First Trust/Highland Capital Floating Rate Income Fund II Declares Monthly Distribution for July of $0.0250 per unit

    TSX Symbol FHM.UN

    TORONTO, July 22 /CNW/ - First Trust/Highland Capital Floating Rate
Income Fund II ("the Fund") announces a change in its monthly distribution.
Effective immediately the annualized distribution rate will be reduced from 5%
to 3% on the initial subscription price of $ 10.00 per unit. The distribution
for the month ending July 31, 2008 will be $0.0250 per unit and is payable on
August 15, 2008 to Unitholders of record on July 31, 2008.
    The decision to reduce monthly distributions was made as a result of the
current market environment, the continued weakness in short-term interest
rates and the strength of the Canadian dollar. Additionally, on May 21, 2008,
the Fund announced that the existing source of leverage to the Senior Loan
Trust will not be renewed by the lender and will be terminated effective
July 31, 2008. The Fund obtains exposure to the Senior Loan Trust by virtue of
one or more forward transactions. As a result of the loss of leverage, the
Fund's ability to generate and distribute income in the future will be
    The Fund provides exposure to a portfolio of primarily U.S. dollar
denominated, senior secured floating rate corporate loans. The fund aims to
(i) deliver monthly distributions which will fluctuate with changes in U.S.
short term interest rates, and (ii) to preserve and enhance the net asset
value per Unit in order to return the original $ 10.00 subscription price of
the Units to Unitholders.

For further information:

For further information: FT (NSI) Management Co, (416) 865-8065 or (877)

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