Highland Credit Strategies Fund Announces Completion of the Reorganization of Highland Distressed Opportunities, Inc. into HC...

Highland Credit Strategies Fund (NYSE: HCF) announced today the completion of the merger of Highland Distressed Opportunities, Inc. (NYSE: HCD) into HCF Acquisition LLC, a wholly-owned subsidiary of HCF (the "Merger"). HCF Acquisition LLC will subsequently dissolve and liquidate and transfer its assets to HCF. The Merger was based on HCD's and HCF's relative net asset values as of 4:00 p.m. on Friday, June 12, 2009.

HCD reported a net asset value per share of $2.90 and HCF reported a net asset value per share of $6.28 as of 4:00 p.m. on Friday, June 12, 2009. The resulting conversion ratios were calculated as 0.46133 common shares of HCF for each share of common stock of HCD. HCD common stockholders will subsequently receive cash payments in lieu of fractional HCF shares other than with respect to shares held in the Dividend Reinvestment Plan.

About Highland Credit Strategies Fund

The Trust is a non-diversified, closed-end management investment company. The Trust’s investment objectives are to provide both current income and capital appreciation. The Trust seeks to primarily invest in secured and unsecured floating and fixed rate loans, bonds and other debt obligations, debt obligations of stressed, distressed and bankrupt issuers, structured products and equities. Highland Capital Management, L.P. (“Highland”) has served as the Trust’s investment adviser since the Trust’s inception in 2006. The Trust’s shares are listed on the NYSE under the symbol “HCF”. An investment in the Trust is not appropriate for all investors. No assurance can be given that the Trust will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value. The price of the Trust’s shares is determined by a number of factors, several of which are beyond the control of the Trust. Therefore, the Trust cannot predict whether its shares will trade at, below or above net asset value.

Highland, the Trust’s investment adviser, is a leading alternative investment management firm specializing in credit and structured products. Headquartered in Dallas, Texas, Highland manages assets on behalf of investors around the world with offices in New York, Singapore, and London.

Past performance does not guarantee future results.