Highland Credit Strategies Fund (the “Trust”) (NYSE: HCF) today announced that its Board of Trustees (the “Board”) has declared a regular distribution on its common stock, for the month of August 2009, of $0.0525 per share, payable on August 31, 2009 to holders of record at the close of business on August 21, 2009.

As of July 31, 2009, the Trust had estimated undistributed net investment income of approximately $1 million (unaudited).

The following are annualized historical distribution rate calculations based on the total declared distribution for the month, the Trust’s net asset value (“NAV”) at month-end and the Trust’s month-end closing price (“Market Price”).

Distribution rates are calculated by annualizing the distribution declared during the period and then dividing the resulting annualized distribution by the month-end NAV (in the case of NAV) or the month-end closing price (in the case of Market Price). The distribution rate is based on an estimation of investment income and may or may not include a return of capital. The distribution rate is based solely on actual distributions, which are made at the discretion of the Board.

This press release is not for tax reporting purposes but is being provided to announce the amount of the Trust’s distributions that have been declared by the Board. In early 2010, after definitive information is available, the Trust will send shareholders a Form 1099-DIV specifying how the distributions paid by the Trust during the calendar year should be characterized for purposes of reporting the distributions on a shareholder’s tax return (e.g., ordinary income, short-term capital gain, long-term capital gain or return of capital).

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 seeks to primarily invest 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. (“Highland”) 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, the Trust’s investment adviser, is a leading alternative investment management firm specializing in credit and structured products. Headquartered in Dallas, Texas, Highland manages assets on behalf of investors around the world with offices in New York, Singapore, and London.

Past performance does not guarantee future results.

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