Class Action Lawsuit Filed On Behalf of Certain First Trust Strategic High Income Fund Investors

DENVER, Sept. 22, 2008 (LAWFUEL) — Dyer & Berens LLP today
announced that it has filed a class action lawsuit in the United States
District Court for the Northern District of Illinois on behalf of
certain investors of mutual funds offered by First Trust Portfolios
L.P., including shares of the: (1) First Trust Strategic High Income
Fund (the “FHI Fund”) (NYSE:FHI); (2) First Trust Strategic High Income
Fund II (the “FHY Fund”) (NYSE:FHY); and (3) First Trust Strategic High
Income Fund III (the “FHO Fund”) (NYSE:FHO) (collectively, the
“Funds”), between July 26, 2005 and July 7, 2008, inclusive (the “Class
Period”). The lawsuit also seeks to recover damages on behalf of
certain investors who purchased or otherwise acquired shares of the
Funds issued in connection with the Funds’ initial public offerings
(“IPOs”). The complaint charges the Funds, the Funds’ registrants, the
Funds’ adviser (First Trust Advisors L.P.), the Funds’ sub-advisers
(Hilliard Lyons Asset Management and Valhalla Capital Partners, LLC),
and certain of the Funds’ officers and/or directors with violations of
the federal securities laws.

If you are a purchaser of the Funds during the Class Period, you have
the right to petition the Court to be appointed a “lead plaintiff.” A
lead plaintiff is a representative party that acts on behalf of other
class members in directing the litigation. Any such request must
satisfy certain criteria and be made on or before November 12, 2008.
Any member of the purported class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.

If you are an investor of the Funds and would like to discuss a
potential lead plaintiff appointment, or your rights and interests with
respect to the lawsuit, you may contact Jeffrey A. Berens, Esq. at
1-888-300-3362, 303-861-1764, or via email [email protected]

The class action complaint alleges that the defendants issued false and
misleading statements concerning the Funds’ portfolios and financial
results. According to the complaint, defendants improperly failed to
disclose: (i) the extent of the Funds’ risk exposure to mortgage-backed
assets; (ii) the Funds’ failure to properly value the mortgage-backed
assets and distressed securities, resulting in an overstatement of the
Funds’ reported asset valuations; (iii) the extent of the Funds’
liquidity risk due to the illiquid nature of a large portion of the
Funds’ portfolios; (iv) the Funds lack of effective controls and hedges
to minimize the risk of loss from mortgage delinquencies, which
affected a large part of the Funds’ portfolios; and (v) the Funds lack
of effective internal controls to ensure that the Funds would remain in
compliance with their restrictions and limitations related to their
investment portfolio and strategies. Based on these alleged omissions,
the Funds’ shares traded at artificially inflated levels throughout the
Class Period.

Beginning in August 2007 and continuing through July 2008, the Funds
began to acknowledge the serious deterioration in the Funds’
portfolios. As a result of these disclosures, the price of the Funds’
shares collapsed. Prior to any negative disclosures, each of the Funds
traded within a narrow trading band. For example, the FHI Fund traded
within the $17 and $20 per share range from July 2005 through July
2007. In contrast, by August 2008, the FHI Fund was trading in the $8
and $9 per share range.

Plaintiff seeks to recover damages on behalf of certain purchasers of
the Funds during the Class Period. The plaintiff is represented by Dyer
& Berens LLP, which has expertise in prosecuting investor class actions
involving financial fraud. The firm’s extensive experience in
securities litigation, particularly in cases brought under the Private
Securities Litigation Reform Act, has contributed to the recovery of
hundreds of millions of dollars for aggrieved investors. For more
information about the firm, please go to www.DyerBerens.com.

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