Issue of Ordinary Shares

New City High Yield Fund Limited
28 February 2008

 This announcement is not for release, publication or distribution, directly or
 Indirectly, in or into the United States, Canada, Australia, Republic of South
 Africa, Japan or any other jurisdiction in which the same would be unlawful.
 This announcement is not an offer of securities in the United States, Canada,
 Australia, Republic of South Africa, Japan or any other jurisdiction in which
 the same would be unlawful.

                                28 February 2008


                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 intends
to issue up to 9,169,600 ordinary shares of no par value ('Ordinary Shares')
under its block listing facility by means of a placing with institutional and
other investors (the 'Placing').  The number of Ordinary Shares to be issued
pursuant to the Placing is the maximum allowable without publishing a prospectus
under the Prospectus Directive.

The new Ordinary Shares are being issued at a price of 51.61p per share,
representing a premium of 2.25 per cent. to the net asset value of 50.47p per
share (including any net income accrued in the current financial year) as at the
close of business on 27 February 2008 (being the net asset value most recently
calculated by the Company's administrators prior to the issue).

The new Ordinary Shares are being placed by Intelli Stockbrokers with a
combination of existing and new investors, with placing commitment forms being
accepted before 5.00 p.m. today (or such other date as Intelli Stockbroker may
determine).  Any excess demand for new Ordinary Shares in the Placing will be
scaled back on in such manner as Intelli Stockbrokers, in its absolute
discretion, determines.

As the new Ordinary Shares are being 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.

Enquiries
Chris Whittingslow/Richard Howell    Intelli Stockbrokers                      Tel: [phone]
Adam Cooke                           New City Investment Managers Limited      Tel: [phone]
Graeme Ross/Phil Brown               R and H Fund Services (Jersey) Limited    Tel: [phone]

Notes

This announcement is for information purposes only and does not constitute an
offer or invitation to acquire or dispose of any securities or investment advice
in any jurisdiction.

Intelli Corporate Finance Limited and Intelli Stockbrokers (a trading division
of iimia plc) is acting exclusively for the Company and no-one else in
connection with the Placing and will not be responsible to anyone other than the
Company for providing the protections afforded to their customers or for
providing advice in relation to the Placing.

Members of the public are not eligible to take part in the Placing.


                      This information is provided by RNS
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