Prospect Street Income Shares Inc. and Prospect Street High Income Portfolio Inc....

Wed Feb 20, 2008 9:26pm EST

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Prospect Street Income Shares Inc. and Prospect Street High Income Portfolio Inc. Announce Approval of Reorganizations

DALLAS--(Business Wire)--
Prospect Street Income Shares Inc. (NYSE:CNN) and Prospect Street
High Income Portfolio Inc. (NYSE:PHY) (each a "Fund" and together the
"Funds") each announced today that its Board of Directors approved a
reorganization of the Fund into Highland Credit Strategies Fund

   For each Fund, the reorganization is conditioned upon the approval
of its stockholders, and each reorganization may proceed independently
of the other. If stockholders of a Fund do not approve its
reorganization, that Fund will continue its current operations. There
is no assurance that the requisite stockholder approval will be
obtained for each reorganization.

   The Funds currently expect to file with the Securities and
Exchange Commission a joint proxy statement/prospectus with respect to
the reorganizations soon, and currently expect to mail a joint proxy
statement/prospectus to Fund stockholders to solicit approval of the
reorganizations in April 2008. The Funds, and Highland Credit
Strategies Fund, will bear the costs of the reorganizations. It is
expected that each reorganization will qualify as a tax-free
reorganization for federal income tax purposes. Subject to stockholder
approval and the satisfaction of certain conditions, the
reorganizations are currently expected to occur in the summer of 2008.

   Highland Capital Management, L.P. ("Highland"), the Funds'
investment adviser, is a leading alternative investment management
firm specializing in credit and structured products, with
approximately $39.5 billion in assets under management as of December
31, 2007. Headquartered in Dallas, Texas, Highland manages assets on
behalf of investors around the world with offices in New York and

   Statements made in this release that look forward in time involve
risks and uncertainties and are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
risks and uncertainties include, without limitation, the adverse
effect from a decline in the securities markets or a decline in a
Fund's performance, a general downturn in the economy, competition
from other closed-end investment companies, changes in government
policy or regulation, inability of a Fund's investment adviser to
attract or retain key employees, inability of a Fund to implement its
investment strategy, inability of a Fund to manage rapid expansion and
unforeseen costs and other effects related to legal proceedings or
investigations of governmental and self-regulatory organizations.

Highland Capital Management, L.P.
Shareholder Services, 877-665-1287

Copyright Business Wire 2008
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