First Trust Tax-Advantaged Preferred Income Fund

Business Wire,  March 4, 2008  

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LISLE, Ill. -- First Trust Tax-Advantaged Preferred Income Fund (the "Fund") (AMEX: FPI) announced today that the issuer of one of its portfolio securities, Irwin Financial Corporation ("Irwin") (NYSE: IFC), issued a news release announcing that Irwin suspended quarterly dividends on its common, preferred and trust preferred securities. The Fund currently holds $6,000,000 liquidation value of Irwin's Series A Floating Rate Non-Cumulative Perpetual Preferred Shares ("Irwin Preferred Shares"). In its news release, Irwin's Chairman and CEO stated that, although its bank subsidiary was "well-capitalized" under regulatory guidelines, it was unlikely that Irwin would resume paying dividends in 2008.

Such action by Irwin resulted in a reduction in the price of the Irwin Preferred Shares, which led to a significant decline in the Fund's NAV. Primarily as a result of such event, the Fund's net asset value declined from $15.60 as of Friday, February 29, 2008 to $14.32 as of Monday, March 3, 2008 at 4:00 p.m. Eastern Time (an approximate 8.2% reduction). Management is currently evaluating the impact this event will have on the Fund's dividend.

First Trust Advisors L.P. ("First Trust") serves as the Fund's investment adviser and currently manages or supervises approximately $33 billion in assets.

Stonebridge Advisors, LLC, an affiliate of First Trust, serves as the Fund's investment sub-adviser.

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. The Fund is exposed to several risks including the following: investment and market risk; management risk; interest rate risk; credit risk; leverage risk; high-yield securities risk; preferred securities risk; illiquid securities risk; financial services sector risk; sub-adviser risk; value investing risk; dividend strategy risk; qualified dividend tax risk; equity securities risk; small and medium cap company risk; and non-U.S. securities risk.

The Fund's daily closing American 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.

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