First Trust Tax-Advantaged Preferred Income Fund Decreases Its

Quarterly Distribution to $0.21 Per Share 
LISLE, Ill.--(BUSINESS WIRE)--June 09, 2008
First Trust Tax-Advantaged Preferred Income Fund (the "Fund")
(AMEX: FPI) today declared its regularly scheduled quarterly
distribution payable on June 30, 2008 to shareholders of record as of
June 20, 2008. The ex-dividend date is expected to be June 18, 2008.
The quarterly distribution information for the Fund appears below. 

First Trust Tax-Advantaged Preferred Income Fund (FPI):
Distribution per share:                                          $0.21
Distribution rate based on the June 6, 2008 NAV of $11.54:       7.28%
Distribution rate based on the June 6, 2008 closing market
 price of $12.29:                                                6.83%
Decrease from previous distribution of $0.30                   -30.00%


The decrease in the Fund's quarterly distribution is principally in
 response to two issuers of securities held by the Fund suspending
 their quarterly dividends in the last quarter. On Friday, June 6,
 2008, Heartland Financial ("Heartland"), suspended quarterly
 dividends on its preferred securities held by the Fund. The Fund
 currently holds a total of $6,000,000 aggregate par value of Series B
 Fixed-Rate Non-Cumulative Redeemable Perpetual Preferred Shares
 ("Heartland Preferred Shares"). Such action by Heartland resulted in
 a reduction in the price of the Heartland 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 $13.07 as of
 Thursday, June 5, 2008, to $11.54 as of Friday, June 6, 2008, at 4:00
 p.m. Eastern Time, an approximate 11.7% reduction. On May 12, 2008,
 IndyMac Bancorp, Inc. suspended quarterly dividends on its preferred
 securities held by the Fund. The Fund currently holds a total of
 $5,000,000 aggregate par value of Fixed-Rate Preferred Shares of
 IndyMac Bancorp, Inc.

The majority 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 closed-end management investment company that seeks
to provide current income and, to a lesser extent, capital
preservation. The Fund seeks to achieve its investment objective by
investing at least 80% of its managed assets in preferred securities
that the investment sub-advisor believes at the time of investment are
eligible to pay dividends that qualify for certain favorable federal
income tax treatment as "tax-advantaged" when received by shareholders
of the Fund. 
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 $34 billion as of May 31, 2008 through
closed-end funds, unit investment trusts, mutual funds, separate
managed accounts and exchange-traded funds. 
Stonebridge Advisors LLC ("Stonebridge"), the Fund's investment
sub-advisor and an affiliate of First Trust Advisors L.P., is a niche
asset management firm that manages portfolios of preferred securities
as well as customized North American Equities Portfolios for
investors. Stonebridge, formed in December 2004, serves as investment
advisor or portfolio manager to investment portfolios with
approximately $462 million in assets which it managed or supervised as
of March 31, 2008. A portion of these assets are contained in
investments sponsored by First Trust Portfolios L.P., for which
Stonebridge acts as Sub-Portfolio Supervisor. 
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-advisor risk; value investing risk; dividend
strategy risk; qualified dividend task risk; equity securities risk;
small and medium cap company risk; and non-U.S. securities risk. 
The Fund's daily American Stock Exchange closing price and net
asset value per share as well as other information can be found at or by calling 1-800-988-5891. 
First Trust Tax-Advantaged Preferred Income Fund
Press Inquiries:
Jane Doyle, 630-241-8775
Analyst Inquiries:
Jeff Margolin, 630-915-6784
Broker Inquiries:
Jeff Margolin, 630-915-6784 
-0- Jun/09/2008 23:19 GMT
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