(Source: Business Wire)First Trust Strategic High Income Fund (the "Fund") (NYSE: FHI) today decreased its regularly scheduled monthly common share distribution to $0.025 per share from $0.06 per share. The distribution will be payable on August 17, 2009 to shareholders of record as of August 5, 2009. The ex-dividend date is expected to be August 3, 2009. The monthly distribution and cash balance information for the Fund appears below.

  First Trust Strategic High Income Fund (FHI):                                                                     Distribution per share:                                                       $0.025                              Distribution Rate based on the July 17, 2009 NAV of $2.99:                    10.03%                              Distribution Rate based on the July 17, 2009 closing market price of $3.54:   8.47%                               Decrease from previous distribution of $0.06:                                 -58.33%                             Cash Balance on July 17, 2009:                                                $1,099,978 or 4.03% of Net Assets    -------------------------------------------------------------------------------  

During the Fund's current fiscal year there have been significant principal write-downs by issuers of securities sensitive to residential mortgages and other structured securities within the Fund's portfolio. The decrease in the dividend is a necessary adjustment as a result of these write-downs and the continued credit deterioration of the underlying income producing portfolio positions. In determining the distribution policy, the Fund seeks an amount that it views as sustainable based on the long-term income potential of the portfolio.

The majority, and possibly all, of this distribution will consist of return of capital. A portion of this distribution may come from net investment income. The final determination of the source and tax status of all distributions paid in 2009 will be made after the end of 2009.

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