BOSTON, May 7, 2008 - John Hancock Funds announced that it intends to restructure approximately $1.6 billion of leverage used by five of its seven leveraged closed-end funds.

The Board of Trustees of John Hancock Funds approved a plan whereby a third party commercial bank has agreed to provide a credit facility that will enable a refinancing of five leveraged John Hancock closed-end funds. Documents related to the financing were finalized today.

"At this time, we believe this is an effective and timely solution to the unprecedented illiquidity that has developed in the auction security market," said John D. DesPrez III, President and CEO of John Hancock Financial. "The Board and Management continue to work diligently on finding a solution for our other two leveraged closed-end funds."

The facility will be used to redeem and replace 100 percent of the outstanding Auction Rate Preferred Securities (ARPS) of the five taxable equity funds, and to change the form of leverage from ARPS to debt. The five John Hancock closed-end funds affected by the announcement are: Tax-Advantaged Dividend Income (HTD), Preferred Income (HPI), Preferred Income II (HPF), Preferred Income III (HPS), and Patriot Premium Dividend II (PDT).

John Hancock Funds is evaluating alternatives to complete the refinancing of the remaining two leveraged closed-end funds: Investors Trust (JHI) and Income Securities Trust (JHS). These two closed-end bond funds have approximately $175 million of ARPS outstanding.

"Today's announcement is the culmination of an effort that has consumed countless hours of the day, nights and weekends for dozens of people, including the highest levels of management, both at John Hancock and our parent company, Manulife Financial Corporation," said Keith F. Hartstein, President and CEO of John Hancock Funds.

"This solution was made possible because of the fact that our closed-end funds are only moderately leveraged and have asset coverage ratios close to the statutory requirement for debt financing. Although the funds will need to be modestly de-leveraged, the current interest rate expense of the secured facility represents a savings over the cost of the ARPS, and has the potential of benefiting the common shareholders through a moderate increase in net income. In addition, through the refinancing process the ARPS shareholders will gain the liquidity they desire," Mr. Hartstein said.

"Since the industry-wide auction failures began February 13th, our Board has been working diligently with fund management to find a solution that protects the interests of all of our shareholders - both common and preferred," said Charles Ladner, John Hancock Funds independent trustee. "Now that we have secured a refinancing for our equity closed-end funds, we are confident that we soon will achieve a sound solution for the two remaining smaller bond funds."

Implementation
Redemptions of the ARPS for HTD, HPI, HPF and HPS will be on a fund by fund and tranche by tranche basis. It is anticipated that redemptions will begin in May and will be completed in June. It is anticipated that PDT fund redemptions of the ARPS will begin in early June and will be completed in July.

Further details on the redemption schedules will be provided in press releases, and will be posted on the John Hancock Funds web site, www.jhfunds.com.

About John Hancock Funds
The Boston-based mutual fund business unit of John Hancock Financial Services, John Hancock Funds manages more than $56.8 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors at December 31, 2007. John Hancock Funds are distributed by John Hancock Funds, LLC, member FINRA. For more information, please visit www.jhfunds.com.

John Hancock Financial Services is a unit of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$396 billion (US$401 billion) at December 31, 2007. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial may be found on the Internet at www.manulife.com.

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FORWARD LOOKING STATEMENTS
Certain statements made in this release are forward-looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to: changes in securities or financial markets or general economic conditions, including changes in interest rates for borrowings, and other risks discussed from time to time in the fund's filings with the Securities and Exchange Commission. John Hancock and the closed-end funds managed by John Hancock and its affiliates undertake no responsibility to update publicly or revise any forward-looking statements.

PR 2008 - 47