Reconstruction Proposals

ACM European Enhanced Inc.Fund PLC
29 July 2005


ACM EUROPEAN ENHANCED INCOME FUND PLC


RECONSTRUCTION PROPOSALS


29 JULY 2005


ACM European Enhanced Income Fund plc (the 'Company') was launched in November
1999 as a London-listed closed-ended investment company incorporated in Ireland.
  The Company's investment objective is to provide a high level of income
through investment in European and other corporate and sovereign fixed income
securities.  Under the Company's articles of association its directors (the '
Directors') are obliged to propose, at the annual general meeting after the year
ended 31 December 2004, a special resolution to the effect that the Company
continue in existence for a further period of approximately five years (the '
Continuation Resolution').

The Directors have been informed that holders of a significant percentage of the
Company's shares (the 'Shares') wish to realise their investment in the Company.
  The Directors therefore announce their intention to put forward, in lieu of
the Continuation Resolution, proposals for the winding-up of the Company (the '
Proposals').  It is envisaged that the Proposals will enable Shareholders to
realise their investment for cash or to continue their investment through a
roll-over option into New City High Yield Trust plc ('New City High Yield').

New City High Yield is an existing London-listed investment trust, managed by
New City Investment Managers Limited, with total assets of £33.8 million as at
26 July 2005.  Its investment objective is to provide investors with a high
dividend yield and the potential for capital growth by investing mainly in high
yielding fixed interest securities.  New City High Yield has today announced
proposals for an aggregate issue of up to £45 million of new shares by means of
a placing and an offer for subscription and an issue to those of the Company's
Shareholders electing to roll-over their investment.

The Proposals as envisaged are conditional on the approval of Shareholders, the
Irish Financial Services Regulatory Authority and the UK Financial Services
Authority.  A further announcement and a circular detailing the proposals and
convening the Company's annual general meeting will be published in due course.


For further information please contact:

David Benda / Nathan Brown
Close Brothers Securities, Corporate Stockbroker
Tel. [phone] / 5572


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