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 stockholders have approved a reorganization of their respective Fund into Highland Credit Strategies Fund (NYSE:HCF).

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. The reorganizations are conditioned upon the satisfaction of certain conditions. The reorganizations are currently expected to close on or about July 18, 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 $37.3 billion in assets under management as of April 30, 2008. Headquartered in Dallas, Texas, Highland manages assets on behalf of investors around the world with offices in New York and London.

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.

For Highland Funds
Shareholder Services, 877-665-1287
hfinfo@hcmlp.com