity and debt investments. The Company will seek to achieve this
objective by investing at least 80% of its net assets together with the
proceeds of any borrowings (its "total assets") in securities of companies
that derive the majority of their revenue from activities in the energy
industry, including: (a) Midstream Energy Companies, which are businesses
that operate assets used to gather, transport, process, treat, terminal
and store natural gas, natural gas liquids, propane, crude oil or refined
petroleum products; (b) Upstream Energy Companies, which are businesses
engaged in the exploration, extraction and production of natural
resources, including natural gas, natural gas liquids and crude oil, from
onshore and offshore geological reservoirs; and (c) Other Energy
Companies, which are businesses engaged in owning, leasing, managing,
producing, processing and sale of coal and coal reserves; the marine
transportation of crude oil, refined petroleum products, liquefied
natural gas, as well as other energy-related natural resources using tank
vessels and bulk carriers; and refining, marketing and distributing
refined energy products, such as motor gasoline and propane to retail
customers and industrial end-users.

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 Company'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 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.

CONTACT:

KA Fund Advisors, LLC
Monique Vo
877-533-1232
http://www.kaynefunds.com

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