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.

The Fund is a diversified, closed-end management investment company that seeks to provide a high level of current income. As a secondary objective, the Fund seeks to provide capital appreciation. The Fund pursues these investment objectives by investing at least 80% of its Managed Assets in a diversified portfolio of dividend-paying multi-cap equity securities of both U.S. and non-U.S. issuers that the Fund’s investment sub-advisor believes offer the potential for attractive income and/or capital appreciation.

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 competitive municipal underwritings, with collective assets under management or supervision of approximately $51 billion as of June 30, 2011 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts.

Aviance Capital Management, LLC, (“Aviance”), the Fund’s investment sub-advisor, focuses on managing multi-cap value and growth portfolios.

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: Investment in this Fund involves investment and market risk; management risk; sub-advisor risk; value investing risk; dividend strategy risk; qualified dividend tax risk; equity securities risk; small and medium cap company risk; non-U.S. securities risk; and emerging markets risk. The risks of investing in the Fund are spelled out in the prospectus, shareholder report and other regulatory filings.

The Fund’s daily closing New York 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.

Contacts:

First Trust Active Dividend Income Fund
Press Inquiries:
Jane Doyle, 630-765-8775
or
Analyst Inquiries:
Jeff Margolin, 630-915-6784
or
Broker Inquiries:
Jeff Margolin, 630-915-6784
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