The following dates apply to the Fund's distribution declarations:

Under the Fund's Automatic Dividend Reinvestment Plan (the ''Plan''), each common shareholder will have all distributions automatically reinvested in additional common shares of the Fund by The Bank of New York, as agent for shareholders pursuant to the Plan, unless the shareholder elects to receive cash or unless the shares are registered in the name of a broker-dealer or other nominee (that is, in ''street name'') and the respective nominee does not participate in the Plan. Shareholders whose common shares are held in the name of a broker or nominee should contact the broker or nominee to determine whether and how they may participate in the Plan.

The Fund's continuing ability to pay a certain level of distributions will be dependent on several factors, including the income received on securities held by the Fund, the level of distributions payable on Money Market Cumulative Preferred Shares issued by the Fund, the result of interest rate hedges used by the Fund in seeking to manage short-term interest rate costs and the overall level of Fund expenses.

The distributions declared, as well as future distributions, may consist of net investment income, realized capital gains and return of capital. In compliance with Section 19 of the Investment Company Act of 1940, as amended, a notice would be provided for any distribution that does not consist solely of net investment income. This notice would be for informational purposes, and would disclose, among other things, estimated portions of the distributions, if any, consisting of net investment income, capital gain and return of capital.

About Lehman Brothers First Trust Income Opportunity Fund

Lehman Brothers First Trust Income Opportunity Fund is a closed-end management investment company whose investment objective is to seek high total return (income plus capital appreciation). The Fund pursues its investment objective by investing its assets primarily in high yield debt securities. These securities are generally lower rated and may involve greater risk of loss. There can be no assurance that the Fund will achieve its investment objective. The Fund's common shares began trading on the New York Stock Exchange under the ticker symbol LBC on July 28, 2003. Neuberger Berman Management LLC serves as the Fund's investment advisor and Lehman Brothers Asset Management LLC (formerly known as Lincoln Capital Fixed Income Management Company, LLC) serves as the Fund's sub-advisor. For more complete information about the Fund, please call the Fund at 1-800-988-5196 or visit the Fund's Web site at www.lbftincomeopportunity.com.