HSM Helios Strategic Mortgage Income Fund (The) Common Stock

In the news release issued on Friday, February 6, 2009, an error occurred in the first paragraph. The ex-dividend date should read February 17, 2009 and not February 13, 2009. The complete, corrected release follows:

The Board of Directors of Helios Strategic Mortgage Income Fund, Inc. (the "Fund") (NYSE: HSM), formerly known as The Hyperion Brookfield Strategic Mortgage Income Fund, Inc., declared a monthly dividend of $0.0725 per share, payable on February 26, 2009 to stockholders of record on February 19, 2009. The ex-dividend date is February 17, 2009. Based on the NYSE closing price of $6.18 on February 5, 2009, the Fund's yield was 14.08% . As of January 31, 2009, the Fund's average duration, as measured on a net asset basis, was 3.5 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 January 31, 2009
           Sector Allocation as a Percentage of Total Assets
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Non-Agency Residential Mortgage-Backed Securities ("MBS")                33%
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Commercial MBS                                                           15%
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Agency MBS                                                               34%
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Asset-Backed Securities                                                   2%
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U.S. Treasury Securities                                                 16%
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            Credit Allocation as a Percentage of Total Assets
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U.S. Government / Agency and AAA Rated                                   76%
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AA Rated                                                                  3%
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A Rated                                                                   4%
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BBB Rated                                                                12%
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Below Investment Grade                                                    5%
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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.

Helios 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 approximately $17 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 $90 billion of assets under management.

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