Highland Credit Strategies Fund Announces the Expiration of its Rights Offering

DALLAS--(Business Wire)--Highland Credit Strategies Fund (the "Trust") (NYSE: HCF), a
nondiversified, closed-end investment management company, announced
that its rights offering (the "Offer"), which commenced on December
21, 2007 and expired on January 18, 2008, was over-subscribed. The
Offer entitled the rights holders to subscribe for up to an aggregate
of 11,535,615 common shares of the Trust. The subscription price
pursuant to the Offer was $12.85, based on a formula which was
described in the offering materials. Shares will be issued promptly
after receipt of all shareholder payments and the pro-rata allocation
of shares with respect to the over-subscription privilege, which is
expected to occur on or about January 28, 2008.

Please note that shares issued pursuant to the Offer will be
issued after January 24, 2008, the record date for the Trust's next
monthly distribution, and therefore will not be eligible to receive
such distribution which is payable on February 4, 2008. The shares
will, however, be eligible for the Trust's next regular monthly
distribution to be paid on February 29, 2008.

Gross proceeds of the Offer are expected to be approximately
$148.2 million. The Trust intends to invest the additional capital
raised from the Offer to take advantage of current and prospective
investment opportunities in order to increase both overall investment
yield on its investments and the opportunity for capital appreciation.

UBS Securities LLC acted as Dealer Manager for the Offer.

Persons seeking further information regarding the Offer should
contact their broker or nominee, or contact the Trust's Information
Agent: The Altman Group, Inc. at (800) 370-1749.

About Highland Credit Strategies Fund

The Trust is a non-diversified, closed-end management investment
company. The Trust's investment objectives are to provide both current
income and capital appreciation. The Trust invests primarily in
secured and unsecured floating and fixed rate loans, bonds and other
debt obligations, debt obligations of stressed, distressed and
bankrupt issuers, structured products and equities. Highland Capital
Management, L.P. has served as the Trust's investment adviser since
the Trust's inception in 2006. The Trust's shares are listed on the
NYSE under the symbol "HCF". An investment in the Trust is not
appropriate for all investors. No assurance can be given that the
Trust will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a
discount to net asset value. The price of the Trust's shares is
determined by a number of factors, several of which are beyond the
control of the Trust. Therefore, the Trust cannot predict whether its
shares will trade at, below or above net asset value.

Highland Capital Management, L.P. ("Highland") has served as the
Trust's investment adviser since its inception in June 2006. Highland
is a leading alternative investment management firm specializing in
credit and structured products, with approximately $38 billion in
assets under management as of September 30, 2007. As of October 31,
2007, Highland had a 130 person investment team, and held investments
in over 1,000 issuers. Headquartered in Dallas, Texas, Highland
manages assets on behalf of investors around the world with offices in
New York and London.

Before investing in the Trust, investors should carefully consider
the investment objectives, strategies, risks and fees and expenses of
the Trust. This information, and other information about the Trust,
can be found in the Trust's prospectus on file with the Securities and
Exchange Commission or can be obtained from the Trust's Information
Agent at the number listed above. An investor should carefully read
the Trust's prospectus before investing.

This announcement is not an offer to sell these securities and is
not soliciting an offer to buy these securities in any state where the
offer or sale is not permitted.

-0-
*T
NOT FDIC/NCUA INSURED MAY LOSE VALUE NO BANK GUARANTEE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
*T

Highland Credit Strategies Fund
Shareholder Services, 877-665-1287
hfinfo@hcmlp.com

Copyright Business Wire 2008