Western Asset Managed High Income Fund Inc. (“MHY”) Sets New Rate and Announces Distributions for the Months of December 2010, January and February 2011

Western Asset Managed High Income Fund Inc., which is listed on the New York Stock Exchange under the symbol “MHY”, announced today monthly distributions of $0.0475 per common share for December 2010, and January and February 2011. The Fund had previously paid a monthly distribution of $0.0500 per share.

The distribution schedule appears below:

Month          Ex-Date          Record Date          Payable          Amount          Type
December 12/21/2010 12/23/2010 12/30/2010 $ 0.0475 Income
January 01/19/2011 01/21/2011 01/28/2011 $ 0.0475 Income
February 02/16/2011 02/18/2011 02/25/2011 $ 0.0475 Income

The Fund has decreased its distributions to a level that better approximates the current level of net investment income generated by its investment portfolio. The Fund’s distribution rate has been higher than the overall high yield market; as the Fund reinvests principal and income, the reinvestment rate is lower as high yield spreads have tightened and interest rates remain low.

This press release is not for tax reporting purposes but is being provided to announce the amount of the Fund’s distributions that have been declared by the Board of Directors. In early 2011 and early 2012, after definitive information is available, the Fund will send shareholders a Form 1099-DIV, if applicable, specifying how the distributions paid by the Fund during the respective prior calendar year should be characterized for purposes of reporting the distributions on a shareholder’s tax return (e.g., ordinary income, long-term capital gain or return of capital).

Western Asset Managed High Income Fund Inc., a diversified, closed-end management investment company, is managed by Legg Mason Partners Fund Advisor, LLC, a wholly-owned subsidiary of Legg Mason, Inc., and is sub-advised by Western Asset Management Company, an affiliate of the investment manager.

Contact the Fund at 1-888-777-0102 for additional information, or consult the Fund’s web site at www.leggmason.com/cef.

Data and commentary provided in this press release are for informational purposes only. Legg Mason and its affiliates do not engage in selling shares of the Fund.