SOURCE: Bancroft Convertible Fund, Inc.

August 16, 2005 13:55 ET

Bancroft Convertible Fund, Inc. Announces Dividend, Earnings and Financial Update

MORRISTOWN, NJ -- (MARKET WIRE) -- August 16, 2005 -- Bancroft Convertible Fund, Inc. (AMEX: BCV) today reported financial highlights and certain portfolio information for the nine months ended July 31, 2005.

The Fund declared its one hundred thirty-ninth quarterly dividend today:

$0.17 per share
from ordinary           Payable Date            Record Date
income               September 29, 2005      September 15, 2005



Earnings Report         Three Months Ended           Nine Months Ended
                             July 31                      July 31
                       2005           2004           2005         2004
                    ------------  ------------  ------------  ------------
Net Income            $1,283,000    $1,140,000    $3,026,000    $2,987,000
  Per Share                $0.23         $0.21         $0.54         $0.54
Shares Outstanding     5,588,453     5,557,138     5,588,453     5,557,138
Total Net Assets    $118,833,000  $112,412,000  $118,833,000  $112,412,000

Net Asset Value
 Per Share                $21.26        $20.23        $21.26        $20.23


Fund Statistics as of                Top Ten Holdings by underlying common
July 31, 2005                            stock as of July 31, 2005

                                                            % of Net Assets
Market price             $18.25     Chesapeake Energy Corp.           3.5
Net asset value (NAV)    $21.26     The Walt Disney Company           2.6
Premium/(Discount)       (14.16)%   The St. Paul Travelers
Total Net Assets   $118,833,000      Companies, Inc.                  2.4
12-Month income                     International Rectifier Corp.     2.3
 distribution            $0.698     Semco Energy, Inc.                2.3
Yield on market                     Washington Mutual, Inc.           2.3
 value                     3.82%    Nuveen Investments, Inc.          2.2
Ratio of expenses          1.19%*   Weatherford International Ltd.    2.2
Ratio of net income        3.49%*   Schering-Plough Corp.             2.1
Portfolio turnover        64.96%    The Williams Companies, Inc.      2.1
Shares outstanding    5,588,453
* Annualized

Major Industry Exposure as of         Portfolio Ratings from Moody's
 July 31, 2005                          as of July 31, 2005
                 % of Net Assets     (From S&P when Moody's is unavailable)
Energy                     16.1
Financial and Insurance    13.2                             % of Portfolio
Pharmaceuticals            11.4       Aa                                7
Technology                  9.6       A                                 8
Banking/Savings and Loan    9.4       Baa                              27
Health Care                 6.4       Ba                               14
Telecommunications          5.4       B                                24
Chemicals                   3.7       < B                               1
Entertainment               3.4       NR                               19
Retail                      3.3

Asset Allocation as of July 31, 2005

                             % of Net Assets
Convertible Bonds & Notes               51.2
Convertible Preferred Stocks            26.7
Mandatory Convertible Securities        18.1
Short-term Securities                    3.4
Other Assets                             0.6
Data is unaudited and as of July 31, 2005. This selected information should be read in conjunction with the financial statements and notes included in the Company's Semi-Annual Report to Stockholders for the six months ended April 30, 2005.

Detailed portfolio information is available on our website (http://www.bancroftfund.com). Visit us there or contact us by email at info@bancroftfund.com or call us at (973) 631-1177.

Bancroft is a diversified closed-end management investment company. Bancroft's investment objective is to seek a high level of total return on its assets through a combination of current income and capital appreciation. It seeks to achieve this objective by investing primarily in convertible securities.

AMEX - BCV

Cusip 059695106

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