FHI Federated Hermes Inc

First Trust Strategic High Income Fund (the "Fund") (NYSE: FHI) today announced a long-term capital gain distribution of $0.067 per share. The distribution will be payable on December 29, 2006 to shareholders of record as of December 22, 2006. The ex-dividend date is expected to be December 20, 2006. The final determination of the source and tax status of all distributions paid in 2006 will be made after the end of 2006. 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 employs leverage. First Trust Advisors L.P. acts as the Fund�s investment adviser and currently manages or supervises approximately $28 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. Please see the Fund�s prospectus for additional information on the risks of investing in the Fund. 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.