First Trust/Highland Capital Floating Rate Income Fund II Announces
Termination

TORONTO, Oct. 21 /CNW/ - FT (NSI) Management Co., the manager of First Trust/Highland Capital Floating Rate Income Fund II (the "Fund"), announced that the independent members of the board of directors of the manager of the Fund determined that it was in the best interests of the unitholders of the Fund to terminate the Fund.   The decision to terminate the Fund was reached after considering a number of factors including the modest improvement of the net asset value of the Fund since the merger of the Fund with First Trust / Highland Capital Floating Rate Income Fund on August 18, 2009, current economic conditions such as the London Interbank Offered Rate and the strength of the Canadian dollar compared with the United States dollar, expenses of the Fund, the ability of the Fund to support distributions to unitholders, the impact of the small asset size of the Fund on diversification and liquidity requirements of investors.

In accordance with the Fund's declaration of trust, the Fund will proceed to liquidate the assets of the Fund in an orderly manner. As a result, the Fund may no longer be fully invested in accordance with its stated investment objectives, strategies and restrictions.  The Fund will distribute to unitholders of record upon the termination of the Fund their proportionate share of the assets of the Fund.   The termination of the Fund is currently anticipated to occur on or about December 31, 2010.  However, given the nature of the investments in the Fund's portfolio, it may take longer to liquidate the portfolio.  To the extent required by the declaration of trust of the Fund or otherwise desirable, the Fund may make one or more distributions prior to the date of termination. 

For further information:

Fraser Howell, FT (NSI) Management Co. 
877-622-5552