X0202 4 2007-09-05 0 0001356115 Highland Credit Strategies Fund HCF 0001228922 DONDERO JAMES D 13455 NOEL ROAD, STE 1300 DALLAS TX 75240 0 1 0 0 CEO and President Common Stock 2007-09-05 4 P 0 14871 18.7885 A 88742 I See Footnote Shares purchased by the Highland Capital Management Retirement Plan and Trust (the "Retirement Plan and Trust"). Includes (i) approximately 6,903 shares held by Highland Capital Management Services, Inc. ("HCMS"), (ii) 32,343 shares held by the Highland 401(k) (the "401(k) Plan") and (iii) 49,496 shares held by the Retirement Plan and Trust. Highland Capital Management, LP ("HCMLP") is the investment advisor for Highland Credit Strategies Fund. HCMLP maintains the 401(k) Plan and Retirement Plan and Trust for the benefit of its employees. Mr. Dondero is the trustee of the 401(k) Plan and Retirement Plan and Trust, as well as a participant in the 401(k) Plan and Retirement Plan and Trust, and he owns interests in HCMS. The 401(k) Plan, Retirement Plan and Trust and HCMLP expressly disclaim beneficial ownership of the securities reported herein. Each of HCMS and Mr. Dondero expressly disclaims beneficial ownership of the securities reported herein, except to the extent of its or his pecuniary interest therein. James Dondero 2007-09-07