PHY Prospect ST HI New

Prospect Street� High Income Portfolio, Inc. (NYSE: PHY), a diversified, closed-end investment management company, today announced that its Board of Directors has declared a Regular distribution on its common stock, for the month of December 2007, of $0.0235 per share, payable on last business day of the month to holders of record at the close of business ten calendar days prior to such date. The distribution rate is based on an estimation of investment income and may or may not include a return of capital.