Prospect Street(R) High Income Portfolio Inc. Announces Declaration of Regular Distribution

DALLAS--(Business Wire)--
Prospect Street(R) High Income Portfolio Inc. (the "Fund") (NYSE:
PHY), a diversified, closed-end management investment company, today
announced that its Board of Directors has declared a regular
distribution on its common stock, for the month of June 2008, 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 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").

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*T

Annualized Period-End
Distribution Rates Amount NAV Market Price
----------------------------- ------------ ----------- ------------

May 30, 2008 $ 0.0235 9.49% 10.76%
April 30, 2008 $ 0.0235 9.72% 10.72%
March 31, 2008 $ 0.0235 10.11% 11.51%
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%
*T

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).

About Prospect Street(R) High Income Portfolio Inc.

Prospect Street(R) High Income Portfolio Inc. is a diversified,
closed-end management investment company. The Fund's investment
objective is to provide high current income, while seeking to preserve
stockholders' capital. The Fund seeks to primarily invest in
fixed-income securities rated in the lower categories by established
rating agencies (rated "BB" or lower by S&P and "Ba" or lower by
Moody's) or nonrated fixed-income securities deemed by the Fund's
investment adviser to be of comparable quality. Highland Capital
Management, L.P. ("Highland") has served as the Fund's investment
adviser since 2000. The Fund's shares are listed on the NYSE under the
symbol "PHY". An investment in the Fund is not appropriate for all
investors. No assurance can be given that the Fund will achieve its
investment objectives.

Shares of closed-end investment companies frequently trade at a
discount to net asset value. The price of the Fund's shares is
determined by a number of factors, several of which are beyond the
control of the Fund. Therefore, the Fund cannot predict whether its
shares will trade at, below or above net asset value.

Highland Capital Management, L.P., the Fund's investment adviser,
is a leading alternative investment management firm specializing in
credit and structured products. Headquartered in Dallas, Texas,
Highland manages assets on behalf of investors around the world with
offices in New York and London.

Past performance does not guarantee future results.

Prospect Street(R) High Income Portfolio Inc.
Shareholder Services, 877-665-1287
hfinfo@hcmlp.com

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