Issue of Ordinary Shares

New City High Yield Fund Limited
18 December 2007

                                18 December 2007

                NEW CITY HIGH YIELD FUND LIMITED (the 'COMPANY')

                          ISSUE OF ORDINARY SHARES

The board of New City High Yield Fund Limited announces that the Company has
issued 3,500,000 ordinary shares of no par value ('Ordinary Shares') under its
block listing facility.  The new Ordinary Shares were issued today at a price of
52.55p per share, representing a premium of 2.25 per cent. to the net asset
value of 51.39p per Ordinary Share (including any income accrued in the current
financial year) as at the close of business on 17 December 2007 (being the net
asset value most recently calculated by the Company's administrators prior to
the issue).  The new Ordinary Shares have been placed by Intelli Stockbrokers
with a combination of existing and new investors.

As the new Ordinary Shares have been issued at a price which represents a
premium to the prevailing net asset value per Ordinary Share (after taking into
account the costs incurred by the Company in connection with their issue), their
issue is not disadvantageous to existing shareholders.

The Company's issued share capital now comprises 130,196,828 Ordinary Shares.

Enquiries
Chris Whittingslow                     Intelli Corporate Finance Limited            Tel: [phone]
Adam Cooke                             New City Investment Managers Limited         Tel: [phone]
Graeme Ross/Vickie Masters             R and H Fund Services (Jersey) Limited       Tel: [phone]




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