First Trust Active Dividend Income Fund Decreases Its Quarterly Distribution To $0.23 Per Share

First Trust Active Dividend Income Fund (the "Fund") (NYSE: FAV) today decreased its regularly scheduled quarterly distribution to $0.23 per share from $0.28 per share. The distribution will be payable on July 29, 2011 to shareholders of record as of July 25, 2011. The ex-dividend date is expected to be July 21, 2011. The quarterly distribution information for the Fund appears below.

First Trust Active Dividend Income Fund (FAV):
Distribution per share:		$0.23
Distribution Rate based on the July 11, 2011 NAV of $10.16:		9.06%
Distribution Rate based on the July 11, 2011 closing market price of $11.10:		8.29%
Decrease from previous distribution of $0.28:		-17.86%

While the Fund generates income from its dividend capture and rotation strategy, a reduction in the dividend is prudent at this time. The Fund’s new distribution rate is reflective of current market conditions, as common stock dividends have appreciated at a regular pace but below market appreciation resulting in lower yields on individual common stocks.

The change in the dividend also provides additional flexibility for the Fund to take advantage of the tax efficiency offered by its current capital loss carry-forward amount, in that realized gains, up to the capital loss carry-forward amount, can be reinvested by the Fund instead of being distributed.

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 2011 distributions will be made after the end of 2011.