Yieldplus Income Fund - Rights Offering



    TORONTO, Feb. 13 /CNW/ - Yieldplus Income Fund (the "Fund") is pleased to
announce that it has filed a final prospectus in connection with an offering
of Rights to its unitholders to subscribe for Units (the "Rights Offering").
Unitholders of record at the close of business (Toronto time) on February 22,
2008 will receive one Right for each Yieldplus Unit held on the record date.
The Rights will commence trading on the Toronto Stock Exchange under the
symbol YP.RT on February 20, 2008. Three Rights will entitle the holder to
purchase one Yieldplus Unit at a price of $9.25 until 4:00 p.m. (Toronto time)
on March 25, 2008, at which time all unexercised Rights will expire with
closing of exercised Rights to occur shortly thereafter. If all the Rights are
exercised, the Fund will issue approximately 13 million Units and receive net
proceeds of approximately $118 million. The subscription price of $9.25
represents a discount to the closing market price as at February 5, 2008 of
approximately 14%.
    Each holder of Rights who subscribes for all of the Units to which that
holder is entitled under the Basic Subscription Privilege may subscribe for
any number of additional Units, if available, at a price equal to the
subscription price for each additional Unit, subject to availability. Units
issued pursuant to this Rights Offering will participate in the March 2008
distribution. The directors and officers of the Manager who own Units intend
to exercise all their Rights to acquire Units under the Basic Subscription
Privilege.
    The net proceeds of the Rights Offering will be invested by the Fund in
accordance with its investment objectives. The Fund's investment objectives
are to (i) pay monthly distributions to Unitholders, (ii) return to
Unitholders upon the termination of the Fund at least the original
subscription price of the Units, and (iii) enhance long-term total return
through capital appreciation of the Portfolio. The Fund diligently selects and
actively manages a diversified portfolio comprised primarily of high yielding
equity securities of issuers operating in various industries and geographic
regions. On an annualized basis, the current distribution rate of $1.20 per
Unit represents a cash-on-cash yield of approximately 11.2% based on a Unit
market price of $10.72 as at February 5, 2008. As at December 31, 2007, the
Fund generated annualized returns of 6.6% for the past year, 11.7% for three
years and 15.1% since inception (assuming the reinvestment of distributions).
    Yieldplus Income Fund trades on the Toronto Stock Exchange under the
symbol YP.UN.

    Certain statements in this press release may constitute forward-looking
information, including statements regarding cash-on-cash yield.
Forward-looking statements are subject to various risks and uncertainties that
could cause estimates to differ materially from the expectations expressed,
including the risk that the per Unit distributions may decrease below the
amount used in calculating the cash-on-cash yield, which could occur for
various reasons beyond the control of the Fund such as a decrease in the
distributions paid by the issuers of securities included in the Fund's
portfolio or a change in general economic conditions. The forward-looking
information contained in this press release constitutes the Fund's current
estimate, as of the date of this press release, with respect to the matters
covered hereby. Investors and others should not assume that any
forward-looking statement contained in this press release represents the
Fund's estimate as of any date other than the date of this press release.




For further information:

For further information: or to obtain a copy of the prospectus, please
visit our website at www.middlefield.com or contact Nancy Tham, Senior
Vice-President, at (416) 847-5349 or toll-free at 1-888-890-1868

Organization Profile

YIELDPLUS Income Fund

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