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Global High Income Fund Inc. — Change to Managed Distribution Policy
UBS Global Asset Management

NEW YORK, May 17, 2012 (BUSINESS WIRE) -- Global High Income Fund Inc. (the "Fund") GHI -0.91% is a non-diversified, closed-end management investment company seeking high current income and secondarily, capital appreciation through investments primarily in securities of emerging market debt issuers. The Fund today announced a revision to the amount of the Fund's monthly distribution paid pursuant to its managed distribution policy (the "Policy").

The Board of Directors of the Fund adopted the Policy in December 1999. Pursuant to the Policy as in effect since its last revision in July 2009, the Fund made regular monthly distributions at an annualized rate equal to 8% of the Fund's net asset value, as determined as of the last day on which the New York Stock Exchange was open for trading during the first week of that month.

The Board has approved a reduction in the annualized rate for distributions pursuant to the Policy from 8% to 7% effective beginning with June's monthly distribution. (The amount of the May distribution, previously announced in a press release issued on May 14, 2012, remains unchanged.) Pursuant to the Policy with respect to distributions paid from June 2005 through July 2009, the annualized rate had been 9%.

The Board believes that this revised rate is appropriate based upon the recommendation of UBS Global Asset Management (Americas) Inc. ("UBS Global AM"), the Fund's investment adviser, in light of the Fund's investment opportunities in the current market environment. Notably, global government bond yields have declined considerably over the last several years and remain at historic lows. At the same time, spreads on many credit sectors--including emerging markets debt--tightened, and local currencies appreciated. ("Spreads" refers to the differences between the yields paid on US Treasury bonds and other types of debt, such as emerging market bonds.) While UBS Global AM maintains its positive long-term outlook for the emerging markets debt asset class, it believes that, given prevailing market yields, the new distribution rate is more appropriate and in line with the Fund's ongoing earnings potential.

To the extent that the Fund's taxable income in any fiscal year exceeds the aggregate amount distributed based on a fixed percentage of its net asset value, the Fund would make an additional distribution in the amount of that excess near the end of the fiscal year. To the extent that the aggregate amount distributed by the Fund based on a fixed percentage of its net asset value exceeds its current and accumulated earnings and profit, the amount of that excess would constitute a return of capital or net realized capital gains for tax purposes. A return of capital may occur, for example, when some or all of the money that shareholders invested in the Fund is deemed to be paid back to shareholders. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income."

The Fund estimates the source characteristics of its monthly distributions. The amounts and sources reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to retroactive changes based on tax regulations. The actual sources of the Fund's regular monthly distributions may be net investment income, net realized capital gains, return of capital or a combination of the foregoing. The Fund sends shareholders a Form 1099-DIV (or a financial intermediary should provide an investor with similar information) for the calendar year that will tell shareholders how to report these distributions for federal income tax purposes.

Monthly distributions based on a fixed percentage of the Fund's net asset value may require the Fund to make multiple distributions of long-term capital gains during a single fiscal year. The Fund has received exemptive relief from the Securities and Exchange Commission that enables it to do so.

The Fund's Board receives recommendations from UBS Global AM periodically, and no less frequently than annually will reassess the annualized percentage of net assets at which the Fund's monthly distributions will be made. The Fund's Board may change or terminate the managed distribution policy at any time without prior notice to Fund shareholders; any such change or termination may have an adverse effect on the market price for the Fund's shares.

Investors should not draw any conclusions about the Fund's investment performance from the amount of the monthly distribution or from the terms of the Fund's managed distribution policy.


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