SOURCE: Bancroft Fund Ltd.

February 12, 2007 15:31 ET

Bancroft Fund Ltd. Announces Dividend, Earnings and Financial Update

MORRISTOWN, NJ -- (MARKET WIRE) -- February 12, 2007 -- Bancroft Fund Ltd. (AMEX: BCV) today reported financial highlights and certain portfolio information for the three months ended January 31, 2007.

The Fund declared its one hundred forty-fifth quarterly dividend today. The twenty-one cents (0.21) per share dividend is payable from net investment income, and represents an increase of $0.03 over the previous year's first quarter dividend:

$0.21 per share          Payable Date        Record Date
from ordinary income     March 29, 2007      March 15, 2007


Earnings Report                    Three Months Ended
                                       January 31

                                   2007          2006
                               ------------  ------------

Net Income                       $1,292,000    $1,482,000
  Per Share                           $0.23         $0.26
Shares Outstanding                5,733,016     5,625,134
Total Net Assets               $130,130,000  $124,115,000

Net Asset Value Per Share            $22.70        $22.06
Annual Shareholders Meeting Results

The following actions were taken at the Annual Shareholders meeting on Monday February 12th: (1) three trustees were elected and (2) the selection of Tait, Weller & Baker LLP as independent auditors for the 2007 fiscal year was ratified.

Fund Statistics as of January 31,   Top Ten Holdings by underlying common
 2007                                stock as of January 31, 2007
                                                            % of Net Assets
Market price               $19.80   The Walt Disney Company        3.8
Net asset value (NAV)      $22.70   Nuveen Investments, Inc.       2.6
Premium/(Discount)       (12.78)%   The St. Paul Travelers
Total Net Assets     $130,130,000    Companies, Inc.               2.6
12-Month income                     Celanese Corp.                 2.3
 distribution             $0.8050   LSB Industries, Inc.           2.3
Yield on market price       4.07%   Prudential Financial, Inc.     2.3
Ratio of expenses           1.08%*  Bristol-Myers Squibb Co.       2.0
Ratio of net income         4.05%*  Chesapeake Energy Corp.        2.0
Portfolio Turnover         16.22%   EchoStar Communications Corp.  2.0
Shares outstanding      5,733,016   U.S. Bancorp                   2.0
* Annualized

Major Industry Exposure as of       Portfolio Ratings from Moody's
 January 31, 2007                   as of January 31, 2007
                  % of Net Assets   (From S&P when Moody's is unavailable)
Insurance                    12.7
Pharmaceuticals              10.5                      % of Portfolio
Semiconductors               10.5      Aa                     13
Energy                        9.2      A                      15
Banking/Savings and Loan      6.7      Baa                    20
Entertainment                 5.8      Ba                      7
Multi-Industry                5.2      B                      19
Aerospace and Defense         4.8      Caa                     1
Computer Hardware             4.0      NR                     25
Chemicals                     3.7

Asset Allocation as of January 31, 2007

                  % of Net Assets
Convertible Bonds & Notes    61.9
Convertible Preferred Stock  17.4
Mandatory Convertibles       16.3
Short-term Securities         3.5
Other Assets                  0.9
Data is unaudited and as of January 31, 2007. This selected information should be read in conjunction with the financial statements and notes included in the Company's Annual Report to Shareholders for the twelve months ended October 31, 2006.

Detailed portfolio information is available on our website (http://www.bancroftfund.com). 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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