PHY Prospect ST HI New

Prospect Street� High Income Portfolio Inc. (the �Fund�) (NYSE: PHY), a diversified, closed-end investment management company, today announced that its Board of Directors has declared Regular distributions on its common stock, for each of the months of March and April 2008, of $0.0235 per share, payable on last business day of each month to holders of record at the close of business ten calendar days prior to such date. The following are annualized historical distribution rate calculations based on the total declared distribution for the month, the Fund�s net asset value (�NAV�) at month-end and the Fund�s month-end closing price (�Market Price�). Annualized Period-End Distribution Rates � Amount � NAV � Market Price � � � � February 29, 2008 $ 0.0235 10.04 % 11.06 % January 31, 2008 $ 0.0235 9.69 % 10.76 % December 31, 2007 $ 0.0235 9.01 % 10.37 % November 30, 2007 $ 0.0235 8.70 % 9.89 % October 31, 2007 $ 0.0235 8.25 % 9.37 % September 28, 2007 $ 0.0235 8.32 % 9.28 % August 31, 2007 $ 0.0235 8.52 % 9.37 % July 31, 2007 $ 0.0235 8.55 % 9.13 % June 29, 2007 $ 0.0235 7.99 % 8.62 % May 31, 2007 $ 0.0235 7.73 % 8.44 % April 30, 2007 $ 0.0235 7.79 % 8.49 % March 30, 2007 $ 0.0230 8.00 % 8.65 % Distribution rates are calculated by annualizing the distribution declared during the period and then dividing the resulting annualized distribution by the month-end NAV (in the case of NAV) or the month-end closing price (in the case of Market Price). The distribution rate is based on an estimation of investment income and may or may not include a return of capital. The distribution rate is based solely on actual distributions, which are made at the discretion of the Board of Directors. This press release is not for tax reporting purposes but is being provided to announce the amount of the Fund�s distributions that have been declared by the Board of Directors. In early 2009, after definitive information is available, the Fund will send stockholders a Form 1099-DIV specifying how the distributions paid by the Fund during the calendar year should be characterized for purposes of reporting the distributions on a stockholder�s tax return (e.g., ordinary income, short-term capital gain, long-term capital gain or return of capital).