27 April 2011

Greenwich Loan Income Fund Limited ("GLIF" or the "Company")

Review of CLO market exposure and Directorate Change

Consistent with the Company's strategy to take advantage of market opportunities and to optimise returns from our direct and indirect investments in the loan market, the Company today announces two significant steps in that process.

Firstly, Berkshire Capital has been engaged by GLIF to undertake a review of the Company's exposure to the CLO market. This exposure is currently through GLIF's holding of 100% of the residual economics (commonly referred to as an equity interest) of T2 CLO I Ltd ("the CLO"). The purpose of this review is to establish whether GLIF could enhance its return, whilst not materially affecting its risk profile, through the reduction in its holding in the CLO to the point that the CLO is no longer consolidated.  The review will also consider replacement investment opportunities of comparable risk and reward in line with the Company's investment objective.

Were the CLO no longer consolidated the effect would be to substantially reduce management fees paid by GLIF, as the gross assets of the Company would be significantly reduced. Thus both the income and capital prospects for the Company would potentially benefit materially.

In addition, the net asset value of the Company would reduce, as it would no longer reflect the marking to market of liabilities below par, but the net asset value would then be more comparable to other listed loan-focused investment companies.

Given that the risk profile of the CLO is far lower than the average CLO equity and that the wider CLO market is illiquid, shareholders should be aware that there can be no certainty that it will be possible to replace the Company's existing exposure with something of comparable risk and reward, and therefore there cannot be any certainty at this stage that a transaction will complete. The market will be kept informed of developments.

In addition to the review, the Company announces that with effect from 28 April 2011 Geoff Miller will move from his current role as Non-executive Chairman to that of a full time Executive Director of the Company.  Patrick Firth will move from his current role of a Non-executive Director to that of Non-executive Chairman.  Fred Forni will remain in the role of Non-executive Director.

In 2009, when Mr Miller took up his role of Non-Executive Chairman of the Company it was intended that his role would be as a non-executive, overseeing a transition of the Company towards a more mainstream vehicle. However, as the Company has moved from a very focused investment in the CLO to a more diverse exposure to loan markets, and particularly since the acquisition of Asset Management Investment Company plc, Mr Miller has spent the majority of his time managing the capital structure of GLIF, its relationship with the market, liaising with the investment managers and looking at future opportunities for the business.  Mr Miller's appointment as Executive Director will therefore enable him to devote the necessary amount of time to continue to grow the Company and enhance shareholder value.

The investment manager, T2 Advisors, will continue to manage the assets of the Company and their mandate will not change. Mr Miller's new role as Executive Director will focus on the three key areas of investor relations, capital management and corporate strategy.  Mr Miller will continue to seek to improve understanding of the business in the market, will look to further optimise the funding base of the business and will look at opportunities to develop the corporate strategy, both in the US and potentially elsewhere.

In a global environment of rising interest rates, the Board believes that investment businesses focused on loan markets should be well placed to benefit. The Board believes that the proposed changes within GLIF will ensure that the business is in the best possible shape to take advantage of those opportunities in the future.

Contacts:

Geoffrey Miller
Greenwich Loan Income Fund Limited
+353 1 4433 466

Patrick Conroy
Greenwich Loan Income Fund Limited
+1 203 983 5282

Philip Secrett

Nominated Adviser

Grant Thornton UK LLP

+44 (0) 20 7383 5100

James Maxwell
Singer Capital Markets Limited
+44 (0) 20 3205 7650

Ed Gascoigne Pees

Financial Dynamics
+44 (0) 20 7269 7132