First Trust Strategic High Income Fund II (FHY):		Â
Distribution per share:			$0.1667
Distribution Rate based on the November 19, 2008 NAV of $8.06:			24.82%
Distribution Rate based on the November 19, 2008 closing market price of $5.59:			35.79%
Cash Balance on November 19, 2008:	$6,412,276 or 8.40% of Net Assets

The majority, and possibly all, of this distribution will be paid out of net investment income earned by the Fund. A portion of this distribution may come from net short-term realized capital gains or return of capital. The final determination of the source and tax status of all distributions paid in 2008 will be made after the end of 2008.

The Fund is a diversified, 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 its managed assets in a diversified portfolio of below-investment grade and investment grade debt securities and equity securities that the investment sub-advisor believes offer attractive yield and/or capital appreciation potential. Currently, the temporary defensive policy permits the Fund to deviate from its investment strategy and invest all or any portion of its managed assets in cash or cash equivalents.

The Fund is currently temporary defensive against its investment policy of being concentrated in residential mortgage-backed securities. The Fund's temporary defensive policy permits the Fund to deviate from its investment strategy and invest all or any portion of its managed assets in cash, cash equivalents, manufactured hold loan-backed securities, securities guaranteed by the U.S. Government or its agencies or instrumentalities that are not residential mortgage-backed securities, asset-backed securities representing direct or indirect participations in, or secured by and payable from, pools of leases of aircrafts and/or loans to purchase aircrafts, or loans or other obligations of franchises, corporate bonds, and any securities rated in the AA category or better by at least one nationally recognized statistical rating organization. As of November 19, 2008, the Fund's cash balance was $6,412,265, or 8.4% of managed assets.

First Trust Advisors L.P., the Fund's investment advisor, along with its affiliate First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management, financial advisory services, and municipal and corporate investment banking, with collective assets under management or supervision of over $19 billion as of October 31, 2008 through closed-end funds, unit investment trusts, mutual funds, separate managed accounts and exchange-traded funds.

Valhalla Capital Partners, LLC, the Fund's investment sub-advisor ("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 50 years combined industry experience and the investment team has an average of over 12 years experience in working with high-yield and structured finance securities. Valhalla managed approximately $265 million in assets as of September 30, 2008.

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, sub-advisor 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, non-U.S. securities risk, non-U.S. 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 risks of investing in the Fund are spelled out in the prospectus, shareholder report and other regulatory filings.

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.