Pacholder High Yield Fund Announces Voluntary Redemption
of 800 Shares of Auction Rate Preferred Shares
Pacholder High Yield Fund, Inc.



Cincinnati, OH, December 10, 2008 -- The Pacholder High Yield Fund, Inc. (PHF) announced that it is redeeming 800 shares of its Auction Rate Cumulative Preferred Stock, Series W (the "Preferred Shares") on January 15, 2009 (the "Redemption Date"). The Preferred Shares will be redeemed pursuant to and in accordance with Section 2(a)(i) of the Articles Supplementary. Shareholders will receive the liquidation preference of $25,000 per Preferred Share redeemed plus an amount equal to any accumulated but unpaid dividends (whether or not earned or declared) to January 15, 2009 (the "Redemption Price"). The amount owed to Preferred Shareholders as a result of the redemption of the Preferred Shares will be credited to the record holder of the Preferred Shares. No further dividends will accumulate on the redeemed Preferred Shares on or after the Redemption Date. In addition, upon deposit of the Redemption Price with the Fund's paying agent on December 10, 2008, 800 of the Preferred Shares will no longer be deemed to be outstanding and all rights of the holders of the shares called for redemption shall terminate except the right of such holders to receive the Redemption Price. The Fund has posted a Q&A on the Fund's website at www.phf-hy.com that contains additional information regarding the voluntary redemption.

The Fund is a closed-end diversified management investment company with a leveraged capital structure. Its investment objective is to provide a high level of total return through current income and capital appreciation. Under normal circumstances, the Fund invests at least 80% of the value of its assets in high yield securities. The Fund invests primarily in fixed income securities of domestic companies. The Fund's common stock is traded on the NYSE ALTERNEXT US under the symbol "PHF".



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