MIAMI, FL -- 02/11/08 --
The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ: CUBA) is pleased to announce that $7.94 per share was the reinvestment
price for its $1.28 per share year-end distribution for 2007, payable in
Fund shares unless the stockholder elected to receive cash. Since shares
were trading at a small, 2.02% premium on the payable date of January 9,
2008, and the reinvestment price was calculated as the greater of (1) NAV
or (2) 95% of the then-current market price of the shares; new shares were
issued at the Fund's net asset value on the payable date.
Based on information received by the Fund after year-end 2007 related to
the tax characterization of dividends received by the Fund during calendar
2007, the Fund has revised the tax characterization of its 2007 year-end
distribution. The Fund's $1.28 per share distribution consists of $1.223
per share from net long-term capital gains, and $0.057 per share from net
investment income (rather than $1.05 per share from long-term capital gains
and $0.23 from net investment income as was announced on November 26,
2007.) The distribution was payable on January 9, 2008 to stockholders of
record December 12, 2007 and is taxable to stockholders for the calendar
year 2007. The Fund had requested an extension from the IRS to file its
Form 1099s after January 31, 2008, and expects to send such notices to
stockholders shortly.
Including this distribution, The Herzfeld Caribbean Basin Fund, Inc. has
paid a total of $3.966 per share in distributions since the Fund's
inception in 1994.
The Herzfeld Caribbean Basin Fund, Inc. is a closed-end fund managed by
HERZFELD/CUBA a division of Thomas J. Herzfeld Advisors, Inc. (based in
Miami). The Fund seeks long-term capital appreciation. To achieve its
objective the Fund invests in issuers that are likely, in the Advisor's
view, to benefit from economic, political, structural and technological
developments in the countries in the Caribbean Basin, which the Fund
considers to consist of Cuba, Jamaica, Trinidad and Tobago, the Bahamas,
the Dominican Republic, Barbados, Aruba, Haiti, the Netherlands Antilles,
the Commonwealth of Puerto Rico, Mexico, Honduras, Guatemala, Belize, Costa
Rica, Panama, Colombia, Venezuela and the United States.
Thomas J. Herzfeld Advisors, Inc. specializes in the field of closed-end
funds. Information about the advisor and the Fund can be found at
www.herzfeld.com.
For further information contact:
Cecilia L. Gondor
305-271-1900
Thomas J. Herzfeld Advisors, Inc.
PO Box 161465
Miami, FL 33116
www.herzfeld.com
