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.--(Business Wire)--
First Trust Advisors L.P. ("FirstTrust") 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.

First Trust Advisors L.P.
Press Inquiries: Jane Doyle, 630-765-8775
Analyst Inquiries: Jeff Margolin, 630-915-6784
Broker Inquiries: Jeff Margolin, 630-915-6784

Copyright Business Wire 2009