First Trust Announces New Investment Sub-Advisor for FHI, FHY and FHO.

First Trust Strategic High Income Fund, First Trust Strategic High Income Fund II and First Trust Strategic High Income Fund III Approve Interim Investment Sub-Advisory Agreements with Hyperion Brookfield Asset Management, Inc. and Changes in Investment Policies

WHEATON, Ill. -- First Trust Advisors L.P. ("First Trust") today announced that the Board of Trustees of First Trust Strategic High Income Fund (NYSE: FHI), First Trust Strategic High Income Fund II (NYSE: FHY) and First Trust Strategic High Income Fund III (NYSE: FHO) has voted to approve Hyperion Brookfield Asset Management, Inc. ("Hyperion") as investment sub-advisor to the Funds, replacing Valhalla Capital Partners, LLC. Each Fund has entered into an interim investment sub-advisory agreement with First Trust and Hyperion, as investment sub-advisor, effective on June 29, 2009. The interim sub-advisory agreements will remain in effect until the earlier of November 26, 2009 or until a new sub-advisory agreement is approved by the shareholders of each Fund.

Subject to shareholder approval, the Board of Trustees of each Fund has also approved a change in each Fund's industry concentration policy to provide that each Fund may not purchase any security if, as a result of the purchase, 25% or more of the Fund's total assets (taken at current value) would be invested in the securities of borrowers and other issuers having their principal business activities in the same industry. Currently, each Fund's industry concentration policy states that it will invest at least 25% of its total assets in residential mortgage-backed securities under normal market conditions.

Shareholders of FHI, FHY and FHO will be asked to vote on a proposal to approve the new investment sub-advisory agreements with Hyperion as well as the above-referenced proposal to change the industry concentration policy for each Fund at a joint special meeting of shareholders. Any solicitation of proxies made in connection with this shareholder meeting will only be made pursuant to separate proxy materials filed with the U.S. Securities and Exchange Commission ("SEC") under applicable federal securities laws. There can be no assurance that the necessary percentage of the shareholders of each Fund will vote to approve Hyperion as the new investment sub-advisor or the change in the industry concentration policy.

The Board of Trustees of FHI also approved a change in investment policy so that FHI may invest up to 100% of its managed assets in below-investment grade debt securities (commonly referred to as "high-yield" or "junk" bonds). This investment policy is non-fundamental and therefore may be changed by approval of the Board of Trustees without shareholder approval. The investment policy will be effective on or about September 1, 2009. Currently FHI pursues its investment objectives by investing at least 80% of its managed assets in a diversified portfolio of high income producing securities that the investment sub-advisor believes offer attractive yield and capital appreciation potential. High income producing securities in which the Fund invests consist of below-investment grade debt securities (high-yield or junk bonds) and investment grade securities which offer yields comparable to below-investment grade securities.

Each Fund is a diversified, closed-end management investment company that seeks to provide a high level of current income. As a secondary objective, each Fund seeks to provide capital growth.

First Trust has served as the Funds' investment advisor since each Fund's inception. First Trust, along with its affiliate First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management, financial advisory services, and municipal and corporate investment banking, with collective assets under management or supervision of over $19 billion as of May 31, 2009 through closed-end funds, unit investment trusts, mutual funds, separate managed accounts and exchange-traded funds.

Hyperion Brookfield Asset Management, Inc. is a registered investment advisor headquartered in New York City. The firm was founded in 1989 to provide relative value driven fixed income investment strategies, such as core fixed income, high yield, and specialized MBS. Hyperion Brookfield manages approximately $16 billion as of May 31, 2009 for a client base that includes pension funds, financial institutions, mutual funds, closed-end funds, insurance companies and foundations. Hyperion Brookfield is a subsidiary of Brookfield Asset Management Inc., a global asset manager focused on property, power and other infrastructure assets with approximately $80 billion of assets under management.

In connection with the solicitation of proxies, the Funds will file a proxy statement. Because the proxy statement will contain important information, the Funds' shareholders are urged to read it carefully when it becomes available. When filed with the SEC, the proxy statement will be available free of charge at the SEC's website, www.sec.gov. The Funds' shareholders will also be able to obtain copies of these documents and other transaction-related documents, when available, by calling First Trust toll-free at 800-621-1675. The foregoing is not an offer to sell, nor a solicitation of an offer to buy, shares of any Fund, nor is it a solicitation of any proxy.

Each Fund's daily closing New York Stock Exchange price and net asset value per share as well as other information can be found at www.ftportfolios.com or by calling 1-800-988-5891.