SAGE ANNOUNCES NORMAL COURSE ISSUER BID

SAGE High Yield Debt Trust ("SAGE") announced today its intention to make a normal course issuer bid for its units through the facilities of The Toronto Stock Exchange (the "TSE"). This normal course issuer bid is subject to regulatory approval. In accordance with the Trust Agreement by which SAGE is governed, market purchases pursuant to its normal course issuer bid may only be effected if unitholders are offering their units for sale at less than net asset value per unit.

At May 25, 1999 there were 1,784,225 units issued and outstanding including 1,605,862 units in the public float. If regulatory approval is obtained, SAGE may, during the 12 month period subsequent to such approval, purchase on the TSE up to 160,586 units, being 10% of the public float of the units. SAGE will cancel all units purchased pursuant to the bid. Since June 11, 1998 SAGE has purchased and cancelled 201,100 units at an average price of $11.92 per unit on a fully paid basis under its previously approved normal course issuer bid.

The units have been trading at prices which are less than the net asset value per unit. As a result, depending on future movements and other factors, SAGE believes that its units may represent an attractive investment and a desirable use of available funds. Any normal course purchases made by SAGE will also afford an increased degree of liquidity to those unitholders of SAGE who wish to dispose of their units.

SAGE raised $34 million in the fall of 1997 through an initial public offering. The primary objectives of SAGE are to produce a high level of sustainable income distributed quarterly while preserving capital for distribution to the unitholders upon termination of the Trust.

SAGE trades on The Toronto Stock Exchange under the symbol "BBB.UN".

For further information contact:

Dennis Dunlop
Vice President
Middlefield Group
(416) 362-0714

June 9, 1999