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First Trust/FIDAC Mortgage Income Fund Declares Distribution
First Trust Advisors, LP

Lisle, IL, December 20, 2005 -- First Trust/FIDAC Mortgage Income Fund (the "Fund") (NYSE: FMY) today declared the Fund’s regularly scheduled monthly distribution, payable on January 17, 2006 to shareholders of record as of January 5, 2006. The ex-dividend date is expected to be January 3, 2006. The monthly distribution information for the Fund appears below.

First Trust/FIDAC Mortgage Income Fund (FMY)
Distribution per share: $0.85	$0.85
Distribution Rate based on the December 19, 2005 NAV of $18.55	5.5%
Distribution Rate based on the December 19, 2005 closing market price of $16.05	6.36%
Decrease from the previous distribution of $0.1042	18.43%

FMY’s monthly distribution is being lowered from $0.1042 per share in December 2005 to $0.085 per share in January 2006 to more accurately reflect the Fund’s earnings in the current interest rate climate. The Fund’s per share distributions for the months from August 2005 through December 2005 included earnings that the Fund earned between its inception date on May 25, 2005 through its first distribution date in August 2005. Accordingly, the additional earnings distributed to shareholders over the five monthly distributions (August, September, October, November & December) in order to meet the Fund’s 2005 excise tax distribution requirement were higher than the amounts earned in those months.

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 distributions paid in 2006 will be made after the end of 2006.

The Fund is a closed-end management investment company that seeks to provide a high level of current income. As a secondary objective, the Fund seeks to preserve capital. The Fund pursues these investment objectives by investing primarily in mortgage-backed securities representing part ownership in a pool of either residential or commercial mortgage loans that, in the opinion of the Fund ’s sub -adviser, offer an attractive combination of credit quality, yield and maturity.

First Trust Advisors L.P. acts as the Fund’s investment advisor and currently manages or supervises approximately $21 billion in assets.

Fixed Income Discount Advisory Company ("FIDAC ") is the Fund’s sub -adviser. FIDAC is a wholly owned subsidiary of Annaly Mortgage Management, Inc. ("Annaly"), a New York Stock Exchange-listed real estate investment trust. At September 30, 2005, FIDAC and its parent Annaly have approximately $45.9 billion of gross assets under management.

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