BOSTON, MA--(Marketwire - May 10, 2012) - The New America High Income Fund, Inc. (NYSE: [ HYB ])

On May 2, 2012, Moody's Investors Service ("Moody's"), one of two nationally recognized statistical rating organizations (each, an "NRSRO") currently rating The New America High Income Fund's ("Fund") Auction Term Preferred Stock ("ATP"), announced changes to its methodology for rating securities issued by closed-end registered investment companies, such as the Fund. Moody's also announced that it will be reviewing all the closed-end funds it rates under the revised methodology for a possible downgrade. The Fund's ATP currently has a credit rating in the highest rating category from Moody's and from Fitch Ratings ("Fitch"). Fitch affirmed its rating on March 1, 2012. Under the Fund's charter, the ATP must maintain a credit rating in the highest rating category from at least two NRSROs, one of which must be either Moody's or Standard & Poor's Ratings Services ("S&P"). Moody's revised methodology generally provides that a closed-end fund's preferred stock may not receive Moody's highest credit rating. For this reason, it is anticipated that Moody's upcoming review will result in a downgrade by Moody's of the ATP. If Moody's downgrades the ATP and the Fund is unable to obtain a credit rating for the ATP from S&P in its highest rating category within 90 days, the Fund will be required to redeem all of its outstanding ATP (approximately $85.0 million par value) within 30 days thereafter. In addition, beginning with a downgrade and until the ratings criteria in the Fund's charter are satisfied or the ATP is redeemed, the dividend rate for the ATP would increase from its current rate of 150% of the 30-day AA composite commercial paper rate to 300% of the 30-day AA composite commercial paper rate. The Fund intends to consider its options in anticipation of a possible downgrade of the ATP by Moody's, which may include (i) seeking a rating for the ATP from S&P that would satisfy the ratings criteria in the Fund's charter or (ii) arranging for alternative financing to replace the ATP. Depending on the Fund's success, if any, in pursuing such options, the Fund's leveraged capital structure may need to be eliminated or scaled back, which in turn would likely reduce net income otherwise available in the future for distribution to holders of the Fund's common stock. Furthermore, alternative financing would likely be more costly to the Fund than the ATP, which would also reduce net income otherwise available for distribution to common stockholders.

The New America High Income Fund, Inc. is a diversified, closed-end management investment company with a leveraged capital structure. The Fund's investment adviser is T. Rowe Price Associates, Inc. ("T. Rowe Price"). As of December 31, 2011, T. Rowe Price and its affiliates managed approximately $489.5 billion of assets, including approximately $19.4 billion of "high yield" investments. T. Rowe Price has provided investment advisory services to investment companies since 1937.

This press release contains forward-looking statements, which you can identify by the use of words such as "anticipate" and "intends" and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Fund's control and could materially affect actual results or performance. These factors include, without limitation, the Fund's ability to obtain a rating for the ATP from S&P that would satisfy the ratings criteria in the Fund's charter, the availability and cost of alternative financing to replace the ATP, regulatory changes, and other risks and uncertainties. The Fund does not undertake a duty to update or revise any forward-looking statement, including its actions in response to a possible downgrade of the ATP by Moody's, whether as a result of new information, future events or otherwise.