HSM Helios Strategic Mortgage Income Fund (The) Common Stock

The Board of Directors of the Hyperion Brookfield Strategic Mortgage Income Fund, Inc. (the "Fund") (NYSE: HSM) declared a monthly dividend of $0.0725 per share, payable on November 26, 2008 to stockholders of record on November 18, 2008. The ex-dividend date is November 14, 2008. Based on the NYSE closing price of $6.61 on November 6, 2008, the Fund's yield was 13.16%. As of October 31, 2008, the Fund's average duration, as measured on a net asset basis, was 4.7 years.

Dividends may include net investment income, capital gains and/or return of capital. The dividend yield referenced above is calculated as the annualized amount of the most recent monthly dividend declared divided by the stated stock price.

                 Portfolio of Investments as of October 31, 2008
                Sector Allocation as a Percentage of Total Assets

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Non-Agency Residential Mortgage-Backed Securities ("MBS")                32%
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Commercial MBS                                                           22%
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Agency MBS                                                               26%
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Asset-Backed Securities                                                   2%
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U.S. Treasury Securities                                                 17%
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Other                                                                     1%
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             Credit Allocation as a Percentage of Total Assets

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U.S. Government / Agency and AAA Rated                                   70%
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AA Rated                                                                  3%
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A Rated                                                                   4%
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BBB Rated                                                                15%
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Below Investment Grade                                                    8%
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The Fund uses its web site as a channel of distribution of material company information. Financial and other material information regarding the Fund is routinely posted on and accessible at www.hyperionbrookfield.com/strategies/retail_funds.htm.

The Hyperion Brookfield Strategic Mortgage Income Fund, Inc. is managed by Hyperion Brookfield Asset Management, Inc, a registered investment advisor located in New York City. The firm was founded in 1989 to provide relative value driven fixed income investment strategies, such as core fixed income, high yield, and specialized MBS. Hyperion Brookfield manages in excess of $19 billion for a client base including pension funds, financial institutions, mutual funds, insurance companies and foundations. Hyperion Brookfield is a subsidiary of Brookfield Asset Management Inc, a global asset manager focused on property, power and other infrastructure assets with approximately US$95 billion of assets under management.

Contacts: The Hyperion Brookfield Strategic Mortgage Income Fund, Inc. Three World Financial Center 200 Vesey Street, 10th Floor New York, NY 10281-1010 1-800 HYPERION