Global High Income Fund Inc. – Distribution Declaration and Updated Price & Distribution Rate Information

NEW YORK--(BUSINESS WIRE)--

Global High Income Fund Inc. (the "Fund") GHI today announced that the Fund's Board of Directors declared a regular monthly distribution of $0.0658 per share. The distribution is payable on March 31, 2016 to shareholders of record as of March 24, 2016. The ex-distribution date is March 22, 2016.

As previously announced in a press release issued on May 20, 2015, and as discussed below, the Board increased the annualized rate of the Fund's monthly distribution payable under the Fund's managed distribution policy ("Policy") from 6% to 9% of the Fund's net asset value, determined as of the last day on which the New York Stock Exchange is open for trading during the first week of the month. The increased distribution rate became effective with the June 2015 monthly distribution. The prior rate of 6% had been in effect from June 2014 through May 2015.

Based on information available at this time, the Fund estimates that portions of the current regular monthly distribution are comprised of net investment income and return of capital. Further information regarding the estimated sources of the current regular monthly distribution will be provided around month-end. Shareholders should understand, however, that the information provided will be an estimate and is subject to change based on the Fund's investment experience during the remainder of its fiscal year.

The Managed Distribution Policy.

The Fund adopted its managed distribution policy in December 1999. Under the Policy, the Fund makes regular monthly distributions at an annualized rate equal to a stated percentage of the Fund's net asset value, determined as of the last day on which the New York Stock Exchange is open for trading during the first week of the month. The annualized distribution rate is reassessed by the Fund's Board, on a periodic basis and no less frequently than annually. In connection with its reassessment of the distribution rate, the Board receives recommendations from UBS Asset Management (Americas) Inc. ("UBS AM"), the Fund's investment advisor. The Board has changed the distribution rate several times over the years.

Increased Rate of Distribution.

As noted above and as previously disclosed in a press release dated May 20, 2015, the Fund's Board increased the annualized rate of the Fund's monthly distribution from 6% to 9%, effective with the June 2015 monthly distribution. Given that the liquidation of the Fund is expected to occur in April 2016, the present monthly distribution may be the last regular monthly distribution paid by the Fund, as the Fund expects to pay a final liquidating distribution to shareholders no later than April 18, 2016. The actual date of the final distribution will be announced in a subsequent press release. However, the Fund's Board reserves its right to change that distribution rate or to change or terminate the Policy at any time without prior notice to Fund shareholders should the Board determine that to do so would be in the best interests of the Fund in light of unforeseen, changed circumstances from those that prevailed when the 9% annualized distribution rate was adopted in May 2015. Any such change or termination may have an adverse effect on the market price for the Fund's shares and would be announced in a press release.

The Board believed that the increased rate was appropriate based upon the recommendation of UBS AM, and in light of its ongoing consideration of efforts to reduce the discount to NAV at which the Fund's shares recently had traded as of May 2015. Historically, UBS AM and the Board had sought to maintain distribution rates that were more closely aligned with the Fund's expected earnings. In recent years, however, a general decline in prevailing bond yields and narrowing of spreads have reduced the Fund's earnings levels, which resulted in reductions of the monthly distribution rate, which may have contributed to the discount at which the Fund's shares have traded. UBS AM believed that increasing the annualized distribution would help to reduce the Fund's trading discount.

In approving the increased distribution rate, the Fund's Board has effectively de-linked the Fund's managed distribution payments from the level of anticipated Fund earnings. To the extent that the aggregate amount distributed by the Fund under the Policy exceeds its current and accumulated earnings and profits, which is an expected result of the increase discussed above, 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 them. A return of capital distribution does not reflect the Fund's investment performance and should not be confused with "yield" or "income." Of course, if the Fund's earnings and profits in any fiscal year should exceed the aggregate amount distributed under the Policy, no return of capital to the Fund's shareholders would occur, and the Fund would make an additional distribution in the amount of that excess near the end of the fiscal year.

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 its entire 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 a shareholder 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.

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 Policy.

Characteristics as of February 29, 2016*
Net Asset Value per share			$	8.78
Market Price per share			$	8.69
NAV Distribution Rate (DR)				8.99	%
Market Distribution Rate (DR)				9.09	%

*		Net asset value (NAV), market price and distribution rates will fluctuate. NAV distribution rate (DR) is calculated by multiplying the current month's regular monthly distribution by 12 and dividing by the month-end net asset value. Market distribution rate (DR) is calculated by multiplying the current month's regular monthly distribution by 12 and dividing by the month-end market price.

Important Note: As discussed in a press release dated February 24, 2016, the Fund is in the process of being liquidated and expects to make a final liquidating distribution to shareholders in April 2016.

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