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Global High Income Fund Inc. – Change To Managed Distribution Policy

Global High Income Fund Inc. (the "Fund") (NYSE: GHI) 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.

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