Capital Reorganisation

New City High Yield Fund Limited
14 June 2007

                        NEW CITY HIGH YIELD FUND LIMITED


                                  (the 'Fund')


                                  Announcement

With effect from 24 May 2007 and in accordance with Article 62 of the Companies
 (Jersey) Law 1991, as amended (the 'Law') and in accordance with Article 61 of
 the Law, the aggregate sum standing to the credit of the Fund's stated capital
 account was reduced by an amount equal to 75% of such stated capital account.
   The sum was credited to a special reserve for any or all of the following
                                   purposes:


 1. for the purpose of providing a source from which the Fund may purchase its
    own ordinary shares from time to time in accordance with Article 57 of the
    Law; and

 2. for the purpose of being applied in writing off the Fund's preliminary
    expenses.

 3. to create a distributable reserve out of which dividends may be declared and
    paid by the Fund from time to time pursuant to Article 115 of the Law;


 Any queries relating to this announcement should be directed to Graeme Ross of
the administrator, R&H Fund Services (Jersey) Limited at Ordnance House, 31 Pier
Road, St. Helier, Jersey, Channel Islands JE4 8PW (T: [phone] F: +44
                                (0) 1534 825247)



                      This information is provided by RNS
            The company news service from the London Stock Exchange