The Mexico Equity and Income Fund Announces Final In-Kind Repurchase Offer for Preferred Shares

NEW YORK--(Business Wire)--
The Mexico Equity and Income Fund, Inc. (NYSE: MXE)(NYSE: MXEPR) (the "Fund")
announced today that it will be initiating a final offer to repurchase from
holders of the Fund`s preferred stock ("Preferred Stockholders") up to 100% of
the Fund`s issued and outstanding shares of preferred stock in exchange for
portfolio securities of the Fund valued at 99% of the Fund`s per share net asset
value at the close of business on the expiration date of the repurchase offer
(the "Offer"). The expiration date of the Offer is August 14, 2009 at 5:00 P.M.,
New York City time (the "Expiration Date"), unless extended. The Fund intends to
announce preliminary results of the Offer prior to the opening for trading on
the day following the Expiration Date and to make delivery of the applicable
portfolio securities as promptly as possible.

To the extent that any preferred shares continue to be outstanding at the
conclusion of this final tender offer, the Board will consider taking further
actions, as appropriate, to eliminate the Fund`s preferred shares.

Preferred Stockholders desiring to participate in the Offer must comply with the
terms of the Offer which includes establishment or availability of a brokerage
or custodial account in Mexico, submission of information regarding the account
and submission of information necessary for tax purposes. The Offer will
generally be a taxable transaction for participating Preferred Stockholders.

The Fund has received an order from the SEC permitting any holder of voting
securities of the Fund, who may be deemed an "affiliated person" of the Fund
within the meaning of Section 2(a)(3) of the 1940 Act solely as a consequence of
such stockholder`s ownership of 5% or more of the outstanding voting securities
of the Fund to participate in this Offer and future in-kind tender offers.

The terms and conditions of the Offer are set forth in the Fund`s Offer to
Repurchase dated July 13, 2009 and the related Letter of Transmittal.

This announcement is not an offer to purchase nor a solicitation of an offer to
sell shares of the Fund. The Offer is made only by the Offer to Repurchase and
the related Letter of Transmittal. Holders of Fund preferred shares are urged to
read these documents carefully because they contain important information. These
and other filed documents will be available to investors free of charge both at
www.sec.gov and from the Fund. The Offer is not being made to, nor will
submissions be accepted from, or on behalf of, holders of preferred shares in
any jurisdiction in which making or accepting the Offer would violate that
jurisdiction`s laws.

Participating stockholders are reminded in the Offer to Repurchase and the
related Letter of Transmittal that certain Mexican securities brokers or
custodians might choose not to accept repurchase offer proceeds (portfolio
securities of the Fund) on behalf of participating stockholder clients or might
delay acceptance of proceeds until certain additional instructions and
confirmations required by such Mexican securities brokers or custodians were
received. Participating stockholders are advised to consult with their Mexican
securities broker or custodian and to submit any additional instructions or
confirmations before the Expiration Date or as quickly as possible thereafter to
avoid any delay in payment. In order to transfer all of the repurchase offer
proceeds on the Expiration Date, the Fund has established a segregated account
with the Fund's sub-custodian to hold the repurchase offer proceeds for the
benefit of the participating stockholders who had not submitted any additional
instructions or confirmations sought by their Mexican securities broker or
custodian. The proceeds for each such stockholder will be held in this
segregated custodial account until his or her Mexican securities broker or
custodian notifies the Fund that the required documentation has been received
and that the repurchase offer proceeds will be accepted for their participating
stockholder customer. At this point, the Fund will transfer the proceeds for
that stockholder to his or her Mexican securities broker or custodian, for the
account of the stockholder.

The Fund is neither responsible nor liable in any manner for any delay
participating stockholders may experience (as well as any possible fluctuations
in the value of the proceeds) in the receipt of their repurchase offer proceeds
as a result of these additional requirements imposed by certain Mexican
securities brokers or custodians. Participating stockholders whose shares were
accepted for repurchase by the Fund and who are affected by this additional
documentation requirement are urged to confirm with their Mexican securities
broker or custodian the receipt of their repurchase offer proceeds.

The Fund is a closed-end management investment company that seeks high total
return through capital appreciation and current income by investing primarily in
equity and convertible debt securities issued by Mexican companies and debt
securities of Mexican issuers. Pichardo Asset Management, S.A. de C.V. is the
investment adviser to the Fund. The Fund`s common and preferred stocks are
traded on the New York Stock Exchange under the trading symbol "MXE" and
"MXEPR", respectively.

Periodically updated information on the Fund can be obtained by calling the
Fund`s dedicated telephone line or by visiting the Fund`s website at
www.mxefund.com. Information includes a recorded update providing the Fund`s net
asset value. The Fund`s toll free number is (866) 700-6104. Inquiries regarding
change of address, transfer of shares, lost certificates, and non-receipt of
dividend checks or reinvestment statements should be directed to Computershare
Investor Services, P.O. Box A35014, Chicago, IL 60690-3504; (888) 294-8217.

U.S. Bancorp Fund Services, LLC
John Buckel, 414-765-4255

Copyright Business Wire 2009