October 16, 2007 – Bancroft Fund Ltd. (AMEX: BCV) today announced a number of changes to its Automatic Dividend Investment and Cash Payment Plan (the “Purchase Plan”).

At its October 15, 2007 Board meeting, the Fund’s Board of Trustees amended the Purchase Plan with the hope and expectation that doing so will increase the market price of Fund shares relative to the Fund’s net asset value per share, and thereby benefit Fund shareholders.

The amendment changed the Purchase Plan in the following ways:

1. The requirement that the fiscal year-end distribution of capital gains or dividends from net investment income be taken in newly issued Fund shares has been eliminated so that such distribution or dividend may be paid in cash or shares depending on the Board’s determination of the best option at each dividend payment date (and, if paid in cash, the Purchase Plan agent is directed to purchase Fund shares in the open market with such cash).

2. A new authorization form (the “Authorization Form”) was created to complement the Purchase Plan. (Previously, the Authorization Form and the Purchase Plan were set forth in one document.)

3. The detailed terms of the Purchase Plan respecting the handling of fiscal quarter distributions on behalf of Plan Participants were simplified.

4. Non-substantive clarifying changes were made to the Purchase Plan.

The effective date of the amendment to the Purchase Plan and the effective date of the Authorization Form is November 18, 2007. No action of Plan Participants is required.

Copies of the Authorization Form and Purchase Plan may be obtained from the Fund’s transfer agent, American Stock Transfer and Trust Company (“AST”). Any questions should be directed to AST which can be reached toll free at
(877) 366-6442.

Bancroft is a diversified closed-end management investment company. Bancroft 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 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.

Cusip 059695106

For further information please contact:
Joshua P. Lake, Treasurer Ph. (973) 631-1177