FHI Federated Hermes Inc

First Trust Strategic High Income Fund (the "Fund") (NYSE:FHI) today declared the Fund's regularly scheduled monthly distribution, payable on September 15, 2006 to shareholders of record as of September 6, 2006. The ex-dividend date is expected to be September 1, 2006. The monthly distribution information for the Fund appears below. -0- *T First Trust Strategic High Income Fund (FHI): --------------------------------------------- Distribution per share:..........................................$0.16 Distribution Rate based on the August 18, 2006 NAV of $19.38:....9.91% Distribution Rate based on the August 18, 2006 closing market price of $19.98:..........................................9.61% *T The Fund is a 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 sub-adviser believes offer attractive yield and capital appreciation potential. The fund does not employ leverage. First Trust Advisors L.P. acts as the Fund's investment adviser and currently manages or supervises approximately $25 billion in assets. Valhalla Capital Partners, LLC ("Valhalla") is a boutique asset management firm focused on managing high-yield portfolios with an emphasis on structured finance securities. The three managing partners have 47 years combined industry experience and the investment team has an average of over 10 years experience in working with high-yield and structured finance securities. Valhalla currently manages approximately $400 million in assets. Past performance is no assurance of future results. Investment return and market value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. Principal Risk Factors: Investment in this Fund involves investment and market risk, management risk, value investing risk, below-investment grade securities risk, fixed-income securities risk, mortgage-backed securities risk, asset-backed securities risk, convertible securities risk, municipal securities risk, foreign securities risk, foreign government securities risk, equity securities risk, currency risk, distressed securities risk, preferred stock risk, inflation/deflation risk, market discount risk, leverage risk, derivatives risk, market disruption risk, portfolio turnover risk, and illiquid/restricted securities risk. The 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.