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First Trust/FIDAC Mortgage Income Fund Declares Monthly Common Share Distribution for January of $0.11 Per Share and a Special

^{Published on 2008-12-22 16:08:00, Last Modified on 2008-12-22 16:08:50 - Market Wire}
 

WHEATON, Ill.--([ BUSINESS WIRE ])--First Trust/FIDAC Mortgage Income Fund (the "Fund") (NYSE: FMY) today declared the Fund's regularly scheduled monthly distribution and special distribution both payable on January 15, 2009 to shareholders of record as of December 31, 2008, with an expected ex-dividend date of December 29, 2008. The monthly distribution information for the Fund appears below.

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 2008 distributions 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 preserve capital. The Fund pursues these investment objectives by investing primarily in mortgage-backed securities representing part ownership in a pool of either residential or commercial mortgage loans that, in the opinion of the Fund's investment sub-advisor, offer an attractive combination of credit quality, yield and maturity.

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 $17 billion as of November 30, 2008 through closed-end funds, unit investment trusts, mutual funds, separate managed accounts and exchange-traded funds.

Fixed Income Discount Advisory Company ("FIDAC") serves as the Fund's investment sub-advisor. FIDAC is a wholly owned subsidiary of Annaly Capital Management, Inc. ("Annaly"), a New York Stock Exchange-listed real estate investment trust. At September 30, 2008, FIDAC and its parent Annaly had approximately $66 billion of gross assets under management.

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, credit risk, prepayment risk, reinvestment risk, interest rate risk, floating rate CMOs and inverse floating rate CMOs risk, bond market risk, economic sector risk, inflation risk, U.S. government securities risk, government agency risk, asset-backed securities risk, market discount risk, leverage risk, interest rate transactions risk, derivatives risk, market disruption risk, portfolio turnover risk, tax risk relating to investments in certain REMICs, 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.