Bancroft Fund Ltd. Announces Earnings and Financial Update

Bancroft Fund Ltd. (AMEX: BCV) today reported earnings, financial highlights and certain portfolio information for the nine months ended July 31, 2008:

EARNINGS REPORT            Three Months Ended         Nine Months Ended
                                 July 31                  July 31
                            2008         2007        2008         2007
                        ------------ ------------ ------------ ------------


Net Income                  $970,000   $1,309,000   $3,127,000   $3,647,000
   Per Share                   $0.19        $0.23        $0.60        $0.64
Shares Outstanding         5,189,875    5,733,016    5,189,875    5,733,016
Total Net Assets        $100,760,000 $133,301,000 $100,760,000 $133,301,000
Net Asset Value
 Per Share                    $19.41       $23.25       $19.41       $23.25

FUND STATISTICS                        TOP TEN HOLDINGS
                                         by underlying              % of
                                          common stock           Net Assets
Market value                 $16.80   Prudential Financial, Inc.        3.9
Net asset value (NAV)        $19.41   Chesapeake Energy Corp.           3.2
Premium/(Discount)           (13.45)% LSB Industries, Inc.              3.1
Total Net Assets       $100,760,000   Freeport-McMoRan Copper
                                       & Gold Inc.                      2.8
12-Month income distribution $0.796   New York Community Bancorp, Inc.  2.6
Yield on market value          4.74%  LSI Corp.                         2.5
Ratio of expenses              1.20%* The Walt Disney Company           2.5
Ratio of net income            3.74%* Wyeth                             2.5
Portfolio turnover            35.44%  Oil States International, Inc.    2.4
Shares outstanding        5,189,875   Companhia Vale do Rio Doce        2.3
* Annualized

MAJOR INDUSTRY
 EXPOSURE           % of Net Assets   QUALITY ALLOCATION FROM MOODY'S
                                     (From S&P when Moody's is unavailable)
Energy                         14.4
Pharmaceuticals                11.6             % of Portfolio
Insurance                       7.8   Aa               8
Telecommunications              6.7   A               18
Semiconductors                  6.0   Baa             16
Banking/Savings and Loan        5.8   Ba               3
Minerals and Mining             5.1   B               20
Consumer Goods                  5.0   Caa              4
Computer Hardware               4.9   Not Rated       32
Health Care                     4.2
                                      Excludes equity securities and cash
ASSET ALLOCATION    % of Net Assets

Convertible Bonds & Notes      56.8
Corporate Bonds & Notes         1.0
Convertible Preferred Stocks   11.1
Mandatory Convertible
 Securities                    24.4
Other Assets                    6.7

Data is unaudited and as of July 31, 2008. This selected information should be read in conjunction with the financial statements and notes included in the Company's Semi-Annual Report to Shareholders for the six months ended April 30, 2008.

Detailed portfolio information is available on our website (www.bancroftfund.com). Contact us by email at info@bancroftfund.com or call us at (973) 631-1177.

Bancroft Fund Ltd. operates as a closed-end, diversified management investment company and invests primarily in convertible securities, with the objectives of providing income and the potential for capital appreciation; which objectives the Fund considers to be relatively equal, over the long-term, due to the nature of the securities in which it invests. Its shares are traded on the American Stock Exchange under the ticker symbol BCV.