Highland Income Fund Announces $25 Million Share Repurchase Program

Fund board approves up to $25 million of share repurchases over six-month period

DALLAS – October 25, 2019 – Highland Capital Management Fund Advisors, L.P. (“HCMFA”) announced today that the Board of Trustees (the “Board”) of the Highland Income Fund (NYSE:HFRO) (“HFRO” or the “Fund”) approved a repurchase program pursuant to which the Fund may repurchase up to $25 million of the Fund’s shares over a period of six months.

The program allows for the Fund to repurchase shares, if trading at a discount, in open market transactions until the conclusion of the repurchase period on April 24, 2020.

By purchasing Fund shares, which are currently trading at a discount to the Fund’s net asset value, HCMFA seeks to enhance value for HFRO shareholders.

The total repurchase amount and the timing of repurchases will be subject to the Fund’s available cash, after consideration of reserves necessary for anticipated fund expenses and contingencies. The Fund may sell portfolio securities in order to generate cash. There is no assurance that the Fund will repurchase shares in any amount.

About the Highland Income Fund

The Highland Income Fund (NYSE:HFRO) (the “Fund”) is a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. (“HCMFA”). On May 20, 2019, the Fund changed its name from the Highland Floating Rate Opportunities Fund to the Highland Income Fund. The Fund seeks to provide a high level of current income consistent with the preservation of capital. For more information visit www.highlandfunds.com/income-fund/.

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

About Highland Capital Management Fund Advisors, L.P.

Highland Capital Management Fund Advisors, L.P. (“HCMFA”) is an SEC-registered investment adviser operating on a multibillion-dollar global alternative investment platform. HCMFA manages a suite of investment offerings, including closed-end funds, open-end funds, and an exchange-traded fund, which cover a range of asset classes and investment strategies. For more information visit www.highlandfunds.com.

Before investing in the Fund, you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. For a copy of a prospectus or summary prospectus, which contains this and other information, please visit our website at www.highlandfunds.com or call 1-877-665-1287. Please read the fund prospectus carefully before investing.

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Media Contact

Lucy Bannon

lbannon@highlandcapital.com

1-972-419-6272

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